Letter from the CEO
August 17, 2012
The fiscal year ended March 31, 2012 was a transition year for your Company. While we were able to hold sales constant in the Universal and USI Electric divisions, our 50% owned joint venture performed below expectations. This under-performance was due to lower sales to non-affiliated customers in Europe, a situation we hope to remedy in the current fiscal year.
Importantly, we continued to advance our New Generation technology. At the International Hardware Show held in May in Las Vegas, the Company introduced, for the first time, its full line of New Generation products. These products were extremely well received. We remain optimistic that your Company can experience significant sales and earnings growth in fiscal 2013 from the introduction of these products, and we continue to invest heavily to support them.
For the 12 months ended March 31, 2012, sales were $13,304,602 versus $13,249,604 for the same period last year. The Company reported a net loss of $(503,288), or $(0.21) per basic and diluted share, versus net income of $817,781, or $0.34 per basic and diluted share, for the same period last year. The primary reason for lower year end results was lower Joint Venture earnings of $1,190,000.
Additionally, your Company continues to repurchase stock under its currently authorized Stock Repurchase Plan and has purchased 75,128 shares of its common stock through the date of this letter at an average price of $5.32, which is less than half of your Company’s book value as of March 31, 2012 of $11.23. The current plan authorizes the Company to repurchase an additional 24,872 shares.
As communicated throughout the past two years, Universal has undertaken its largest Research and Development project in company history. With the recent launch of the entire New Generation (New Gen) product line, we are committing additional expenditures to supporting sales of these products. We have begun building inventory of our New Gen products; and, to date, we have received several million dollars of orders for these products.
We remain excited by the future growth opportunities that Universal faces and look forward to delivering continued results to you, our partners. We thank you for your continued support and invite you to contact us any time as we look forward to sharing more positive news in the coming year.
Harvey B. Grossblatt
President and CEO
President, USI Electric
Statements contained in this document that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Although UNIVERSAL SECURITY INSTRUMENTS, INC. believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projections.
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