Micronetics Reports $30.4M in Net Sales for Its 2009 Fiscal Year

HUDSON, N.H.--(Business Wire)--
Micronetics, Inc. (NASDAQ:NOIZ) today reported results for its fourth quarter
and fiscal year ended March 31, 2009 ("FY2009").

Net sales were $8,317,424 for the thirteen weeks ended March 31, 2009, an
increase of $594,409 or 8% as compared to $7,723,015 for thirteen weeks ended
March 31, 2008. For FY2009, the Company reported net sales of $30,347,285 as
compared to net sales of $32,624,946 for FY2008, a decrease of $2,277,661 or
(7%).

For the thirteen weeks ended March 31, 2009, the Company reported a net loss of
($270,495) or ($0.06) per diluted share as compared to net income of $303,097 or
$0.06 per diluted share, for the quarter ended March 31, 2008. For FY2009, the
net loss was ($9,563,927) or ($1.98) per diluted share, as compared to net
income of $1,662,383 or $0.34 per diluted share for FY2008, a decrease of
$11,126,310. The net loss for FY 2009 includes a pre-tax, non-cash goodwill and
intangible asset impairment charge of approximately $9.3 million.

The decrease in net sales for the fiscal year is primarily attributable to a
decrease in net sales of high performance amplifiers for commercial WIMAX and
public safety applications of approximately $6.8 million. This decrease was
offset in part by an increase of $2.8 million in sales of integrated component
sub-systems for jamming and electronic modernization and an increase of
approximately $1.7 million in sales of other components.

Dave Robbins, Micronetics CEO, stated, "We are diversifying our high power
amplifier (HPA) business into defense and airborne platforms and are starting to
get traction evidenced by our booking development contracts with large defense
contractors for communications on the move (COTM) and jamming applications. In
addition we are developing digital pre-distortion technology which may greatly
improve the linearity, cost, and efficiency of HPAs, we believe these will be
important requirements for wide-scale deployment of emerging communication
systems."

Micronetics` backlog increased to a record $26 million on over $10 million in
bookings for the quarter ended March 31, 2009.

Mr. Robbins, continued, "Q4 earnings were affected by a non cash write-down of
inventory primarily related to the uncertainty in today's commercial markets,
and because of the mix of revenue related to development contracts. We remain
optimistic about our outlook based on our ongoing robust bookings. We continue
to execute against critical milestones and have received positive customer
feedback on delivered prototype integrated subsystems. In addition, we foresee a
strong pipeline of opportunities in jamming and electronic system modernization
for defense programs as well as RFID and In-flight internet commercial programs.
We continue to focus on converting our backlog into cash and completing
qualification deliveries of integrated subsystems that we expect will contribute
to significant growth potential over the next several years."

Micronetics manufactures microwave and radio frequency (RF) components and
integrated subassemblies used in a variety of defense, aerospace and commercial
applications. Micronetics also manufactures and designs test equipment and
components that test the strength, durability and integrity of communication
signals in communications equipment. Micronetics serves a diverse customer base,
including AeroSat, Anaren Microwave, Anritsu, Augusta Aerospace, BAE Systems,
Boeing, Comtech, EADS, EDO/Benchmark, General Dynamics, ITT Electronic Warfare
Systems, L-3 Communications, Lockheed Martin, NAVICP, Nextwave/Jabil Circuit,
Northrop Grumman, Pegasus GSS, Qualcomm, Raytheon, Teradyne, Tektronix and
Thales. Additional information can be found on our website at
http://www.micronetics.com.

Some of the statements contained in this news release are forward-looking
statements. The accuracy of these statements cannot be guaranteed as they are
subject to a variety of risks, including but not limited to reductions in
spending by certain of our customers, our ability to operate and integrate
acquired companies, our ability to manage our growth, disruptions in supply or
production, increased levels of debt, our ability to protect our proprietary
information, future economic conditions in our industry and generally, as well
as other factors. The information in this release should be reviewed in
conjunction with Micronetics' Annual Report for its fiscal year ended March 31,
2009.

INCOME STATEMENT DATA
($000s omitted except per share data)

Thirteen Weeks
Ended March 31,
2009 2008

Net sales $ 8,317 $ 7,723

Gross profit 1,390 3,248

Research and development 655 417

Selling, general and
administrative expenses 2,036 1,973

Amortization of intangibles 66 183

Other expense (94 ) (155 )

(Loss) income before income taxes (1,461 ) 520

(Benefit) provision for income taxes (1,191 ) 217

Net (loss) income ($ 270 ) $ 303

Net (loss) income per common share:
Basic ($ .06 ) $ .06
Diluted ($ .06 ) $ .06

Weighted average shares
Outstanding:
Basic 4,554 4,995
Diluted 4,554 5,013

INCOME STATEMENT DATA
($000s omitted except per share data)

Year
Ended March 31,
2009 2008

Net sales $ 30,347 $ 32,625

Gross profit 9,184 12,919

Research and development 1,869 1,018

Selling, general and
administrative expenses 7,899 7,590

Goodwill impairment charge 7,965 --

Intangible asset impairment charge 1,295 --

Amortization of intangibles 566 733

Other expense (328 ) (565 )

(Loss) Income before income taxes (10,738 ) 3,013

(Benefit) provision for income taxes (1,174 ) 1,351

Net (loss) income ($ 9,564 ) $ 1,662

Net (loss) income per common share:
Basic ($ 1.98 ) $ .34
Diluted ($ 1.98 ) $ .34

Weighted average shares
Outstanding:
Basic 4,836 4,932
Diluted 4,836 4,951

BALANCE SHEET DATA
($000s omitted)
Year
Ended March 31,
2009 2008

Cash, cash equivalents and
short term investments $ 620 $ 3,563
Working capital 8,544 11,197
Total assets 25,526 33,386
Non-current liabilities 3,993 5,551
Shareholders' equity 12,230 22,409

Micronetics, Inc.
David Robbins, 603-546-4131
CEO

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