RELM Wireless Announces Second Quarter Results; Retains investment banking firm of Janney Montgomery Scott to advise Company on enhancing shareholder value.Business Editors WEST MELBOURNE West Melbourne may be:
RELM Wireless Corporation (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 : RELM) today announced its operating results for the second quarter ended June 30, 2000. The Company also announced that it has retained the investment banking firm of Janney Montgomery Scott LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (Janney) as financial advisor in executing a program to enhance shareholder value. The program will include the evaluation of the sale of all the Company's shares or assets, or the Company's merger, consolidation, or other type of business combination, recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. , or joint venture. Janney will also explore additional financing alternatives and other sources of working capital. For the three months ended June 30, 2000, RELM reported a net loss of $542,000, or $(0.10) 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 to net income of $77,000, or $0.02 per diluted share, for the same period in 1999. Revenue in the second quarter was $5.2 million, compared to $7.1 million for the same period in 1999. For the six months ended June 30, 2000, the net loss was $151,000, or $(0.03) per diluted share, compared to net income of $132,000, or $0.03 per diluted share, for the same period in 1999. The Company reported revenues of $9.8 million for the first six months of 2000 compared to $13.6 million for the same period last year. During the second quarter, revenue from the Company's core Land Mobile Radio (LMR LMR Land Mobile Radio LMR Labor-Management Relations LMR Last Minute Resistance LMR Living Marine Resources LMR Longmoor Military Railway (UK) LMR Liquid-Metal Reactor LMR Laser Magnetic Resonance ) products decreased approximately $1.3 million (21.3%) compared to the same period in 1999. In the second quarter of the prior year, the Company sold approximately $1.2 million of LMR products to the U. S. Army. There were no sales to the Army during the second quarter of 2000. Sales of non-LMR products during the quarter decreased approximately $700,000 compared to the same period in 1999 as the Company exited businesses and discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: products that performed poorly or did not fit its strategic focus on wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. . In May 2000, the Company completed the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. from its former 144,000 square foot facility to a nearby 54,000 square foot facility, a move that will reduce the Company's annual operating costs operating costs npl → gastos mpl operacionales by approximately $800,000. David P. Storey, President and Chief Executive Officer commented: "While we were disappointed with our financial results for the second quarter, RELM's revenues have strengthened in July and August due to shipments to the federal forest service to combat the proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n. of forest fires This is a list of notorious forest fires: North America Year Size Name Area Notes 1825 3,000,000 acres (12,000 km²) Miramichi Fire New Brunswick Killed 160 people. in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . Furthermore, we expect that new inventory for the recently acquired Uniden PRC product lines will be available for shipment in the fourth quarter. With initial contributions from the new Uniden PRC products, combined with the commencement of shipments to the U. S. Army under the order that was placed in June, we are positioned for strong revenue growth in the fourth quarter." Mr. Storey added, "Concurrently, we are vigorously pursuing programs to increase our effectiveness and quality while reducing costs. Examples of this include our utilization of state-of-the-art contract manufacturing services and the move to smaller, less costly quarters. We are continuing to develop our APCO APCO Association of Public Safety Communications Officials APCo Appalachian Power Company (Columbus, OH) APCO Air Pollution Control Officer APCO Alabama Power Company APCO Associated Public Safety Communications Officers, Inc. 25 compliant digital products, planned for introduction early in 2001. These new product and revenue opportunities combined with serious cost reduction measures, we believe, will yield improved financial performance in 2001." Mr. Storey concluded, "We believe that the engagement of Janney Montgomery Scott is key to successfully accelerating the Company's growth and enhancing shareholder value. We are pleased with the addition of Janney to our team." For over 45 years, RELM has manufactured and marketed two-way FM business-band radios as well as high-specification public safety mobile and portable radios, repeaters and accessories, base station components and subsystems. Products are manufactured and distributed worldwide under RELM Communications, Uniden PRC and BK Radio brand names. The company maintains its headquarters in West Melbourne, Florida West Melbourne is a city in Brevard County, Florida, United States. The population was 9,824 at the 2000 census. According to the U.S. Census Bureau's 2005 estimates, the city had a population of 15,059 [1]. and can be contacted through its web site at www.relm.com or directly at 1-800-648-0947. This release contains certain 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. within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe-harbor created by such sections. Such forward-looking statements concern the Company's operations, economic performance and financial condition. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: General economic and business conditions; changes in customer preferences; competition; changes in technology; the integration of any acquisitions; changes in business strategy; the indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. of the Company; quality of management, business abilities and judgment of the Company's personnel; the availability, terms and deployment of capital; and various other factors referenced in this Release. The forward-looking statements are made as of the date of this Release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
RELM WIRELESS CORPORATION
Condensed Consolidated Statement of Income
(In Thousands Except Share Data)
(unaudited)
Three Months Ended Six Months Ended
6/30/00 6/30/99 6/30/00 6/30/99
Sales $ 5,158 $ 7,125 $ 9,754 $ 13,590
Costs & Expenses
Cost Of Sales 3,680 5,061 7,289 9,579
SG&A 1,886 1,876 3,405 3,647
Total Costs & Exp 5,566 6,937 10,694 13,226
Operating Income (Loss) (408) 188 (940) 364
Other Income (Expense):
Interest Expense (217) (279) (522) (528)
Gain on Facility Sale 0 0 1,165 0
Gain on Investments 0 0 0 48
Other Income (Expense) 83 168 146 248
Pretax Income (loss) From
Continuing Operations (542) 77 (151) 132
Tax Expense (Benefit) 0 0 0 0
Net Income (Loss) $ (542) $ 77 $ (151) $ 132
Earnings per share
- basic: $ (0.10) $ 0.02 $ (0.03) $ 0.03
Earnings per share
- diluted: $ (0.10) $ 0.02 $ (0.03) $ 0.03
Basic shares
outstanding 5,185 5,046 5,138 5,046
Diluted shares
outstanding 5,185 5,046 5,138 5,046
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