James E. Rouse, the company’s president and chief executive officer commented, “The decline in revenue from the same period in 2008 was primarily the result of the elimination of an unprofitable product in our MIT division and continuing price erosion in Micron’s sensor sales. Although we were disappointed that our sensor revenue declined over the same period in 2008, we are encouraged by several developments. Sensor volume sales increased by 20% in the first quarter as compared to the same period in 2008. In addition, during the first quarter we were successful in securing a new long term supply agreement with one of our largest sensor customers. Although in its early stages, we are beginning to see the positive effects of the company-wide lean manufacturing training as well as results from our cost reduction teams developed as part of our continuing focus on improving gross margins on our existing product lines. As part of that process, we are also implementing technological and process improvements which are expected to be completed over the next six to nine months. We are cautiously optimistic that our continuing efforts to streamline manufacturing processes and concentrate on products, services and programs that meet our contribution and strategic goal will produce improved results. In addition, our very strong balance sheet positions us to not only weather the current economic climate but also to capitalize on future growth opportunities.”
