Del Global Technologies Corp. Reports Record Third Quarter and Nine-Month Results and a Record Backlog of Approximately $47 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)--June 7, 2000 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 third quarter and nine months of Fiscal 2000 ended April 29, 2000. Third quarter net income increased approximately 9% to $1,924,000 from $1,774,000 in the prior year's third quarter. Earnings per share increased approximately 9% to $.24 on 8,175,899 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 $.22 on 8,163,269 diluted shares outstanding for the prior year's quarter. Net income for the first nine months increased approximately 9% to $5,218,000 from $4,807,000 in the first nine months of last year, while net income per share on a diluted basis increased approximately 9% to $.64 on 8,170,552 average common shares and common share equivalents outstanding from $.59 on 8,163,470 average common shares and common share equivalents outstanding in the first nine months 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 April 29, 2000 increased approximately 10% to $20,526,000 from $18,685,000 in the prior year's third quarter. Net sales for the nine months increased approximately 9% to $53,689,000, compared to $49,416,000 for the first nine months of last year. R&D investment in the third quarter increased to $2,052,000 from $1,753,000 for the same period last year. This level of internal R&D funding represents 10% of net sales for the just concluded quarter. The balance sheet remains strong with a current ratio of 3.24:1, working capital of approximately $56,094,000, 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 $71,734,000 and a book value of $9.16 per share outstanding. "Our third quarter and nine-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 $47 million," said Leonard Leon·ard , Ray Charles Known as "Sugar Ray." Born 1956. American boxer who won the 1976 Olympic light welterweight title. He held five world titles as both a welterweight and middleweight between 1979 and 1987. Noun 1. A. Trugman, Chairman, Chief Executive Officer and President. "On April 25, 2000, we announced that we exercised a previously disclosed option to increase our ownership interest to 80% in Villa Sistemi Medicali S.p.A., of Milan, Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , thus adding an important new European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. dimension to the Company's expanding activities. Villa, with annual sales of approximately $20 million, has leading edge radiographic/fluoroscopic (R/F) technology. It manufactures a full line of R/F systems, including remote control features, as well as a line of portable imaging systems with power ratings up to 30kW, which is complementary to Del's existing line. In addition, Villa produces a comprehensive line of dental imaging systems, consisting of 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, which will bring a new imaging application to Del Global. "This acquisition not only broadens our product line of medical imaging systems, but also provides Del Global with even more effective representation in Europe. We expect Villa, as with previous Del Global acquisitions, to make a significant contribution to the Company's continued growth due to the synergies of our expanded product lines and cross-marketing programs. "During May 2000 Villa obtained FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval for its 'Vision' new state-of-the-art tilting tilt 1 v. tilt·ed, tilt·ing, tilts v.tr. 1. To cause to slope, as by raising one end; incline: tilt a soup bowl; tilt a chair backward. 2. table for radiographic radiographic (rā´dēōgraf´ik), adj relating to the process of radiography, the finished product, or its use. and fluoroscopic Fluoroscopic (fluoroscopy) An x-ray procedure that produces immediate images and motion on a screen. The images look like those seen at airport baggage security stations. Mentioned in: Hypotonic Duodenography examinations and it is now available for sale 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. along with Villa's previously FDA approved dental imaging systems. "These approvals allow our Del Medical Systems Group to begin to aggressively market and sell the Villa products in the U.S. Additional approvals for the balance of the Villa product line are anticipated throughout the remainder of this year and are consistent with our cross-marketing programs associated with this strategic acquisition. Integration of Villa into the Del Global family of companies is proceeding smoothly. In addition, Villa will be taking a more active role in marketing Del's products in Europe. "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
------------------------
--------------------------------
April 29, May 1,
2000 1999
--------------- ---------------
NET SALES $ 20,526,000 $ 18,685,000
--------------- ---------------
COSTS AND EXPENSES
Cost of Sales 12,528,000 11,217,000
Research and development 2,052,000 1,753,000
Selling, general &
administrative 3,006,000 3,065,000
Interest expense - net 129,000 79,000
--------------- ---------------
17,715,000 16,114,000
--------------- ---------------
Income Before Provision for
Income Taxes 2,811,000 2,571,000
Provision for Income Taxes 887,000 797,000
--------------- ---------------
Net Income $ 1,924,000 $ 1,774,000
=============== ===============
Per share amounts:
Basic earnings per share $ 0.25 $ 0.23
=============== ===============
Diluted earnings per share $ 0.24 $ 0.22
=============== ===============
Weighted average number of
common shares outstanding 7,824,196 7,700,294
=============== ===============
Weighted average number of
common shares outstanding
and common share equivalents 8,175,899 8,163,269
=============== ===============
Nine Months Ended
--------------------------------
April 29, May 1,
2000 1999
--------------- ---------------
NET SALES $ 53,689,000 $ 49,416,000
--------------- ---------------
COSTS AND EXPENSES
Cost of Sales 32,258,000 29,204,000
Research and development 5,302,000 4,708,000
Selling, general &
administrative 8,311,000 8,436,000
Interest expense - net 274,000 101,000
--------------- ---------------
46,145,000 42,449,000
--------------- ---------------
Income Before Provision for
Income Taxes 7,544,000 6,967,000
Provision for Income Taxes 2,326,000 2,160,000
--------------- ---------------
Net Income $ 5,218,000 $ 4,807,000
=============== ===============
Per share amounts:
Basic earnings per share $ 0.67 $ 0.63
=============== ===============
Diluted earnings per share $ 0.64 $ 0.59
=============== ===============
Weighted average number of
common shares outstanding 7,807,739 7,658,666
=============== ===============
Weighted average number of
common shares outstanding
and common share equivalents 8,170,552 8,163,470
=============== ===============
CONDENSED BALANCE SHEETS April 29, July 31,
------------------------ 2000 1999
--------------- ---------------
Current Assets $ 81,189,000 $ 61,456,000
=============== ===============
Total Assets $ 107,306,000 $ 84,104,000
=============== ===============
Current Liabilities $ 25,096,000 $ 13,706,000
=============== ===============
Total Liabilities $ 35,572,000 $ 17,753,000
=============== ===============
Shareholders' Equity $ 71,734,000 $ 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 Wednesday, June 7, 2000. Interested parties may call 1-888-313-7044 (reservation number 15439446) at 10:50 a.m. to participate. |
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