Printer Friendly


 LANDOVER, Md., Oct. 5 /PRNewswire/ -- Applied Research Corporation (Philadelphia Stock Exchange: ARL.X) announced its results for the fiscal year ended May 31, 1993. The company's revenues for the year were $7,216,257, 11 percent above year earlier revenues of $6,478,157. The increase in revenues during fiscal 1993 of $738,100 is attributed to increased revenues of $594,458 contributed by Applied Research of Maryland, Inc. (ARM), and product sales of

$143,642 contributed by ARSoftware Corporation (ARS).
 -- ARM's increased revenues resulted primarily from an increase in billable direct cost of service of $630,259 over the year ended May 31, 1992. ARM's government contract base grew during the current fiscal year as 15 technical staff members were added following the award of several new contracts.
 -- Approximately 67 percent of ARS's revenues for the fiscal year ended May 31, 1993 were produced during the second half of the year, with 38 percent coming during the fourth quarter.
 The company sustained an operating loss for the fiscal year ended May 31, 1993 of $224,628 compared to an operating profit of $171,025 a year ago.
 -- ARM posted an operating profit during the current fiscal year of $103,851 compared to $190,242 last year. The primary cause for the reduction in operating margin from anticipated levels relates to significant overruns incurred on two hardware development contracts. The first contract, which contributed a loss of $30,000 during the current fiscal, was completed as of May 31, 1993. The second contract incurred a loss of $87,000, with additional loss reserves being established at May 31, 1993 of approximately $30,000. The combined losses reduced ARM's margin by $147,000 during fiscal 1993.
 -- ARS sustained an operating loss of $327,858 for the year. During its first 13 months of operations ended May 31, 1993 ARS has been moving through the start-up phase of staffing, acquiring new products for resale under license agreements, and proprietary product development and market penetration efforts. As ARSoftware begins its second year of operations, the introduction of its first proprietary product as well as the acquisition of several new exclusively licensed products are expected to push ARS into profitable operations for the year.
 The company sustained a net loss of $430,820 for the fiscal year ended May 31, 1993 compared to a net profit of $74,699 last year. Reductions in ARM operating margins caused by overruns and start-up costs incurred by ARS, as well as increased interest costs associated with factor financing contributed to the company's overall erosion in profitability.
 (000 except for per share amounts)
 ARM ARS Cons. Cons.
 5/31/93 5/31/92
 Revenue 7,072 144 7,216 6,478
 Operating income (loss) 104 (328) (224) 171
 Net income (loss) (103) (328) (431) 75
 Net income (loss)
 per share -- -- (0.09) 0.01
 S.P.S. Anand, president and CEO, said, "The two development contract overruns sustained by ARM were unexpected and, due to their magnitude, overshadowed the positive growth achieved during the year at both ARM and ARS. We are very excited about the potential for earnings growth in 1994 as ARM continues to increase its government contract base and ARS becomes profitable during only its second year of operations."
 -0- 10/5/93
 /CONTACT: J. Andrew Moorer, CFO of Applied Research Corp., 301-459-8833, or Rodney O'Connor of Cameron Associates, 212-644-9560/

CO: Applied Research Corporation ST: Maryland IN: SU: ERN

WB-OS -- NY058 -- 8959 10/05/93 14:52 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:Oct 5, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters