Share prices for WSI Industries Inc. (NASDAQ: WSCI) shot up over 23 percent today after the company announced its third quarter results for 2007 after the market’s close yesterday, exciting investor and broker interest alike.According to the company’s report, WSI reported net sales for $5.2 million for the third quarter of 2007 ended May 27, 2007 – an impressive 24 percent increase over the previous quarters net sales of $4.2 million. The company also reported a net income of $229,000, or 8 cents per share, for 2007, as compared to the $172,000, or 6 cents a share, the company reported in 2006.
In addition, WSI’s year-to-date sales for the nine months ended May 27, 2007, recorded a 15 percent increase – over $13 million – for the same period the year before, and net income for the same year-to-date period increased to $521,000 compared to $420,000 the year before.
Michael Pudil, WSI’s president and CEO, attributed the company’s success to a number of acquisitions and developments.
“We are pleased to report on an exceptional fiscal 2007 third quarter,” Pudil said. “As previously announced, we secured a new customer in the energy field, and that account provided WSI with $410,000 in sales in the fiscal 2007 third quarter. We also experienced sales increases in our recreational vehicle market.
“We continue to reap the benefits of our diversification efforts as this quarter we are announcing two new customers, one in the recreational vehicle market and the other in the aerospace market,” Pudil continued. “We are capitalizing on opportunities in markets that we already serve, but as shown with our new partner in the energy field, we are able to find new prospects outside our traditional industries.”
This news comes less than two months after its last major press release, where the company reported net sales of $4.4 million for the second quarter of 2007, which was also an increase of 24 percent over the previous year’s results of $3.6 million. But WSI isn’t done yet.
“We expect our fiscal 2007 fourth quarter to show sales growth as compared to the year earlier quarter, even though a previously announced planned reduction with one of our current customers will start to take effect,” Pudil said. “Going forward, we are optimistic in regards to both top-line growth and customer diversification as indications are that our energy business will approach $6 million to $8 million in sales annually in fiscal 2008.”
In response to the news, share prices went from opening price of $5.36 to $5.74 by noon with a market cap of 15.5 million and a volume of 788,560.
