Allied Motion Reports Sales Up 9% in Second Quarter 2016

AMHERST, N.Y. — Allied Motion Technologies Inc. (NASDAQ: AMOT) (“Company”), a global designer and manufacturer of motion control products and solutions, today reported financial results for the second quarter ended June 30, 2016. Results include the acquisition of Heidrive GmbH (“Heidrive”) acquired on January 12, 2016.

Second Quarter 2016 Performance

• Achieved revenue of $65.8 million; up 8.9% over prior-year period
• Gross margin was 29.8%; Operating income increased 4.0%
• Net income declined 5.9% on higher effective tax rate of 34.7%
• Adjusted EBITDA* increased 4.1% to $8.4 million
• Debt restructuring expected to be completed in the second half of 2016

*Please see the attached tables for a reconciliation of GAAP net income to Adjusted EBITDA

Dick Warzala, Chairman and CEO of Allied Motion, commented, “Results in the quarter were as expected and favorably affected by our acquisition of Heidrive. Sales to our Medical, Aerospace & Defense and Industrials/Electronics markets had solid double digit growth while our Vehicle market declined slightly primarily due to end-of-life wind downs on a couple of projects. As we advance our global growth strategy and transformation to a precision motion control solutions provider, we are expanding our opportunity pipeline with new applications and new customers while focusing our resources toward higher margin, multi-product solutions. We expect in time both scale and revenue diversity will help to diminish the variability of sales to specific markets and customers within quarters.”

Mr. Warzala concluded, “We continue to develop custom applications created for specific customer needs that utilize our extensive technical and engineering knowledge. We are applying this capability to expand our customers and our geographic reach. We are seeing traction with our efforts in new projects, with some moving into production this year and others planned for 2017 and beyond. In the meantime, our attention is on executing our strategy in what appears to be a continuing slow growth economic environment.”