Astronics (ATRO) Revises Q4 Results to Reflect Write-Off Related to Eclipse Aviation; Reaffirms FY09 Sales Outlook

March 2, 2009 5:02 PM EST

Astronics Corporation (NASDAQ: ATRO) today announced that its previously reported results for the 2008 fourth quarter and full year ended December 31, 2008, have been revised to reflect the write off of all remaining assets related to its business with Eclipse Aviation, which last week informed its suppliers that it has suspended all business operations after deciding not to contest a motion by senior secured creditors to convert its bankruptcy proceedings to a Chapter 7 liquidation.

On February 12, 2009, Astronics reported its fourth quarter and full year 2008 results, which included a $7.5 million, or $0.46 per share, charge related to Eclipse. The charge was comprised of $1.0 million for accounts receivable and $6.5 million for inventory and equipment. At the time, the Company had $1.0 million of accounts receivable and $9.0 million of inventory and equipment related to Eclipse. In November 2008, Eclipse had filed for protection under Chapter 11 of the bankruptcy law. Its stated intention at that time was to reorganize and emerge from bankruptcy under new ownership. Based on this information, Astronics retained inventory and equipment totaling $2.5 million in anticipation of future business with Eclipse.

In light of the most recent information, specifically the change in bankruptcy status which occurred prior to Astronics’ filing of its financial statements, the Company recorded an additional pre-tax charge of $2.5 million for inventory and equipment related to the Eclipse business. The effect net of tax was an additional $1.6 million, or $0.15 per share, reduction in net income for the 2008 fourth quarter and full year compared with earlier released financial results. As a result, net loss for the fourth quarter of 2008 was $1.8 million, or $0.17 per diluted share, and net income for 2008 was $8.4 million, or $0.79 per diluted share. Revised consolidated financial data is included with this release.

Astronics also reaffirms its previous expectations for 2009 revenue to be in the range of approximately $230 and $245 million.

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