BRAJDAS CORP. ANNOUNCES RESULTS
BRAJDAS CORP. ANNOUNCES RESULTS SAN JOSE, Calif., June 4 /PRNewswire/ -- Brajdas Corp.
(NASDAQ: BRJS) today announced that for the three months ended Feb. 29, 1992, the company's net loss was $3,758,000, or $.39 per share, on net sales of $7,947,000. The net loss for the prior year's quarter was $2,574,000, or $.91 per share, on net sales of $11,085,000. The results for the quarter included a pre-tax charge of $1,900,000 to reflect losses on the now completed disposition of inventory from discontinued lines.
For the year ended Feb. 29, 1992, Brajdas' net loss equaled $9,372,000, or $1.83 per share, on net sales of $39,279,000. In the prior year, Brajdas incurred a loss of $3,195,000, or $1.13 per share, on net sales of $46,736,000. The substantial increase in losses during the 1992 fiscal year was caused primarily by inventory adjustments which approximated $5,840,000 and a 16 percent decline in sales from 1991. As previously reported, on April 1, 1992, the company entered into an amended 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 as soon as the proxy material, which will be submitted shortly, is available for distribution. At that time, among other matters, the shareholders will be asked to approve the merger and an increase in the authorized common stock in the company. The amended merger agreement provides that the stockholders of the ATMC Companies will receive 10,800,000 shares of Brajdas common stock as full consideration in the merger. As a result of the merger, the stockholders of the ATMC Companies will own approximately 48 percent of Brajdas common stock. 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 at ATMC Companies, will become president and chief executive officer of Brajdas. BRAJDAS CORP. Statement of Operations (Unaudited) Three months ended Year ended Feb. 29, Feb. 28, Feb. 29, Feb. 28, 1992 1991 1992 1991 Net sales $7,946,817 $11,085,035 $39,279,051 $46,735,871 Cost of sales 8,067,296 9,484,697 36,121,207 36,040,062 Gross profit (loss) (120,479) 1,600,338 3,157,844 10,695,809 Selling, gen- eral and administra- tive expenses 3,595,042 3,658,073 11,269,195 12,026,678 Operating income (loss) (3,715,521) (2,057,735) (8,111,351) (1,330,869) Other Income (Expense): Interest expense (217,748) (543,156) (1,435,830) (1,892,229) Other income 175,000 27,019 175,000 27,911 Total other (42,748) (516,137) (1,260,830) (1,864,318) Income (loss) before provi- sion for taxes ($3,758,269) ($2,573,872) ($9,372,181) ($3,195,187) Provision for income taxes --- --- --- --- Net income (loss) ($3,758,269) ($2,573,872) ($9,372,181) ($3,195,187) Loss per common and common equivalent shares outstanding ($0.39) ($0.91) ($1.83) ($1.13) Weighted average number of common and common equivalent shares out- standing 9,715,684 2,815,684 5,115,684 2,815,684 -0- 6/4/92 /CONTACT: Donald I. Zimmerman of Brajdas, 415-461-2440; or Cecilia A. Wilkinson or Susan Klein of Pondel Parsons & Wilkinson, 310-207-9300, for Brajdas/ (BRJS) CO: Brajdas Corp.; ATMC Companies ST: California IN: CPR SU: ERN
KJ-CH -- LA029 -- 7273 06/04/92 18:38 EDT
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|Date:||Jun 4, 1992|
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