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 FITCHBURG, Mass., Oct. 21 /PRNewswire/ -- ChemDesign Corporation (NASDAQ: CDCC) today announced record quarterly sales of $13.2 million for the third quarter ended Sept. 30, 1993. Revenues increased $2.6 million, or 24.7 percent, from the $10.6 million reported for the third quarter of 1992 and were up slightly over the previous record of $13.0 million reported for the second quarter of this year.
 Gross margin for the third quarter of 1993 of $2.7 million was virtually even with the gross margin achieved in both the third quarter of 1992 and the second quarter of this year. As a percentage of sales, gross margin in the third quarter of this year was 20.6 percent, down from the 26.1 percent and 21.1 percent levels achieved in the third quarter of 1992 and the second quarter of 1993, respectively.
 Net earnings for the third quarter of 1993 of $223,000, or $.03 per share, were down from the $428,000, or $.05 per share, achieved in the third quarter of 1992 and remained level with the $265,000, or $.03 per share, reported for the second quarter of 1993.
 Through the first nine months of the current year, the company reported sales of $37.5 million, up 18.5 percent from the prior year's sales level for the same period. Net earnings for the nine months ended Sept. 30, 1993 of $1.1 million, or $.12 per share, were up significantly from the $554,000, or $.06 per share, reported for the same period in 1992.
 Richard E.T. Brooks, chairman and chief executive officer of ChemDesign, commented: "We are pleased with the growth we are are seeing at the sales line. In this high fixed cost business, sales growth drives earnings. Therefore, we continue to focus on filling our plants, and although earnings growth will lag somewhat, we believe that our investments in new product introductions and start-ups in 1993 are necessary to permit us to realize the earnings dynamics of our business in 1994 and beyond."
 Brooks continued: "Third quarter earnings were dampened somewhat by several new custom and proprietary product star-ups at both the Fitchburg and Wisconsin sites. Included in these start-ups was the successful transfer from Fitchburg to Wisconsin of a new "green" process for an existing, high-volume reprographic product. In addition to the environmental benefits of the new process, its introduction freed up certain equipment in Fitchburg to accommodate the start-up of a new proprietary product, the second to emerge from our Proprietary Products R&D Group. We also anticipate several additional product start-ups in the fourth quarter, including a second product in the new manufacturing plant in Fitchburg which began operations in the second quarter of this year."
 Brooks concluded: "I am also happy to report that the production problems we faced on the high-volume custom agricultural product earlier in the year have been remedied. Production of in-spec product has been consistent since July, and monthly shipments have met or exceeded our commitment to the customer."
 ChemDesign Corporation
 Quarter Ended Sept. 30, 1993 1992
 Sales $13,191,000 $10,580,000
 Net Income 223,000 428,000
 Earnings Per Share 0.03 0.05
 Average Shares 8,970,000 8,883,000
 Nine Months Ended Sept. 30, 1993 1992
 Sales $37,498,000 31,630,000
 Net Income 1,070,000 554,000
 Earnings Per Share 0.12 0.06
 Average Shares 8,888,000 8,876,000
 -0- 10/21/93
 /CONTACT: Michael J. O'Donnell, senior vice president and chief financial officer, or Steven E. Borgeson, senior vice president and general counsel, both of ChemDesign Corp., 508-345-9999/

CO: ChemDesign Corporation ST: Massachusetts IN: CHM SU: ERN

JL -- NE008 -- 5428 10/21/93 16:30 EDT
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Publication:PR Newswire
Date:Oct 21, 1993

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