OPTICAL RADIATION CORP. REPORTS RESULTS
OPTICAL RADIATION CORP. REPORTS RESULTS AZUSA, Calif., Nov. 18 /PRNewswire/ -- Optical Radiation Corp.
(NASDAQ: ORCO) today reported higher sales for the first fiscal quarter ended Oct. 26, 1991, but sharply lower net income, primarily because of a special charge for the downsizing of its Cinema Digital Sound (CDS) project.
Sales for the quarter rose 10 percent to $38,498,000, but net income fell to $101,000, equal to $.02 per share, reflecting a non- recurring aftertax charge of $1.8 million for CDS. Net income amounted to $2,937,000, or $.44 per share, for the prior year's first quarter. Richard D. Wood, president and chief executive officer, said the special charge relating to CDS covers reserves against future expenses and reduces program assets to estimated net realizable values. In addition to the charge, the company incurred losses on the CDS project of nearly $900,000 during the first quarter. Wood stated that results for most of the company's operating units were favorable for the quarter, despite the relatively soft economy. He noted that the Omega Optical subsidiary had strong demand for the new Ultra LiteStyle lenses, and that Opti-Craft, Inc., which was acquired in September, had better than expected operating results. Wood said the performance for the ophthalmic surgical products division was impacted in the quarter by the October voluntary recall of the company's Orcolon viscoelastic gel and by lower demand for intraocular lenses. "The decision to downsize the CDS project was based on the slow commercial acceptance of the technology by the motion picture industry, despite its success at the box office in a limited number of theaters where the equipment was installed," said Wood. "The special charge will allow the company to refocus on expanding its core businesses and give the entertainment industry time to evaluate advanced sound systems." Optical Radiation Corp. designs and manufactures a wide variety of precision optical components and systems for medical, industrial and scientific applications. OPTICAL RADIATION CORP. Statement of Income (Unaudited) Three Months Ended Three Months Ended Oct. 26, Oct. 27, 1991 1990 Sales $38,498,000 $34,990,000 Income before provision for income taxes 137,000 4,137,000 Provision for income taxes 36,000 1,200,000 Net income $101,000(a) $2,937,000(b) Net income per share $0.02 $0.44 Weighted average number of shares outstanding 6,600,000 6,611,000 (a) Includes non-recurring charge of $1,800,000 relating to the downsizing of the Cinema Digital Sound project. (b) Includes $200,000 of expenses relating to litigation. -0- 11/18/91 /CONTACT: Richard D. Wood of Optical Radiation Corp., 818-969-3344 or Roger S. Pondel of Rifkind Pondel & Parsons, 310-207-9300/ (ORCO) CO: Optical Radiation Corp. ST: California IN: SU: ERN EH -- LA023 -- 4642 11/18/91 17:04 EST
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|Date:||Nov 18, 1991|
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