Printronix Announces Second 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 second quarter of fiscal year 2006, which ended September September: see month. 23, 2005. Second quarter revenue was $29.0 million, down approximately 9.0% from $31.8 million in both the year ago quarter and the first quarter of fiscal 2006. The company reported a net loss for the quarter of $1.6 million, or $0.26 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 a net loss of $0.1 million, or $0.02 per diluted share, in the year ago quarter and net income of $0.2 million, or $0.03 per diluted share, in the first quarter of fiscal 2006. Revenue for the first six months of fiscal year 2006 was $60.7 million, down from $65.1 million a year ago. Year to date net loss was $1.4 million, or $0.22 per diluted share, compared with net income of $0.3 million, or $0.05 per diluted share, a year ago. "While we were disappointed by our sales results this quarter, we anticipate improved results beginning in the fiscal third and fourth quarters as we start to upgrade our existing installed base of line matrix printers to our new product lines," 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. "During the fiscal second quarter, our sales were impacted by the continued softness in the Western European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. automotive and general manufacturing industries manufacturing industries npl → industrias fpl manufactureras manufacturing industries npl → industries fpl de transformation , and a lengthening lengthening (lengkˑ·the·ning), n the use of various massage or muscle energy techniques to relax and stretch muscle and connective tissue. of the sales cycle that resulted in sales not closing as expected in the U.S. market. However, the launch of the new P7000 line matrix printer is expected to provide new sales opportunities to upgrade our current installed base since we have received positive customer feedback on the new P7000, branded under both the Printronix and 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) brands." "In the 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. market, the launch of Gen2 products created some uncertainty as end users were either considering implementing or migrating to Gen2 technology," continued Mr. Kleist. "In September, Printronix advanced its position in RFID leadership and became the first company to deliver RFID printing solutions that are interoperable The ability for one system to communicate or work with another. See interoperability. with the new EPC (1) (Entertainment PC) See HTPC. (2) (Electronic Product Code) A standard code for RFID tags administered by EPCglobal Inc. (www.epcglobalinc.org). Gen2 protocol. We believe that the introduction of Gen2 technology will become a driver of market adoption as it provides a standard infrastructure for advanced features and process improvements." Gross margin was 37.3% for the second quarter, down slightly from 37.8% in the same period a year ago and down from 38.7% in the first quarter of fiscal 2006, mostly due to lower production volumes partly offset by favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix. For the first six months of fiscal year 2006, gross margin was 38.0%, down from 38.9% for the year ago period, primarily for the same reasons. 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 $12.5 million, up from $11.9 million in the year ago fiscal period. General and administrative expenses increased primarily as a result of higher consulting and audit costs associated with satisfying Sarbanes-Oxley requirements and increased legal costs. Launch of the company's new P7000 line matrix printer increased sales and marketing expenses during the current quarter. Engineering and development expenses decreased during the current quarter as a result of savings from cost cutting initiatives partly offset by increased expenses for product certification Product certification or product qualification is the process of certifying that a certain product has passed performance and/or quality assurance tests or qualification requirements stipulated in regulations such as a building code and nationally accredited test standards, . Year to date operating expenses increased to $24.7 million, up from $24.4 million a year ago, mostly for the reasons stated above, and were partly offset by a reduction of $0.4 million in the company's provision for doubtful accounts during the first six months of fiscal year 2006. The company ended the second 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 $42.6 million, up from $39.6 million compared with the second quarter of fiscal 2005, but down from $44.3 million at the end of the first quarter of 2006. The decrease in cash from the prior quarter is partly due to a temporary increase in inventories from product transitioning and partly due to a cash dividend of $0.4 million paid in September. Interest income increased $0.3 million compared with the year ago quarter due to higher cash and short-term investment balances and higher interest rates; year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. interest income increased $0.5 million compared to the year ago period for the same reasons. There will be an earnings conference call at 1:30 p.m. PT (4:30 p.m. ET) on October October: see month. 27, 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 George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Harwood Harwood may refer to: People with the surname Harwood:
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 an outbreak outbreak see epidemic. of avian flu avian flu: see influenza. or other world health epidemic epidemic, outbreak of disease that affects a much greater number of people than is usual for the locality or that spreads to regions where it is ordinarily not present. ; 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 Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). 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 See direct thermal printer and thermal wax transfer printer. market; the ability of the company to adapt to changes in the requirements for radio frequency identification See RFID. ("RFID") products by Wal-Mart  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. the Department of Defense (the "DOD (1) (Dial On Demand) A feature that allows a device to automatically dial a telephone number. For example, an ISDN router with dial on demand will automatically dial up the ISP when it senses IP traffic destined for the Internet. ") 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 alternate /al·ter·nate/ (awl´ter-nit) 1. following in turns. 2. pertaining to every other one in a series. 3. occurring in place of another; acting as a substitute. 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 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 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
(dollar amounts in thousands, except share and per share data)
(unaudited)
Three Months Ended Six Months Ended
-------------------------------- ---------------------
Sept. 23, June 24, Sept. 24, Sept. 23, Sept. 24,
2005 2005 2004 2005 2004
---------- ---------- ---------- ---------- ----------
Revenue $28,958 $31,787 $31,808 $60,745 $65,086
Cost of sales 18,171 19,478 19,770 37,649 39,738
---------- ---------- ---------- ---------- ----------
Gross margin 10,787 12,309 12,038 23,096 25,348
Engineering and
development 3,608 3,868 3,916 7,476 7,914
Sales and
marketing 6,115 6,116 5,903 12,231 12,183
General and
administrative 2,751 2,250 2,104 5,001 4,287
---------- ---------- ---------- ---------- ----------
Total operating
expenses 12,474 12,234 11,923 24,708 24,384
(Loss) income
from
operations (1,687) 75 115 (1,612) 964
Interest and
other (income)
expense, net (224) (205) 7 (429) 69
(Loss) income
before taxes (1,463) 280 108 (1,183) 895
Provision for
income taxes 135 70 218 205 556
---------- ---------- ---------- ---------- ----------
Net (loss)
income $(1,598) $210 $(110) $(1,388) $339
========== ========== ========== ========== ==========
Net (loss)
income per
share:
---------------
Basic $(0.26) $0.03 $(0.02) $(0.22) $0.05
Diluted $(0.26) $0.03 $(0.02) $(0.22) $0.05
Shares used in
computing net
(loss) income
per share:
---------------
Basic 6,241,949 6,492,516 6,341,593 6,222,233 6,311,117
Diluted 6,241,949 6,636,244 6,341,593 6,222,233 6,496,798
Gross margin % 37.3% 38.7% 37.8% 38.0% 38.9%
Operating
expenses % 43.1% 38.5% 37.5% 40.7% 37.5%
(Loss) income
from
operations % -5.8% 0.2% 0.4% -2.7% 1.5%
Net (loss)
income % -5.5% 0.7% -0.3% -2.3% 0.5%
PRINTRONIX, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
Sept. 23, June 24, Sept. 24,
2005 2005 2004
--------- --------- ---------
ASSETS
Cash and cash equivalents $29,228 $27,656 $39,623
Short-term investments 13,384 16,600 -
Accounts receivable, net 15,649 17,104 17,352
Inventories, net 14,290 13,991 14,158
Other current assets 4,690 5,044 6,494
Property, plant and equipment, net 32,971 33,108 33,946
Other long-term assets 2,246 2,061 1,226
--------- --------- ---------
Total assets $112,460 $115,564 $112,799
========= ========= =========
LIABILITIES and STOCKHOLDERS' EQUITY
Current portion of long-term debt $700 $700 $700
Accounts payable 6,789 7,623 7,689
Other current liabilities 11,490 11,603 11,863
Other long-term liabilities 16,014 16,051 15,957
Stockholders' equity 77,467 79,587 76,590
--------- --------- ---------
Total liabilities and
stockholders' equity $112,460 $115,564 $112,799
========= ========= =========
PRINTRONIX, INC. AND SUBSIDIARIES
Sales Classification
(unaudited)
Three Months Ended Percent of Total
Sales
------------------- -------------------
Sales by Geographic Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24,
Region 2005 2004 Change 2005 2004
---------------------- --------- --------- ------- --------- ---------
(dollar amounts in
thousands)
Americas $14,032 $15,606 -10.1% 48.5% 49.0%
EMEA 9,375 10,806 -13.2% 32.4% 34.0%
Asia Pacific 5,551 5,396 2.9% 19.1% 17.0%
--------- --------- --------- ---------
$28,958 $31,808 100.0% 100.0%
========= ========= ========= =========
Three Months Ended Percent of Total
Sales
------------------- -------------------
Sales by Product Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24,
Technology 2005 2004 Change 2005 2004
---------------------- --------- --------- ----------------- ---------
(dollar amounts in
thousands)
Line matrix $20,857 $22,140 -5.8% 72.0% 69.6%
Thermal(a) 5,054 5,917 -14.6% 17.5% 18.6%
Laser 2,661 3,212 -17.2% 9.2% 10.1%
Verification
products 386 539 -28.4% 1.3% 1.7%
--------- --------- --------- ---------
$28,958 $31,808 100.0% 100.0%
========= ========= ========= =========
(a)RFID $792 $848 -6.6% 2.7% 2.7%
========= ========= ========= =========
Three Months Ended Percent of Total
Sales
------------------- -------------------
Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24,
Sales by Channel 2005 2004 Change 2005 2004
---------------------- --------- --------- ------- --------- ---------
(dollar amounts in
thousands)
OEM $8,201 $8,880 -7.6% 28.3% 27.9%
Distribution 19,362 21,226 -8.8% 66.9% 66.7%
Direct 1,395 1,702 -18.0% 4.8% 5.4%
--------- --------- --------- ---------
$28,958 $31,808 100.0% 100.0%
========= ========= ========= =========
Three Months Ended Percent of Total
Sales
------------------- -------------------
Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24,
Sales by Customer 2005 2004 Change 2005 2004
---------------------- --------- --------- ----------------- ---------
(dollar amounts in
thousands)
Largest customer -
IBM $6,630 $6,916 -4.1% 22.9% 21.7%
Second largest
customer 2,375 2,619 -9.3% 8.2% 8.2%
Top ten customers 14,443 16,159 -10.6% 49.9% 50.8%
PRINTRONIX, INC. AND SUBSIDIARIES
Sales Classification
(unaudited)
Six Months Ended Percent of Total
Sales
------------------- -------------------
Sales by Geographic Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24,
Region 2005 2004 Change 2005 2004
---------------------- --------- --------- ------- --------- ---------
(dollar amounts in
thousands)
Americas $30,218 $30,523 -1.0% 49.7% 46.9%
EMEA 19,792 23,520 -15.9% 32.6% 36.1%
Asia Pacific 10,735 11,043 -2.8% 17.7% 17.0%
--------- --------- --------- ---------
$60,745 $65,086 100.0% 100.0%
========= ========= ========= =========
Six Months Ended Percent of Total
Sales
--------- --------- -------------------
Sales by Product Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24,
Technology 2005 2004 Change 2005 2004
---------------------- --------- --------- ------- --------- ---------
(dollar amounts in
thousands)
Line matrix $43,062 $46,144 -6.7% 70.9% 70.9%
Thermal(a) 11,200 11,255 -0.5% 18.4% 17.3%
Laser 5,460 6,549 -16.6% 9.0% 10.1%
Verification
products 1,023 1,138 -10.1% 1.7% 1.7%
--------- --------- --------- ---------
$60,745 $65,086 100.0% 100.0%
========= ========= ========= =========
(a)RFID $1,735 $1,007 72.3% 2.9% 1.5%
========= ========= ========= =========
Six Months Ended Percent of Total
Sales
------------------- -------------------
Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24,
Sales by Channel 2005 2004 Change 2005 2004
---------------------- --------- --------- ------- --------- ---------
(dollar amounts in
thousands)
OEM $17,693 $19,396 -8.8% 29.1% 29.8%
Distribution 40,186 41,485 -3.1% 66.2% 63.7%
Direct 2,866 4,205 -31.8% 4.7% 6.5%
--------- --------- --------- ---------
$60,745 $65,086 100.0% 100.0%
========= ========= ========= =========
Six Months Ended Percent of Total
Sales
------------------- -------------------
Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24,
Sales by Customer 2005 2004 Change 2005 2004
---------------------- --------- --------- ------- --------- ---------
(dollar amounts in
thousands)
Largest customer -
IBM $14,270 $14,139 0.9% 23.5% 21.7%
Second largest
customer 4,971 5,203 -4.5% 8.2% 8.0%
Top ten customers 30,442 33,454 -9.0% 50.1% 51.4%
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