Cornerstone Reports Fourth Quarter and FY97 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)--Feb. 3, 1998--Cornerstone Imaging, Inc., a leading provider of software and display products for electronic document applications today released operating results for the quarter and year ending December December: see month. 31, 1997. Fourth quarter 1997 highlights include: -0-
-- Record software revenues of $3.6 million, increased
profitability in Q4
-- Display revenues up $1.3 million from Q3 to $19.6 million
-- Improved balance sheet, cash at $12.3 million
-- Additional $2.1 million stock repurchased, total for year at
$6.5 million
Summary financial results:
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(dollars and shares in millions)
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Q4:97 Q3:97 Q4:96 1997 1996
Revenues:
Display division $ 19.6 $ 18.2 $ 27.3 79.6 89.0
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Software division $ 3.6 $ 3.2 $ 2.5 12.3 7.1(a)
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Total company $23.2 $ 21.4 $ 29.8 91.9 96.8
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Gross Margin:
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Display
division 23.7% 25.4% 28.4% 26.5% 26.2%
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Software division 92.0% 92.4% 96.2% 93.5% 95.6%
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Total company 34.3% 35.2% 33.9% 35.4% 31.7%
Pretax margin 1.2% 0% 6.2% 1.8% (1.7)%
Net income (loss) $0.2 $0 $1.3 1.1 (1.2)
EPS $0.03 $0 0.17 0.15 (0.15)
Cash and marketable
securities $12.3 $6.9 $18.5
(a) excluding 0.7 for storage product line sold in January 1997
Revenues for the fourth quarter of 1997 of $23.2 million were up 8% from the prior quarter but down 22% from the fourth quarter of 1996. On the strength of increased demand for InputAccel, Cornerstone's document capture product, software revenues were a record $3.6 million. This represents an increase of 14% from the prior quarter and 46% from the fourth quarter of 1996, adjusting for the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of the storage product line at the beginning of 1997. Fourth quarter revenues for the display business were $19.6 million, an increase of 7% from the third quarter but down 27% from the fourth quarter of 1996. Net income for the fourth quarter of 1997 was $189,000, or three 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 a net income of $7,000 in third quarter and a net income of $1.3 million, or 17 cents per share, in the fourth quarter of 1996. The increase in profits from the third quarter came largely from improved profitability in the software division, though operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the display division were reduced in the fourth quarter. For the year ended December 31, 1997 revenues were $91.9 million compared with $96.8 million for 1996. Net income for 1997 was $1.1 million, or 15 cents per share, compared to a net loss of $1.2 million, or 15 cents per share for 1996. The software division revenues, adjusted for the disposition of the storage product line, increased 73% to $12.3M in 1997 and generated operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the third and fourth quarters compared to losses in excess of $2 million for all of 1996. Display division revenues decreased 11% to $79.6 million. "Fourth quarter results reflect a continuation of Cornerstone's strategy to focus resources on the development of our software business," said Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs T. van Overbeek Overbeek may refer to
adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen 14% from the third quarter on the strength of increased demand for InputAccel, our data capture product. We had 26 new customers including the US Department of Defense, UK Inland Revenue Inland Revenue Noun (in Britain and New Zealand) a government department that collects major direct taxes, such as income tax Noun 1. , Sprint Communications, Miller Brewing Company Miller Brewing Company is the second largest American beermaker and is based in Milwaukee. It is owned by SABMiller. Miller owns breweries in Albany, Georgia; Chippewa Falls, Wisconsin; Eden, North Carolina; Fort Worth, Texas; Irwindale, California; Milwaukee, Wisconsin and , and Aramco Aramco in full Arabian American Oil Company Oil company founded by the Standard Oil Co. of California (Chevron) in 1933, when the government of Saudi Arabia granted it a concession. Other U.S. companies joined after oil was found near Dhahran in 1938. . Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. two-thirds of these new customers are using InputAccel for either document management or forms processing. For the year, software revenues grew 73% to $12.3 million. We achieved profitability for the first time in the third quarter and increased operating profits in the fourth quarter. In our display business we saw modest sequential One after the other in some consecutive order such as by name or number. improvements from the third quarter to revenue and operating results. Revenue was up 7% as a result of increased unit volumes for color monitors See monitor. and operating loss for the quarter was reduced as a result of reduced expenses. As expected, we improved our cash position in the quarter and have continued repurchasing stock. For the quarter we repurchased 390,000 shares bringing the total repurchased for the year to 1 million shares." About 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 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 all-day adj. Continuing all through the day: an all-day examination. 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 CRNR Center for Really Neat Research (Syracuse University) symbol. Visit the Cornerstone Web Site at http://www.corimage.com. -0- This press 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 involve risk and uncertainties. The Company's actual results may differ materially from the results discussed in the forward-looking statements. Factors which may 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. as well as the following: the emergence of the document management and image processing image processing Set of computational techniques for analyzing, enhancing, compressing, and reconstructing images. Its main components are importing, in which an image is captured through scanning or digital photography; analysis and manipulation of the image, accomplished and markets, potential fluctuations in quarterly results, competition, new products and technological change, general economic conditions and dependence on capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. 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. -0-
FINANCIAL TABLES FOLLOW
For more information on Cornerstone Imaging, Inc. via fax, dial
1-800-PRO-INFO, code 045. No cost.
CORNERSTONE IMAGING, INC.
BALANCE SHEET
(in thousands)
December 31, 1997 December 31, 1996
ASSETS
Current assets:
Cash and marketable
securities $12,284 $18,486
Account receivable 16,111 17,181
Inventories 10,933 10,710
Deferred income taxes and
other current assets 5,477 4,513
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Total current assets 44,805 50,890
Property and equipment 2,516 2,859
Deferred taxes and other assets 439 1,094
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Total $47,760 $54,843
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,609 $10,093
Accrued liabilities 6,155 4,971
Deferred revenue 1,050 761
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Total current liabilities 13,814 15,825
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Stockholders' equity:
Common stock and paid-in
capital 24,840 30,990
Retained earnings 9,106 8,028
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Stockholders' equity 33,946 39,018
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Total $47,760 $54,843
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,609 $ 10,093
Accrued liabilities 6,155 4,971
Deferred revenue 1,050 761
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Total current liabilities 13,814 15,825
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Stockholders' equity:
Common stock and
paid-in capital 24,840 30,990
Retained earnings 9,106 8,028
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Stockholders' equity 33,946 39,018
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Total $ 47,760 $ 54,843
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CORNERSTONE IMAGING, INC.
STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
1997 1996 1997 1996
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Net revenues $ 23,161 $ 29,759 $ 91,854 $ 96,847
Cost of revenues 15,223 19,687 59,346 66,147
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Gross profit 7,938 10,072 32,508 30,700
Research and development 1,767 2,311 7,888 9,563
Sales, general and
administrative 6,001 6,049 23,757 21,634
Restructuring charge -- -- -- 1,404
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Operating income (loss) 170 1,712 863 (1,901)
Other income (expense) 109 125 787 254
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Income (loss) before
provision
for income tax 279 1,837 1,650 (1,647)
(Provision) benefit for
income tax 90 562 569 (484)
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Net income (loss) $189 $1,275 $1,081 $(1,163)
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Basic and diluted EPS $0.03 $0.17 $ 0.15 $(0.15)
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Shares used in:
Basic EPS calculation 6,813 7,505 7,185 7,548
Diluted EPS calculation 6,829 7,568 7,223 7,548
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CONTACTT: Cornerstone Imaging Inc. John Finegan, 408/435-8900 or 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 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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