BMC Reports First Quarter 1999 Earnings.MINNEAPOLIS--(BUSINESS WIRE)--April 27, 1999-- BMC (BMC Software, Inc., Houston, TX, www.bmc.com) A leading supplier of software that supports and improves the availability, performance, and recovery of applications in complex computing environments. Industries, Inc. reported net income of $3.2 million, or $.12 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the quarter ended March 31, 1999. This compares to net earnings of $3.8 million, or $0.14 per diluted share, in the first quarter of 1998. Total first quarter revenues increased 6% from $80.1 million in 1998 to $84.6 million in 1999. Paul B. Burke, BMC's Chairman and Chief Executive Officer, stated, "We are pleased with BMC's first quarter results which were achieved despite the impact of additional costs associated with restarting our monitor mask line in Cortland, New York This article is about the city in Cortland County, New York. For Cortlandt, New York in Westchester County, see Cortlandt, New York. Cortland is a city in Cortland County, New York, USA. As of the 2000 census, the city had a population of 18,740. . During the first quarter, we increased revenues by 6% and improved income from operations by 14% over the prior year quarter. We believe this quarter's performance reflects the benefits from the integration of the Orcolite acquisition and the solid progress we have made in returning the mask business to profitability. We are also pleased with further progress on our cash generation and debt reduction efforts while continuing our investments in ongoing strategic initiatives. With the Cortland monitor mask line back in production, new initiatives beginning to show progress and debt levels continuing to drop, we anticipate both further revenue and earnings growth over the balance of 1999 and into 2000." BMC's Optical Products group generated sales of $34.6 million in the first quarter of 1999, up 40%, or $9.8 million, over the prior year quarter due mainly to growth in sales of high-end products (polycarbonate A category of plastic materials used to make a myriad of products, including CDs and CD-ROMs. , progressive and polarizing sun lenses) resulting from the acquisition of Orcolite in May 1998. Sales of high-end products increased 98% in first quarter 1999 over first quarter 1998 and accounted for 54% of total Optical Products group revenue in first quarter 1999 compared to 38% in first quarter 1998. First quarter 1999 Optical Products group revenues were up 2.4% compared to the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma combined Vision-Ease/Orcolite 1998 revenues for the same period. This growth in revenue was dampened by year-on-year declines in glass and plastic lens sales as growth in the ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. lens market continues to shift towards polycarbonate. In the first quarter of 1999, Optical Products group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. of high-end products (including polycarbonate) increased 9% over the pro forma combined Vision-Ease/Orcolite 1998 revenues for the same period. Driven by high-end product sales growth, the Optical Products group's operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before increased 34% during the first quarter of 1999 over the prior year quarter. Vision-Ease achieved this improvement in earnings despite the impact of additional amortization expense related to the Orcolite acquisition and increased sales and marketing expenses of approximately $1 million over the prior year quarter. Vision-Ease devoted considerable resources (including the sales and marketing investment noted above) to the expansion of market acceptance of its key high-end products, including the new Outlook(this product and is encouraged by the wide acce premium anti-reflective coated multi-focal polycarbonate lenses to consumers on a same-day basis. Based upon test results to date, Vision-Ease is on schedule for the roll-out of this system in the second half of the year. Taken as a whole, Vision-Ease's branded proprietary, high-end products are expected to be the engine for Vision-Ease sales growth in the second quarter and beyond. First quarter revenues from the Precision Imaged Products group ("PIP", which includes both the Mask Operations and Buckbee-Mears St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery ) decreased 10% from $55.3 million in first quarter 1998 to $50.0 million in first quarter 1999, primarily due to the previously anticipated temporary slowdown at BMSP BMSP Backbone Multiservice Platform BMSP Brazilian Meeting on Simulational Physics BMSP Business Management and Sales Process BMSP Bonds Minimum Statistical Plan and a decline in sales of AK steel entertainment masks attributable to both volume and price reductions. Despite these recent declines, sales of AK steel entertainment masks continue to account for more than 50% of total mask revenues. Increased sales of invar entertainment masks and monitor masks largely offset the decline in sales of AK steel entertainment masks. Sales of invar entertainment masks in first quarter 1999 increased 20% over first quarter 1998 and sales of monitor masks increased 29% over the comparable quarter last year. Because only a limited amount of monitor masks sold in first quarter 1999 were produced at our Cortland facility, we expect significant incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales of monitor masks as the restarted Cortland monitor mask line reaches full production. The monitor mask line in Cortland was restarted near the end of January 1999 in response to increased demand for monitor masks from a broadened customer base. The line start-up had a significant negative impact on first quarter results. However, the line experienced substantial yield improvement by the end of the quarter and BMC is optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op regarding the line's future earnings potential. As previously anticipated, BMSP experienced a reduction in sales and profitability in the first quarter of 1999 compared to prior year first quarter results due to what we believe are temporary disruptions in the ordering patterns of certain major customers. BMSP currently expects these economic conditions to improve as 1999 progresses. Moreover, multiple new product sales initiatives are underway and some are now beginning to reach realization. The slow start, however, is expected to also slightly impact the second quarter of 1999 compared to second quarter 1998, with stronger performance expected during the second half of 1999. This press release contains 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which are intended to be covered by the safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created thereby. Statements made in this press release which are not strictly historical, including statements regarding future performance, are forward-looking statements and as such are subject to a number of risks and uncertainties, including, among others, lower demand for televisions and computer monitors; further mask price declines and imbalances of supply and demand; successful customer part qualifications; liability and other claims asserted against BMC; continued slowdown at BMSP; successful new product development, introduction and acceptance; successful cost reduction and reorganization efforts; higher 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. and lower yields associated with any additional production shutdowns or start-ups; negative foreign currency fluctuations, including adverse fluctuations affecting cross-currency swaps; inability to partner with new BMSP customers; the impact of Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 information systems issues; the effect of the economic uncertainty in Asia; and a potential economic slowdown in other parts of the world such as South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . These and other risks and uncertainties are detailed in BMC's Annual Report and Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1998. BMC Industries, Inc. is a leading producer of polycarbonate, glass and plastic eyewear eye·wear n. 1. Eyeglasses, goggles, or other objects worn over the eyes. 2. Fashionable eyeglasses. lenses. BMC is also one of the world's largest manufacturers of aperture An orifice. It often refers to an opening in which light is allowed to pass in optical systems such as cameras and lasers. See f-stop and numerical aperture. masks for color picture tubes used in televisions and computer monitors. BMC's common stock is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol BMC. -0-
BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, e------------------------------------------------
1,330
----------------------------------------------------------------------
Income from Operations 7,969 7,010
---------------------------------------------------------------
0.12 $ 0.14
Diluted sic 27,201 26,994
Diluted lents $
1,976 $ 1,02------------------------------------------------12 5,431
Intangibles and other assets,
ne=============================================================
Liabilities and Stockholders' Equity
-------------------------------------------------------------------------------------------------------------------
47,756 47,714
Retained earnings 89,219 86,436
Accumula------------------------------------------------ (Unaudited)
(in ------------------------
Revenues $49-----------------
Gross Margin 4,910 5,207 8,657 6,422 13,567 11,629
Gross Margin % 9.8% 9.4% 25.0% 25.9% 16.0% 14.5%
Selling 1,357 1,133 3,008 2,156 4,365 3,289
Unallocated
Corporate
Administration - - - - 1,233 1,330
======================================================================
Income from
Operations $ 3,553 $ 4,074 $ 5,649 $ 4,266 $ 7,969 $ 7,01iation and
Amortization $ 5,647 $ 5,002
EBITDA $14,006 $11,868
EBITDA % 16.5% 14.8%
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