Printer Friendly

ZONIC POSTS THIRD QUARTER LOSS DUE TO WEAK WORLD ECONOMY; BUT 70 PERCENT GAIN IN ORDERS POINTS TO IMPROVEMENT AHEAD

 CINCINNATI, Feb. 12 /PRNewswire/ -- Zonic Corporation (NASDAQ: ZNIC) continued to feel the impact of a weak world economy and reported a loss and a decline in sales for both the third quarter and first nine months of its 1993 fiscal year.
 Nevertheless, Gerald J. Zobrist, president and chief executive officer, said there was reason for optimism, with a 70 percent increase in orders in the 1993 third quarter compared to the second quarter of 1993, and a 20 percent increase over the 1992 third quarter. Zobrist said this should translate into increased sales in the fourth quarter over the third.
 Zobrist noted that a visible strengthening in the U.S. economy coupled with anticipated improvements in Europe should help Zonic return to a profitable position during the next fiscal year.
 For the three months ended Dec. 31, 1992, Zonic had a net loss of $364,000 or 12 cents per share compared with a profit during the comparable year-ago period of $111,000 or 4 cents per share.
 Sales for the 1993 fiscal third quarter were $1,405,000 compared with $2,675,000 in the 1992 period.
 For the first nine months of the 1993 fiscal year, Zonic had a loss of $2,187,000 or 70 cents per share compared to a year-ago profit of $403,000 or 13 cents per share. The nine month loss includes a non- recurring charge of $1,337,000 or 43 cents per share for restructuring and bad debt reserves taken in the 1993 fiscal second quarter.
 Sales for the first nine months of the 1993 fiscal year were $5,406,000 compared with $7,501,000 in the comparable year-ago period.
 Zobrist said that in addition to the weak world economy, especially in foreign markets, the company's sales decline was due to a slippage of some shipments into the fourth quarter due to software completion schedules. Also contributing to the decline was competitive pressure caused by weak markets, and a delay in purchases by some customers due to uncertainty concerning possible adoption of a new investment tax credit.
 Zobrist said that profits were impacted by the decline in sales which reduced gross margins. Also impacting bottom line results were cost overruns on some software projects that temporarily increased development costs, and increased operating expenses due primarily to increased amortization of software construction that was capitalized in prior periods.
 Zobrist said that Zonic's completion of a $2,500,000 debt financing arangement with A&D Co., Ltd. of Japan last December, had eased the company's cash flow problems and should put Zonic in a better position to capitalize on improvements in the economy when they occur.
 He noted too that Zonic was encouraged by excellent acceptance of its World Class Analyzer, the company's recently introduced Apple Macintosh-based noise and vibration measurement system. Zobrist said that WCA sales had almost doubled over last year with an outlook for continued growth in the future.
 Zobrist said that the aggressive cost cutting and restructuring program, which the company began implementing in the third quarter, would reduce expenses during the remainder of the fiscal year and have an even more pronounced positive effect in the year ahead.
 "Tight cost controls and reduced staff expenses will lower our operating costs in future quarters," Zobrist said.
 Zonic Corporation develops, manufactures and markets proprietary software and computerized test and measurement equipment used in a wide range of industrial and aerospace applications. Zonic systems and related software have broad application in product engineering and design, testing, and performance monitoring. Company headquarters are in the Greater Cincinnati metropolitan area with sales and service facilities in North America, Western Europe and the Pacific Rim.
 Zonic Corporation
 Comparative Financial Data
 Three Months Ended
 December 31,
 1992 1991
 Revenue
 Products & Services $1,309,907 $2,455,706
 Development Contracts, Other 95,122 219,628
 Total 1,405,029 2,675,334
 Operating and Other Expenses 1,769,288 2,564,736
 Net Profit (Loss) ($364,259) $110,598
 Earnings (Loss) Per Share ($0.12) $0.04
 Weighted Average Shares 3,112,575 3,076,669
 Nine Months Ended
 December 31,
 1992 1991
 Revenue
 Products & Services $5,104,929 $6,728,644
 Development Contracts, Other 300,952 772,073
 Total 5,405,881 7,500,717
 Operating and Other Expenses 6,256,438 7,098,201
 Non-Recurring Restructuring
 and Bad Debt Expenses 1,336,876 -
 Net Profit (Loss) ($2,187,433) $402,516
 Earnings (Loss) Per Share ($0.70) $0.13
 Weighted Average Shares 3,112,575 3,076,669
 Backlog of Orders $1,909,298 $2,155,160
 -0- 2/12/93
 /CONTACT: Nicholas G. Biro of O'Connor Biro & Associates, 708-498-2284, for Zonic Corporation/
 (ZNIC)


CO: Zonic Corporation ST: Ohio IN: CPR SU: ERN

KK -- CL002 -- 6092 02/12/93 10:41 EST
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:Feb 12, 1993
Words:799
Previous Article:CCX, INC. REPORTS RESULTS
Next Article:CHRISTOPHER STEFFEN ELECTED SENIOR VICE-PRESIDENT AT KODAK
Topics:


Related Articles
ZONIC CONTINUES RECORD EARNINGS & SALES GAINS FOR SECOND QUARTER & FIRST HALF
ZONIC BOOKS RECORD $3.5 MILLION IN NEW ORDERS; HEAVY DEVELOPMENTAL EXPENSES CAUSE DECLINE IN EARNINGS
ZONIC EXPECTS SECOND QUARTER LOSS DUE TO SLOW ECONOMY; ANTICIPATES COMPLETION OF $2.5 MILLION FINANCING PACT
ZONIC NARROWS LOSSES FOR SECOND QUARTER & 6 MONTHS; ORDERS UP 45 PERCENT FOR 3 MONTH PERIOD
ZONIC POSTS 3RD QTR. AND 9 MONTH LOSSES
ZONIC REPORTS SALES INCREASE & NARROWED LOSSES FOR 3RD QTR. & 9 MONTHS
ZONIC REPORTS 20 PERCENT SALES GAIN; SHARPLY REDUCES OPERATING LOSSES; REPORTS PROFIT FOR 1ST QTR. AFTER ONE TIME GAINS
ZONIC SHARPLY REDUCES OPERATING LOSSES; REPORTS PROFIT FOR FISCAL YEAR AND 4TH QTR AFTER EXTRAORDINARY GAIN
ZONIC REPORTS INCREASED SALES & REDUCED OPERATING LOSS FOR FOURTH QUARTER
Zonic Reduces Losses Despite Sales Decline in Fiscal 4th Qtr

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