Printer Friendly

DIANON SYSTEMS, INC. REPORTS INCREASE IN THIRD QUARTER SALES AND EARNINGS

 DIANON SYSTEMS, INC. REPORTS INCREASE
 IN THIRD QUARTER SALES AND EARNINGS
 STRATFORD, Conn., Nov. 12 /PRNewswire/ -- DIANON Systems, Inc. (NASDAQ: DIAN) today reported financials for the third quarter ended Sept. 30, 1992.
 DIANON SYSTEMS, INC.
 (in thousands, except per share data)
 Third Quarter Pct. 9 Months Year-to-Date Pct.
 1992 1991 Change 1992 1991 Change
 Net sales $8,680 $6,862 26 $25,399 $19,367 31
 Income before
 international $1,036 $ 495 109 $ 3,048 $ 1,696 80
 International
 operating
 expenses net $1,979 $ 291 580 $ 2,592 $ 804 223
 Income before
 taxes $ (899) $ 230 (491) $ 636 $ 950 (33)
 Net income $ (526) $ 144 (465) $ 359 $ 797 (55)
 Earnings
 per share $ (.10) $ .03 (433) $ .07 $ .19 (63)
 The company reported that its European operations will be restructured due to inadequate business progress in Europe combined with the increasing opportunities for investment in the United States. Management indicated that a principal reason for the company's slow progress has been the continued legal restrictions on commercial health care service businesses in most major European countries. As a result, the company experienced a $305,000 operating loss in European operations and provided for an additional $1,674,000 one-time charge to cover the costs of restructuring. As previously indicated, management expects that in the future international operations will not have any material adverse effect on earnings from domestic operations.
 To help investors evaluate the company's progress in the United States, management constructed pro forma fully taxed domestic financial results for comparative purposes. These pro forma results are provided to simplify investor comparisons and are not necessarily indicative of results which would have occurred if the company did not have its European operations.
 On this pro forma basis, pre-tax income for the quarter would have been $1,080,000, up $559,000 or 107 percent over the third quarter of 1991. Net income, based on a pro forma tax rate of 42 percent in both 1991 and 1992, would have been $626,000, up $324,000 or 107 percent over the third quarter of 1991. Earnings per share would have been $.11, up $.05 or 83 percent over the third quarter of 1991.
 On the same basis for the first nine months of 1992, pre-tax income would have been $3,228,000, up $1,474,000 or 84 percent over the first nine months of 1991. Net income (using the tax assumptions above) would have been $1,872,000, up $854,000 or 84 percent over the first nine months of 1991. Earnings per share would have been $.34, up $.10 or 42 percent over the first nine months of 1991.
 Commenting on results for the quarter, Jack Davis, president and CEO, said, "While we are not pleased to report the large losses incurred this quarter in restructuring our operations in Europe, we take some pride in our ability to undertake prudent risks, to make difficult decisions about restructuring them, and to meet our commitments to our shareholders. Our current restructuring plans will leave us with a limited presence in Europe which will not be a drain on earnings and which provides a base of operations if a more favorable climate should emerge."
 Dick Sandberg, chairman, added, "In Europe, as in other projects in the past, we have encouraged our managers to take risks while holding ourselves accountable for performance. We believe our shareholders understand and agree that these attitudes have been and will be an essential part of our growth strategy in the years ahead."
 -0- 11/12/92
 /CONTACT: Richard A. Sandberg, chairman and co-chief executive officer of Dianon Systems, Inc., 203-381-4022/
 (DIAN) CO: Dianon Sytems, Inc. ST: Connecticut IN: MTC SU: ERN


AH -- NY061 -- 0342 11/12/92 16:01 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 12, 1992
Words:619
Previous Article:LEVY NAMED PRESIDENT OF TELEX HEARING INSTRUMENTS GROUP
Next Article:PITT-DES MOINES DECLARES DIVIDEND
Topics:


Related Articles
DIANON SYSTEMS REPORTS INCREASE IN THIRD QUARTER SALES AND EARNINGS
DIANON SYSTEMS REPORTS INCREASE IN FOURTH-QUARTER SALES
DIANON SYSTEMS REPORTS FOURTH QUARTER SALES AND EARNINGS
DIANON SYSTEMS FORECASTS INCREASE IN SECOND QUARTER SALES
DIANON SYSTEMS REPORTS INCREASE IN SECOND QUARTER SALES AND EARNINGS
DIANON SYSTEMS PLANS EUROPEAN CHANGES
DIANON Systems Announces Second Quarter Results
DIANON Systems Reports EPS Growth of 47%, Net Income Up 67%.
DIANON Systems, Inc. Announces 29% Net Income Growth On 23% Sales Growth.
LabCorp acquires Dianon Systems. (News: Industry Watch).

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters