Electro-Sensors, Inc. Announces 2016 Year End Financial Results

MINNETONKA, Minn., March 29, 2017 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the year ended December 31, 2016.

• Annual revenue of  $7,087,000
• Gross Margin of 54.8%
• Cash, cash equivalents and treasury bills grew to approximately $8.3 million

In thousands, except per share data

Net sales during 2016 decreased 7.2% to $7,087,000 from $7,636,000 in the prior year.  The decrease occurred primarily in the second half of the year due to softening in many industrial markets that impacted all of our product lines.  Furthermore, during the third and fourth quarters of 2016, the value of large strategic orders decreased relative to the comparable period in the prior year as customers shifted their focus to immediate needs and deferred larger capital purchases. International markets provided over 10% of our 2016 revenue from shipments into over 40 countries.

"While 2016 was certainly a challenging year due to the many economic pressures and uncertainties experienced by our customers, we remain encouraged that we are very well positioned to capture available opportunities as our markets stabilize," said David L. Klenk, Electro-Sensors' president.  "Furthermore, we are excited that our HazardPROTM wireless hazard monitoring system continues to gain momentum and acceptance in the markets we serve."

A full analysis of results for the year ended December 31, 2016 is available in the Company's Form 10-K, which is available on the Company's website at www.electro-sensors.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.

About Electro-Sensors

Electro-Sensors, Inc. is an industry leading designer and manufacturer of rugged and reliable machine monitoring sensors and hazard monitoring systems applied across multiple industries and applications. These products improve processes by protecting people, safeguarding systems, reducing downtime, and preventing waste. Most standard products ship within one to two days and have an industry-leading 5-year warranty. Electro-Sensors is proud to be an ISO9001:2008 quality certified company and is committed to providing excellent customer service and technical support. Founded in 1968 and located in Minnetonka, Minnesota, Electro-Sensors provides its loyal customers with reliable products that improve safety and help plants operate with greater efficiency, productivity and control.

Cautionary Statement Regarding Forward Looking Statements

This press release may include statements about possible or anticipated future financial performance, business activities, plans, or opportunities.  These forward-looking statements may include the words "will," "should," "believes," "expects," "anticipates," "intends" or similar expressions.  For these forward-looking statements, the Company claims the protection of the safe harbor for forward−looking statements contained in federal securities laws.  Forward-looking statements reflect the company's current views with respect to future events and financial performance and include any statement that does not directly relate to a current or historical fact.  These forward-looking statements are subject to a number of factors, risks and uncertainties, including those disclosed in our periodic filings with the SEC that could cause actual performance, activities, plans, or opportunities after the date the statements are made to differ significantly from those indicated in the forward-looking statements.

For more information please visit our website at: www.electro-sensors.com. Also look us up on:  LinkedIn: linkedin.com/company/electro-sensors-inc- Twitter: twitter.com/ESIsensors Google+: google.com/+Electro-sensors Facebook: facebook.com/ElectroSensors

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/electro-sensors-inc-announces-2016-year-end-financial-results-300431454.html

SOURCE Electro-Sensors, Inc.