CHECKPOINT REPORTS SECOND QUARTER REVENUES
CHECKPOINT REPORTS SECOND QUARTER REVENUES THOROFARE, N.J., July 15 /PRNewswire/ -- Checkpoint Systems, Inc.
(NASDAQ: CHEK), today reported results for the second quarter and six months ended June 28, 1992.
Second quarter net revenues rose 14 percent to a record $16,567,000 from $14,553,000 for the same period last year. Net earnings for the second quarter were $943,000 or 10 cents per share, compared to net earnings of $1,504,000 or 16 cents per share in the prior year's second quarter. First half net revenues were $30,789,000, a 23 percent increase over 1991's first half of $25,065,000. Net earnings for the half year were $1,093,000 or 11 cents per share compared with $1,121,000 or 12 cents per share a year ago. A.E. Wolf, president and chief executive officer, reported, "We continue to be encouraged by the results of our strategy to gain market share. Our 23 percent revenue growth during the first half is supported by unit growth rates of over 50 percent for both our Electronic Merchandising(SM) (EAM/SM/) hardware and disposal circuit product lines." Wolf further stated that, "The pressure on gross margins this year versus 1991, came from unplanned demand for lower margin products in our European market; more aggressive pricing than forecast for major U.S. retailers who have committed to chainwide expansion in preparation for our Impulse(SM) program; and our planned aggressive market share program. On the positive side, we are experiencing decreasing disposal circuit manufacturing cost which kept our margins stable in comparison to the first quarter of this year. In fact, our manufacturing yields for the second quarter were significantly better than for the previous three quarters." "In summary, we are in line with our internal plan for the first half of 1992. The only exception is our gross profit line, where some unexpected pressure occurred. However, a tax benefit totaling $400,000 was recorded during the quarter. This resulted from further refinement of a tax estimate concerning prepaid local Puerto Rico taxes where the company enjoys significant tax savings. Business activity remains strong with all of our markets and products. We remain optimistic to our second half." Checkpoint Systems, Inc. is the leading developer and manufacturer of advanced microprocessor and radio frequency-based merchandising and security systems. The company bases its Electronic Merchandising (EAM) and Electronic Access Control (EAC) systems on Electronic Signatures(R) technology which makes unique radio signals assignable to terms or people. Using detectable, paper thin, disposal circuits that can be activated or deactivated without contact, the company has more than 60,000 EAM systems installed worldwide. Checkpoint's Threshold EAC systems employ proximity technology for personnel identification in security sensitive environments to control and monitor access to locations and equipment. CHECKPOINT SYSTEMS, INC. Financial Highlights Operating Results (Unaudited) 13 weeks ended 26 weeks ended 6/28/92 6/30/91 6/28/92 6/30/91 Net revenues 16,567,000 14,553,000 30,789,000 25,065,000 Cost of revenues 8,997,000 6,435,000 16,792,000 11,612,000 Gross profit 7,570,000 8,118,000 13,997,000 13,453,000 Selling, general & adminis. expenses 6,870,000 6,190,000 13,070,000 11,991,000 Interest income 33,000 40,000 85,000 89,000 Interest expense 83,000 88,000 177,000 150,000 Income before income taxes 650,000 1,880,000 835,000 1,401,000 Inc. taxes (benefit) (293,000) 376,000 (258,000) 280,000 Net earnings 943,000 1,504,000 1,093,000 1,121,000 Net earnings per share $.10 $ .16 $.11 $.12 Weighted average number of common and common equivalent shares 9,751,000 9,605,000 9,783,000 9,579,000 -0- 7/15/92 /CONTACT: Steven G. Selfridge of Checkpoint Systems, Inc., 800-257-5540, ext. 2473/ (CHEK) CO: Checkpoint Systems Inc. ST: New Jersey IN: SU: ERN
TS-KW -- NY037 -- 9501 07/15/92 11:26 EDT
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|Date:||Jul 15, 1992|
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