DOT-X Reports Third Quarter Results.ST. PAUL St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minn.--(BUSINESS WIRE)--May 7, 1998--Dotronix, Inc. (DOT-X) (NASDAQ/ DOTX), today announced improvement in its fiscal third quarter ended March 31, 1998. Fiscal 1998 third quarter sales rose 10% to $2,337,000 from $2,130,000 for the comparable quarter of fiscal 1997. The company reported a significantly reduced net loss of $342,754, or $.08 per share compared to a loss of $544,479, or $0.13 per share for the year-earlier quarter. "During the third quarter, we greatly increased our gross margin and reduced our interest expense," commented William S. Sadler William S. Sadler, MD, FAPA (1875 - 1969) was a well-known American psychiatrist[1] and college teacher in the school of medicine at the University of Chicago. For over sixty years he practiced his profession in Chicago, thirty-three years being associated in practice , president. "Our drive to develop new products, and carry out marketing and selling activities at a much higher level resulted in higher SG&A expenses. That effort has resulted in a large number of significant new prospective orders. Our sales have not yet begun to benefit from our new programs; but the interest in our new products and the level of activity encourage us to anticipate an improved order intake in the fourth quarter." -0-
DOT-X
Results as a Percent of Sales for the Quarters Ended December 31,
Third Quarter, FY Ended March
-----------------------------
1998 1997 1996
---- ---- ----
Gross Profit as Percent of Sales 32.5% 19.6% 34.8%
S, G&A as Percent of Sales 46.2% 42.0% 29.5%
Interest expense as % of sales 1.0% 3.1% 1.8%
Weighted Shares Outstanding 4,039 4,133 4,289
"Nine month sales rose 3% to $7.6 million from $7.4 million for the first nine months of fiscal 1997," said Mr. Sadler Sadler may refer to:
"A number of new product initiatives were pursued during the third quarter. Among these were the MenuLink and DNR See dynamic noise reduction and domain name resolver. stand-alone units. During the period, we also made progress with our medical and high-tech OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and products." Video Resellers "Dotronix recently began to focus on additional segments of the video reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. market . A few of the companies in this market have been Dotronix clients from time to time. Our new marketing effort has uncovered Uncovered may refer to:
"A major reseller of our CRT (1) (C RunTime) See runtime library. (2) (Cathode Ray Tube) A vacuum tube used as a display screen in a computer monitor or TV. The viewing end of the tube is coated with phosphors, which emit light when struck by electrons. video walls, has recently been quoting the DNR, our new stand-alone video monitor, for stand-alone applications useful to its video wall customers. These CRT displays, used for in-store marketing and information, have been re-designed to include advanced features at an even more competitive price point." New Color Cabinet "Also during the third quarter, we launched the new Dotronix color cabinet monitor at the Global Shop Show in Chicago's McCormick Place McCormick Place is an enormous exposition complex located in Chicago, Illinois. . The Global Shop Show reception to these new products was excellent. This showcase attended by both retailers and the designers of retail stores, showed us that we are in the early stages of a trend of a market where point of purchase monitors are designed into the retail store." Medical and Electronics Displays "We have quoted a large order for a 20 inch display that can fit five different pieces of electronic equipment for a major manufacturer. The manufacturer is currently using three separate displays in the five uses. Our solution, if accepted, will allow them to reduce cost and inventory as well as improve video performance." On another front, we have signed non-disclosure agreements A non-disclosure agreement (NDA), also called a confidential disclosure agreement (CDA), confidentiality agreement or secrecy agreement, is a legal contract between at least two parties that outlines confidential materials or knowledge the parties with the three largest ultrasound ultrasound or sonography, in medicine, technique that uses sound waves to study and treat hard-to-reach body areas. In scanning with ultrasound, high-frequency sound waves are transmitted to the area of interest and the returning echoes recorded equipment manufacturers. They will now release information to us regarding the technical parameters of their displays. These companies are moving into a new segment that will increase the size and growth of an already fast growing market. Our penetration of this market will be enhanced by the information we receive from the top three manufacturers." Flight Information Systems "We are working on potential orders with two major airports and we have strengthened our ties with one of the nation's largest installers of flight information systems. Our new DVGX Flight Information Display is being quoted for several of these systems. The relation we are building with this reseller could place us in a strong position for the coming refit of America's flight information systems. MenuLink "During the third quarter, we began to broadly market our MenuLink point of purchase video display system that links multi-unit restaurants allowing sales-generating images and menus to be controlled from a central location. An early step was identifying the top restaurant concepts and mailing them material introducing MenuLink. Meanwhile we also made direct contact with a number of potential customers and are proceeding to develop interest. We believe that MenuLink's proven ability to dramatically improve sales of targeted menu items will make it a must in fast food restaurants over time. Financial Strength "At December 31, 1997, our cash and equivalents amounted to $1.2 million, compared with $2.6 million at June 30, 1997. Our current ratio was 4.0:1, compared to 3.3:1 at fiscal year end. We had no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $6.9 million or $1.73 per share, at the end of the fiscal third quarter. "The results of the third quarter," explained Sadler, "continue to reflect our new management philosophy at DOT-X. Cutting costs and improving efficiency while accelerating new product introductions is now a part of our corporate culture. DOT-X is striving to continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. improve its efficiency and customer responsiveness. "Our new product programs have taken longer than expected to produce orders; but we believe this is due to the time necessary to work with large customers. Meanwhile, we are continuing to reduce cost and improve efficiency. Over the longer term, we are confident that we are on the path to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth." -0-
DOTRONIX, INC.
CONDENSED STATEMENT OF INCOME
FOR THE QUARTERS AND NINE MONTHS ENDED MARCH 31,
(In thousands except per share)
The Third Quarter of First Mine Months of
The Fiscal Year Ended The Fiscal Year Ended
June 30, June 30,
1998 1997 1998 1997
--------- --------- --------- --------
Net Sales $ 2,337 $ 2,130 $ 7,600 $ 7,365
Cost of Sales 1,577 1,712 5,201 5,255
--------- --------- --------- --------
Gross Profit 760 418 2,399 2,110
Selling, General and
Administrative
Expense 1,080 895 2,772 2,726
Interest Expense 23 67 99 195
--------- --------- --------- --------
Total Expenses 1,103 962 2,871 2,921
--------- --------- --------- --------
Net Income (Loss) $ (343) $ (544) $ (472) $ (811)
========= ========= ========= ========
Net Income (Loss)
Per Share $ (0.08) $ (.13) $ (0.12) $ (0.19)
Weighted Average Shares
Outstanding 4,039 4,133 4,038 4,209
BALANCE SHEET DATA
March 31, 1998 December 31, 1997
Current Assets $ 6,747,944 $ 8,092,299
Current Liabilities $ 1,691,352 $ 2,469,576
Total Assets $ 8,596,540 $ 9,848,290
Total Stockholders'
Equity $ 6,905,188 $ 7,378,714
Discussions in this news release of Dotronix's belief that the MegaScreen(TM) rear-projection video wall, DNR, MenuLink and other new products can stimulate significant growth contain 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 risks and uncertainties, including but not limited to general economic conditions, the development of as yet undeveloped markets, competitive factors and other risks detailed from time to time in the Company's SEC reports, including the 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. for the year end June 30, 1997. Actual results may vary materially from those anticipated. About the Company For nearly two decades, Dotronix (DOT-X), has designed, manufactured and marketed high resolution video displays and closed-circuit television closed-circuit television Noun a television system used within a limited area such as a building Noun 1. closed-circuit television (CCTV CCTV abbr. closed-circuit television CCTV closed-circuit television ) monitors for a broad range of applications. DOT-X recently entered the fast-food Point-Of-Purchase display market that today is in its infancy infancy, stage of human development lasting from birth to approximately two years of age. The hallmarks of infancy are physical growth, motor development, vocal development, and cognitive and social development. and could grow to as much as $100 million a year in sales of equipment and services. The company has also recently entered the $100 million/year projection video display market with its new MegaScreen(TM) product. Profitable in fiscal 1995 and 1996, DOT-X lost $1.4 million or $.34 per share due to the loss of three significant customers in FY 97. Focusing on improving gross margins, management believes that fiscal 1998 is the transition year in the company's return to profitability. DOT-X is traded on the NASDAQ stock market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol: DOTX. On May 7 1998 it was traded at $1.97 per share. The company's book value is $1.73 per share. CONTACT: At TPL 1. TPL - Table Producing Language. "The Bureau of Labor Statistics Table Producing Language (TPL)", R.C. Mendelssohn, Proc ACM Annual Conf (1974). 2. TPL - Fleming Nielson. A concurrent functional language. 3. Peter Leech leech, predacious or parasitic annelid worm of the class Hirudinea, characterized by a cylindrical or slightly flattened body with suckers at either end for attaching to prey. 847-317-0100 E-Mail: pleech @ interaccess.com or Corporate Headquarters William S. Sadler, or Erling J. Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic 612-633-1742 Website: www.dotronix.com |
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