Astronics Corporation (NASDAQ: ATRO), a provider of advanced technologies for the global aerospace, defense and semiconductor industries, has reported financial results for the three and twelve months ended December 31, 2017, the company said.
Results include the acquisitions of Custom Control Concepts (“CCC”) on April 3, 2017 and Telefonix on December 1, 2017 (collectively, the “Acquired Businesses”).
For the quarter, consolidated sales were up USD 17.2 million, or 11%, from the same period last year. Organic revenue was USD 162.8 million, up 6% compared with the same prior year period. The 2017 fourth quarter included USD 8.5 million in sales from Acquired Businesses. Aerospace segment sales of USD 139.6 million were up USD 11.5 million and Test Systems segment sales of USD 31.8 million were up USD 5.7 million.
Consolidated gross margin was 18.8% in the fourth quarter of 2017 compared with 23.7% in the fourth quarter of 2016. Consolidated gross margin was negatively affected by the CCC acquisition having a significantly lower margin profile at this point in its business cycle compared with the organic business. Organic Engineering & Development (“E&D”) costs were USD 22.5 million in the quarter, compared with USD 22.7 million in last year´s fourth quarter. As a percent of sales, organic E&D costs were 13.8% and 14.7% in the fourth quarters of 2017 and 2016, respectively. The Acquired Businesses incurred E&D costs of USD 2.9 million in the fourth quarter.
For the year, consolidated sales for 2017 decreased by USD 8.7 million, or 1.4%, to USD 624.5 million. Aerospace segment sales of USD 534.6 million were consistent with 2016 sales of USD 534.0 million, while Test Systems segment sales were down 9.3% to USD 89.9 million. Sales from the Acquired Businesses contributed USD 15.5 million for 2017.
Consolidated gross margin was 22.0% in 2017 compared with 25.2% in 2016. Lower consolidated gross margin was the result of lower sales volume. E&D costs increased 6.8% to USD 95.0 million in 2017 primarily due to the Acquired Businesses, compared with USD 88.9 million in 2016. The incremental E&D costs of Acquired Businesses totaled USD 5.7 million. As a percent of sales, E&D was 15.2% and 14.0% in 2017 and 2016, respectively.
Astronics serves the world´s aerospace, defense and semiconductor industries with proven, innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. For more information on Astronics and its solutions, visit Astronics.com.