Genicom Corporation reports first quarter results.CHANTILLY Chan·til·ly A village of northern France north of Paris. It was long noted for its fine porcelain and delicate lace. Population: 10,065. , Va.--(BUSINESS WIRE)--April 25, 1996--GENICOM Corporation, (Nasdaq:GECM GECM Gilbert-Elliott Channel Model ) today reported that revenues for the first quarter ended March 31, 1996 rose 8.0% to $73.6 million from $68.1 million in the first quarter of 1995. Net income before an extraordinary item was $1.4 million, or $0.12 per share, compared to $1.3 million, or $0.11 per share, for the first quarter of 1995. In the first quarter of 1996 the Company recorded a charge of $414,000, or $0.03 per share, for refinancing Refinancing An extension and/or increase in amount of existing debt. the Company's debt. There were 12.3 million weighted average common shares outstanding for the first quarter of 1996 compared to 11.6 million in the year-ago period. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. T. Winn, President and Chief Executive Officer, commented, "Results for the quarter were adversely affected by the extreme snow conditions which impacted our service depots and manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). and Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. for a full week of production.
This resulted in higher expediting costs necessary to maintain customer
service levels. Our debt refinancing was an important step, however the
benefits were not fully realized during the quarter, as the
Company's high-interest Adj. 1. high-interest - (used of loans) charging a relatively large percentage of the amount borrowedlow-interest - (used of loans) charging a relatively small percentage of the amount borrowed bonds were not retired until mid-February n. 1. the middle part of February. Noun 1. mid-February - the middle part of February period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue ." -0- First Quarter Revenue 1996 1995 % Change (Thousands) Enterprising en·ter·pris·ing adj. Showing initiative and willingness to undertake new projects: The enterprising children opened a lemonade stand. Service Solutions Group $ 30,957 $ 26,289 17.8 Document Solutions Group 39,411 38,790 1.6 Other 3,185 3,055 4.2 Total $ 73,553 $ 68,134 8.0 Enterprising Service Solutions Company Overall, Enterprising Service Solutions revenue grew $4.7 million, or 17.8%, in the first quarter of 1996. Multivendor Service revenue increased $3.3 million, reflecting the acquisition of Harris Harris, Scotland: see Lewis and Harris. Adacom Services in March 1995 and new customers added since then. This gain was partially offset by declining legacy business and the impact of the severe winter weather. As previously announced, the Company was awarded a three-year contract for approximately $25 million from Siemens Nixdorf See Fujitsu Siemens. . Revenues from this contract will begin in the second quarter. Network Service revenue was up $1.3 million over last year's first quarter, also reflecting the Harris Adacom acquisition. Revenue growth has been slower than expected due to restricted expenditures in sales and market development. The Company continues to invest toward the long term potential of this business with milestone measurements in place to assess the progress achieved. In recent months, the Company has shifted its focus to selective indirect channels to achieve increased coverage in the marketplace. Document Solutions Company Document Solutions revenues during the first quarter of 1996 increased 1.6% from the same period last year. Printer sales declined 5.8%, however parts and supplies revenue increased 33.6% and 4.4%, respectively. The Company believes that hardware sales were impacted by generally high levels of computer and computer-related product inventories in the distribution channel carried over from 1995 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . The Company's balance sheet continued to strengthen during the quarter, reflecting a strong cash flow. At March 31, 1996, inventories had declined to $34.3 million from $44.8 million at December December: see month. 31, 1995. Total debt, including current maturities, declined to $45.4 million from $52.3 million at year end 1995. GENICOM's order 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. was $45.5 million at March 31, 1996, compared to $49.7 million at April 2, 1995 and $47.5 million at December 31, 1995. The decline in backlog was primarily the result of the end of life shipment on the 7170 product line. GENICOM Corporation is an international supplier of multivendor services, network management and printer solutions. The Document Solutions Group designs and markets a wide range of computer printer technologies for general purpose applications. The Enterprise Service Solutions Group provides logo and multivendor product field support and depot repair, express parts and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. as well as integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. system solutions, including a broad portfolio of hardware and software products, technology consulting and diagnostic and monitoring services The general surveillance of known air traffic movements by reference to a radar scope presentation or other means, for the purpose of passing advisory information concerning conflicting traffic or providing navigational assistance. . GENICOM is headquartered within metropolitan Washington, D.C. -0-
GENICOM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share data)
Three Months Ended
March 31, April 2,
1996 1995
Revenues $ 73,553 $ 68,134 Cost of sales 56,246 49,719 Gross profit 17,307 18,415 Operating expenses 14,372 14,898 Operating income 2,935 3,517 Interest, net 1,152 1,758 Income before income taxes and extraordinary item 1,783 1,759 Income tax expense 362 458 Net income before extraordinary item 1,421 1,301 Extraordinary item - Loss on extinguishment of debt, net of $258 tax (414) --- Net income $ 1,007 $ 1,301 Earnings per common share and common share equivalent (primary and fully diluted) $ 0.08 $ 0.11 Weighted average number of common shares and common share equivalents outstanding Primary 12,279 11,624 Fully diluted 12,295 11,624 -0-
GENICOM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
1996 1995
(Unaudited)
ASSETS
Cash and cash equivalents $ 4,737 $ 4,271
Accounts receivables 52,479 53,572
Other receivables 3,130 3,767
Inventories 34,268 43,079
Property, plant and equipment 30,691 30,896
Other long-term assets 25,451 25,954
Total Assets $150,756 $161,539
LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of debt obligation $ 4,603 $ 7,865 Current liabilities 59,701 63,726 Debt obligations, less current portion 40,834 44,474 Other non-current liabilities 10,058 10,941 Stockholders' equity 35,560 34,533 Total Liabilities and Stockholders Equity $150,756 $161,539 CONTACT: GENICOM Corp. Dan Adragna, 703/802-9200 or Morgen-Walke Associates Jeff Luth/Michael Lendener Press: Lee Foley/Gina Gardner, 212/850-5600 |
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