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LEECO DIAGNOSTICS, INC. ANNOUNCES THIRD QUARTER RESULTS

 LEECO DIAGNOSTICS, INC. ANNOUNCES THIRD QUARTER RESULTS
 SOUTHFIELD, Mich., Nov. 3 /PRNewswire/ -- Leeco Diagnostics, Inc. (NASDAQ: LECO) announced today its results for the third quarter and first nine months of 1992.
 LEECO DIAGNOSTICS, INC.
 Three months ended Sept. 30 1992 1991
 Total revenues $3,763,269 $4,135,360
 Net income (loss) (177,691) (950,329)
 Net income (loss) per share (0.03) (0.17)
 Weighted average number
 of shares outstanding 5,711,041 5,717,052
 Nine months ended Sept. 30 1992 1991
 Total revenues 13,160,539 15,208,898
 Net income (loss) (3,242) (2,209,973)
 Net income (loss) per share (0.00) (0.39)
 Weighted average number
 of shares outstanding 5,711,041 5,725,067
 For the three month period ending Sept. 30, 1992, the company's total revenues were $3,763,269 a decrease of 9.0 percent from the corresponding period of 1991. The company's net loss in the period after taxes and interest equals $177,691 or $0.03 per common share.
 The company's total revenues for the nine months ended Sept. 30, 1992 were $13,160,539, a decrease of 13.5 percent from the corresponding period of 1991. This decrease is a result of the discontinuance, in 1992, of products sold by Leeco U.S. Product sales for 1992 relate exclusively to Technogenetics product sales, which increased 10.5 percent compared to the same period of 1991.
 The operating income, before interest and miscellaneous expenses, for the nine months ended Sept. 30, 1992 was $1,000,700 compared to an operating loss of $1,214,503 in the corresponding period of 1991. The improvement in operating income results primarily from the discontinuance of Leeco operations in Southfield, Mich. which were already accrued as part of a $5 million restructuring charge taken in 1991.
 As a result of the foregoing factors and the decrease in net interest expenses for short term borrowings of Technogenetics, the company's net loss in this period equals $3,242 compared to a net loss of $2,209,973 in the corresponding nine months period of 1991.
 Recent Developments in Italy
 The sales and income of Technogenetics are highly dependent upon economic, financial and budgetary factors affecting Italy and the Italian health care system, Technogenetics' primary market.
 In connection with recent turmoil affecting the international and European currency markets, on Sept. 13, 1992, Italy devaluated its currency, the Lira, by 7 percent against the other European currencies. On Sept. 17, 1992, the Lira was withdrawn from the European Monetary ?("EMS"), a currency stabilization mechanism in force among the member states of the European Community. As a result of such withdrawal, the Lira was set free to fluctuate against other currencies. Through Oct. 26, 1992, the Lira has lost approximately 20 percent of its value as compared to its exchange rate to the U.S. Dollar prevailing on the day before the devaluation. Italy has announced no immediate plans to rejoin the EMS.
 The deterioration of and continuing uncertainties regarding the value of the Lira are expected to adversely affect Technogenetics. Approximately 60 percent of Technogenetics' revenues are from diagnostic tests which it imports into Italy from foreign manufacturers.
 The costs of those products in Lira has now risen and may further rise, and Technogenetics may not be able to pass such increased costs on to its clients. As a result, management believes that Technogenetics' costs of goods of those products as a percentage of sales may increase in future fiscal quarters but cannot quantify the amount of such increase at this time.
 A substantial portion of Technogenetics' borrowings are effected in Lire. As a result of the devaluation of the Lira and actions taken by the Central Bank of Italy, interest rates have increased from an average of 13.2 percent per annum in the six month period ended June 30, 1992 to a present average rates of 16 percent per annum. On an annualized basis, assuming constant average borrowings by Technogenetics at the present levels, the incremental interest costs represented by such rate increase amount to in excess of $150,000.
 Restructuring Of The Company
 On Aug. 19, 1992, Leeco announced that agreements were reached among the company, Recordati International Holding, S.A. and Endogen, Inc. regarding a series of transactions which will result in the stockholders of Leeco, other than Recordati (the majority shareholder, receiving a substantial interest in a new public company comprising the business of Endogen, Inc. Pursuant to these agreements the ownership of Leeco will first be restructured and Leeco will become a subsidiary of a newly formed holding company. The shares of Leeco currently outstanding will be exchanged for and converted into shares of the holding company, which will become the publicly traded entity.
 Thereafter, Recordati will acquire from the holding company all the shares of the subsidiary in exchange for, among other things, $3.5 million in cash and the surrender of all of Recordati's stockholding in the new holding company, representing approximately 53 percent of the outstanding stock. As a result, Recordati will assume the assets and liabilities of Leeco and will no longer hold any interest in the restructured public company.
 As a third and final step, the new holding company will be merged with Endogen, Inc. which will become the successor publicly traded company. Upon the merger, the existing public shareholders of Leeco will, in the aggregate, own approximately 40 percent of the stock of Endogen, Inc. after the merger, and the existing stockholders of Endogen, Inc. will hold the balance of 60 percent.
 All parties expect to consummate the three transactions as soon as practicable, subject to the obtaining of necessary stockholder approvals of each transaction, the completion of related securities filings and the satisfaction of other customary conditions.
 Endogen, Inc. researches, develops and manufactures biotechnology reagents and immunoassay test kits which are sold worldwide to universities and research laboratories. Endogen's products include enzyme immunoassay (EIA) kits for the measurement of human and mouse cytokines and cytokine reagents for research use. Cytokines, which are the topic of intense research in the medical and biotechnology communities, play a key role in the regulation of the immune system.
 -0- 11/3/92
 /CONTACT: Rod N. Raynovich, president and CEO of Leeco Diagnostics, Inc., 313-353-2620/
 (LECO) CO: Leeco Diagnostics, Inc. ST: Michigan IN: MTC SU: ERN


TS-OS -- NY021 -- 2029 11/03/92 11:27 EST
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