Del Global Technologies Corp. Reports Record Second Quarter and Six-month Results and a Record Backlog of Approximately $45 Million.Business Editors VALHALLA Valhalla or Walhalla (both: vălhäl`ə, –hăl`ə), in Norse mythology, Odin's hall for slain heroes. This martial paradise was one of the most beautiful halls of Asgard. , N.Y.--(BUSINESS WIRE)--March 7, 2000 Del Global Technologies Corp. (Nasdaq:DGTC) today reported record sales and earnings for the second quarter and six months of Fiscal 2000 ended January 29, 2000. Second quarter net income increased approximately 10% to $1,768,000 from $1,604,000 in the prior year's second quarter. Earnings per share increased 10% to $.22 on 8,163,980 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares outstanding from $.20 on 8,205,600 diluted shares outstanding for the prior year's quarter. Net income for the first six months increased approximately 9% to $3,294,000 from $3,033,000 in the first half of Fiscal 1999, while net income per share on a diluted basis increased 8% to $.40 on 8,167,878 average common shares and common share equivalents outstanding from $.37 on 8,174,078 average common shares and common share equivalents outstanding in the first half of the prior year. 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 three months ended January 29, 2000 increased approximately 10% to $17,450,000 from $15,922,000 in the prior year's second quarter. Net sales for the six months increased approximately 8% to $33,162,000, compared to $30,731,000 for the first half of last year. The increases in net sales for both the three- and six-month periods are due to internal growth. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved to 14.6% of sales for the just concluded quarter. R&D investment in the second quarter increased to $1,707,000 from $1,523,000 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 strong with a current ratio of 4.98:1, working capital of approximately $52,586,000, shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of approximately $69,680,000 and a book value of $8.92 per share. "Our second quarter and six-month performance is on track with our business plan for Fiscal 2000. 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, based upon 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 $45 million. In December 1999, we announced that we had been awarded a contract valued at $12 million over three years for a new generation medical imaging system application, utilizing our proprietary power conversion technology, from one of our major customers, a leading global medical imaging company," Leonard A. Trugman, Chairman, Chief Executive Officer and President said. "We also announced that we obtained a 19% stake in Villa Sistemi Medicali S.p.A., located in Milan, Italy, along with an irrevocable Unable to cancel or recall; that which is unalterable or irreversible. IRREVOCABLE. That which cannot be revoked. 2. A will may at all times be revoked by the same person who made it, he having a disposing mind; but the moment the testator is option to increase our ownership interest to 80% of the capital stock of Villa. This pending acquisition is another important step in the Company's long-range plan to become a leading global supplier of radiographic/fluoroscopic (R/F) diagnostic medial medial /me·di·al/ (me´de-il) 1. situated toward the median plane or midline of the body or a structure. 2. pertaining to the middle layer of structures. me·di·al adj. imaging equipment. "Villa has leading edge radiographic/fluoroscopic (R/F) technology. In addition to a full line of R/F systems, Villa also offers a line of portable imaging systems with power ratings ranging from 5kW to 30kW, as well as a comprehensive line of dental imaging systems consisting of both intraoral in·tra·o·ral adj. Within the mouth. intraoral (in´tr and panoramic pan·o·ram·a n. 1. An unbroken view of an entire surrounding area. 2. A comprehensive presentation; a survey: a panorama of American literature. 3. systems. "This pending acquisition broadens our product offerings of medical imaging systems and gives us entree into the dental imaging market. Villa's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. location provides Del with a truly global presence and materially strengthens our position in several new markets. "During the just concluded quarter, the Company's Del Medical Systems Group, consisting of our Gendex-Del and DynaRad subsidiaries, was an exhibitor at the 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, Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , and the Medica medica (māˑ·dē·k Conference in Dusseldorf, Germany. Currently, the Del Medical Systems Group and Villa are exhibitors at the European College of Radiology radiology, branch of medicine specializing in the use of X rays, gamma rays, radioactive isotopes, and other forms of radiation in the diagnosis and treatment of disease. in Vienna, Austria. "Our growth strategy continues to consist of accelerating the mix of our business towards medical imaging and diagnostic systems, expanding our international sales, aggressively investing in product development and pursuing selected acquisitions on a global basis," Mr. Trugman concluded. Del Global Technologies Corp. is primarily engaged in the design, manufacture and marketing of state-of-the-art, 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 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. subsystems, analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. , 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.
DEL GLOBAL TECHNOLOGIES CORP. - FINANCIAL HIGHLIGHTS
(UNAUDITED)
STATEMENTS OF OPERATIONS Three Months Ended
--------------------------
January 29, January 30,
2000 1999
------------ ------------
NET SALES $ 17,450,000 $ 15,922,000
------------ ------------
COSTS AND EXPENSES
Cost of Sales 10,419,000 9,308,000
Research and development 1,707,000 1,523,000
Selling, general & administrative 2,701,000 2,750,000
Interest expense - net 83,000 16,000
------------ ------------
14,910,000 13,597,000
------------ ------------
INCOME BEFORE PROVISION
FOR INCOME TAXES 2,540,000 2,325,000
PROVISION FOR INCOME TAXES 772,000 721,000
------------ ------------
NET INCOME $ 1,768,000 $ 1,604,000
============ ===========
Per share amounts:
Basic earnings per share $ 0.23 $ 0.21
============ ===========
Diluted earnings per share $ 0.22 $ 0.20
============ ===========
Weighted average number of
common shares outstanding 7,813,017 7,648,308
============ ===========
Weighted average number of
common shares outstanding
and common share equivalents 8,163,980 8,205,600
============ ===========
STATEMENTS OF OPERATIONS Six Months Ended
--------------------------
January 29, January 30,
2000 1999
------------ ------------
NET SALES $ 33,162,000 $ 30,731,000
------------ ------------
COSTS AND EXPENSES
Cost of Sales 19,730,000 17,987,000
Research and development 3,250,000 2,954,000
Selling, general & administrative 5,304,000 5,371,000
Interest expense - net 145,000 23,000
------------ ------------
8,429,000 26,335,000
------------ ------------
INCOME BEFORE PROVISION
FOR INCOME TAXES 4,733,000 4,396,000
PROVISION FOR INCOME TAXES 1,439,000 1,363,000
------------ ------------
NET INCOME $ 3,294,000 $ 3,033,000
============ ===========
Per share amounts:
Basic earnings per share $ 0.42 $ 0.40
============ ===========
Diluted earnings per share $ 0.40 $ 0.37
============ ===========
Weighted average number of
common shares outstanding 7,799,511 7,648,361
============ ===========
Weighted average number of
common shares outstanding
and common share equivalents 8,167,878 8,174,078
============ ===========
CONDENSED BALANCE SHEETS January 29, July 31,
2000 1999
------------ ------------
Current Assets $ 65,802,000 $ 61,456,000
============ ============
Total Assets $ 90,094,000 $ 84,104,000
============ ============
Current Liabilities $ 13,216,000 $ 13,706,000
============ ============
Total Liabilities $ 20,414,000 $ 17,753,000
============ ============
Shareholders' Equity $ 69,680,000 $ 66,351,000
============ ============
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 Tuesday, March 7, 2000. Interested parties may call 1-888-209-3795 (reservation number 14559831) at 10:50 a.m. to participate. |
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