Del Global Technologies Reports Fiscal 2008 First Quarter Financial Results.Q1 FY 2008 Highlights Versus Q1 FY 2007 * 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 up 38.5% to $26.7 million * Net income increased to $1.1 million * 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 of $0.04 FRANKLIN PARK Franklin Park, village (1990 pop. 18,485), Cook co., NE Ill., a suburb of Chicago; inc. 1892. It is chiefly residential. , Ill. -- Del Global Technologies Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : DGTC) ("Del Global" or "the Company") today announced financial results for its fiscal 2008 first quarter ended October 27, 2007. Consolidated net sales for the first quarter of fiscal 2008 rose 38.5% to $26.7 million from $19.3 million in the first quarter of fiscal 2007, due to higher sales at the Medical Systems Group. Net sales at the Medical Systems Group rose 44.9% to $24.1 million from the comparable prior year period, due to increased international sales and strong equipment sales to the dental market. Sales at the Power Conversion Group ("RFI (Radio Frequency Interference) High-frequency electromagnetic waves that emanate from electronic devices such as chips. RFI - Radio Frequency Interference ") during the first quarter of fiscal 2008 were $2.6 million, roughly equal to sales in the same period last year. Consolidated gross margin improved to 24.1% of sales during the first quarter of fiscal 2008 from 20.8% of sales in the first quarter of fiscal 2007, due to the impact of higher sales volume and better plant utilization. Gross margin at the Medical Systems Group during the first quarter of fiscal 2008 rose to 22.7% from 19.0% in the prior year's first quarter. Gross margin at RFI increased to 36.5% in the fiscal 2008 first quarter from 31.9% in the same fiscal 2007 first quarter. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. declined to 15.8% of net sales from 19.6% of net sales in the same period one year ago. Selling, general and administrative expenses for the first quarter of fiscal 2008 declined as a percentage of net sales to 14.0% from 17.3% of net sales in the prior year's first quarter, the result of higher sales and operating efficiencies derived from an improved cost structure. Research and development expenses in the first quarter of fiscal 2008 rose by approximately $0.1 million, reflecting Del Global's continued investment in new product development. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of fiscal 2008 rose more than 9-fold to $2.2 million from $0.2 million in the comparable period last year. Operating income at the Medical Systems Group rose to $2.2 million from $0.6 million in the first quarter of fiscal 2007. RFI generated operating income of $0.4 million as compared to $0.3 million in the same period one year ago. Unallocated corporate expenses for the first quarter of fiscal 2008 totaled $0.4 million as compared to $0.7 million in the same period last year. Net income in the first quarter of fiscal 2008 improved by $1.6 million to $1.1 million, or $0.04 per 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. share, from a net loss of $0.5 million, or $0.04 per diluted share. For the first quarter of fiscal 2008, there were approximately 24.7 million weighted average common shares outstanding ("shares outstanding") as compared to 11.6 million shares outstanding in the first quarter of fiscal 2007. The increase in shares outstanding was due primarily to the impact of shares issued in connection with Del Global's Rights Offering, which was completed on March 12, 2007. The Company sold approximately 12.0 million shares of its common stock at $1.05 per share, generating total net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $12.4 million. BACKLOG Consolidated backlog at October 27, 2007 was $25.7 million as compared to $28.4 million at July 28, 2007. Backlog at the Medical Systems Group decreased $2.4 million due to a decline in international bookings, the result of the winding down of a long-term contract with an international customer and, to a lesser extent, seasonality in Europe. Backlog at RFI declined $0.3 million to $6.3 million from levels at the beginning of the fiscal year. Substantially all of the backlog should result in shipments within the next 12 to 15 months. FINANCIAL CONDITION Del Global's balance sheet at October 27, 2007 reflected working capital of $26.7 million, which included $5.9 million of cash and cash equivalents. As of October 27, 2007, Del Global did not have any outstanding borrowings under its U.S. or Italian revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facilities. In the aggregate, Del Global had approximately $20.6 million of borrowing availability under its domestic and Italian revolving credit facilities. COMMENTS James A. Risher, Del Global's President and Chief Executive Officer commented, "We are very pleased with our operating results for the first quarter, and continue to believe that we are making the necessary investments in our relationships, product portfolio, and operating infrastructure to facilitate continued progress in 2008. We are excited about our recently announced new products that were on display at the RSNA RSNA Radiological Society of North America, Inc. RSNA Robust Security Network Association Conference in Chicago last week. The Del Image Management System and the Apollo DRF DRF Daily Racing Form (horse racing) DRF Dansk Ride Forbund (Danish) DRF Deafness Research Foundation DRF Disaster Relief Fund DRF Data Recovery Field DRF Demat Request Form DRF Dose Reduction Factor multi-functional R/F systems were the product highlights of our booth. We also announced our supply agreement with Analogic to sell two new digital systems. We expect to continue to introduce a variety of new products throughout 2008. We recognize, however, that 2008 could be a challenging year as an anticipated deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed. early deceleration in overall U.S. economic growth combines with new domestic healthcare policies that could adversely affect purchasing behavior. Still, our financial position is strong, and we believe that we have ample liquidity to pursue our strategic growth initiatives, which includes strategic acquisitions." ANNUAL MEETING OF SHAREHOLDERS Del Global is scheduled to hold its Annual Meeting of Shareholders on Tuesday, February 26, 2008 at 2:00 PM Central Time. The meeting will be held at Del Global's corporate headquarters, 11550 West King Street, Franklin Park, IL, USA. Investors are encouraged to read Del Global's Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. for information related to the Annual Meeting, once the document is filed with the SEC. INVESTOR CONFERENCE CALL Del Global will host a conference call on Monday, December 10, 2007 at 11:00 AM Eastern Time / 10:00 AM Central Time to discuss these results. The telephone number to join this conference call is (888) 737-9832 (Domestic) or (706) 679-0770 (International). In addition, the conference call will be broadcast live over the Internet under the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " section of Del Global's web site at www.delglobal.com; click on "Presentations & Webcasts." To listen to the live call on the Internet, go to the web site at least 15 minutes early to register, download and install any necessary audio software. If you are unable to participate in the live call, the conference call will be archived and can be accessed on Del Global's website for approximately 30 business days. ABOUT DEL GLOBAL TECHNOLOGIES Del Global Technologies Corp. is primarily engaged in the design, manufacture and marketing of high performance diagnostic imaging systems for medical, dental and veterinary applications through the Del Medical Systems Group. Through its U.S. based Del Medical Imaging Corp. and Milan, Italy based Villa Sistemi Medicali S.p.A. subsidiaries the Company offers a broad portfolio of general radiographic radiographic (rā´dēōgraf´ik), adj relating to the process of radiography, the finished product, or its use. , radiographic/fluoroscopic, portable x-ray and digital radiographic systems to the global marketplace. Through its RFI subsidiary, Del Global manufactures proprietary high-voltage power conversion subsystems including electronic filters, high voltage The term high voltage characterizes electrical circuits, in which the voltage used is the cause of particular safety concerns and insulation requirements. High voltage is used in electrical power distribution, in cathode ray tubes, to generate X-rays and particle beams, to capacitors, pulse modulators, transformers and reactors, and a variety of other products designed for industrial, medical, military and other commercial applications. The company's web site is www.delglobal.com. Statements about future results made in this release may constitute 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on current expectations and the current economic environment. Del Global cautions that these statements are not guarantees of future performance. These statements involve a number of risks and uncertainties that are difficult to predict, including, but not limited to: the ability of Del Global to implement its business plan; retention of management; changing industry and competitive conditions; obtaining anticipated operating efficiencies; securing necessary capital facilities; favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. determinations in various legal matters; market and operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. from foreign currency exchange exposures; and favorable general economic conditions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's filings with the Securities and Exchange Commission. [TABLE OMITTED] [TABLE OMITTED] |
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