Comdial Announces Third Quarter Earnings.CHARLOTTESVILLE Charlottesville (shär`lətsvĭl), city (1990 pop. 40,341), seat of Albemarle co., central Va., on the Rivanna River, in a Piedmont farm region known for its apples; founded 1762, chartered as a city 1888. , Va.--(BUSINESS WIRE)--Oct. 21, 1997-- Company generated net income of $2 million and earnings per share of $0.23 on sales of $31.1 million. Comdial Comdial is a telecommunications company based in Sarasota, Florida. Comdial was a former manufacturer and current deisgner and developer of Telecommunications Systems, or telephone syestems. Corporation (Nasdaq NM:CMDL CMDL Climate Monitoring and Diagnostics Laboratory CMDL Common Mission Data Loader ) today announced financial results for the third quarter and first nine months ended Sept. 28, 1997. 1997 Results Compared With 1996 Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter were $31.1 million, up 6 percent over the $29.4 million reported in the second quarter of 1997 and up 8 percent over the $28.8 million reported for the year-ago period. Third quarter net income of $2.0 million or $0.23 per share was up sharply from the $908,000 or $0.11 per share earned in the third quarter of 1996. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the 1997 third quarter was $3.5 million compared with $2.6 million in 1996. Gross profit margin 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 the third quarter was 40 percent, up from 38 percent in the year-ago period. Comdial has now achieved four consecutive quarters of gross profit margins of 40 percent or higher. For the first nine months of 1997, net sales totaled $87.3 million, an increase of 17 percent over the first nine months of 1996. Net income excluding the effect of tax benefits was $3.6 million or $0.42 per share, compared with a loss of $271,000 or $0.03 per share for the first nine months of 1996, also excluding the effect of tax benefits. Operating income for the first nine months of 1997 was $8.4 million, up from $3.6 million a year ago. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $11.9 million, up from $5.9 million for the same period in 1996. New Products Drive Sales and Margin Growth In September September: see month. , Comdial began volume shipments of its new Impact FX Series Computer Telephony See CTI, VoIP and IP telephony. Computer Telephony - Computer Telephone Integration Applications Server and Impact SCS SCS, n strain/counterstrain, an approach of applying pressure to certain tender points in the muscles or joints to decrease or remove the pain sensed at the point of palpation. digital switching family. Both products represent major advancements over competitors' available offerings and are expected to drive market share gains. Aggregate sales for the FX Series and Impact SCS exceeded $1 million in the third quarter. Overall, shipments of digital switching products and computer-telephone integration products (including voice-processing systems) showed double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. increases for the third quarter of 1997 compared with the third quarter of 1996. Sales in these categories were also up sequentially from the second quarter. Comments of 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. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack G. Mustain Commenting on the company's results for the period, President and Chief Executive Officer William G. Mustain said, "We are very pleased with, but not surprised by, our excellent quarter and first nine months. The growth of sales and earnings results from our initiatives to expand research and development of market-ready technologies and to implement aggressive new marketing programs of higher-margin products. And we don't foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. any let-up in the pace of new product introductions. We will compete aggressively in the exciting new markets for unified messaging Having access to e-mail, voice mail and faxes via a common computer application or by telephone. For example, unified messaging may send faxes and digitized voice mail to a mail server that turns them into e-mail attachments. software and Internet telephony Another term for IP telephony and VoIP. In the late 1990s, some people made a distinction between Internet Telephony and VoIP: Internet telephony referred to voice over the public Internet, while VoIP referred to voice over private IP networks. . Indeed, Comdial's FX Series is the ideal platform for launching such software-based, value-added products." Comdial Corporation is a designer, manufacturer and supplier of advanced business communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. , and a recognized leader in the rapidly developing market for solutions based on computer-telephone integration. For more information on Comdial, visit our web site at www.comdial.com. Safe Harbor 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. Statement This 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. that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, delays in development of highly complex products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks could cause the Company's actual results for 1997 and beyond to differ materially from those expressed in any forward looking statement made by, or on behalf of, the Company. -0-
COMDIAL CORPORATION
Selected Financial Data
Consolidated Condensed Statement of Operations - Unaudited
(In thousands except per share amounts)
Three Months Ended Nine Months Ended
9/28/97 9/29/96 9/28/97 9/29/96
Net sales $ 31,091 $ 28,849 $ 87,325 $ 74,418
Cost of goods sold 18,569 17,976 51,993 47,922
Gross profit 12,522 10,873 35,332 26,496
Operating expenses
Selling, general and
administrative 7,210 6,963 21,853 18,702
Engineering, research
and development 1,782 1,262 5,068 4,184
Operating income 3,530 2,648 8,411 3,610
Interest expense 436 483 1,312 1,209
Goodwill 855 855 2,751 1,814
Miscellaneous expense 119 332 422 694
Income before income taxes 2,120 978 3,926 (107)
Income tax expense 118 70 330 164
Net income applicable to
common stock before tax
benefit 2,002 908 3,596 (271)
Income tax benefit - - 219 736
Net income applicable to
common stock $ 2,002 $ 908 $ 3,815 $ 465
Earnings per common share
and common equivalent share:
Income before tax benefit $ 0.23 $ 0.11 $ 0.42 $ (0.03)
Income tax benefit - - 0.02 0.09
Net income per common share $ 0.23 $ 0.11 $ 0.44 $ 0.06
Weighted average common shares
outstanding 8,672 8,578 8,634 8,444
Consolidated Condensed Balance Sheets
(In thousands)
Sept. 28, 1997* Dec. 31, 1996
Assets
Cash and cash equivalents $ 322 $ 180
Accounts receivable - net 14,199 9,660
Inventory 18,646 19,586
Other current assets 1,294 1,341
Total current assets 34,461 30,767
Property - net 15,868 15,317
Goodwill 14,397 16,852
Deferred tax asset - net 7,798 7,469
Other assets 4,193 3,947
Total assets $76,717 $74,352
Liabilities and Stockholders'
Equity
Accounts payable $ 7,317 $ 8,144
Other accrued liabilities 7,125 6,672
Current maturities on debt 5,061 5,343
Total current liabilities 19,503 20,159
Long-term debt 10,457 11,713
Deferred tax liability 2,340 2,230
Other long-term liabilities 1,629 1,686
Total liabilities 33,929 35,788
Stockholders' equity 42,788 38,564
Total liabilities and
stockholders' equity $76,717 $74,352
EBITDA Nine Months Ended:
Sept. 28, 1997* Sept. 29, 1996*
Net Income $ 3,815 $ 465
Taxes 111 (572)
Interest Expense 1,312 1,209
Depreciation Expense 2,073 2,030
Goodwill 2,751 1,814
Amortization 1,886 989
Total $11,948 $ 5,935
*Unaudited
CONTACT: Comdial Dick Bucci, 804/978-2525 |
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