COGNITRONICS REPORTS THIRD QUARTER EARNINGS FROM OPERATIONS
EQUAL TO 4 CENTS VS. 10 CENTS BUT SEES STRONG FOURTH QUARTER
STAMFORD, Conn., Nov. 4 /PRNewswire/ -- Third quarter income from operations of Cognitronics Corporation (AMEX: CGN) was $78,000, or $.04 per share, compared with $229,000, or $.10 per share, for the 1990 third quarter, the company announced today.
Net income for the quarter ended Sept. 30, 1991 was $87,000, or $.04 per share, versus $324,000, or $.14 per share. Included in net income in 1991 is an extraordinary credit of $9,000 versus $95,000, or $.04 per share in 1990 for the utilization of operating loss carryforwards. Revenues for the quarter were $4,077,000 in 1991 and $4,148,000 in 1990.
"Our sales order backlog continues to increase in 1991 to a record $12.8 million at this date, approximately 70 percent of which results from voice processing contracts and orders," said Matthew J. Flanigan, president and CEO. "Based on the current sales order backlog, we expect that revenues in the fourth quarter of 1991 will exceed $5 million for the first time.
"For this reason, we see strong fourth quarter earnings," he said.
The decrease in income from operations is due to lower service revenues attributable to the cancellation of service contracts on older scanning equipment and higher research and development and selling expenses, partially offset by a significantly lower estimated effective annual income tax rate attributable to the utilization of general business credits.
"The higher expenditures in the third quarter of 1991 for research and development of new and enhanced voice processing products, including interactive voice response products, together with an increase in our sales staff, reflect our continuing commitment to strengthen our position in voice processing," Flanigan added. "Industry analysts believe that the interactive voice response segment of the voice processing industry, where we are now focusing our efforts, will nearly triple in size to $1.6 billion by 1995."
For the nine months ended Sept. 30, 1991, income from operations was $567,000, or $.26 per share, compared to $679,000, or $.30 per share for the same period in 1990.
Net income was $591,000, or $.27 per share, in the first nine months of 1991 versus net income of $1,024,000, or $.45 per share, in 1990. Net income for the 1991 nine-month period includes a pretax, nonrecurring insurance recovery of $55,000, amounting to $.02 per share, and an extraordinary credit of $24,000, or $.01 per share; whereas the extraordinary credit was $345,000, or $.15 per share in 1990.
Revenues for the nine-month period were $12,296,000 in 1991, down from $12,995,000 in 1990.
Cognitronics is a leading manufacturer and supplier of voice processing equipment, including telephone network announcement products and interactive voice response (IVR) systems, to telephone operating companies, original equipment manufacturers and commercial users. Cognitronics also manufactures optical scanning and image processing systems and precision machined parts.
/CONTACT: Harold F. Mayer, vice president of Cognitronics, 203-327-5307/
(CGN) CO: Cognitronics Corporation ST: Connecticut IN: TLS SU: ERN TS -- NY023 -- 0631 11/04/91 10:13 EST