Engineering Measurements Company Reports Third-Quarter Results.Business Editors LONGMONT Longmont, city (1990 pop. 51,555), Boulder co., N Colo.; inc. 1885. It is a trade and processing center for a rich farm area irrigated by the Colorado–Big Thompson project. Vitamins, primary metal products, and manufacturing equipment are produced. , Colo.--(BUSINESS WIRE)--March 15, 2000 Engineering Measurements Company (Nasdaq:EMCO) today reported results for the three months and nine months ended Jan. 31, 2000. The company's current fiscal year ends on April 30, 2000. 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 Jan. 31, 2000, were $2.1 million vs. $2.6 million in the comparable prior-year period, a decrease of 18%. Net sales for the nine months ended Jan. 31, 2000, were $6.8 million vs. $7.6 million for the comparable prior-year period, a decrease of 10%. Net loss for the three months ended Jan. 31, 2000, was $8,956, or $0.00 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, compared with net income of $79,700, or $0.02 per diluted share, for the comparable prior-year period. For the nine months ended Jan. 31, 2000, the company reported net income of $7,207, or $0.00 per diluted share, compared with net income of $239,748, or $0.06 per diluted share, in the comparable prior-year period. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by E. Miller, president and chief executive officer of Engineering Measurements Company (EMCO), attributed the lower top- and bottom-line results in the third quarter to lower international sales resulting from aggressive pricing by European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. competitors, a stronger dollar, and the fact that in the third quarter of fiscal 1999 the company benefited from large sales to China and Taiwan, as well as a one-time sale to Switzerland, that were not duplicated in the third quarter of fiscal 2000. Miller noted that the decline in gross profit, to 39.1% in the third quarter of fiscal 2000 from 40.5% a year ago, was primarily due to lower volumes. "Although the overall market for flowmeters declined year-to-year," said Miller, "we have seen some growth in demand for water metering Water metering is the process of measuring water use through water meters. Prevalence Water metering is common for residential and commercial drinking water supply in many countries, as well as for industrial self-supply with water. , and we expect that our moderately priced Hydro-Flow(TM) line of vortex flowmeters will prove to be increasingly popular in a variety of commercial applications. "We are also encouraged by the initial response to our recently introduced Sono-Trak(TM) clamp-on ultrasonic ultrasonic /ul·tra·son·ic/ (-son´ik) beyond the upper limit of perception by the human ear; relating to sound waves having a frequency of more than 20,000 Hz. ul·tra·son·ic adj. 1. flowmeter See flow meter. , which we began shipping in January 2000; totally nonintrusive and virtually maintenance free, it is suitable for a wide variety of applications and promises to be a significant contributor to future revenues. "Our contract electronics manufacturing This article presents a typical manufacturing process of an electronic assembly. Component manufacturing Components such as resistors, capacitors and integrated circuits are generally made by specialized contractors. division continues to do well and is expected to remain an important ingredient in the company's ongoing program of diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. . "Our program of diversification," concluded Miller, "is being driven in large part by the modest growth potential in worldwide demand for basic flowmeters. The year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. increase in research and development expense of approximately 25% is, however, indicative of our ongoing commitment to utilizing EMCO's considerable intellectual and financial resources in the pursuit of new markets and new opportunities. "With over $3 million in working capital and no debt, EMCO is well positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. its longstanding ability to employ innovative approaches and technologies in meeting its customers' needs." Engineering Measurements Company designs, manufactures and markets electronic and electro-mechanical precision instruments for measuring and controlling the flow of liquids, steam and gases. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under 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: The matters discussed in this news release contain comments and 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. based on current plans, expectations, events, and financial and industry trends which may affect the company's future operating results and financial position. Such statements involve risks and uncertainties that cannot be predicted or quantified and that may cause future activities and results of operations to differ materially from those discussed above. The historical results achieved are not necessarily indicative of future prospects of the company. For additional information, refer to the company's filings with the Securities and Exchange Commission.
ENGINEERING MEASUREMENTS COMPANY
Statements of Income and Comprehensive Income
(Unaudited)
Three Months Ended Nine Months Ended
Jan. 31, Jan. 31,
2000 1999 2000 1999
Sales $2,142,267 $2,605,677 $6,822,157 $7,554,412
Cost of sales 1,303,737 1,550,189 4,117,799 4,434,213
Gross margin on sales 838,530 1,055,488 2,704,358 3,120,199
Operating expenses:
Selling 449,174 527,116 1,409,407 1,656,009
General and
administrative 205,002 234,007 647,498 721,340
Research and
development 212,848 197,621 672,667 531,459
Total operating
expenses 867,024 958,744 2,729,572 2,908,808
Income (loss) from
operations (28,494) 96,744 (25,214) 211,391
Other income/(expense):
Gain/(loss) on sale
of stock 0 3,182 16,380 16,609
Interest expense (15) (60) (289) (264)
Other income 16,563 29,163 44,929 94,447
Total other income 16,548 32,285 61,020 110,792
Income/(loss) from
operations before
income taxes (11,946) 129,029 35,806 322,183
Income tax
provision/(benefit) (2,990) 49,329 28,599 82,435
Net income/(loss) $ (8,956) $ 79,700 $ 7,207 $ 239,748
Other comprehensive income
Unrealized holding
gain/(loss) (9,881) (3,524) (74,078) (34,191)
Tax benefit of stock
option exercise 32,000 0 54,000 0
Comprehensive
income (loss) 13,163 76,176 (12,871) 205,557
Net earnings/
(loss) per share $0.00 $0.02 $0.00 $0.06
Net earnings/(loss)
per share on a
fully diluted basis $0.00 $0.02 $0.00 $0.06
Weighted average
number of shares
outstanding 4,093,232 4,026,237 4,072,036 4,015,600
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