Arizona Instrument Corp. reports 60 percent increase in pretax income for the first quarter.PHOENIX--(BUSINESS WIRE)--April 28, 1997--Arizona Instrument Corp. (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 :AZIC) Monday announced that revenue for the first quarter ended March 31, 1997, increased 9 percent to $3,578,000 from $3,284,000 for the first quarter of 1996. Income before taxes increased more than 60 percent to $130,000 from $81,000 last year. Net income for the 1997 first period was $81,000, or 1 cent per share, reflecting an effective tax rate of 38 percent. This compares with net income of $79,000, or 1 cent per share, reflecting the utilization of the company's remaining tax loss carryforwards tax loss carryforward See carryforward. that resulted in an effective tax rate of 2.5 percent in the year-earlier period. "Based on the scheduled ramp-up in sales of our ENCOMPASS fuel management and leak (programming) leak - With a qualifier, one of a class of resource-management bugs that occur when resources are not freed properly after operations on them are finished, so they effectively disappear (leak out). This leads to eventual exhaustion as new allocation requests come in. detection system and our customers' enthusiastic response to the recent launch of Computrac's 3000 moisture content analyzer analyzer /ana·ly·zer/ (an´ah-li?zer) 1. a Nicol prism attached to a polarizing apparatus which extinguishes the ray of light polarized by the polarizer. 2. , we expect further revenue and earnings improvement in the current quarter and for the balance of 1997, which is shaping up to be a strong year," said John Hudnall, president and chief executive officer. Hudnall added that gross margin was about unchanged at 54 percent for this year's first quarter compared with the prior year. As a percentage of total revenue, he said that operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. are expected to decline and earnings from operations to increase with the growth in sales anticipated for the remainder of 1997. Hudnall said that sales of Jerome toxic gas monitors exceeded the company's expectations for the first quarter, and that revenue from its Horizon business unit declined compared with the first quarter of 1996 due to reduced tank testing partially offset by higher ENCOMPASS installation sales. At March 31, 1997, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). Instrument reported working capital of $4,072,000, a current ratio of 2.9-to-1, 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. and capital lease obligations totaling $276,000, and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $8,561,000. Arizona Instrument, an ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001-registered company, designs and manufactures precision instruments used in quality control, industrial control and environmental monitoring applications. Its Horizon Engineering and Testing subsidiary specializes in testing and related services for the underground storage tank An Underground Storage Tank (UST), in United States environmental law, is a tank and any underground piping connected to the tank that has at least 10 percent of its combined volume underground. market. The statements in this news release regarding management's anticipation of growth in revenue and earnings, growth in sales, stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of revenue and positive responses to new developments constitute "forward-looking" statements within the meaning of 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. Management's anticipation is based upon assumptions regarding the market in which the company operates, competition, product introduction and delivery schedules, profit margins, demand for inventory, stability of costs, timing and maintenance of orders, stability of the regulatory environment and other factors. Any of these assumptions could prove inaccurate, and therefore there can be no assurance that the forward-looking information will prove to be accurate. -0-
ARIZONA INSTRUMENT CORP.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
($000 omitted, except for per-share and share data)
(unaudited)
Three Months Ended
March 31,
1997 1996
Net Sales $ 3,578 $ 3,284
Income from operations 159 128
Income before
income tax provision 130 81
Income tax provision 49 2
Net income $ 81 $ 79
Net income per
common share $ .01 $ .01
Weighted average number of
common shares and common
stock equivalents 7,055,151 6,862,548
-0-
CONDENSED CONSOLIDATED BALANCE SHEET
($000 omitted)
March 31, Dec. 31,
ASSETS 1997 1996
(unaudited) (audited)
Current assets $ 6,173 $ 6,162
Total assets $10,938 $11,024
LIABILITIES AND EQUITY
Current liabilities $ 2,101 $ 2,214
Long-term debt and
capital lease
obligations 276 378
Total liabilities 2,377 2,592
Stockholders' equity $ 8,561 $ 8,432
Total liabilities and
stockholders' equity $10,938 $11,024
CONTACT: Arizona Instrument Corp., Phoenix George G. Hays Hays, city (1990 pop. 17,767), seat of Ellis co., W central Kans.; inc. 1885. It is a rail, trade, and medical center in a grain, cattle, and oil area. Manufactures include electronic equipment, plastics, feeds, medical supplies, aircraft, and motorcycles. , 602/470-1414 or Berkman Associates, 310/277-5162 |
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