Barringer Technologies Inc. Announces Third Quarter 1998 Results.WARREN, N.J.--(BUSINESS WIRE)--October 26, 1998--Barringer Technologies Inc. (Nasdaq: BARR BARR Board on Agriculture and Renewable Resources (Washington, DC, USA) BARR Bureau of Aeronautics Resident Representative ), the leading developer, manufacturer, and marketer of trace drug and explosive detection Explosive detection is a non-destructive inspection process to determine whether a container contains explosive material. Explosive detection is commonly used at airports, ports and for border control. equipment, today announced results for its third quarter and nine months ended September 30, 1998, in line with the Company's previously announced expectations. For the quarter ended September 30, 1998, the Company reported revenues of $3.4 million compared to $5.9 million during the prior year's third quarter. Net income for the quarter, including a net tax benefit of $195,000 (or $0.02 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), was $425,000, or $0.05 per diluted share. This compares to net income, including a net tax benefit of $125,000 (or $0.02 per diluted share), of $1.6 million or $0.24 per diluted share reported in the year-ago period. The number of diluted shares outstanding for the current third quarter was 8.3 million, compared to 6.4 million in the year-ago quarter. Revenues for the nine-month period ending September 30, 1998 were $14.5 million, compared to $15.3 million for the year-ago period. Net income for the nine months was $3.0 million, or $0.40 per diluted share, and included a net tax benefit of $545,000, or $0.07 per diluted share as well as a one-time charge of $435,000, or $0.06 per diluted share for the write-off of certain technology and in-process research and development related to the Company s acquisition of DigiVision in May 1998. Net income for the year-ago period was $3.8 million, or $0.61 per diluted share, and included a net tax benefit of $256,000, or $0.04 per diluted share. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the current nine-month period is based upon 7.7 million shares versus 6.3 million last year. Mr. Stanley Binder binder: see combine. An earlier Microsoft Office workbook file that let users combine related documents from different Office applications. The documents could be viewed, saved, opened, e-mailed and printed as a group. , Chairman and Chief Executive Officer, said, "As we previously reported, our results for the quarter were negatively impacted by several external factors, principally the delay in the Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control s procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of additional trace detectors, which have adversely affected the trace detection industry as a whole. We are, however, extremely pleased to note that the FAA s fiscal year 1999 budget authorization The right or permission to use a system resource; the process of granting access. See access control. was approved on October 20, 1998. The budget includes $100 million for the deployment of bulk and trace explosive detection systems Noun 1. explosive detection system - a rapid automatic system to detect plastic explosives in passengers' luggage using X-ray technology and computers; designed for use in airports EDS and other advanced security equipment at U.S. airports. We are hopeful that with this new budget authorization the FAA will renew its procurements of Barringer s Barringer as a name may refer to:
Mr. Binder added, "Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for this quarter improved to 62.4%, an increase over last year s 53.8%. Improvements in this area were the direct result of our successful efforts in engineering costs out of the IONSCAN(R), coupled with a larger mix of international sales at higher price points. The increase in 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. in the quarter was primarily a result of approximately $400,000 in product development costs and an additional $190,000 of expenses at DigiVision, which we acquired in May 1998." Mr. Binder concluded, "As we've stated before, Barringer Technologies continues to seek a more diversified diversified (di·verˑ·s customer base for its products by, among other things, pursuing new industrial applications for our core technology and acquiring companies in complementary industries. With the recent appointment of a new Vice President of Corporate Development, we hope to accomplish these goals, which will ultimately lessen less·en v. less·ened, less·en·ing, less·ens v.tr. 1. To make less; reduce. 2. Archaic To make little of; belittle. v.intr. To become less; decrease. our dependence on government agencies." Headquartered in Warren, New Jersey, Barringer Technologies Inc. is principally engaged in developing, manufacturing, and marketing of high technology products for drug and explosive detection and other security and industrial applications. The IONSCAN(R) is the Company s proprietary trace particle drug and explosive detection unit. This press release contains certain 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, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended that are based on the beliefs of the Company s management as well as assumptions made by and information currently available to the Company s management. When used in this press release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Factors that could cause actual results to differ materially from the Company s expectations include, but are not limited to, the following: general economic and political conditions, budgetary processes, the timing of government procurements Government procurement, also called public tendering, is the procurement of goods and services on behalf of a public authority, such as a government agency. With 10 to 15% of GDP in developed countries, and up to 20% in developing countries, government procurement accounts , as well as other conditions in the markets for the Company s products. Other factors may be described from time to time in the Company s public filings with the Securities and Exchange Commission, news releases and other communications. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company does not undertake any obligation to release publicly any revisions to these forward- looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events. - Financials to Follow - -0-
BARRINGER TECHNOLOGIES INC.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
(unaudited) (unaudited)
Revenues $3,412 $5,905 $14,547 $15,343
Gross profit 2,129 3,176 8,852 8,659
Operating expenses 2,429 1,832 7,031 5,370
Write-off of acquired - - 435 -
technology
Pre-tax income 230 1,432 2,502 3,561
Net income 425 1,557 3,047 3,817
Preferred Stock Dividends 2 3 7 9
Basic earnings per common $ 0.05 $ 0.28 $ 0.43 $ 0.70
share
Diluted earnings per $ 0.05 $ 0.24 $ 0.40 $ 0.61
common share
Weighted average common
and common equivalent
shares:
Basic 7,719 5,484 6,992 5,443
Diluted 8,313 6,389 7,687 6,268
BARRINGER TECHNOLOGIES INC.
Condensed Balance Sheets
(In thousands)
September 30 December 31
1998 1997
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 19,483 $ 8,188
Marketable securities 15,102 2,499
Accounts receivable, net 4,753 7,908
Inventory 4,928 3,049
Other 3,315 2,393
Total current assets 47,581 24,037
Machinery and equipment, net 1,955 1,505
Other long term assets 1,282 66
Total assets $ 50,818 $ 25,608
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities
Accounts payable and accruals $ 2,919 $ 4,373
Non-current liabilities 145 121
Stockholders equity
47,754 21,114
Total liabilities and stockholders $ 50,818 $ 25,608
equity
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