Datron Systems announces RSS order cancellation resulting in restatement of second quarter fiscal 1996 earnings; reports third quarter fiscal 1996 earnings; signs two distribution agreements for its DBS TV reception systems; and signs licensing agreement with DirecTV.ESCONDIDO Escondido (ĕskəndē`dō), city (1990 pop. 108,635), San Diego co., S Calif.; inc. 1888. Located in a grain-, citrus-fruit-, and grape-growing valley, Escondido produces cereal products and has fruit-packing houses and one of the , Calif.--(BUSINESS WIRE)--Jan. 30, 1996--Datron Systems Incorporated (Nasdaq:DTSI DTSI Defense Trade Security Initiative DTSI Digital Twin Spark Ignition DTSI Datron/Transco Systems Incorporated DTSI DataTel Solutions, Inc. (San Antonio, Texas) ) today announced it has canceled an $8.8 million order for a remote sensing Deriving digital models of an area on the earth. Using special cameras from airplanes or satellites, either the sun's reflections or the earth's temperature is turned into digital maps of the area. satellite (RSS (Really Simple Syndication) A syndication format that was developed by Netscape in 1999 and became very popular for aggregating updates to blogs and the news sites. RSS has also stood for "Rich Site Summary" and "RDF Site Summary. ) image processing image processing Set of computational techniques for analyzing, enhancing, compressing, and reconstructing images. Its main components are importing, in which an image is captured through scanning or digital photography; analysis and manipulation of the image, accomplished facility. This order, which was previously announced in July July: see month. 1995, was intended for installation in the Middle East. Datron's customer, who is acting as prime contractor for a larger project that includes the RSS facility, has not been able to obtain funding from its customer for the image processing facility. Because the order was conditioned upon funding, Datron has canceled it for lack of payment. Negotiations to reinstate To restore to a condition that has terminated or been lost; to reestablish. To reinstate a case, for example, means to restore it to the same position it had before dismissal. the order are underway, but it is not possible at this time to predict the outcome of those negotiations. Datron commenced work on the RSS order in late July. Because the order was conditioned on funding that has not been obtained, Datron has restated financial results for its second fiscal quarter ended September 30, 1995. Restated net income for the second quarter was $327,000 or $0.12 per share compared with previously reported net income of $840,000 or $0.32 per share. Restated sales for the second quarter were $15,660,000 compared with previously reported sales of $17,445,000. Because of the RSS order cancellation, net income for Datron's third fiscal quarter ended December 31, 1995 was lower than the Company previously anticipated. The Company today reported net income for the third quarter of $177,000 or $0.07 per share compared with net income for the third quarter last fiscal year of $926,000 or $0.36 per share. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the third quarter were $19,339,000, a 7% increase from third quarter net sales last fiscal year of $18,151,000. Net income for the nine months ended December 31, 1995 was $919,000 or $0.34 per share compared with net income of $2,092,000 or $0.81 per share for the comparable period last fiscal year. Net sales for the nine months were $49,355,000, a 6% increase from net sales of $46,371,000 for the first nine months last fiscal year. David A. Derby, president and chief executive officer of Datron Systems, stated, "We are very disappointed to report the cancellation of this RSS order and reversal of the sales and earnings attributed to it. Although there is still a possibility that funding will be obtained by our customer, continued work on the order is not justified. The adverse impact of this cancellation on our fiscal 1996 financial results is substantial and detracts from significant achievements made in other areas of our business. Although we will not be able to replace the lost earnings during fiscal 1996, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about Datron's future potential." Datron also announced today it has signed two distribution agreements for its Model DBS-3000 mobile satellite television reception system. The agreements include purchase orders which, depending on market conditions, call for delivery of from 2,000 units to in excess of 16,000 units over the next two years at a value of from $1.4 million to in excess of $11.5 million. These two agreements provide Datron with exclusive distributors for its Direct Broadcast Satellite (DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. ) television products in a territory that encompasses 24 western states. The first distribution agreement is with Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. RV of Junction City, Oregon Junction City is a city in Lane County, Oregon, United States. The population was 4,721 at the 2000 census. Junction City was originally named by railroad magnate Ben Holladay around 1870, who decided this would be where the rail line on the east side of the Willamette Valley met , one of the largest recreational vehicle dealers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The second agreement is with the Warren Companies, a privately-held corporation in Sioux Falls, South Dakota Sioux Falls (IPA: [su fɑlz]) is the largest city in the U.S. state of South Dakota, and the county seat of Minnehaha County.GR6 The 2007 city population is 148,000. (Warren). Warren is one of the original four national sales management Sales Management Role and Goal Importance of sales management is critical for any commercial organization. Expanding business in not possible without increasing sales volumes, and effective sales management goal is to organize sales team work in such a manner that ensures a agencies for DIRECTV, which permits it to offer programming incentives to its dealers. Warren is also a national distributor for Thomson Consumer Electronics and for the RCA See RCA connector and video/TV history. brand Digital Satellite System. Datron's Model DBS-3000 brings Direct Broadcast Satellite television to the recreational vehicle and long-haul truck markets. The 18-inch diameter antenna stows in a streamline position when the vehicle is underway. After the vehicle is parked, the system automatically locks on the high power digital satellite signal from the three DIRECTV DBS satellites at the touch of a button to provide TV reception throughout the Continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. . The initial market for Datron's newest product consists of the 2.1 million upper-end recreational vehicles and 0.5 million owner-operated long-haul trucks currently on the road. Mr. Derby stated, "We are extremely pleased to have reached agreements with Guaranty RV and the Warren Companies for distribution of our DBS products in the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . Both organizations have long and successful track records in their respective markets. With these two distribution agreements, we have made significant progress toward our challenge of establishing nationwide distribution for our new product. We look forward to soon reaching similar agreements to serve the remainder of the Continental United States." On a related subject, Datron also announced today it has signed a royalty free trademark licensing agreement with DIRECTV, Inc. to use the DIRECTV and DSS (1) (Digital Signature Standard) A National Security Administration standard for authenticating an electronic message. See RSA and digital signature. (2) (Digital Satellite S logos on its Model DBS-3000 mobile satellite television reception system. Datron's license from DIRECTV is the first such license issued for an automatic antenna system designed for mobile land-based vehicles. Mr. Derby stated, "We are pleased to be the first licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. from DIRECTV for an automatic antenna system designed for the mobile land-based market. Our license came after testing by DIRECTV which demonstrated our product's quality and ease of use. This license, coupled with our previously announced agreement with Sony designating us as a 'Sony System Integrator', allows us to produce product carrying the prestigious logos of both Sony and DIRECTV, along with our own. Datron has invested heavily to develop a premium quality product at an affordable price, placing us at the forefront of a very large new market. We are proud to be offering our customers the quality, service and support of DIRECTV, Sony and Datron." Datron Systems provides products and services addressing the needs of emerging radio and satellite communication markets. DIRECTV and DSS are registered trademarks of DIRECTV, Inc., a unit of Hughes Electronics Corporation. -0-
RESTATED SECOND QUARTER FISCAL 1996 EARNINGS
DATRON SYSTEMS INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
1995 1995
1995 As Previously 1995 As Previously
Restated Reported 1994 Restated Reported 1994
Net sales $15,660 $17,445 $16,088 $30,016 $31,801 $28,220 Cost of sales 10,730 11,559 11,477 19,726 20,555 19,469 Gross profit 4,930 5,886 4,611 10,290 11,246 8,751 Selling, general and administrative 3,709 3,809 2,934 7,403 7,503 6,075 Research and development 704 704 369 1,699 1,699 703 Operating income 517 1,373 1,308 1,188 2,044 1,973 Interest expense - net (15) (15) (65) (17) (17) (89) Income before taxes 502 1,358 1,243 1,171 2,027 1,884 Income taxes 175 518 470 429 772 718 Net income $327 $840 $773 $742 $1,255 $1,166 Net income per share $0.12 $0.32 $0.30 $0.28 $0.47 $0.45 Average shares outstanding 2,663 2,663 2,594 2,656 2,656 2,588
THIRD QUARTER FISCAL 1996 EARNINGS
DATRON SYSTEMS INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1995 1994 1995 1994
Net sales $19,339 $18,151 $49,355 $46,371 Cost of sales 14,181 12,618 33,907 32,087 Gross profit 5,158 5,533 15,448 14,284 Selling, general and administrative 3,812 3,710 11,215 9,785 Research and development 746 294 2,445 997 Operating income 600 1,529 1,788 3,502 Interest expense - net (62) (45) (79) (134) Other expense (260) (16) (260) (16) Income before taxes 278 1,468 1,449 3,352 Income taxes 101 542 530 1,260 Net income $177 $926 $919 $2,092 Net income per share $0.07 $0.36 $0.34 $0.81 Average shares outstanding 2,679 2,608 2,663 2,595 CONTACT: William L. Stephan Chief Financial Officer (619) 747-3734 OR Morgen-Walke Associates June Filingeri, Robert Weiner, Jennifer Miller For the performer of the same name, see . Jennifer Miller (born 1961) is an American circus entertainer, writer and a university professor. Miller is a professor for the UCLA Department of World Arts and Cultures. She is a bearded woman, juggler, and fire eater. (212) 850-5600 Media contact: Miriam Adler Ad·ler , Alfred 1870-1937. Austrian psychiatrist. He rejected Sigmund Freud's emphasis on sexuality and theorized that neurotic behavior is an overcompensation for feelings of inferiority. (415) 296-7383 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion