Gentner Reports Record Revenue and Earnings for First Quarter Fiscal 2001.Business Editors SALT LAKE CITY--(BUSINESS WIRE)--Oct. 17, 2000 Gentner Communications Corporation (Nasdaq: GTNR) today announced record results for the first quarter of fiscal year 2001.
Financial Highlights
(unaudited)
Three Months Ended
9/30/00 9/30/99 Change
Sales $10,029,458 $ 7,084,273 +42%
Net Income $ 1,529,678 $ 1,080,394 +42%
Diluted earnings
per share $ 0.17 $ 0.12 +42%
For the first quarter ended September September: see month. 30, 2000, Gentner reported net income of $1.5 million, or $0.17 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, on sales of $10.0 million. For the same period in fiscal 2000, the company reported net income of $1.1 million, or $0.12 per diluted share, on sales of $7.1 million. Important to note is that the increase in the earnings per share calculation includes the additional shares issued for the asset purchase of ClearOne, Inc. Based on this quarter's performance, Gentner is confident that it will exceed current consensus estimates for the year. First quarter sales of conferencing See teleconferencing. products increased 51 percent over the same quarter last year to $5.9 million from $3.9 million. Conferencing service sales increased 116 percent for the same period to $2.2 million from $1.0 million. First quarter Remote Facilities Management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. (RFM RFM Recency, Frequency, Monetary RFM Rotorcraft Flight Manual RFM Reform Party RFM Radio Frequency Module RFM Radio Free Monterey RFM Retirement and Financial Management RFM Reply to Flagged Message RFM Radio Frequency Monitor RFM Request for Material ) sales were down 11 percent to $1.8 million from $2.1 million for the first quarter of fiscal 2000. "We have experienced a tremendous start to fiscal 2001, and are very proud of the performance of our Gentner team in producing both top- top- pref. Variant of topo-. and bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. growth," said Fran Flood, president and chief executive officer of Gentner. "We are also pleased with the growth in our core conferencing divisions. Especially noteworthy is the growth in conferencing services, as the first quarter is typically a slow sales period. We anticipate that our conferencing divisions will continue to be the primary growth drivers for the organization, and are enthusiastic about the opportunities they provide. "Our private-label relationship with XO Communications XO Communications is a United States telecommunications firm and one of the largest Competitive Local Exchange Carrier (CLEC) in the country. It is owned by XO Holdings, Inc OTCBB: XOHO. (Nasdaq: XOXO XOXO Hugs and Kisses XOXO Extensible Open Xhtml Outlines XOXO XO Communications, Inc. (former stock symbol) ), formerly NEXTLINK, is taking off. XO's national sales force (of approximately 800 people) is currently offering these conferencing services. As this relationship matures, we look forward to increasing revenue," said Flood. "Sales of our ClearOne(TM) conference phone have exceeded expectations and will accelerate during the second quarter. In fact, during the first two weeks of the second quarter we have already received sizeable orders from significant retail customers." On the technology front, new product development for broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). applications continues at a rapid pace. The PSR PSR Pulsar PSR Poster PSR Physicians for Social Responsibility PSR Psychosocial Rehabilitation PSR Pacific School of Religion PSR Policy and Survey Research PSR Project Study Report PSR Pre-Sentence Report PSR Pressure-State-Response PSR Puget Sound Region 1212 matrix mixer mixer, either of two electronic devices in which two or more signals are combined. In the type of mixer used in radio receivers, radar receivers, and similar systems, a signal is translated upward or downward in frequency. will ship this quarter with the next-generation Audio Perfect(R) product scheduled to begin shipping in the third quarter. Delivery of Gentner's videoconferencing A real time video session between two or more users or between two or more locations. Although the first videoconferencing was done with traditional analog TV and satellites, inhouse room systems became popular in the early 1980s after Compression Labs pioneered digitized video systems product remains on target for next fiscal year. "The smooth integration of the ClearOne engineers, as well as others we have hired, has been crucial to maintaining an aggressive product delivery schedule," added Flood. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Susie SUSIE Stock Updating Sales Invoicing Electronically SUSIE Surface Underwater Ship Intercept Equipment Strohm, vice president and chief financial officer, Gentner's first quarter gross margins came in at 60 percent despite industry-wide pressures related to the availability and cost of components. "We have taken a very proactive stance in purchasing critical parts in order to ensure continued, timely delivery of product to our customers," she said. "While this strategy has led to increased inventory levels, it has also enabled us to obtain an adequate supply of highly sought after components." Additionally, Gentner has increased its finished-goods inventory of ClearOne portable conference phones in order to meet anticipated demand. "Our cash position is at an all time high of more than $6.2 million," said Strohm. "This figure takes into account the $1.5 million that was spent to purchase the assets of ClearOne. We have been able to successfully absorb this acquisition without negatively affecting the company's financial performance." Gentner will hold its quarterly conference call on Tuesday Tuesday: see week. , October October: see month. 17, 2000 at 2:15 p.m. Mountain time. To make a reservation to participate in the call, dial 800/538-7633 or 801/974-3700. To listen via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , go to Gentner's Web site (www.gentner.com) just prior to the call and click on "Live Q1 Fiscal 2001 Earnings Broadcast" in the scrolling (chat, games) scrolling - To flood a chat room or Internet game with text or macros in an attempt to annoy the occupants. This can often cause the chat room to be "uninhabitable" due to the "noise" created by the scroller. Compare spam. news section. A rebroadcast will also be available via the Gentner Web site. Gentner Communications Corporation develops, markets and distributes products and services for the professional communications and broadcast markets. Gentner's professional communications products include audioconferencing An audio communications session among three or more people who are geographically dispersed. It is provided by a conference function in a PBX or multiline telephone or by the telephone companies. See voice chat, videoconferencing and data conferencing. and videoconferencing systems, sound reinforcement reinforcement /re·in·force·ment/ (-in-fors´ment) in behavioral science, the presentation of a stimulus following a response that increases the frequency of subsequent responses, whether positive to desirable events, or products, and assitive listening systems. The company's broadcast products include telephone interface and remote facilities management systems. Gentner also offers a full suite of teleconferencing services, including full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. conference calling, Instant Access Conference Calling(TM), and Webconferencing. To the extent any statement presented herein deals with information that is not historical, including statements regarding the growth of the company's core business segments, earnings-per-share projections, potential revenue from strategic relationships, retail sales of the ClearOne conference phone, new product development schedules, and the future impact of the ClearOne asset purchase, such statement is necessarily forward-looking. As such, it is subject to the occurrence of many events outside the company's control that could cause the company's results to differ materially from those anticipated. Please see the risk factors contained in the company's most recent 10-KSB filed with the SEC.
Gentner Communications Corporation
Condensed Statement of Operations
(unaudited)
Three Months Ended
9/30/00 9/30/99
Sales 10,029,458 7,084,273
Cost of goods sold 4,026,823 2,715,618
----------- -----------
Gross profit 6,002,635 4,368,655
Sales & marketing expenses 2,007,824 1,471,897
General & administrative expenses 1,091,074 746,620
Research & development expenses 528,138 460,677
----------- -----------
Total expenses 3,627,036 2,679,194
Operating income 2,375,599 1,689,461
Other items 64,079 31,933
Income tax expense (910,000) (641,000)
----------- -----------
Net income 1,529,678 1,080,395
============ ===========
Basic earnings per share $ 0.18 $ 0.13
Fully diluted earnings per share $ 0.17 $ 0.12
Basic shares outstanding 8,562,988 8,171,978
Fully diluted shares outstanding 8,762,086 8,713,073
Balance Sheet
9/30/00 6/30/00
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents 6,215,952 5,374,996
Accounts receivable 4,910,505 4,153,677
Inventory 4,509,820 3,484,992
Income tax receivable -- 987,912
Deferred taxes 136,000 136,000
Other current assets 595,062 678,744
---------- ----------
Total current assets 16,367,339 14,816,321
Property and equipment, net 3,265,416 3,050,349
Other assets, net 3,098,642 53,861
----------- ----------
Total assets 22,731,397 17,920,531
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 707,140 767,095
Accrued expenses 1,954,941 1,739,826
Accrued income taxes 682,088 --
Current portion of capital leases 253,624 249,859
--------- ----------
Total current liabilities 3,597,793 2,756,780
Capital lease obligations 144,089 205,530
Deferred tax liability 205,000 205,000
--------- ----------
Total liabilities 3,946,884 3,179,398
Shareholders' equity:
Common stock 8,563 8,427
Additional paid-in capital 8,716,755 6,697,090
Retained earnings 10,059,197 8,047,704
----------- -----------
Total shareholders' equity 18,784,515 14,753,221
----------- -----------
Total liabilities and equity 22,731,397 17,920,531
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