Electro-Sensors, Inc. Announces Second Quarter 2016 Financial Results

MINNETONKA, Minn., Aug. 12, 2016 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the second quarter ended June 30, 2016.

• Sales in the quarter increase 17.1% over first quarter
• Gross margin of 58.4%
• Operating income margin of 10.3%

Consolidated (unaudited; in thousands, except per share data)

Net sales in the second quarter were relatively flat with the same quarter of last year at $2,009,000 compared to $2,048,000 in the prior-year quarter.  For the first six months of 2016, net sales decreased 5.3% to $3,725,000 from $3,933,000 for the first six months of the prior year. The decreases were primarily due to lower sales volume in the north central U.S. and overseas territories.  Although net sales decreased, there was a favorable shift in the composition, with sales from large orders increasing by over 50%. 

"Our 2016 second quarter results show significant improvement over the first quarter as revenue, gross margin and operating margin all improved during the quarter.  We are encouraged as our customers are beginning to move forward with strategic projects and plant improvements," said Electro-Sensors President David L. Klenk.

A full analysis of results for the period ended June 30, 2016 is available in the Company's Form 10-Q, 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 a leading manufacturer of machine monitoring sensors and hazard monitoring systems, the application of which span across multiple industries. We know that when it comes to monitoring your most critical production processes, your business relies on accurate and real-time information to ensure the safety of employees and protection of equipment. We understand that unexpected downtime is stressful and expensive. Preventive and predictive maintenance based on feedback gathered from your production processes can greatly reduce the chance that a catastrophic breakdown will occur. Using Electro-Sensors products provides you the confidence to know that your equipment is running properly and within safe limits, and that any deviation will be quickly identified and neutralized. We appreciate our many loyal customers who depend upon our products every day to maintain safety and help run their plants 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

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SOURCE Electro-Sensors, Inc.