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COGNITRONICS REPORTS LOWER SECOND QUARTER INCOME FROM CONTINUING OPERATIONS

 STAMFORD, Conn., July 29 /PRNewswire/ -- Cognitronics Corporation (AMEX: CGN), consistent with previous announcements, today reported lower second quarter 1993 income from continuing operations, equal to $.01 a share compared with $.18 a year ago.
 "As we indicated earlier, second quarter income from continuing operations was affected by increased research and development and marketing expenses and a loss from newly acquired Dacon Electronics," said Matthew J. Flanigan, president and chief executive officer of this leading supplier of voice processing equipment. The company also said it was impacted by a higher effective income tax rate.
 Second quarter 1993 income from continuing operations totaled $46,000 vs. $563,000 for the comparable 1992 quarter.
 Net income for the second quarter was $46,000, or $.01 per share, in 1993 and $536,000, or $.17 per share, in 1992. The 1992 second quarter included a loss from discontinued operations of $27,000, or $.01 per share.
 Second quarter 1993 sales rose to $4.5 million compared to $4.0 million reported a year ago. This 12 percent increase came as a result of the acquisition of Dacon Electronics in November 1992, partially offset by lower sales of Cognitronics' voice announcement products and McIAS systems to switch manufacturers.
 For the six months ended June 30, 1993, income from continuing operations was $421,000, or $.12 per share, vs. $1,210,000, or $.38 per share for the same period in 1992.
 Revenues for the six-month period were $9.6 million in 1993, up 16 percent from $8.3 million in 1992.
 As a result of the previously reported loss from discontinued operations and the cumulative effect of accounting changes recorded in the first quarter of 1993, Cognitronics reported a net loss of $333,000, equal to a loss of $.12 per share, for the six months ended June 30, 1993. This compares to net income of $1,138,000, or $.36 per share, in the comparable 1992 period.
 "While third quarter results will continue to reflect the previously announced delays in new product introductions as well as a slowdown in orders from a major switch manufacturer, we believe the company's new McIAS and Dacon voice processing products have been designed to meet the needs of the rapidly growing voice processing market and are expected to become available during the third and fourth quarters of 1993.
 "Furthermore, our continuing increased investment in research and development as well as in greater marketing support are expected to pay off as we seek new contracts and expand into the European market," Flanigan added.
 Cognitronics is a leading manufacturer and supplier of voice processing equipment, including telephone network and call management announcement products and interactive voice response (IVR) systems, to telephone operating companies, original equipment manufacturers and commercial end-users.
 COGNITRONICS CORPORATION
 Summary Of Results
 Three months ended June 30 1993 1992
 Net sales $4,490,000 $4,012,000
 Income from continuing operations $ 46,000 $ 563,000
 Loss from discontinued operations (27,000)
 Net income $ 46,000 $ 536,000
 Per share:
 Income from continuing $ .01 $ .18
 operations
 Loss from discontinued
 operations (.01)
 Net income $ .01 $ .17
 Weighted average number of shares
 outstanding 3,339,532 3,216,287
 Six months ended June 30 1993 1992
 Net sales $9,613,000 $8,290,000
 Income from continuing operations $ 421,000 $1,210,000
 Loss from discontinued operations (283,000) (72,000)
 Cumulative effect of accounting
 changes (471,000)
 Net income (loss) $ (333,000) $1,138,000
 Per share:
 Income from continuing $ .12 $ .38
 operations
 Loss from discontinued
 operations (.08) (.02)
 Cumulative effect of accounting
 changes (.14)
 Net income (loss) (.10) $ .36
 Weighted average number of shares
 outstanding 3,381,435 3,187,043
 -0- 7/29/93
 /CONTACT: Harold Mayer of Cognitronics Corporation, 203-327-5307/
 (CGN)


CO: Cognitronics Corporation ST: Connecticut IN: TLS SU: ERN

TS -- NY076 -- 7263 07/29/93 13:46 EDT
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Date:Jul 29, 1993
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