Delta Systems Confirms 4Q Estimates

Delta Systems Inc., the Rogers automation and motion control company, on Jan. 15 confirmed its guidance for the fourth quarter ended December 2001, and for the fiscal year ending December 2002.

Delta, which provides leading edge PC-based automation control solutions including its proprietary software SoftFlow, is traded publicly on the Canadian Venture Exchange, but all figures here are in U.S. dollars.

Delta previously indicated that it expected to receive new orders in the fourth quarter of fiscal 2001 in excess of $2 million. The company also set its 2002 expected revenues at more than $12 million with its earnings before interest, taxes, depreciation and amortization (EBITDA) to improve sequentially each quarter of this year. The goal is to see a positive EBITDA by the second quarter.

“We doubled our plant capacity by moving from Bentonville to Rogers this fall and leasing a building next to our existing plant facility,” said Jake Bushey, Delta’s president and COO.

“The 3Q was light in capital goods, but our quote activity doubled and our sales activity tripled for the 4Q. I think we’re going to have one heck of a year in 2002.”

Delta’s automation systems orders in the fourth quarter of fiscal 2001 totaled about $2.2 million. Software, services and parts orders exceeded $2.4 million.

Bushey said Delta also expects orders to exceed $2 million for the first quarter of 2002.