Printronix Announces First Quarter Results for Fiscal Year 2006.IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif. -- Printronix Printronix is an independent supplier of line matrix printers and printers for bar code label printing. The company operates in 5 manufacturing facilities and has 17 sales and support locations that serve users in the Americas, Europe, the Middle East, Africa and Asia Pacific. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :PTNX PTNX Private Telecommunications Network Exchange ), the leading manufacturer of integrated enterprise printing solutions for the supply chain, today announced results for the first quarter of fiscal year 2006, which ended June June: see month. 24, 2005. First quarter revenue was $31.8 million, down 4.5% from $33.3 million in the year ago quarter and down 2.8% from $32.7 million in the fourth quarter of fiscal 2005. The company reported net income for the quarter of $0.2 million, or $0.03 per 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. share, compared with net income of $0.4 million, or $0.07 per diluted share, in the year ago quarter and net income of $0.7 million, or $0.10 per diluted share, in the fourth quarter of fiscal 2005. Gross margin was 38.7% for the first quarter, down from 40.0% in the same period one year ago due to lower volumes and product mix, partially offset by a stronger Euro and a lower inventory provision. Gross margin during the first quarter of fiscal 2006 was comparable to the fourth quarter of fiscal 2005. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the quarter were $12.2 million, down from $12.5 million in the year ago fiscal period. A reduction of $0.3 million in the company's allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. requirement was offset by severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs of $0.3 million. The quarter includes income tax benefits and refunds of $0.1 million generated from foreign net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. . The company ended the first fiscal quarter of 2006 with cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $44.3 million, up $5.3 million compared with the first quarter of fiscal 2005. Interest income increased $0.2 million compared with the year ago quarter due to higher cash and short-term investment balances and higher interest rates. During the current quarter, the company declared and paid $0.5 million for its second quarterly cash dividend of $0.07 per share, an increase of $0.02 per share. "Although we were disappointed with the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in sales for our core business, we were very encouraged by the progress we made in our growing RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. segment," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Kleist, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Printronix. "This quarter we achieved $943 thousand in RFID printer A thermal printer that prints RFID smart labels. RFID printers encode the chip in the RFID inlay at the same time they print bar codes and alphanumeric, human-readable characters. Most RFID printers handle 4" wide labels, while some can support labels up to 6" wide. sales, the highest in our history, which we believe is indicative of the tangible traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. we are gaining in the early deployment of RFID. In addition, we also recently announced strategic RFID partnerships with IBM and Microsoft See Microsoft and IBM. , two key leaders and developers in the RFID space. We also made strategic progress within our core line matrix business, including the renewal of our longstanding Adj. 1. longstanding - having existed for a long time; "a longstanding friendship"; "the longstanding conflict" long - primarily temporal sense; being or indicating a relatively great or greater than average duration or passage of time or a duration as specified; agreement with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , in connection with the introduction of new line matrix printers for both IBM and Printronix. We continue to believe that our strong balance sheet and core business in line matrix and high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" thermal printers See direct thermal printer and thermal wax transfer printer. coupled with our new opportunities within RFID position us well for future growth." There will be an earnings conference call at 11:00 a.m. PT (2:00 p.m. ET) on July 29, 2005. The call will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and will be hosted by Robert Kleist, President and CEO, and George Harwood, Senior Vice President and CFO See Chief Financial Officer. . To access the live audio webcast, go to the Printronix web site at www.printronix.com and select the conference call link to register. Except for historical information, this press release contains "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. " about Printronix, within the meaning of 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. Terms such as "objectives," "believes," "expects," "plans," "intends," "should," "estimates," "anticipates," "forecasts," "projections," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including: adverse business conditions and a failure to achieve growth in the computer peripheral industry and in the economy in general; the ability of the company to achieve growth in the Asia Pacific market; adverse political and economic events in the company's markets; a worsening wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. Noun 1. worsening - process of changing to an inferior state decline in quality, deterioration, declension of the global economy due to general conditions; a worsening of the global economy resulting from terrorist attacks or risk of war; a worsening of the global economy resulting from a resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. of SARS (Severe Acute Respiratory Syndrome Severe Acute Respiratory Syndrome (SARS) Definition Severe acute respiratory syndrome (SARS) is the first emergent and highly transmissible viral disease to appear during the twenty-first century. ); the ability of the company to maintain its production capability in its Singapore plant or obtain product from its Asia Pacific suppliers should a resurgence of SARS occur; the ability of the company to hold or increase market share with respect to line matrix printers; the ability of the company to successfully compete against entrenched en·trench also in·trench v. en·trenched, en·trench·ing, en·trench·es v.tr. 1. To provide with a trench, especially for the purpose of fortifying or defending. 2. competition in the thermal printer market; the ability of the company to adapt to changes in requirements for radio frequency identification See RFID. ("RFID") products by Wal-Mart and/or the Department of Defense and others; the ability of the company to attract and to retain key personnel; the ability of the company's customers to achieve their sales projections, upon which the company has in part based its sales and marketing plans; the ability of the company to retain its customer base and channel; the ability of the company to compete against alternate technologies for applications in its markets; and the ability of the company to continue to develop and market new and innovative products superior to those of the competition and to keep pace with technological change. The company does not undertake to publicly update or revise any of its forward-looking statements, even if experience or new information shows that the indicated results or events will not be realized. About Printronix, Inc. Since 1974, Printronix, Inc. (NASDAQ:PTNX) has created innovative printing solutions for the industrial marketplace and supply chain. The company is the worldwide market leader in enterprise solutions for line matrix printing and has earned an outstanding reputation for its high-performance thermal and fanfold laser printing solutions. Printronix also has become an established leader in pioneering technologies, including radio frequency identification (RFID) printing, bar code compliance and networked printer management. Printronix is headquartered in Irvine, California Irvine is an incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28 1971, the 69.7 square mile (180.5 km²) city has a population of 202,079 (as of 2007). . For company information, see www.printronix.com.
Printronix, Inc., and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(Dollars in Thousands, Except
Share and Per Share Data)
Three Months Ended
--------------------------------
6/24/05 3/25/05 6/25/04
---------- ---------- ----------
Revenue $31,787 $32,697 $33,278
Cost of sales 19,478 20,041 19,968
---------- ---------- ----------
Gross margin 12,309 12,656 13,310
Engineering and development 3,868 3,711 3,998
Sales and marketing 6,116 6,190 6,280
General and administrative 2,250 2,127 2,183
---------- ---------- ----------
Total operating expenses 12,234 12,028 12,461
Income from operations 75 628 849
Interest and other (income) expense,
net (205) (2) 62
---------- ---------- ----------
Income before taxes 280 630 787
Provision (benefit) for income taxes 70 (34) 338
---------- ---------- ----------
Net income $210 $664 $449
========== ========== ==========
Net Income Per Share:
-------------------------------------
Basic $0.03 $0.10 $0.07
Diluted $0.03 $0.10 $0.07
Shares Used in Computing Net Income
Per Share:
-------------------------------------
Basic 6,492,516 6,429,487 6,280,643
Diluted 6,636,244 6,613,757 6,446,960
Gross margin % 38.7% 38.7% 40.0%
Operating expenses % 38.5% 36.8% 37.4%
Income from operations % 0.2% 1.9% 2.6%
Net income % 0.7% 2.0% 1.3%
Consolidated Balance Sheets (Unaudited)
----------------------------------------------------------------------
(Dollars in Thousands)
6/24/05 3/25/05 6/25/04
---------- ---------- ----------
Assets
-------------------------------------
Cash and cash equivalents $27,656 $35,405 $38,974
Short-term investments 16,600 9,500 --
Accounts receivable, net 17,104 18,207 17,354
Inventory, net 13,991 13,093 13,312
Other current assets 5,044 4,381 6,762
Property, plant and equipment, net 33,108 32,926 34,651
Other long-term assets 2,061 1,954 1,216
---------- ---------- ----------
Total assets $115,564 $115,466 $112,269
========== ========== ==========
Liabilities and Stockholders' Equity
-------------------------------------
Current portion of long-term debt $700 $700 $700
Accounts payable 7,623 7,162 7,623
Other current liabilities 11,603 12,404 11,595
Other long-term liabilities 16,051 16,044 15,828
Stockholders' equity 79,587 79,156 76,523
---------- ---------- ----------
Total liabilities and
stockholders' equity $115,564 $115,466 $112,269
========== ========== ==========
Printronix, Inc., and Subsidiaries
Sales Classification (Unaudited)
Sales by Geographic
Region
-----------------------
------------------- -------------------
Three Months Ended Percent of Total
Sales
------------------- -------------------
June 24, June 25, Percent June 24, June 25,
2005 2004 Change 2005 2004
--------- --------- ----------------- ---------
($ in thousands)
Americas $16,186 $14,916 8.5% 50.9% 44.8%
EMEA 10,417 12,714 (18.1)% 32.8% 38.1%
Asia Pacific 5,184 5,648 (8.2)% 16.3% 17.1%
--------- --------- --------- ---------
$31,787 $33,278 (4.5)% 100.0% 100.0%
========= ========= ========= =========
Sales by Product
Technology
-----------------------
------------------- -------------------
Three Months Ended Percent of Total
Sales
------------------- -------------------
June 24, June 25, Percent June 24, June 25,
2005 2004 Change 2005 2004
--------- --------- ----------------- ---------
($ in thousands)
Line matrix $22,204 $24,004 (7.5)% 69.9% 72.1%
Thermal(a) 6,147 5,338 15.2% 19.3% 16.2%
Laser 2,799 3,337 (16.1)% 8.8% 9.9%
Verification products 637 599 6.3% 2.0% 1.8%
--------- --------- --------- ---------
$31,787 $33,278 (4.5)% 100.0% 100.0%
========= ========= ========= =========
(a)RFID $943 $159 493.1% 3.0% 0.5%
========= ========= ========= =========
Sales by Channel
-----------------------
------------------- -------------------
Three Months Ended Percent of Total
Sales
------------------- -------------------
June 24, June 25, Percent June 24, June 25,
2005 2004 Change 2005 2004
--------- --------- ----------------- ---------
($ in thousands)
OEM $9,492 $10,517 (9.7)% 29.9% 31.5%
Distribution 20,824 20,258 2.8% 65.5% 61.0%
Direct 1,471 2,503 (41.2)% 4.6% 7.5%
--------- --------- --------- ---------
$31,787 $33,278 (4.5)% 100.0% 100.0%
========= ========= ========= =========
Sales by Customer
-----------------------
------------------- -------------------
Three Months Ended Percent of Total
Sales
------------------- -------------------
June 24, June 25, Percent June 24, June 25,
2005 2004 Change 2005 2004
--------- --------- ----------------- ---------
($ in thousands)
Largest customer - IBM $7,640 $7,222 5.8% 24.0% 21.6%
Second largest customer 2,596 2,585 0.4% 8.2% 7.8%
Top ten customers 16,076 17,528 (8.3)% 50.6% 52.6%
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