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 BUFFALO, N.Y., Nov. 1 /PRNewswire/ -- Comptek Research, Inc. (AMEX: CTK; BSE), today announced financial results for the fiscal 1994 second quarter and first half, which ended Oct. 1, 1993. As expected, second quarter operating results were below last year's and generally mirrored those of the fiscal 1994 first quarter.
 Net sales were $15,532,000 in the fiscal 1994 second quarter, down 8 percent from $16,922,000 in the comparable period last year. For the quarter, the company incurred a net loss of $353,000, or $0.07 per share. In the fiscal 1993 second quarter, net income was $132,000, or $0.03 per share.
 "The trends that affected operations during the first quarter continued into the second," stated John R. Cummings, chairman, president and chief executive officer. "However, business at our Federal Systems subsidiary is solid, and we expect sales and earnings momentum to build during the second half of this fiscal year when scheduled shipments of proprietary products will further enhance profit margins."
 The Defense Electronics Systems and Services segment recorded operating earnings of $520,000 for the second quarter, an increase of 5.4 percent from the $493,000 for the second quarter a year ago. Backlog for the segment increased to $45,000,000 at Oct. 1, 1993, from $31,000,000 on July 2, 1993, for a 36 percent increase. The largest contributor to the increase was the award of a six-month extension on a contract to provide engineering services to the Naval Air Systems Command at the Pacific Missile Test Center at Point Mugu, Calif. The extension is valued at $9,000,000. Comptek has been performing work on the Electronic Combat Mission Support program under a cost-plus contract since 1989 and is currently awaiting word from the Navy concerning a five-year follow-on contract.
 "While our Commercial Systems and Service segment sustained an operating loss in the second quarter, our core strategy continues to be to invest in developing the commercial side of our business," added Cummings. For the fiscal 1994 second quarter, the Commercial Systems and Services segment incurred an operating loss of $867,000, compared with a loss of $216,000 in the same period a year ago.
 "The design and sale of wireless radio frequency (RF) data communications products clearly represents the best long-term growth prospect for the company and its shareholders," asserted Cummings. "Wireless data is a significant emerging market, and Comptek will continue to invest in R&D, marketing, and distribution in order to take advantage of the market potential for products such as our DataMover(R) and ClearSpan(TM) RF systems.
 "A comprehensive domestic pilot program is underway for the DataMover system. In connection with leading telecommunications companies, DataMover is currently under field evaluation at three selected U. S. sites and at least one additional 'beta test' is scheduled to begin by the end of calendar 1993. These tests substantiate developing customer commitment to our products and are an important step toward achieving full commercialization of the DataMover.
 "We are also making investments to improve our existing wireless data products and to develop the next generations. We are exploring new applications and new system configurations that can meet the needs of specialty niche markets. One result of this R&D has been the development of a new digital radio, for which a U.S. patent is now pending."
 Cummings concluded, "Management is making an intensive review of commercial opportunities with a view toward restructuring this segment of our business. Specifically, we are evaluating ways to combine the engineering design and manufacture of RF data communications products into one profit center. We believe this approach will allow the company to maintain better control over product quality and will facilitate engineering refinements. We will review our other commercial business activities, including contract manufacturing and microwave systems and services, for strategic fit and profit potential."
 To further focus the company's financial resources to support investments in commercial product development, the company's board of directors voted to suspend payment of quarterly cash dividends. In addition, management will continue to reduce overhead costs as well as general and administrative expenses in order to increase the funds available for new commercial products.
 As noted in a separate press release issued today, Dr. Patrick J. Martin, a corporate vice president of Xerox Corporation (NYSE: XRX) and president of Xerox's Office Document Products Division, joined Comptek's board of directors. Martin's considerable expertise in international operations and high-technology products will be valuable to the company as it develops its commercial business.
 For the first half of fiscal 1994, net sales were $30,790,000, down 1 percent from $31,090,000 in the first half of fiscal 1993. The first- half net loss was $509,000, or $0.11 per share, compared with net income of $382,000, or $0.09 per share, recorded a year ago.
 Comptek Research, Inc., with thirteen offices and subsidiary locations in the United States, is a domestic and international supplier of technically advanced electronics and data communication systems to government and industry.
 Three Months Ended Oct. 1, 1993 Sept. 25, 1992
 Net Sales $ 15,532,000 $ 16,922,000
 Operating earnings (loss) ( 347,000) 277,000
 Earnings (loss) before income
 taxes and equity in net
 earnings (loss) of affiliate ( 403,000) 162,000
 Net earnings (loss) $ ( 353,000) $ 132,000
 Earnings (loss) per share $ ( 0.07) $ 0.03
 Weighted average number of
 common shares and common
 share equivalents outstanding 4,490,000 4,466,000
 Six Months Ended Oct. 1, 1993 Sept. 25, 1992
 Net sales $ 30,790,000 $ 31,090,000
 Operating earnings (loss) ( 487,000) 739,000
 Earnings (loss) before income
 taxes and equity in net
 earnings (loss) of affiliate ( 629,000) 528,000
 Net earnings (loss) $ ( 509,000) $ 382,000
 Earnings (loss) per share $ ( 0.11) $ 0.09
 Weighted average number of
 common shares and common
 share equivalents outstanding 4,471,000 4,463,000
 -0- 11/1/93
 /CONTACT: Christopher A. Head, vice president, of Comptek Research, 716-842-2700, or Douglas A. Fox or William K. Hart, investor relations, of SM Berger & Co., 216-464-6400, for Comptek Research/

CO: Comptek Research, Inc. ST: New York IN: ARO SU: ERN

AR -- CL011 -- 8935 11/01/93 07:47 EST
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Publication:PR Newswire
Date:Nov 1, 1993

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