COMPTRONIX CORPORATION REPORTS THIRD QUARTER RESULTS.GUNTERSVILLE, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Nov. 8, 1995--Comptronix Corporation (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CMPX CMPX Complex ) today reported a net loss before preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends of $0.5 million for the third quarter ended October 1, 1995. Accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) payable in kind for the third quarter were $0.3 million and the total net loss for the quarter amounted to $0.8 million, or $.06 per share, compared with a net loss, including preferred dividends, of $4.1 million, or $.36 per share, for the third quarter of 1994. Sales for the 1995 third quarter totaled $19.3 million compared with $25.6 million for the third quarter of 1994. For the nine months ended October 1, 1995, the Company reported a net loss, including preferred dividends, of $2.9 million, or $.22 per share, compared with a net loss, including preferred dividends of $14.9 million, or $1.34 per share, for the nine months ended October 2, 1994. Sales for the first nine months of 1995 were $69.5 million compared with $72.8 million for the first nine months of 1994, after excluding $16.6 million for the San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. division. Revenues for the third quarter of 1995 decreased 15.2% compared with the second quarter of 1995. The most significant factors affecting third quarter performance were greater-than-expected delays and inefficiencies in the consolidation of operations out of Colorado Springs Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. to the Company's two facilities in Guntersville, Alabama Guntersville is a city in Marshall County, Alabama, and is included in the Huntsville-Decatur Combined Statistical Area. As of the 2000 census, the population of the city is 7,395. The city is the county seat of Marshall County. , which were particularly significant early in the quarter. To a lesser extent, market conditions for certain components resulted in delayed shipments to several customers. E. Townes Duncan, Chief Executive Officer, said, "We had hoped to realize more of the benefits of the consolidation of our operations in Guntersville in the third quarter of 1995; however, we continued to experience inefficiencies in production in Guntersville during the start-up Start-up The earliest stage of a new business venture. of programs there. We moved aggressively to address these issues during the quarter: we realigned management responsibilities; increased our direct labor work force by 200 (a 35% increase) to move toward a full two-shift operation to meet customer demand; addressed training and human resource needs; and improved manufacturing processes and layouts, including the establishment of dedicated production cells where appropriate. These actions resulted in significant month-to-month improvement during the quarter, increasing average weekly sales by 36% between July and September and achieving higher gross margins for the months of August and September. This progress was not sufficient, however, to offset losses experienced in the early part of the quarter. The trend of improved average daily sales has continued during the early part of the fourth quarter, but we are still facing the challenge of improving productivity and efficiency to meet existing customer demand. We are focusing daily on steps to meet this challenge." Duncan continued, "Our overhead reductions and other cost control efforts were the principal reasons that gross margins increased to 8.8% for the third quarter compared with 5.6% in the second quarter and 3.4% in the year-earlier third quarter, despite a decline in revenues. One of the principal goals in our turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. efforts is to increase gross margins until they compare favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with the leading performers in our industry. We are pleased with our third quarter progress toward achieving our gross margin goals. "Inventory increased significantly during the quarter, rising 30.7% from $15.3 million to $20.0 million. Most of this increase was work-in-process inventory, reflecting production inefficiencies during the quarter. A primary objective for the fourth quarter is to continue improvements in manufacturing efficiency and through put, which should enable us to resume the trend of improvements in inventory levels and inventory turns that we had previously maintained for six quarters. "Our relationship with our principal lender, the CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group, continues to be good. CIT has extended the terms of our credit facility for two additional years, restructured the financial covenants contained in the facility on a basis that we believe is significantly more attractive, and granted us a waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. for any covenant violations resulting from our third quarter performance. We believe our credit facility as now structured will both support our anticipated growth over the next several years and enable us to focus on building Comptronix for the long term," Duncan concluded. The Company also noted that its Board of Directors will consider the payment of the accrued dividend on the Series A Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". at its next regularly scheduled meeting in December. Comptronix Corporation provides contract manufacturing services to original equipment manufacturers in the electronics industry at its 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. 9002 registered facilities in Guntersville, Alabama. It specializes in assembling printed circuit boards and system level "Box Build" products, as well as providing engineering, order fulfillment Order fulfillment (in BE also: order fulfilment) is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes Order fulfillment and other services, for customers requiring strict quality control and prompt, responsive service. -0-
Comptronix Corporation
Financial Highlights
(Unaudited)
(In thousands, except per share data)
Third Quarter Ended Nine Months Ended
Oct. 1, Oct. 2, Oct. 1, Oct. 2,
1995 1994 1995 1994
Net sales $ 19,282 $ 25,612 $ 69,523 $ 89,349(1)
Gross profit 1,699 876 5,191 127(1)
Estimated loss on
sale of excess
capacity -- (2,035) -- (5,535)
Net loss (532) (3,867) (2,057) (14,296)
Accrued dividend
in kind on
Preferred Stock 293 190 804 565
Net loss applicable
to Common Stock $ (825) $ (4,057) $ (2,861) $ (14,861)
Net loss per
common share $ (0.06) $ (0.36) $ (0.22) $ (1.34)
Weighted average
common shares 13,293 11,122 13,080 11,060
Gross margin
percentage 8.8% 3.4% 7.5% 0.1%
Earnings before
interest, taxes,
depreciation and
amortization $ 1,596 $ 450(2) $ 4,706 $ (934)(2)
(1) Includes $16.6 million of sales and $621,000 of gross loss for the
San Jose division, which was sold at the end of the third quarter
of 1994.
(2) Excludes loss on sale of San Jose division.
CONTACT: Comptronix Corp., Guntersville E. Townes Duncan, 205/582-1810 Joseph G. Andersen, 205/582-1820 |
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