WPI GROUP Announces Third Quarter And Nine Months Results Operating Loss in Q3.MANCHESTER, N.H.--(BUSINESS WIRE)--Aug. 11, 1999-- WPI WPI - Worcester Polytechnic Institute GROUP, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (WPIC WPIC Western Psychiatric Institute and Clinic (University of Pittsburgh School of Medicine; Pennsylvania, USA) WPIC Work Package Integration Conference (US Navy) WPIC Whole Person In Christ : NASDAQ/National) today announced results for the Company's third quarter and nine months ended June 27, 1999. WPI GROUP Chairman 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. , Michael Foster Michael Foster could be
The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. level. During the third quarter, WPI experienced a pick-up in sales in several business areas that is still continuing. We believe that this sales improvement, combined with the benefits of our recently completed facilities consolidations and other cost cutting measures, will enable WPI to return to profitability in the current quarter." Revenue for the third fiscal quarter ended was $21,202,000, compared to $24,397,000 for the same period last year. For the quarter, the Company incurred a loss of ($3,149,000), versus net income of $1,368,000 or $0.23 per share for the third quarter of fiscal 1998. The third quarter results were negatively affected by the necessity of reversing certain tax benefits that had been taken earlier in the year and because of the unavailability un·a·vail·a·ble adj. Not available, accessible, or at hand. un  a·vail of those tax benefits in the third
fiscal quarter. The reversal of the first and second quarters' tax
benefit of $904,000, along with the unavailability of a tax benefit in
the third quarter, represents approximately ($.28) per share. The
Company had previously recognized the tax benefits because it expected
to generate sufficient income in the United States Income in the United States is measured by the United States Department of Commerce either by household or individual. The differences between household and personal income is considerable since 42% of households, the majority of those in the top two quintiles with incomes and United Kingdom to
take advantage of available tax loss benefits that were created in prior
accounting periods. These tax benefits can be carried forward and
continue to be available to reduce the Company's future taxable
income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . For the nine months ended June 27, 1999, revenues were
$68,154,000, compared to $69,495,000 for the same period in the previous
year. For the nine months of fiscal 1999, the Company incurred a loss of
($4,757,000) or ($.79) per share. This loss includes the effects of the
third quarter tax benefits reversal. In the comparable period of fiscal
1998, WPIC reported net income of $3,332,551 or $0.55 per share.WPI GROUP, INC. manufactures and markets high value-added products used in advanced systems across many industries and applications. The Company offers the world's broadest range of rugged, handheld H/PCs, PCs, notebook computers A laptop computer that weighs in a range from five to seven pounds. The term originated when laptops were routinely more than 10 pounds, and those that became lighter were placed in a special "notebook" category. In practice, notebook computer and laptop computer are synonymous. and terminals designed for use in harsh environments across a wide array of industries. In addition, WPI provides applications software for selected vertical markets and industry-leading diagnostic hardware and software to the transportation industry. They also manufacture avionics avionics (ā'vēŏn`ĭks), electronic instruments used in air or space flight; also the design and production of such instruments. Early planes had few instruments, but as aviation and aircraft became more complex, so did instrumentation. components and subsystems, inertial in·er·tia n. 1. Physics The tendency of a body to resist acceleration; the tendency of a body at rest to remain at rest or of a body in straight line motion to stay in motion in a straight line unless acted on by an outside force. sensors
THE STATEMENTS CONTAINED IN THIS RELEASE CONCERNING THE COMPANY'S GOALS, STRATEGIES AND EXPECTATIONS FOR BUSINESS AND FINANCIAL RESULTS ARE "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. " BASED ON CURRENT EXPECTATIONS. NO ASSURANCES CAN BE GIVEN THAT THE RESULTS IN ANY FORWARD-LOOKING STATEMENTS WILL BE ACHIEVED AND ACTUAL RESULTS COULD DIFFER MATERIALLY. PLEASE REVIEW THE REPORTS THAT THE COMPANY FILES WITH THE SECURITIES AND EXCHANGE COMMISSION FOR INFORMATION CONCERNING FACTORS WHICH COULD AFFECT THE COMPANY'S BUSINESS. -0-
WPI GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Nine Months Ended
June 27, June 28, June 27, June 28,
1999 1998 1999 1998
NET SALES $ 21,201,209 $ 24,397,485 $ 68,153,904 $ 69,494,757
COST OF GOODS SOLD 12,905,474 13,874,966 40,030,909 40,511,951
GROSS PROFIT 8,295,735 10,522,519 28,122,995 28,982,806
OPERATING EXPENSES:
Research and
new product
development 1,465,118 1,323,517 4,435,651 3,983,448
Selling, general
and
administration 7,312,248 6,426,139 21,772,999 17,670,970
Restructuring
costs -- -- 1,750,000 --
Total operating
expense 8,777,366 7,749,656 27,958,650 21,654,418
OPERATING
INCOME (LOSS) (481,631) 2,772,863 164,345 7,328,388
OTHER INCOME (EXPENSE):
Interest expense (1,791,732) (771,792) (5,196,901) (2,445,588)
Foreign currency
exchange gain
(loss) 19,208 (26,162) 252,590 (54,422)
Other, net 8,685 56,408 22,609 72,173
(1,763,839) (741,546) (4,921,702) (2,427,837)
INCOME (LOSS) BEFORE
PROVISION FOR INCOME
TAXES (2,245,470) 2,031,317 (4,757,357) 4,900,551
PROVISION FOR INCOME
TAXES 904,000 663,000 -- 1,568,000
NET INCOME (LOSS) $(3,149,470) $ 1,368,317 $(4,757,357) $ 3,332,551
BASIC EARNINGS
(LOSS) PER
SHARE $ (0.52) $ 0.23 $ (0.79) $ 0.55
DILUTED EARNINGS (LOSS)
PER SHARE $ (0.52) $ 0.22 $ (0.79) $ 0.54
Weighted Average
Common Shares 6,048,977 6,018,419 6,041,515 6,011,864
Effect of
Dilutive Options -- 172,258 -- 200,164
Adjusted Weighted
Average Common
Shares 6,048,977 6,190,677 6,041,515 6,212,028
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