Printer Friendly

ZITEL CORPORATION REPORTS SECOND QUARTER PROFIT

 FREMONT, Calif., April 20 /PRNewswire/ -- Zitel Corporation (NASDAQ-NMS: ZITL) today announced net sales of $8,111,000 for the second quarter of fiscal year 1993 ended March 31, versus net sales of $13,459,000 for the same quarter of the prior year. Net income for the quarter was $111,000 ($.02 per share) versus net income of $515,000 ($.08 per share) for the same quarter of the prior year. Fiscal 1992 financial information has been restated to reflect the acquisition of CHI Systems, Inc. which was accounted for as a pooling of interest transaction.
 For the six months ended March 31, 1993, the company reported net sales of $14,440,000 versus $24,706,000 for the six months of the prior year and a net loss of $3,015,000 ($0.49 per share) versus net income of $576,000 ($0.09 per share).
 "The revenue increase of 28 percent this quarter versus the first quarter is a positive development and the business climate in general appears to be improving, though pressure on margins also persists," said Jack H. King, president and CEO of Zitel.
 "The return to profitability this quarter was achieved not only by increase in revenue, but also by reducing spending by nearly $1,700,000. While research and development was trimmed by $620,000 this quarter, it still runs at 21 percent of net sales. We realize that this level of spending is unusually high but we also believe that in the short term it is prudent for the company to continue to spend on R&D at near this dollar level," he continued.
 "For the remainder of this year, we will concentrate our efforts on remaining profitable and bringing new products to market as a result of the R&D spending."
 Zitel Corporation specializes in the design, manufacture and marketing of high performance storage subsystems for Imaging, Simulation, Online Transaction Processing (OLTP) and Frame Buffer applications. Its technologies deliver DRAM and magnetic media combinations across a range of UNIX file-servers, mainframes and proprietary systems, utilizing customer and industry-standard interfaces, such as SCSI, HIPPI, and Unisys proprietary channels. Its products are offered through OEMs, systems integrators, value added resellers and distributors, and directly to Unisys mainframe end-users.
 The company is headquartered at 47211 Bayside Parkway, Fremont, Calif. 945348, and has offices across the United States, in London and in Paris. Telephone: 510-440-9600, or fax, 510-440-9666.
 ZITEL CORPORATION
 Consolidated Summary of Financial Statements
 Consolidated Statements of Operations
 (Unaudited, in thousands except per share data)
 Periods Ended Three Months Six Months
 March 31 1993 1992(A) 1993 1992(A)

 Net sales $ 8,111 $ 13,459 $ 14,440 $ 24,706
 Cost of goods sold 3,809 4,417 7,526 8,337
 Research & development
 expenses 1,727 1,833 4,074 3,534
 Selling, general and
 administrative expenses 2,540 6,457 6,136 12,061
 Operating income (loss) 35 752 (3,296) 774
 Other (income) expense (95) 103 380 (61)
 Income (loss) before
 income taxes 130 649 (3,676) 835
 Provision for income taxes 19 134 (661) 259
 Net income (loss) 111 515 (3,015) 576
 Net income (loss) per share $.02 $.08 $(0.49) $.09
 Number of shares used in
 per share calculation 6,519 6,606 6,145 6,540
 ZITEL CORPORATION
 Consolidated Balance Sheets
 (In thousands, unaudited)
 Periods Ended March 31, 1993 Sept. 30, 1992(A)
 Assets
 Current assets
 Cash and cash equivalents $ 2,248 $ 7,067
 Accounts receivable 8,201 11,703
 Inventories 7,952 6,834
 Other current assets 2,526 1,105
 Total current assets 20,927 26,709
 Fixed assets, net 4,403 4,283
 Other assets, net 1,364 1,450
 Total assets $ 26,694 $ 32,442
 Liabilities and shareholders' equity
 Current liabilities
 Current portion of long-term debt $ 537 $ 643
 Accounts payable 2,578 3,336
 Accrued liabilities 1,635 3,662
 Income taxes payable 510 694
 Total current liabilities 5,260 8,335
 Long-term debt 149 197
 Deferred lease liability 5 --
 Deferred income taxes 108 108
 Shareholders' equity
 Common stock 14,434 14,049
 Retain earnings 6,738 9,753
 Total shareholders' equity 21,172 23,802
 Total liabilities and
 shareholders' equity $ 26,694 $ 32,442
 (A) -- Restated reflect the acquisition of CHI Systems, Inc. completed on Oct. 30, 1992 which was accounted for as a pooling of interest transaction.
 -0- 4/20/93
 /CONTACT: Ted E. Buxton, director, corporate communications of Zitel Corporation, 510-440-9600 ext 277, or outside California, 800-622-5020/
 (ZITL)


CO: Zitel Corporation ST: California IN: CPR SU: ERN

TS-LD -- SJ007 -- 7742 04/20/93 07:46 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 20, 1993
Words:764
Previous Article:WAHLCO ENVIRONMENTAL REPORTS PROFITABLE FIRST QUARTER
Next Article:AUTOALLIANCE INTERNATIONAL WORKING TO IMPROVE ENVIRONMENT
Topics:


Related Articles
ZITEL REPORTS FIRST QUARTER RESULTS
ZITEL CORPORATION REPORTS THIRD QUARTER RESULTS
ZITEL CORPORATION REPORTS FOURTH QUARTER RESULTS
ZITEL CORP. REPORTS FIRST QUARTER RESULTS
ZITEL ANTICIPATES QUARTERLY LOSS
ZITEL REPORTS THIRD QUARTER
ZITEL RESTRUCTURES ON EARNINGS OUTLOOK
ZITEL RECEIVES IN EXCESS OF $6,000,000 IN ROYALTY REVENUE
ZITEL REPORTS SECOND QUARTER RESULTS
ZITEL REPORTS YEAR END RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters