Aeroflex Holding Corp. (ARX) SEC Filing 10-Q Quarterly report for the period ending Monday, March 31, 2014

NEWS RELEASE

AEROFLEX ANNOUNCES THIRD QUARTER FISCAL 2014 RESULTS

PLAINVIEW, New York — May 7, 2014 -- Aeroflex Holding Corp. ("Aeroflex") (NYSE: ARX), a leading global provider of high performance microelectronic components, and test and measurement equipment, today announced its financial results for the third quarter of fiscal 2014, which ended March 31, 2014.

As announced on September 5, 2013, Aeroflex sold the net assets of Aeroflex Test Equipment Services (“ATES”), a division of its U.K. subsidiary, Aeroflex Limited, for $19.2 million in cash. The results of operations of ATES are reported as income from discontinued operations. Aeroflex’s prior period results have been adjusted to reflect this transaction. The results for the quarter include Shenick Network Systems Limited which was acquired for cash of $27.1 million on February 5, 2014. Shenick’s sales and result of operations were not significant in the quarter.

Aeroflex’s results from continuing operations for the third quarter of fiscal 2014 are discussed below:

“We continued to execute well and deliver solid financial results this quarter,” stated Len Borow, Chief Executive Officer of Aeroflex. “We had strength across many of our core markets, especially the ATS wireless business and, the AMS HiRel business which performed well in light of macro government-related headwinds. Our book to bill was solid again at approximately 1-to-1 which is positioning us well to deliver a strong fourth quarter.”

The following tables present selected financial information for the three and nine months ended March 31, 2014 and 2013 prepared in accordance with generally accepted accounting principles (“GAAP”) and on a basis other than GAAP (“Non-GAAP”). Prior fiscal year comparative information has been restated to present the operating results of ATES as a discontinued operation. A reconciliation between GAAP and Non-GAAP amounts is presented at the end of this press release. The 32% Non-GAAP effective tax rate in the fiscal 2014 period and 33% in the fiscal 2013 period result from Aeroflex’s geographic mix of Non-GAAP pre-tax income. These rates were applied to Aeroflex’s Non-GAAP pre-tax income for the three and nine months periods ended March 31, 2014 and 2013, respectively.