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MICROWAVE LABORATORIES INC. REPORTS FOURTH QUARTER LOSS AND EMPHASIZES FUTURE STRATEGY

 RALEIGH, N.C., Aug. 9 /PRNewswire/ -- Microwave Laboratories, Inc. (NASDAQ: MWVL) announced fourth quarter and year end losses for the fiscal year ending April 30, 1993. Following operating profit over the first three quarters of the year, the company reported a fourth quarter loss of $1,015,233 on sales of $1,131,329 for a cumulative net loss of $341,816 on total sales of $7,042,622 for the 1993 fiscal year. This compares to a profit of $14,318 on sales of $5,707,792 for the year ending April 30, 1992. Selected financial data (in $1,000) for the years ending April 30th are as follows:
 MICROWAVE LABORATORIES, INC.
 Income Statement Data 1993 1992 1991
 Sales Revenue $ 7,043 $ 5,708 $ 3,414
 Gross Profit $ 1,436 $ 1,068 $(2,845)
 Settlement Expense $ (423) -- --
 Net Income (Loss) $ (342) $ 14 $(3,992)
 Balance Sheet Data
 Working Capital $(1,597) $(2,884) $(3,362)
 Total Assets $ 3,144 $ 3,397 $ 3,212
 Stockholders' Equity $(1,359) $(2,208) $(2,564)
 "While the quarterly results were extremely disappointing, significant advances toward the company's future were accomplished," said Microwave Laboratories' President and CEO, Richard Garard. "During the fourth quarter, the company announced the conclusion of legal actions that have been pending since 1989, by a settlement agreement with the U.S. Department of Justice. Subsequent to year end, the company was also informed by the office of the U.S. Attorney, that no criminal charges will be brought against the company in connection with their investigation and the related settlement. These actions quantified an unknown liability and removed a major obstacle to implementation of long-term corporate objectives." Settlement fees and related expenses totaling $422,971 were a significant part of the losses reported for 1993. Remaining losses from the fourth quarter were due to reduced sales revenue, high operating costs and a vendor quality problem that, according to the company, has subsequently been resolved.
 "Other major events occurring within the fourth quarter," according to Garard, "were the introduction of the first two new commercial products being developed by the company and the significant support expressed by major shareholders in the company by converting $1,183,715 of debt into common stock equity. This latter event completely offset any degradation of the balance sheet created by the legal settlement and the net operating loss for the quarter. Therefore, both working capital and equity significantly improved over last years position."
 Microwave Laboratories was established in 1981 as a manufacturer of microwave power components primarily for defense applications. Garard was elected president in March of 1993 and subsequently CEO in June as part of a management reorganization and to focus on future growth strategy. He stated that "emphasis now, with the new Microwave Laboratories, is directed toward maintaining a high quality and consistent level of production for the defense markets while restructuring debt and creating new working capital to pursue growth in commercial market applications for the company's microwave products. The targeted commercial applications include telecommunications, scientific testing, and processing of advanced materials."
 -0- 8/9/93
 /CONTACT: Richard Garard, Microwave Laboratories, Inc., 919-781-4260/
 (MWVL)


CO: Microwave Laboratories, Inc. ST: North Carolina IN: ARO SU: ERN

MM-SB -- CH001 -- 0743 08/09/93 12:04 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
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