Del Global Technologies Corp. Reports Record First Quarter Sales and Earnings.VALHALLA, N.Y.--(BUSINESS WIRE)--Dec. 7, 1999-- Del Global Technologies Corp. (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 : DGTC) today reported record sales and earnings for the first quarter of fiscal 2000 ended October 30, 1999. Net income increased 7% to approximately $1,526,000 from approximately $1,429,000 in the prior year's first quarter. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 6% to $.19 on 8,171,777 shares outstanding from $.18 on 8,142,557 shares outstanding. 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 quarter increased 6% to approximately $15,712,000 from approximately $14,810,000 for the same period last year. "Our first quarter performance is on track with our business plan for fiscal 2000 and, based in part on our present backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of approximately $39 million, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that fiscal 2000 will be another year of record revenues and earnings. We believe that continued acceleration of the outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. trend by major medical equipment manufacturers and the increase in minimally invasive surgery minimally invasive surgery Laparoscopic surgery, see there. See Laparoscopic cholecystectomy. applications as well as new opportunities in telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. using the Company's proprietary technology will have a beneficial impact in fiscal 2000 and beyond," Leonard A. Trugman, Chairman, Chief Executive Officer and President said. R&D investment in the first quarter increased 8% to approximately $1,543,000 from approximately $1,431,000 for the same period last year. This level of internal R&D funding represents approximately 9.8% of net sales for the just concluded quarter. The balance sheet remains quite strong with a current ratio of 4.54:1, working capital of approximately $49,305,000, net equity of approximately $67,693,000 versus only $2,079,000 of debt, and a book value of $8.67 per share. "The Company's Del Medical Systems Group, consisting of our Gendex-Del and DynaRad subsidiaries, was an exhibitor at the just concluded Radiological Society of North America The Radiological Society of North America (RSNA), founded in 1915, has the purpose to "promote and develop the highest standards of radiology and related sciences through education and research". Conference ("RSNA RSNA Radiological Society of North America, Inc. RSNA Robust Security Network Association ") in Chicago and the recent Medica medica (māˑ·dē·k Medical Conference in Germany. The Company's product lines were very well received," Mr. Trugman continued. "Our growth strategy continues to consist of accelerating the mix of our business towards cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. medical imaging and diagnostic systems, expanding our international sales, aggressively investing in product development and pursuing selected acquisitions on a global basis," he concluded. Del Global Technologies Corp. is primarily engaged in the design, manufacture and marketing of state-of-the-art, cost-effective medical imaging and diagnostic systems consisting of stationary Stationary can mean:
1. the act of holding back or checking. 2. sudden stoppage of a secretion, excretion, or normal discharge. 3. , semi-conductor capital equipment and energy exploration. This press release contains forward looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks include, but are not limited to, the ability of the Company to grow internally or by acquisition and to integrate acquired businesses, changing industry and competitive conditions, and other risks referred to in the Company's registration statements and periodic reports filed with the Securities & Exchange Commission. -0-
DEL GLOBAL TECHNOLOGIES CORP. - FINANCIAL HIGHLIGHTS
(UNAUDITED)
Three Month Ended
-----------------------------
October 30, October 31,
1999 1998
----------- -----------
NET SALES $15,712,000 $14,810,000
----------- -----------
COST AND EXPENSES:
Cost of Sales 9,311,000 8,680,000
Research and development 1,543,000 1,431,000
Selling, general and
administrative 2,603,000 2,621,000
Interest expense - net 62,000 7,000
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13,519,000 12,739,000
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INCOME BEFORE PROVISION FOR
INCOME TAXES 2,193,000 2,071,000
PROVISION FOR INCOME TAXES 667,000 642,000
----------- -----------
NET INCOME $ 1,526,000 $ 1,429,000
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Per share amounts:
Basic earnings per share $.20 $.19
==== ====
Diluted earnings per share $.19 $.18
==== ====
Weighted average number of
common shares outstanding 7,786,004 7,648,413
========= =========
Weighted average number of
common shares outstanding
and common share equivalents 8,171,777 8,142,557
========= =========
CONDENSED BALANCE SHEETS
October 30, July 31,
1999 1999
---- ----
Current assets $63,226,000 $61,456,000
=========== ===========
Total assets $86,045,000 $84,104,000
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Current liabilities $13,921,000 $13,701,000
=========== ===========
Total liabilities $18,352,000 $17,753,000
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Shareholders' equity $67,693,000 $66,351,000
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The Company will be hosting a conference call at 11:00 a.m. (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of time) on December 7, 1999. Interested parties may call 1-888-391-0230 (reservation number 13743746) at 10:50 a.m. in order to participate. |
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