Electro-Sensors, Inc. Announces Second Quarter 2017 Financial Results

MINNETONKA, Minn., Aug. 10, 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 second quarter ended June 30, 2017.

• Record quarterly revenue of $2,301,000
• Sales increased 14.5%  compared to second quarter of 2016
• Gross margin of 57.5%
• Operating income margin of 14.6%

Selected Financial Information (unaudited; in thousands, except per share data)

Net sales in the second quarter increased 14.5% to $2,301,000 from $2,009,000 in the prior-year quarter.  For the first six months of 2017, net sales increased 6.1% to $3,951,000 from $3,725,000 for the first six months of the prior year. The increase in the second quarter was primarily due to strong sales of our HazardPRO wireless hazard monitoring systems and improved large order performance.  Additionally, the Company experienced significant growth in our international markets led predominately by sales in Canada.

"We are pleased to report strong second quarter results showing significant increases in both revenue and operating income over the comparable period in the prior year.  We believe customers who deferred capital expenditures late in 2016 began to place those orders in the quarter," said Electro-Sensors President David L. Klenk.

A full analysis of results for the period ended June 30, 2017 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-sensorsFacebook: facebook.com/ElectroSensors

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SOURCE Electro-Sensors, Inc.