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DATAPOINT REPORTS PRELIMINARY FISCAL 1992 RESULTS

 DATAPOINT REPORTS PRELIMINARY FISCAL 1992 RESULTS
 PARIS, Sept. 15 /PRNewswire/ -- Datapoint Corporation (NYSE: DPT)


today reported preliminary net income of $6.5 million on revenue of $255.2 million for the company's fiscal year ended Aug. 1, 1992. This compares with net income of $12.5 million on revenue of $265.5 million for the prior fiscal year. During the company's fourth quarter of fiscal 1992, net income was $5.2 million on revenue of $70.7 million compared with net income of $7.5 million on revenue of $67.9 million for the fourth quarter of the prior year.
 The decline in revenue for the full fiscal year was due to a decline in product sales. Revenue increased during the fourth quarter of fiscal 1992 vs. the same quarter last year mainly due to favorable currency rate fluctuations resulting from the generally weaker U.S. dollar as compared to the same period last year.
 The company's operating income for fiscal 1992 was $6.7 million, of which $2.0 million occurred during the fourth quarter. In the prior year, operating income was $13.9 million and $5.7 million, respectively, for the same periods. The declines are due primarily to the decrease in revenue.
 Non-operating results for fiscal 1992 were substantially better than in the prior year. Interest expense declined while investment income and foreign currency transaction gains improved substantially. Non- operating results for fiscal 1992 benefited from the fourth quarter curtailment of the United Kingdom subsidiary's defined benefit pension plan, generating a gain of $3.0 million. The plan is to be replaced with a defined contribution plan. Non-operating results for fiscal 1991 were favorable impacted by the fourth quarter sale of a U.S. building which generated a net gain of $3.5 million.
 The company has not recorded the previously-announced proposed settlement of the patent litigation brought against it by Northern Telecom Inc. The settlement is subject to approval of both companies' board of directors and the company's senior lenders. If approved in its current form, the settlement would result in a $13.6 million charge. If the settlement is finalized or the company otherwise determines that a loss is probable and can be reasonable estimated prior to filing its 10-K, the company intends to amend its fiscal 1992 results accordingly.
 Debt repurchases resulted in extraordinary gains of $5.2 million during fiscal 1991. No such repurchases were recorded during fiscal 1992. Excluding these extraordinary gains, net income would have been $7.3 million in fiscal 1991 as compared to $6.5 million for fiscal 1992.
 Fiscal 1992 income tax expense includes credits of $0.6 million and $1.1 million due to favorable settlements with the Internal Revenue Service and Intelogic Trace, respectively.
 During the fourth quarter of fiscal 1992 the company paid its first dividend of $0.3 million on the newly issued $1.00 Preferred Stock. Earnings per common share for the fourth quarter of 1992 reflect this dividend, plus accrued dividends of $0.1 million, whereas the earnings (loss) per common share for the first three quarters of 1992 as well as all of fiscal 1991 reflect the unpaid dividends on the retired $4.94 preferred stock. In view of the fact that all dividends in arrears on the $4.94 preferred stock were canceled and will not be paid, the company has also presented pro-forma earnings per common share as if the new $1.00 preferred stock was outstanding for all of fiscal 1992 and full dividends were paid during this period.
 "FY92 was the first full year of operation of our new Paris headquarters, and marked the introduction of new UNIX-based product lines, as well as MS-DOS and RMS-based PC workstations and servers," said John Harrison, Datapoint president. "Our continued R&D activities resulted in the announcement late in the year of ARCNETPLUS, a LAN technology "first" in multi-speed networks, and the new MINX 2002 personal videoconferencing workstation. Although these activities had their cost in terms of expense and slightly lower revenue in an extremely unforgiving and difficult marketplace, the company still returned four profitable quarters."
 Datapoint, a leader in networking Information Technology -- telephony services, video conferencing, personal computing, and information processing -- markets a variety of products and services in 42 countries worldwide as part of its Open Systems Networking (OSN) strategy.
 DATAPOINT CORPORATION
 Summary Operating Statements
 (In thousands, except per share data)
 Three Months Ended
 Aug. 1, July 27,
 1992 1991
 Revenue:
 Sales $39,685 $40,768
 Service and other 31,043 27,114
 Total revenue $70,728 $67,882
 Operating income $ 2,037 $ 5,729
 Non-operating income
 (expense), net 3,171 1,152
 Income before income taxes
 and extraordinary items 5,208 6,881
 Income tax expense 417 40
 Income before extraordinary
 items 4,791 6,841
 Extraordinary items:
 Debt extinguishment -- --
 Utilization no tax loss
 carryforward 398 612
 Net income $ 5,189 $ 7,453
 Net income per share
 applicable to common
 stock (A) $ .33 $ .47
 Average common shares
 outstanding 13,952,705 10,121,559
 (A) Includes $446 of dividends on the $1.00 preferred stock and $2,385 of dividends not paid on the retired $4.94 preferred stock for the fourth quarter of 1991.
 Twelve Months Ended
 Aug. 1, July 27,
 1992 1991
 Revenue:
 Sales $139,225 $149,578
 Service and other 116,018 115,901
 Total revenue $255,243 $265,479
 Operating income $ 6,655 $ 13,934
 Non-operating income
 (expense), net (474) (5,042)
 Income before income taxes
 and extraordinary items 6,181 8,892
 Income tax expense 1,736 3,557
 Income before extraordinary
 items 4,445 5,335
 Extraordinary items:
 Debt extinguishment -- 5,217
 Utilization no tax loss
 carryforward 2,081 1,979
 Net income $ 6,526 $12,531
 Net income per share
 applicable to common
 stock (A) $ (.10) $ .29
 Pro-forma net income per
 share applicable to
 common stock (B) $ .33 --
 Average common shares
 outstanding 11,093,431 10,119,491
 (A) Includes $446 of dividends on the $1.00 preferred stock and $7,155 of dividends not paid on the retired $4.94 preferred stock for fiscal year 1992 and $9,540 in dividends not paid on the retired $4.94 preferred stock for fiscal year 1991.
 (B) Includes $446 of dividends and $1,338 of pro-forma dividends in 1992 on the $1.00 preferred stock.
 SUMMARY BALANCE SHEETS
 (In thousands)
 Aug. 1, July 27,
 1992 1991
 Current assets $121,991 $122,025
 Fixed assets, net 34,533 29,572
 Excess of cost of investment
 over net assets acquired,
 net 67,855 62,493
 Other assets, net 24,434 21,400
 Total $248,813 $235,490
 Current liabilities $ 82,195 $ 87,591
 Long-term debt and other 76,501 76,473
 Stockholders' equity (A) 90,117 71,426
 Total $248,813 $235,490
 (A) The increase from year to year consists mainly of foreign currency translation adjustments and fiscal 1992 net income, offset partially by dividends paid and the cost of the preferred stock exchange.
 -0- 9/15/92
 /CONTACT: Patricia Coble of Datapoint Corporation, 512-593-7910/
 (DPT) CO: Datapoint Corporation ST: Texas IN: CPR SU: ERN


AH -- NY057 -- 9694 09/15/92 14:08 EDT
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