Gradco Systems Inc. Reports Fiscal 2000 Results.Business Editors LAS VEGAS--(BUSINESS WIRE)--June 22, 2000 Gradco Systems, Inc. (the "Company") (Nasdaq:GRCO GRCO Gilbert Rotary Centennial Observatory (Gilbert, Arizona) GRCO General Radiochemical Operations ) Thursday announced the results of operations for the fiscal year ended March 31, 2000, and for the three-month period then ended. The Company reported net earnings of $343,000, or $.05 per share (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. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ), in the current quarter, compared with $757,000, or $.10 per share (diluted EPS), for the three months ended March 31, 1999. For the fiscal year ended March 31, 2000, net earnings were $1,480,000, or $.19 per share (diluted EPS), compared with a loss of $2,190,000, or $.28 per share, in the prior year. The results for fiscal 1999 were negatively impacted by a $5.0 million charge resulting from the settlement of the lawsuit lawsuit: see procedure; tort. between the Company and John C. Hamma and Tenex Corp. as announced on Dec. 17, 1998. They were also negatively impacted by a $5.5 million charge resulting from the bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most filing of Mita Industrial Co. Ltd. ("Mita"), one of Gradco (Japan) Ltd.'s ("GJ") largest customers. On an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , these charges amounted to $6,103,000, or $.77 per share. Revenues for the fiscal year ended March 31, 2000 decreased $30,543,000 (37.3%) from the prior year primarily due to a decrease of $29,663,000 (37.7%) in 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 . Unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. in the office automation market decreased 50%. Revenues for the current quarter decreased $4,796,000 (28.1%) from the comparable quarter in fiscal 1999. In the three-month period ended March 31, 2000, unit sales in the office automation market decreased 43% from the comparable fiscal 1999 period. Due to the overall transition in the office equipment industry from analog to digital equipment, which does not require the kind of multi-bin sorters which the Company has produced and marketed, emphasis continues to be placed on design, development and marketing of paper handling products for the rapidly increasing digital equipment market. Gradco Technology Ltd., GJ's new 90% owned subsidiary, will also engage in a variety of diversified diversified (di·verˑ·s businesses. As of March 1, 2000 it began the distribution of Dippin' Dots Dippin' Dots is an ice cream snack, invented by Southern Illinois University Carbondale graduate Curt Jones in 1987. The confection is created by flash freezing ice cream mix in liquid nitrogen; consequently, Dippin' Dots contain less air than conventional ice cream. ice cream in Japan. It is exploring and developing other technical and non-technical business opportunities. Working capital increased by $2,656,000 at March 31, 2000 to $18,044,000 from $15,388,000 at March 31, 1999, primarily from income from operations and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. currency translation adjustments. At March 31, 2000, the Company had $12,208,000 in cash and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The Company has acquired approximately 738,000 of its shares to date and is continuing to purchase its stock pursuant to a board authorization The right or permission to use a system resource; the process of granting access. See access control. to acquire up to 2 million shares. For further information call Bernard Bressler, counsel to the Company, at 973/514-1200.
GRADCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Year Ended Three Months Ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
Revenues:
Net sales $48,959 $78,622 $11,758 $16,215
Development
engineering services 1,162 895 229 283
Licenses and royalties 1,153 2,300 261 546
51,274 81,817 12,248 17,044
Costs and expenses:
Cost of sales 36,715 62,362 8,858 12,443
Research and development 2,742 3,011 296 893
Selling, general and
administrative 10,502 10,742 2,544 2,429
Provision for
(recovery of) doubtful
Mita receivable (935) 5,543 -- (76)
Hamma litigation settlement -- 5,000 -- --
49,024 86,658 11,698 15,689
Income (loss) from
operations 2,250 (4,841) 550 1,355
Interest expense (1) (4) -- (2)
Interest income 395 266 118 100
Earnings (loss)
before income taxes
and minority interest 2,644 (4,579) 668 1,453
Income tax expense
(benefit) 1,182 (2,317) 350 697
Minority interest (18) (72) (25) (1)
Net earnings (loss) $ 1,480 $(2,190) $ 343 $ 757
Basic earnings (loss)
per common share $ 0.19 $ (0.28) $ 0.05 $ 0.10
Average shares
outstanding,
basic EPS 7,609 7,897 7,324 7,911
Diluted earnings
(loss) per common
share $ 0.19 $ (0.28) $ 0.05 $ 0.10
Average shares
outstanding,
diluted EPS 7,616 7,897 7,324 7,945
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