Amtech Corporation announces fourth-quarter and 1995 annual operating results; CEO comments on 1996 outlook.DALLAS--(BUSINESS WIRE)--March 12, 1996--Amtech Corporation (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 :AMTC AMTC Applied Media Technologies Corporation AMTC Aerospace Manufacturing Technology Centre (Canada) AMTC American Modeling and Talent Convention AMTC Army Missile Test Center (White Sands Missile Range, NM) ) today reported operating results for the fourth quarter and full year ended December December: see month. 31, 1995. The 1995 financial results include the operations of Cotag International Limited and Cardkey Cardkey is the name of the company that started an Industry and were based in Simi Valley, California. They were the first company to develop and widely distribute "Electronic Access Control Systems". Once a division of Greer Hydraulics, Inc. Systems since being acquired by the Company in February February: see month. and August respectively, thus affecting comparability of the Company's 1995 results with those of 1994. Revenues were $28,609,000 for the fourth quarter of 1995, compared to revenues of $11,772,000 a year ago. Consistent with previously announced expectations, the Company recorded a quarterly net loss of $2,128,000, or $0.15 per share, compared to 1994's quarterly net income of $76,000, or $0.01 per share. Fourth quarter results were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by a non-operating gain of $1,040,000 from the sale of investment securities, but were negatively impacted by a $500,000 one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge to earnings for purchased in-process research and development related to Amtech's increasing its equity stake in WaveLink Technologies, Inc. to a majority interest during the quarter. For the full year ended December 31, 1995, revenues totaled $80,071,000, up 30% from the $61,457,000 reported during the same period of 1994. The net loss for 1995 was $4,087,000, or $0.28 per share, including one-time charges of $1,382,000 for purchased in-process research and development related to 1995 business acquisitions. These results compare with net income of $7,662,000 or $0.52 per share in 1994. Commenting on the Company's outlook for 1996, Amtech's president & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , G. Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. Mortenson, said, "We are targeting sales of $115-$130 million in 1996 with operations on a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta basis at approximately a break-even level for the year exclusive of net investment income, based on current trends and our expectations for the WaveLink product line. These results would compare favorably with the $6 million pre-tax operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. recorded in 1995. Operating results will continue to be impacted by significant R&D investments in all of the Company's market-oriented groups and the need to build a direct sales and service organization for the new WaveLink product line, which is expected to produce meaningful sales in the second half of this year." "We are pleased to report," Mr. Mortenson continued, "that the very significant operating losses being incurred at Cardkey Systems prior to its acquisition by Amtech last August have been stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. and that Cardkey is now operating at a break-even level after only six months of Amtech ownership and management. Furthermore,new bookings for the Transportation Systems Group are up substantially from recent levels with order 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. for this group on February 29, 1996, totalling approximately $19 million." Mr. Mortenson concluded, "Encouraged by these recent developments coupled with a strong year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. balance sheet, which includes $49 million in working capital and only $2.6 million in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , we believe that a solid foundation has been established for further improved results in 1997." Additionally, the Company reported that in the first quarter of 1996 it sold the remaining portion of its corporate equity portfolio realizing pre-tax investment income of approximately $2.1 million. Amtech Corporation is a leading global provider of systems and solutions utilizing the Company's core competence Core competence Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty. in wireless data technologies and serving the intelligent transportation, electronic security, logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. , and other markets. The Company is organized into three market-oriented groups: Transportation Systems Group, headed by Amtech Systems Corporation; Electronic Security Group, encompassing the Cotag International and Cardkey Systems product and service lines; and Interactive Data Group, comprised of WaveLink Technologies, Inc. The following is a 'safe harbor' statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: With the exception of historical information, the matters discussed in this press release are 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. that are based on management assumptions and involve risks and uncertainties, including but not limited to, the Interactive Data Group's ability to develop successfully, timely release to manufacturing, and establish market channels for, the WaveLink product line, and customers' acceptance of such products; the Transportation Systems Group and Electronic Security Group increasing the sales of their manufactured products; the availability of components from suppliers; the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and trade environment; general domestic and international economic conditions; the impact of competitive products and pricing; the Company's ability to attract and retain key employees;and, other risks detailed from time to time in the Company's SEC public filings. Consequently, if such management assumptions prove to be incorrect or such risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , the Company's actual results could differ materially from the results forecast in the forward-looking statements. -0-
AMTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
-------------------- --------------------
1995 1994 1995 1994
-------- -------- -------- --------
Sales $ 28,609 $ 11,772 $ 80,071 $ 61,457
Operating costs
and expenses:
Cost of sales 20,074 7,557 53,656 31,288
Research and
development (1) 3,011 1,556 9,334 6,222
Marketing, general
and administrative 8,811 3,188 23,123 13,991
-------- -------- -------- --------
31,896 12,301 86,113 51,501
-------- -------- -------- --------
Operating income (loss) (3,287) (529) (6,042) 9,956 Investment income 1,680 737 2,308 2,104
Interest expense (115) - (181) -
-------- -------- -------- --------
Income (loss) before
income taxes (1,722) 208 (3,915) 12,060
Provision for
income taxes 406 132 172 4,398
-------- -------- -------- --------
Net income (loss) $ (2,128) $ 76 $ (4,087) $ 7,662
======== ======== ======== ========
Earnings (loss)
per share $ (0.15) $ 0.01 $ (0.28) $ 0.52
======== ======== ======== ========
Shares used in
computing earnings
(loss)per share 14,673 14,720 14,655 14,800
======== ======== ======== ========
(1) Includes $500,000 and $1,382,000 in the quarter and year ended
December 31, 1995, respectively, for purchased in-process research
and development related to 1995 acquisitions.
AMTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, December 31,
1995 1994
------------ ------------
ASSETS
Cash and marketable securities $ 27,837 $ 49,912
Accounts receivable, net 24,559 7,438
Inventories 13,415 8,199
Other current assets 1,762 1,485
Property and equipment, net 14,083 8,885
Intangible assets, net 8,827 -
Other assets 2,896 4,703
-------- --------
$ 93,379 $ 80,622
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 18,224 $ 3,476
Note payable 2,594 -
Deferred license revenues - 1,810
Stockholders' equity 72,561 75,336
-------- --------
$ 93,379 $ 80,622
======== ========
WORKING CAPITAL $ 49,349 $ 63,558
======== ========
CONTACT: Amtech Corporation Beverly Beverly, city (1990 pop. 38,195), Essex co., NE Mass., on Massachusetts Bay; inc. as a city 1894. Its chief manufactures are electronic and scientific equipment, consumer goods, and chemicals. Fuortes, 214/733-6059 |
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