Cybernetics reports fourth quarter, year-end results.SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--March 3, 1995--Cybernetics Products Inc. (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 :CYBR CYBR Copy Byte Right ) Friday reported results for its fourth quarter and year ended Dec. 31, 1994. For the fourth quarter, revenues from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the rose to $6,170,000 from $4,562,000 in the same period last year. The company generated net income from continuing operations for the quarter of $147,000, or 3 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. , before an accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. oF $76,000 for a preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend, as compared with a net loss from continuing operations of $226,000, or 6 cents per share, before an accrual of $121,000 for a preferred stock dividend, for the comparable quarter in 1993. To ensure accurate comparison, results for both the current and year-ago fourth quarters do not include results of operations from the company's Oxberry division and Vision Ten subsidiary, which, due to their planned sale, are being accounted for as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . For the year, revenues increased to $16,166,000 from $11,304,000 in 1993. Net loss from continuing operations for the year was $298,000, or 6 cents per share, before an accrual for a preferred dividend preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) of $518,000, as compared with a net loss from continuing operations of $861,000, or 23 cents per share, before an accrual of $278,000 for a preferred stock dividend, for 1993. The net loss from continuing operations for 1993 includes a one-time restructuring cost of $812,000. No restructuring costs were incurred in 1994. Results for 1993 reflect results of operations from Dynamotion Corp. for only six months, since Cybernetics cybernetics [Gr.,=steersman], term coined by American mathematician Norbert Wiener to refer to the general analysis of control systems and communication systems in living organisms and machines. acquired it in July of that year. Full-year results for 1993 and 1994 do not include results of operations from the Oxberry division and Vision Ten subsidiary. In January 1995, the company announced its planned divesture Di`ves´ture n. 1. Divestiture. of the Oxberry division and Vision Ten subsidiary. The results from these two entities have been reported separately as a component of discontinued operations. For the fourth quarter of 1994, the net loss from discontinued operations was $143,000, compared with net income of $14,000 for the comparable period in 1993. For the year, net income from discontinued operations was $125,000, compared with a net loss of $445,000 for 1993. The net loss from discontinued operations for 1993 includes a portion of the one-time restructuring cost of $83,000. No such restructuring costs were incurred in 1994. The after-tax net loss on the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the two entities was $1,600,000. This loss includes accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. for estimated costs to be incurred in connection with the sale, estimated losses to be incurred in connection with the operation of the entities pending the completion of their sale, and a reserve taken against a second note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. expected to be delivered in the sale, payment of which is predicated on performance contingencies. Commenting on the company's results, Cybernetics President and Chief Executive Officer Joseph P. Drier said: "We made a series of decisive moves to spur our growth and profitability during 1994 and, as our results from continuing operations indicate, the beneficial effects of some of those activities began to materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. during the fourth quarter, the first full quarter we had after securing our new $7 million line of credit in late July. "With our new line of credit, we regained the ability to satisfy the demand for our drill and router products," Drier continued. "In the fourth quarter, with more working capital available, we began satisfying our growing customer demand with increased production. "Even so, our backlog today remains large due to the demand for product, part of which came in 1994 from our first entry to the middle market for high-precision drills, the Six Pak. We look for this competitively priced product, which offers the high quality we've become known for, to be a good seller for us in the year ahead." Drier added that Cybernetics' Computer Services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. of America computer and peripherals warranty service and repair operation, which it acquired in October, has begun generating revenue. He also noted that the planned divestiture of the company's Oxberry division and Vision Ten subsidiary, which was announced in January 1995, should be concluded in the first half of the year. "We met head-on the many challenges we faced during 1994," Drier concluded, "and our success in overcoming them, coupled with the strong sales momentum we established in 1994, makes us very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op as we enter 1995." Cybernetics Products develops and manufactures precision, high-volume drills and routers for electronic circuit boards through its internationally recognized Dynamotion/ATI division, and operates Computer Services of America, a growing national warranty servicer of personal computers, mainframes and peripherals.
Cybernetics Products Inc.
Consolidated Statements of Operations
(Amounts in 000s except per-share data)
Three months ended Year ended
Dec. 31, Dec. 31,
1994 1993 1994 1993
Total revenues from continuing operations $6,170 $4,562 $16,166 $11,304 Net income (loss) from continuing operations $ 147 $ (226) $ (298) $ (861)/a
Discontinued operations
Net income (loss)
from discontinued
operations (143) 14 125 (445)/b
Loss from sale of
discontinued
operations (1,600) -- (1,600) --
Net loss before preferred stock dividend $(1,596) $(212) $(1,773) $(1,306) Dividend on preferred stock (76) (121) (518) (278) Adjusted net loss $(1,672) $(333) $(2,291) $(1,584) Income (loss) per share (primary and fully diluted)
Net income (loss)
from continuing
operations 3 cents (6 cents) (6 cents) (23 cents)
Discontinued
operations:
Net income (loss)
from discontinued
operations (3 cents) -- 3 cents (12 cents)
Loss from sale
of discontinued
operations (30 cents) -- (33 cents) --
Net loss before preferred stock dividend (30 cents) (6 cents) (36 cents) (35 cents) Dividend on preferred stock (1 cent) (3 cents) (11 cents) (8 cents) Adjusted net loss (31 cents) (9 cents) (47 cents) (43 cents) Weighted average shares outstanding 5,311 3,675 4,815 3,675 a/ Includes one-time restructuring costs of $812,000. b/ Includes one-time restructuring costs of $83,000. CONTACT: Cybernetics Products Inc., Santa Ana Joseph P. Drier, Kirk A. Waldron, 714/541-2927 or Silverman Heller Associates Eugene G. Heller, 310/208-2550 |
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