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FIBRONICS ANNOUNCES YEAR END RESULTS

 FIBRONICS ANNOUNCES YEAR END RESULTS
 HYANNIS, Mass., March 16 /PRNewswire/ -- Fibronics International


Inc. (NASDAQ-NMS: FBRX) today announced its results for the year ended Dec. 31, 1991.
 For the year ended Dec. 31, 1991, revenues were $53,943,000 as compared with revenues of $62,531,000 for 1990. The company reported a loss of $3,275,000 or 52 cents per share for 1991. For the year ended Dec. 31, 1990, the company earned $3,828,000 or 59 cents per share.
 Revenues for the fourth quarter of 1991 were $16,047,000 as compared to $17,072,000 for the fourth quarter of 1990. For the fourth quarter, the company reported a loss of $2,190,000 or 35 cents per share. During the fourth quarter of 1990, the company earned $1,225,000 or 19 cents per share.
 Revenues for the year decreased as a result of the worldwide economic environment and the war in the Gulf. The company also incurred delays in the shipment of new products. A major cause of the company's losses related to the introduction of a significant number of new products in 1991. The new products which are more sophisticated and technologically complex than the company's previous products, consumed greater than planned human resources, time and expense. Higher than anticipated engineering, manufacturing and field support costs continued through the fourth quarter of 1991.
 In addition, at the end of the fourth quarter of 1991, the company conducted its year-end review of its inventories. After taking into account the difficulties encountered with new product introductions, product mix, current market values and obsolescence, the company adjusted its inventory value downward by $1.5 million.
 Inventory at year end, after adjustment was $15.8 million, an increase of $3.6 million from the year ended 1990. The company has made a commitment to its customers to fully support its new products. To meet this commitment, the company must carry the inventory required to provide them with field support, equipment upgrades, and short-term delivery of additional equipment.
 In the fourth quarter of 1991, as compared to the fourth quarter of 1990, the company generated less revenue from its high-end, high margin products which combine local area networks with mainframe connectivity. The company also recorded increased sales of low margin commodity products which also depressed the company's gross profit margin for the quarter.
 During this year of worldwide economic downturn, the company's new products maintained the company's position in the marketplace. The company's product line is now positioned to provide substantial productivity improvements to customers with mixed protocol, complex local area communications requirements.
 Fibronics enters 1992 with a product family positioned to take advantage of an increase in economic activity. Management is placing increased emphasis on improving the company's product development and manufacturing processes to reduce the cost of introducing and supporting new products. Management has implemented and will continue to implement more comprehensive inventory management to reduce inventory on hand, improve its turnover and reduce holding costs. Marketing and sales productivity and efficiency improvements are targeted by management throughout 1992. These actions, taken with a focus on improved customer satsifaction, should reduce the company's costs while improving its service to its customers.
 As a world leader in FDDI and data communications, Fibronics is committed to providing corporate workgroup networking solutions to improve the flow of information transfer in today's organizations. As a pioneer in the development of intelligent hubs for LANs, FDDI-based interconnection bridges and brouters, mainframe connectivity products, and sophisticated network management systems, Fibronics offers a complete solution for the heterogeneous computing environment. Through efficient and reliable information transfer, Fibronics contributes to the productivity of the modern distributed organization.
 FIBRONICS INTERNATIONAL INC.
 (Dollars in thousands, except per share amounts)
 12 Months Ended Fourth Quarter Ended
 12/31/91 12/31/90 12/31/91 12/31/90
 Net revenues $53,943 $62,531 $16,047 $17,072
 Net income (loss)
 before taxes $(3,272) $4,655 $(2,096) $1,611
 Earnings, (loss)
 before extraordinary
 credit $(3,275) $2,918 $(2,190) $848
 Extraordinary credit
 utilization of
 net operating loss
 carryforward 0 $910 0 $377
 Net earnings (loss) $(3,275) $3,828 $(2,190) $1,225
 Weighre
 extraordinary
 credit (52 cents) 45 cents (35 cents) 13 cents
 Extraordinary credit
 utilization of
 new operating
 loss carryforward 0 14 cents 0 6 cents
 Primary earnings
 (loss) per share (52 cents) 59 cents (35 cents) 19 cents
 -0- 3/16/92
 /CONTACT: John T. Hislop, joint chief executive officer of Fibronics International, 508-778-0700/
 (FBRX) CO: Fibronics International Inc. ST: Massachusetts IN: TLS SU: ERN


TM-SH -- NE011 -- 8246 03/16/92 11:08 EST
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Date:Mar 16, 1992
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