Creative Technologies announces first quarter results.BROOKLYN, N.Y.--(BUSINESS WIRE)--May 17, 1996--Creative Technologies Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CRTV CRTV Cameroon Radio Television CRTV Cathode Ray Television ) today announced results for the first quarter ended March 31. For the quarter revenues were $1,620,000, compared to revenues of $3,930,000 in the first quarter of 1995. Creative reported a net profit for the quarter of $148,000 or $0.02 per share, compared to a net loss of $675,000 or $0.14 per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis in the first quarter of 1995. This quarter's profit was after an extraordinary after tax gain of $1,150,000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the negotiated settlement with its secured lender affected March 8. Richard Helfman, president, indicated that "earnings for the quarter continued to be negatively affected by declining sales in electrics. Although sales of the Grill Express were steady, pasta While the only basic difference between these names is the shape of the pasta, each pasta is typically matched with a particular sauce based on cooking time, consistency, ability to hold sauce, ease of eating, etc. machine sales continue to be off significantly vs. sales in previous periods." "The entire pasta category has been soft since last year," said Helfman, "and we are only now seeing signs that the shakeout Shakeout A situation in which many investors exit their positions, often at a loss, because of uncertainty or recent bad news circulating around a particular security or industry. Notes: During the dotcom boom and bust, numerous shakeouts occurred. of manufacturers and inventory overhang Overhang Calculated as stock options granted, plus the remaining options to still be granted, and then divided by the total shares outstanding. Notes: A high percentage for the overhang is usually a bad thing. is essentially completed." "Hopefully we will begin to see an upward trend during the back half." On a positive note, Helfman stated that Creative will again be able to market its X500 introductory priced pasta machine. "Sales had been in abeyance A lapse in succession during which there is no person in whom title is vested. In the law of estates, the condition of a freehold when there is no person in whom it is vested. In such cases the freehold has been said to be in nubibus (in the clouds), in pendenti pending a patent lawsuit," said Helfman, "but on April 10, 1996 the court granted our motion for summary judgment motion for summary judgment n. a written request for a judgment in the moving party's favor before a lawsuit goes to trial and based on recorded (testimony outside court) affidavits (or declarations under penalty of perjury), depositions, admissions of fact, answers and ruled that our modified X500 was non-infringing." Helfman also stated that the distribution of the Brabantia product line, which began Jan. 1, continues to make steady progress and is being very well received by the retail community. "We have achieved new placements with several major accounts," 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. Helfman, "and our marketing projections are proceeding on target." He cautioned, however, that Brabantia sales were not expected to have a material impact on sales until the second half because of the time lag involved in implementing programs. "Once in place, however, Brabantia is expected to represent steady year round business which can grow not only by adding new customers but by also selling additional items, from their extensive line to existing accounts." Creative Technologies designs, manufactures, markets, and distributes patented electric products for use in the home kitchen. Since Jan. 1 they are also the exclusive U.S. importer and distributor for Brabantia, one of Europe's most respected manufacturers of non-electric housewares house·wares pl.n. Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. . -0- Creative Technologies Corp. Condensed Statements of Operations (Unaudited)
Three Months Ended
March 31,
1996 1995
Net sales $1,620,000 $3,930,000
Cost of sales 941,000 2,088,000
Gross profit 679,000 1,842,000
Operating expenses:
Selling, general and
administrative expenses 918,000 1,282,000
Warehousing expense 343,000 0
Advertising expense 180,000 969,000
Interest expense 240,000 266,000
1,681,000 2,517,000
Loss before provision for income taxes and extraordinary item (1,002,000) (675,000) Provision for income taxes 0 0 Loss before extraordinary item (1,002,000) (675,000) Extraordinary item Gain-debt settlement net of tax 1,150,000 0 Net income (loss) attributable to common shareholders $148,000 $(675,000) Loss before extraordinary item per common share $(.13) $(.14) Extraordinary item per common share $ .15 Fully diluted extraordinary item per common share $ .15 Primary earnings (loss) per common share $ .02 $(.14) Fully diluted earnings per common share $ .02 CONTACT: Creative Technologies Corp., Brooklyn David Guttmann or Richard Helfman, 718/492-8400 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion