RF Power Products Inc. third-quarter net income jumps 88 percent to 6 cents per share; sales increase 63 percent to record $6,792,000.VOORHEES Voorhees may mean: Places
1. (business) RFP - Request for Proposal. 2. ) Wednesday Wednesday: see week. announced that net income for the third quarter ended Aug. 31, 1995 increased 88 percent to $731,000, or 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , from $389,000, or 3 cents per share, for the same period last year. Revenue increased 63 percent to $6,792,000 from $4,162,000 a year ago. Joseph Stach, president of RF Power Products, said: "RFP's record sales and earnings are due to an expanding customer base and strong demand by original equipment manufacturers (OEMs) of semiconductor and flat panel display A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time manufacturing equipment. Fourth-quarter revenue and earnings are expected to exceed third-quarter results, and we are preparing for continued growth next year. "To help accommodate this rapid growth, we have leased an additional 10,000 square feet of office and production facilities and have commenced lease negotiations to construct a new, 60,000-square-foot corporate headquarters and production facility near our Voorhees, N.J., headquarters." RF Power's third-quarter profitability was penalized pe·nal·ize tr.v. pe·nal·ized, pe·nal·iz·ing, pe·nal·iz·es 1. To subject to a penalty, especially for infringement of a law or official regulation. See Synonyms at punish. 2. by higher production, materials and freight expenses In accounting, the concept of a freight expense account can be generalized as a payment for sending out a product to a customer. It falls under the umbrella category of Expenses and is treated like other expense accounts in relation to the accounting equation. associated with accelerated product shipments. Direct labor and overhead increased due to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expenses and inefficiencies related to the start-up Start-up The earliest stage of a new business venture. of a second production shift. 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. declined, as a percent of sales, due to tight cost controls and rising sales, raising pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income to 17 percent of sales, compared with 12 percent of sales in the same quarter last year. Research and development expenses increased 57 percent to $567,000, compared with $360,000 last year, but declined to 8 percent of sales, from 9 percent last year due to record sales. For the nine months ended Aug. 31, 1995, net income was $569,000, or 5 cents per share, compared with $989,000, or 9 cents per share, last year. Revenue increased 55 percent to $17,802,000, compared with $11,452,000 in the same period of fiscal 1994. Nine-month fiscal 1995 earnings include the effect of a previously announced, one-time, non-cash compensation expense of $957,000, or 8 cents per share, in the second quarter. The charge was due to a settlement agreement between RFP and its former legal counsel to correct unintended tax consequences of stock purchase agreements with certain of the company's executives. Fiscal 1994 results benefited from an extraordinary credit of $275,000, or 3 cents per share, related to the adoption of FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). No. 109, Accounting for Income Taxes. RF Power Products designs and manufactures radio frequency power systems, matching networks and other peripheral Any input, output or storage device connected externally or internally to the computer's CPU, such as a monitor, keyboard, printer, disk, tape, graphics tablet, scanner, joy stick, paddle or mouse. products primarily for original equipment manufacturers in the semiconductor, analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. instruments, commercial coating and flat panel display markets. -0-
RF POWER PRODUCTS INC.
STATEMENT OF OPERATIONS
(Unaudited)
(Dollars in thousands, except for share and per-share data)
Three Months Ended Aug. 31,
Percent Percent
1995 of Sales 1994 of Sales
Sales $6,792 100 $4,162 100
Cost of sales 4,045 60 2,512 60
Gross margin 2,747 40 1,650 40
Operating expenses:
Research and development 567 8 360 9
Sales, general
& administrative:
Non-cash compensation -- --
Other 986 15 772 19
Interest expense, net 15 13
1,568 23 1,145 28
Income before taxes 1,179 17 505 12 Tax expense 448 6 116 3 Net income from operations 731 11 389 9 Benefit from FASB 109 -- --
Net Income $ 731 11 $ 389 9
Earnings per share:
Net from operations $ .06 $ .03
Benefit from FASB 109 -- --
Net income per share $ .06 $ .03
Average common
shares outstanding 12,250,515 10,959,128
-0-
Nine Months Ended May 31,
Percent Percent
1995 of Sales 1994 of Sales
Sales $17,802 100 $11,452 100
Cost of sales 10,709 60 7,185 63
Gross margin 7,093 40 4,266 37
Operating expenses:
Research and development 1,605 9 943 8
Sales, general
& administrative:
Non-cash compensation 957 5 --
Other 3,005 17 2,257 20
Interest expense, net 56 50
5,623 32 3,250 28
Income before taxes 1,470 8 1,016 9 Tax expense 901 5 303 3 Net income from operations 569 3 713 6 Benefit from FASB 109 -- 276 3
Net Income $ 569 3 $ 989 9
Earnings per share:
Net from operations $ .05 $ .07
Benefit from FASB 109 -- .02
Net income per share $ .05 $ .09
Average common
shares outstanding 12,236,253 10,439.599
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RF POWER PRODUCTS INC.
SUMMARY BALANCE SHEET
Aug. 31, Nov. 30,
1995 1994
---------- -----------
Current Assets $8,271 $5,645
Net Property
Plant & Equipment 997 771
Other Assets 312 267
Total Assets $9,580 $6,683 Current Liabilities $3,559 $2,571 Long Term Liabilities 349 621 Shareholders' Equity 5,672 3,491 Total Liabilities & Shareholders' Equity $9,580 $6,683 CONTACT: RF Power Products Inc., Voorhees Domenic N. Golato, 609/751-0033 |
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