BRAJDAS CORP. ANNOUNCES EARNINGS
BRAJDAS CORP. ANNOUNCES EARNINGS SAN JOSE, Calif., Jan. 17 /PRNewswire/ -- Brajdas Corp.
(NASDAQ: BRJS) today announced a loss for the third quarter, primarily resulting from the need to establish additional reserves for the disposition of discontinued inventory.
For the three months ended Nov. 30, 1991, the company's net loss was $2,162,020, or $.42 per share on net sales of $10,855,528. The net loss for the corresponding prior year's quarter was $440,613, or $.15 per share on net sales of $11,375,233. The results for the quarter included a pre-tax charge of $1,440,000 to fully provide for potential write-offs as the process of disposition of inventory from discontinued lines nears completion. For the nine months ended Nov. 30, 1991, Brajdas' net loss equalled $5,613,912, or $1.57 per share on net sales of $31,332,234. In the prior year's nine month period, Brajdas incurred a loss of $621,315, or $.21 per share on net sales of $35,650,836. During the quarter the company received an equity infusion of $6.9 million in a private placement by the issuance of 6.9 million shares at $1 per share. On Dec. 19, 1991, the company entered into a merger agreement pursuant to which three privately held California corporations, ProProm Inc., Koral International Corp. and Adlar Turnkey Manufacturing Corporations (collectively referred to as the "ATMC Companies") would be merged into the company. The company anticipates scheduling its annual meeting of shareholders prior to Feb. 29, 1992, the end of the fiscal year, at which time, among other matters, the shareholders will be asked to approve the merger and an increase in the authorized common stock in the company. Assuming the merger is approved, the company anticipates an additional private placement of $2.1 million covering the issuance of 2.1 million shares at $1 per share. Brajdas believes that the private placement and the proposed merger will create a more competitive company and will enhance Brajdas' prospects for a return to profitability. The company continues its efforts to sell its BEC division, although a previously announced letter of intent has expired. Brajdas is primarily engaged in the wholesale distribution of electronic components through its principal division, Cypress Electronics, which is based in Santa Clara, Calif. Brajdas maintains regional sales offices and warehouse facilities throughout the United States. The ATMC Companies are privately held companies principally engaged in the sourcing and procurement of electronic and electromechanical components as well as the integration of such components into finished value-added products. It is anticipated that after the merger Donald I. Zimmerman will remain as chairman of the board and Larry Mendoza, a principal officer of the ATMC Companies, will become president and chief executive officer of Brajdas. Upon completion of the merger, Brajdas, through its two divisions -- Cypress Electronics and ATMC -- will be the largest U.S. electronic component distributor with an in-house manufacturing facility. ATMC's sophisticated Surface Mount Technology, Plate-Through-Hole Interconnection and Automatic Insertion Techniques should enable Brajdas to offer a price competitive, extensive range of turnkey services in the electronic components industry to its customers. Additionally, the close proximity of the major operations of Brajdas and the ATMC Companies in San Jose and Santa Clara, should afford both economies of scale and overhead cost reductions. BRAJDAS CORP. Statement of Operations For the three- and nine-months ended Nov. 30, 1991 (Unaudited) Three months Nine months 1991 1990 1991 1990 Net sales $10,855,528 $11,375,233 $31,332,234 $35,650,836 Cost of sales 9,974,106 8,597,115 28,053,911 26,555,365 Gross profit (loss) 881,422 2,778,118 3,278,323 9,095,471 Selling, general and administrative expenses 2,698,033 2,741,755 7,674,153 8,368,605 Operating income (1,816,611) 36,363 (4,395,830) 726,866 Other income (expenses): Interest expense (345,409) (477,124) (1,218,082) (1,349,073) Other income --- 148 --- 892 Total other (345,409) (476,976) (1,218,082) (1,348,181) Income (loss) before provision for taxes (2,162,020) (440,613) (5,613,912) (621,315) Provision for income taxes --- --- --- --- Net income (loss) ($2,162,020) ($440,613) ($5,613,912) ($621,315) Earnings per common share ($0.42) ($0.15) ($1.57) ($0.21) Weighted average number of common and common equivalent shares out- standing 5,115,684 2,988,497 3,582,351 2,978,815 -0- 1/17/92 /CONTACT: Donald I. Zimmerman of Brajdas Corp., 415-461-2440; or Cecilia A. Wilkinson or Susan Klein of Rifkind Pondel & Parsons, 310-207-9300, for Brajdas Corp./ (BRJS) CO: Brajdas Corp. ST: California IN: CPR SU: ERN
EH-JL -- LA025 -- 1220 01/17/92 20:21 EST
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|Date:||Jan 17, 1992|
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