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

MINNETONKA, Minn., Nov. 10, 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 third quarter ended September 30, 2016.

• Third quarter revenue of $1,837,000
• Gross Margin of 54.5%
• Cash, cash equivalents and treasury bills grew to approximately $8.2 million

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

Net sales in the 2016 third quarter decreased 13.8% to $1,837,000 from $2,132,000 in the prior-year quarter.  The quarterly decrease was primarily due to weaker performance in the eastern and southeastern regions of the U.S. and a 27% decrease in Canadian sales which we believe were impacted by a strong US dollar. 

For the first nine months of 2016, net sales decreased 8.3% to $5,562,000 from $6,065,000 for the first nine months of the prior year.  The decreases were primarily the result of customers delaying capital purchases due to challenging and uncertain macroeconomic conditions in the markets we serve.

"During the third quarter we experienced somewhat inconsistent order activity from our customers.  While the order activity was generally robust, the dollar value of each order was below our historical average.  We believe this trend was a result of many customers ordering smaller quantities to keep their inventories low as a result of overall economic uncertainty in the industrial and agricultural sectors," said Electro-Sensors President David L. Klenk.

A full analysis of results for the period ended September 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/ESIsensorsGoogle+: google.com/+Electro-sensorsFacebook: facebook.com/ElectroSensors

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SOURCE Electro-Sensors, Inc.