Cornerstone Reports 1997 Third Quarter Results.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)--October 16, 1997--Cornerstone Imaging, Inc., a leading provider of software and display products for electronic document applications today released operating results for the quarter ending September September: see month. 30, 1997. Third quarter 1997 highlights include: -- First profitable qtr for the Software division on record revenues of $3.2 million. -- Display revenues flat with Q2 at $18.2 million. -- New General Manager for the Display division. -- Stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program increased by $5 million.
Summary Financial Results
(dollars and shares in millions)
Q3:97 Q2:97 Q3:96
Revenues:
Display division $ 18.2 $ 18.3 $ 24.4
Software division $ 3.2 $ 3.0 $ 2.3
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Total company $ 21.4 $ 21.3 $ 26.7
Gross Margin:
Display division 25.4% 28.3% 25.2%
Software division 92.4% 93.4% 96.2%
------- ------- -------
Total company 35.2% 37.5% 31.4%
Pretax margin 0% (0.9)% 2.3%
Net income (loss) $ 0 $ (0.1) $ 0.4
EPS $ 0.00 $ (0.02) $ 0.06
Cash and marketable securities $ 6.9 $ 16.1 $ 12.8
The third quarter showed continued progress in Cornerstone's
transition from a hardware to a software centric business. Software
revenues were at a record $3.2 million, an increase of 50% from Q3
1996 adjusting for the disposition of the storage product line in Q1
1997. Total revenues for Q3 1997 of $21.4 million were up modestly
from Q2 1997 and down 20% from $26.7 million in Q3 1996. The
reduction from last year is a result of declines in unit volumes and
average sell prices for display products. Thomas T. van Overbeek,
Cornerstone's President and Chief Executive Officer, comments, "Q3
showed continued growth for the software division. Record revenues,
on the strength of increasing sales on InputAccel, contributed to
the first profitable quarter for software. Q3 results in the
display division were essentially flat with Q2. We are pleased to
announce that George Yule, formerly Vice President of Operations,
has been promoted to General Manager of the display division,
replacing Ken Westrick who left the company to pursue other
interests." Mr. Yule has been Vice President of Operations at
Cornerstone for five yers. Prior to that he served in senior
management positions at Logitech and Sun Microsystems.
For Q3 1997, gross margins were 35.2% compared with 37.5% in Q2
1997 and 31.4% in Q3 1996. The reduction in margins from Q2 1997 is
primarily the result of reduced margin for display products. The
increase from Q3 1996 is a result of sales growth in higher margin
software products, which now represent 15% of the company's
revenues.
Total operating expenses were $7.6 million, a reduction of
$490,000 from Q2 1997 and $174,000 from Q3 1996. The reduction from
Q2 1997 is primarily attributable to decreased expenses for the
display division.
Net income for Q3 1997 was $7,000 compared with a net loss of
$131,000, or 2 cents per share, in Q2 1997 and net income of
$430,000, or 6 cents per share, in Q3 1996.
For the nine months ended September 30, 1997 revenues were $68.7
million compared with $67.1 million for the first nine months of
1996. Net income for the current nine-month period was $893,000 or
12 cents per share, compared to a net loss of $2.4 million, or 33
cents per share for the first nine months of 1996.
Cash and marketable securities were $6.9 million at September 30,
1997 compared with $18.5 million at December 31, 1996. Inventory
increased to $14.9 million compared with $10.7 million at year end.
Accounts receivable decreased to $15.7 million at September 30
compared with $17.2 million at the end of 1996. Approximately $4.3
million has been used during the first nine months of 1997 to
repurchase Cornerstone stock. In February 1997, the Board of
Directors authorized repurchases of up to $5 million of common
stock. In September 1997, the Board authorized repurchases of an
additional $5 million. "We anticipate reduced inventory levels by
year end and we will continue with the stock repurchase program when
our cash reserves and market conditions make it prudent to do so,"
said van Overbeek.
About Cornerstone
Cornerstone, headquartered in San Jose, CA, is a leading provider
of display products and document capture software for electronic
document applications. Cornerstone's high performance monitors and
graphics controllers are designed for all-day computer users who
access multiple applications and data-types. Cornerstone's software
products facilitate the scanning and capture of paper-based
information. Cornerstone is a publicly held company traded on the
Nasdaq under the CRNR symbol. Visit the Cornerstone Web Site at
http://www.corimage.com .
This press release contains forward-looking statements that
involve risk and uncertainties. The Company's actual results may
differ materially from the results discussed in the forward-looking
statements. Factors that might cause such a difference include, but
are not limited to, those discussed in "Risk Factors" in the
Company's 1996 Annual Report on Form 10-k as well as the following:
the emergence of the document image processing market, potential
fluctuations in quarterly results, competition, new products and
technological changes, general economic condidtions and dependence
on capital spending of customers, a lengthy sales cycle and
dependence on systems sales, inherent risks associated with
international sales and international sources of supply, limited
sources of supply and reliance on third-party manufacturers and
distributors, and dependence on key personnel.
For more information on Cornerstone Imaging, Inc. via fax, dial
1-800-PRO-INFO, code 045. No cost.
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CORNERSTONE cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to IMAGING, INC. BALANCE SHEET (in thousands) September 30, 1997 December December: see month. 31, 1996 (unaudited) (unaudited) ASSETS Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash and marketable Marketable are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly. securities $ 6,948 $18,486 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying 15,654 17,181 Inventories 14,881 10,710 Deferred income taxes and other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 5,664 4,513 Total current assets 43,147 50,890 Property and equipment 2,806 2,859 Deferred taxes and other assets 597 1,094 Total $46,550 $54,843 LIABILITIES AND STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. : Accounts payable $4,704 $10,093 Accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. 5,455 4,971 Deferred revenue 832 761 Total current liabilities 10,991 15,825 Stockholders' equity: Common stock and paid-in capital 26,640 30,990 Retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. 8,919 8,028 Stockholders' equity 35,559 39,018 Total $46,550 $54,843 CORNERSTONE IMAGING, INC. STATEMENTS OF INCOME (unaudited) (in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30 September 30 1997 1996 1997 1996 Net revenues $21,436 $26,687 $68,693 $67,088 Cost of revenues 13,882 18,302 44,123 46,460 Gross profit 7,554 8,385 24,570 20,628 Research and development 1,813 2,491 6,120 7,252 Sales, general, administrative 5,793 5,289 17,755 15,580 Restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. -- -- -- 1,404 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. (loss) (52) 605 695 (3,608) Other income (expense) 61 10 677 129 Income (loss) before provision for income tax 9 615 1,372 (3,479) Provision (benefit) for income tax 2 185 $479 (1,045) Net income (loss) $7 $430 $893 $(2,434) Net income (loss) per share $0 $0.06 $0.12 $(0.33) Shares used in per share Calculation 7,111 7,558 7,324 7,452 CONTACT: Cornerstone Imaging, Inc. John Finegan, Vice President & CFO See Chief Financial Officer. 408/435-8900 or Financial Relations Board SF Betsy Betsy is an English name for females, used as a nickname for Elizabeth. It is also a surname. Famous uses or users of Betsy include:
Catherine Roberts, 415/986-1591 |
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