Meade Instruments Corp. Comments On Bankruptcy of Service Merchandise Co.IRVINE, Calif.--(BUSINESS WIRE)--April 7, 1999--Meade Instruments Corp. (Nasdaq/NM:MEAD) Wednesday commented on the recent bankruptcy filing of one of the company's largest customers, Service Merchandise Service Merchandise was a chain of large stores carrying fine jewelry, toys, sporting goods, and electronics that existed from 1934 to 2002. The company's former chairman, Raymond Zimmerman, resurrected Service Merchandise as an Internet-only retailer in 2004 after buying the name Co. John C. Diebel, chairman and chief executive officer of Meade Instruments
Meade Instruments Corporation (aka Meade) is a company based in Irvine, California, that manufactures and imports telescopes, binoculars, spotting scopes, microscopes, CCD cameras and telescope , noted that in the company's latest fiscal year ended Feb. 28, 1999, Service Merchandise accounted for slightly less than 10 percent of the company's total sales, compared with approximately 14 percent in the prior year. "It is always a concern when an important customer files for bankruptcy," said Diebel, "and we are closely monitoring the reorganization efforts of Service Merchandise. While we are of course disappointed with the turn of events at Service Merchandise, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that fiscal 2000 will be another record year for Meade Instruments. "We are especially encouraged by the fact that our new digital technology -- incorporated in the recently introduced ETX-90EC with the hand-held Autostar computer controller -- has been enthusiastically received and is being applied to our entire family of less-expensive refracting re·fract tr.v. re·fract·ed, re·fract·ing, re·fracts 1. To deflect (light, for example) from a straight path by refraction. 2. telescopes. "These DS ("digital series") telescopes will soon be on sale at many of the company's major retailers, including Wal-Mart and The Nature Company. Given the remarkable ability of the Autostar system to both educate and entertain," continued Diebel, "we anticipate that the entry-level DS refractors will measurably expand the entire market for less-expensive telescopes." Despite fourth-quarter charges of approximately $700,000 related to the Service Merchandise bankruptcy, concluded Diebel, Meade will report a profit in the fourth quarter of fiscal 1999. The company expects to report fourth-quarter and fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. financial results on Thursday, April 22, 1999. Meade Instruments is the leading designer and manufacturer of telescopes and accessories for the beginning to serious amateur astronomer. Meade also offers a complete line of binoculars binoculars Optical instrument for providing a magnified view of distant objects, consisting of two similar telescopes, one for each eye, mounted on a single frame. In most binoculars, each telescope has two prisms, which reinvert the inverted image provided by the eyepiece for everyone from the casual observer to the serious sporting or birding observer. The company distributes its products worldwide through a network of specialty retailers, mass merchandisers and foreign distributors. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The matters discussed in this news release contain comments and forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on current plans, exceptions, events, and financial and industry trends that may affect the company's future operating results and financial position. Such statements involve risks and uncertainties which cannot be predicted or quantified and that may cause future activities and results of operations to differ materially from those discussed above. Any historical results achieved are not necessarily indicative of future prospects of the company. For additional information, refer to the company's filings with the Securities and Exchange Commission. |
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