Cornerstone Imaging reports record revenues in fourth quarter 1994; revenues increased 28% over fourth quarter 1993.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. , Calif.--(BUSINESS WIRE)--Feb. 1, 1995--Cornerstone Imaging, Inc., the leading worldwide provider of display technology for document image processing See document imaging. Document Image Processing - (DIP) Storage, management and retrieval of images. (DIP), today released operating results for the fourth quarter and year ended Dec. 31, 1994. The company reported record results for the quarter and the year. For the fourth quarter, Cornerstone reported record revenues of $19.1 million, a 28% increase over $14.9 million in revenues for the same quarter last year and 5% above the prior quarter. Gross margin was 40.8%, up from 36.7% for the fourth quarter of 1993 and 40.7% the prior quarter. 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. , as a percentage of revenues, were 27.1%. This compares with 21.4% in the fourth quarter of the previous year and 24.7% in the prior quarter. The increase is primarily due to additional investment in research and development in order to diversify Cornerstone's product line offerings and extend its leadership in current product lines. Fourth quarter research and development spending of $1.8 million represented an increase from 6% to 10% of revenues and was more than double the $891,000 spent in the fourth quarter of 1993 and up $431,000 from the previous quarter. Net income for the fourth quarter was $1.8 million, or 25 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with net income of $1.6 million, or 22 cents per share, for the same quarter last year. Net income in the prior quarter, excluding a $0.5 million tax benefit, was $2.1 million, or 28 cents per share. For all of 1994, Cornerstone reported revenues of $70.2 million, a 61% increase over revenues of $43.6 million in 1993. Net income, including a $2.9 million non-recurring charge for the purchase of Pixel pixel in full picture element Smallest resolved unit of a video image that has specific luminescence and colour. Its proportions are determined by the number of lines making up the scanning raster (the pattern of dots that form the image) and the resolution Translations in the second quarter and a $0.5 million tax benefit in the third quarter, was $4.8 million, or 66 cents per share. This compares with $3.8 million, or 61 cents per share a year ago. Cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has ended the year at $14.9 million compared with $14.2 million last year. At year end, Cornerstone has no debt and a current ratio of 4.7 to 1. DIP Market Growing in Size and Opportunities The large-scale, production document imaging market upon which Cornerstone focuses has been growing at a compounded annual rate of 30%, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. industry analysts at BIS Strategic Decisions, Inc. This growth has been fueled by the productivity gains and cost reductions document imaging technology can provide organizations through the redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re of mission-critical, paper-based processes. Continued market growth is projected by BIS. Product Building Block Strategy According to Thomas van Overbeek, president and chief executive officer: "Cornerstone began in 1994 to implement a product diversification strategy focused on providing building block products for the document imaging system market. Cornerstone's products are designed to work in a client/server open system environment and are compatible with industry standards." Cornerstone's ImageAccel display products solve the legibility leg·i·ble adj. 1. Possible to read or decipher: legible handwriting. 2. Plainly discernible; apparent: legible weaknesses in character and disposition. and access speed issues that directly impact user acceptance and productivity. By continuing to deliver products with the performance and features most requested by document imaging users, Cornerstone has continued to outsell out·sell tr.v. out·sold , out·sell·ing, out·sells 1. To surpass (another) in an amount sold: a book that outsold all others of its kind. 2. the next four display competitors combined. ImageAccel is the imaging display industry's de facto standard Hardware or software that is widely used, but not endorsed by a standards organization. Contrast with de jure standard. de facto standard - A widespread consensus on a particular product or protocol which has not been ratified by any official standards body, such as ISO, supported by more than 60 software developers including IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , FileNet, ViewStar, and Wang. IBM's Software Solutions Division agreed to provide seamless field service support for their Image Plus customers who use Cornerstone's display subsystems. IBM now recommends ImageAccel display controllers to their ImagePlus customers. In the second quarter of 1994, Cornerstone acquired Pixel Translations, a leading supplier of document imaging software tools. This acquisition moved Cornerstone into the imaging software tools business. Document imaging system integrators and commercial software developers use Pixel's software tools to shorten development schedules and reduce costs. In April 1994, Cornerstone announced InputAccel, an open, modular software See modular programming. system that automates the conversion of documents into electronic images. This integration platform has been designed to be open to image input software from application vendors, scanner manufacturers, and third-party providers. In October, eight leading document capture vendors announced that they are developing InputAccel software modules. InputAccel is scheduled to ship in mid-1995. Between the second and fourth quarters of 1994, Cornerstone increased research and development expenditures for InputAccel, the next generation of ImageAccel, and other new products. In 1995, Cornerstone will introduce additional building block products based on its proprietary silicon and software that improve the productivity of document imaging systems and its users. Profile Cornerstone Imaging, Inc. is the technology and market leader in image display products for DIP. The company's products and services focus exclusively on optimizing productivity in DIP applications. Cornerstone's subsystems and software products are based on proprietary silicon and software to improve the scanning and display of digitally-stored images, processes critical to DIP user efficiency. Cornerstone Imaging, Inc. is a publicly-held company traded on the Nasdaq National Market under the CRNR CRNR Center for Really Neat Research (Syracuse University) symbol. -0- Note to Editors: Cornerstone, the Cornerstone logo, ImageAccel, and InputAccel are trademarks, servicemarks or registered trademarks of Cornerstone Imaging, Inc. Pixel Translations, ISIS, and PixTools are trademarks of Pixel Translations, Inc. All other trademarks or registered trademarks are the property of their respective owners. For more information on Cornerstone Imaging, Inc. via fax, dial 800/PRO-INFO, code 045. No cost. CONTACT: Cornerstone Imaging John Finegan, 408/435-8900 Financial Relations Board, San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden Betsy Truax (General Information) Lillian Armstrong (Analyst Contact) 415/986-1591 |
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