ARC Capital reports sales increase.MEDFORD Medford. 1 City (1990 pop. 57,407), Middlesex co., E Mass., a residential and industrial suburb of Boston, on the Mystic River; settled 1630, inc. as a city 1892. Wax, paper, clothing, and furniture are among its products. , Ore.--(BUSINESS WIRE)--Aug. 14, 1996--ARC Capital (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ARCCA ARCCA Australian Restoration and Carpet Cleaning Association (Australia) ARCCA Army Reserve Clinical Credentialing Affairs (US Army) ARCCA Army Reserve Centralized Credential Agency (US DoD) ), a leading designer, manufacturer and marketer of proprietary computer-aided vision sorting systems, today reported financial results for the quarter and six months ended June 30, 1996. Sales for the three months ended June 30, 1996, increased 29% to $6,419,000, up from $4,976,000 during the same period a year ago. The 1996 period includes $2,855,000 of sales from the inclusion of Pulsarr Holding bv, a company acquired in March 1996. In the June 30, 1996, quarter, the company reported a net loss of $900,000, or $.08 per share, compared to net income of $258,000, or $.02 per share, in the same quarter last year. The decrease in net income was due principally to $720,000 of increased research and development expenses during the quarter associated with the development of the company's Advanced Vision Processor, the company's next generation of product. Sales for the first half of 1996 were $10,032,000, up 30% from the $7,702,000 experienced in the same period in 1995. The addition of Pulsarr from its March 1 acquisition date added $3,283,000 of sales in the current period. There was a net loss of $8,870,000 for the first six months of 1996, compared to net income of $329,000 in the same period of 1995. The 1996 loss included two special charges: (1) a $6,088,000 write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of in-process technology related to Pulsarr, and (2) a $647,000 charge for deferred royalty expenses. Excluding the special 1996 charges and a non-operational $732,000 gain from arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the in 1995, the 1996 net loss for the first half was $2,135,000, or $.21 per share, compared to a loss of $434,000, or $.05 per share last year. Research and development expenditures for the first six months of 1996 were $1,943,000, an increase of $1,158,000 over the $785,000 spent last year. ARC now has three vision systems subsidiaries: SRC (SouRCe) Contrast with DST, which is an abbreviation of "destination." VISION and Pulsarr in sorting and defect defect - bug removal, and recently acquired Ventek Inc., a rapidly growing provider of vision systems for the wood veneer In woodworking, Veneer refers to thin slices of wood, usually thinner than 3 millimetres (1/8 inch), that are usually glued and pressed onto core panels (typically, wood, particle board or medium density fiberboard) to produce flat panels such as doors, tops and side panels for industry. William J. Young, ARC's president and chief executive officer, said, "Our goal is to create long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. sales and profit growth through the marketing of our proprietary lighting, camera and processing capabilities. The Ventek acquisition brings us our first pure vision product which consists of these technologies that instruct in·struct v. in·struct·ed, in·struct·ing, in·structs v.tr. 1. To provide with knowledge, especially in a methodical way. See Synonyms at teach. 2. To give orders to; direct. v. other machines in maximizing yields without product handling hardware present in our sorting and defect removal equipment." Young also said, "We continue to believe that 1996 sales will approximate $32-35 million and that operating profitability will be achieved for all of 1996, even though 1996 research and development expenditures are expected to exceed $4.5 million." ARC's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. as of June 30, 1996, was $10,385,000 compared to $8,795,000 on June 30, 1995. The 1996 number includes $3,792,000 related to Pulsarr. As of July 31, 1996, backlog was approximately $14 million, including $2,349,000 for Ventek. ARC's operations are comprised of three wholly-owned subsidiaries, SRC VISION, Pulsarr, and Ventek, who design, manufacture and distribute automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. machine vision systems used in sorting and defect identification and removal processes. -0-
Summary Operating Results
(in thousands, except per share amounts)
3 Mos. Ended 6 Mos. Ended
June 30, June 30,
1996 1995 1996 1995
Sales $ 6,419 $ 4,976 $10,032 $ 7,702
Income (loss) before
special charges $ (900) $ 201 $(2,135) $ (434)
Special (charges) income:
In-process technology -- -- (6,088) --
Royalty expense -- -- (647) --
Gain on rescission of
stock compensation -- -- -- 732
Net income (loss):
Continuing operations (900) 201 (8,870) 298
Discontinued operations -- 57 -- 31
Total $ (900) $ 258 $(8,870) $ 329
Net income (loss) per share: Continuing operations $ (.08) $ .01 $ (.85) $ .02 Discontinued operations -- .01 -- .01
Total $ (.08) $ .02 $ (.85) $ .03
Average shares outstanding 10,854 9,339 10,388 9,521 Comments made above include "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ," which are based on expectations of the company. However, there can be no assurance that such statements, or any projections included in such statements, will be achieved, due to general economic and company-specific factors or occurrences that may affect the results of operations. Company-specific factors include ARC's ability to effectively integrate the Pulsarr and Ventek operations, to introduce the Advanced Vision Processor (currently in development) in a timely fashion, and success in sustaining a positive cash flow and expanding sales in existing and new markets. There can be no assurance that the prior growth experienced by Ventek will continue into the future. Factors such as the impact of competitive products and pricing, technological obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. of current products and the inability to develop new products, the inability to protect Ventek's proprietary information, saturation saturation, of an organic compound saturation, of an organic compound, condition occurring when its molecules contain no double or triple bonds and thus cannot undergo addition reactions. of the market for Ventek's products, and the inability to identify and develop new markets could adversely affect Ventek's growth rate. A more complete listing of cautionary statements and risk factors is contained in the company's forms 10-Q for the quarter ended June 30, 1996, filed with the Securities and Exchange Commission. CONTACT: ARC Capital Alan Steel, 541/776-7700 or The Wall Street Group Inc. Ronald Stabiner, 212/888-4848 |
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