Micronetics Reports Second Quarter Results for Fiscal Year 2010

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HUDSON, N.H.--(Business Wire)--
Micronetics, Inc. (NASDAQ:NOIZ) today reported results for its thirteen and
twenty-six weeks ended September 26, 2009.

Net sales for the second quarter (Q2 FY2010) were $8.8 million, an increase of
35% or $2.3 million compared to $6.5 million for Q2 FY2009. The increase in net
sales for Q2 FY2010 is primarily due to an RFID beta product sale, a space based
contract, and sales of integrated component sub-systems and components, of
approximately equal amounts.

For Q2 FY2010 the Company reported net income of $186,323 or $0.04 per diluted
share, as compared to a net loss of ($66,600) or ($0.01) per diluted share for
Q2 FY2009.

Net sales for the twenty-six weeks ended September 26, 2009 were $16.7 million,
an increase of 23% or $3.1 million compared to $13.6 million for the twenty-six
weeks ended September 27, 2008. The increase in net sales is primarily
attributable to an increase in sales of integrated component sub-systems for
jamming and electronic modernization of approximately $1.6 million, an RFID beta
test product sale of $.7 million and sales related to a space based contract of
$.7 million.

For the twenty-six weeks ended September 26, 2009, the Company reported net
income of $174,258 or $.04 per diluted share, as compared to net income of
$91,006 or $0.02 per diluted share for the twenty-six weeks ended September 27,
2008.

Backlog increased to $31 million on approximately $14 million in bookings for
the quarter.

David Robbins, Micronetics' CEO stated, "As expected, we generated sales in the
second quarter related to the RFID product beta test. Sales of integrated
component sub-systems for defense applications continued to grow, components
reversed a downward trend and showed growth and we are making meaningful
progress toward completion of our space contract."

Mr. Robbins continued, "Our current backlog makeup is predominately defense
related integrated subassemblies to be shipped over a two year period, and the
balance is a mix of components with delivery schedules between 1 and 5 months.
This strong defense backlog coupled with the pipeline of opportunities in
commercial areas including RFID warehouse management and in flight internet
continues to drive our optimistic outlook."

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, Anritsu, BAE Systems, Boeing Company, General Dynamics, ITT
Electronic Warfare Systems, L-3 Communications, Northrop Grumman, Raytheon, and
Thales. In addition, direct government customers including DFAS, Hill AFB,
Augusta Aerospace and NAVICP. 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 changes in economic
conditions, reductions in spending by certain of our customers, our ability to
operate and integrate acquired businesses and products, 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 as well as its other filings with the
Securities and Exchange Commission.

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

Thirteen Weeks Ended
Sep. 26, 2009 Sep. 27, 2008

Net sales $ 8,820 $6,545

Gross profit 2,882 2,069

Research and development 540 389

Selling, general and 1,813 1,707
administrative expenses

Amortization of intangibles 87 160

Other expense 119 61

Income (loss) before income taxes 323 (248 )

Provision (benefit) for income taxes 137 (181 )

Net income (loss) 186 (67 )

Net income (loss) per common share:
Basic .04 (.01 )
Diluted .04 (.01 )

Weighted average shares
Outstanding:
Basic 4,554 5,005
Diluted 4,554 5,005

INCOME STATEMENT DATA

($000s omitted except per share data)

Twenty-Six Weeks Ended
Sep. 26, 2009 Sep. 27, 2008

Net sales $ 16,733 $13,632

Gross profit 5,358 5,048

Research and development 846 731

Selling, general and 3,837 3,906
administrative expenses

Amortization of intangibles 174 338

Other expense 199 37

Income before income taxes 302 36

Provision (benefit) for income taxes 128 (55 )

Net income 174 91

Net income per common share:
Basic .04 .02
Diluted .04 .02

Weighted average shares
Outstanding:
Basic 4,554 5,003
Diluted 4,554 5,008

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

Copyright Business Wire 2009