COMPTEK RESEARCH REPORTS LOWER SECOND-QUARTER EARNINGS
COMPTEK RESEARCH REPORTS LOWER SECOND-QUARTER EARNINGS BUFFALO, N.Y., Oct. 27 /PRNewswire/ -- Comptek Research, Inc.
(AMEX/BSE: CTK), an electronics and telecommunications company, announced lower second-quarter earnings but improving business trends, including a record company-wide backlog and increased shipments of the DataMover(TM) 2000 wireless data communications device, which should enable the company to meet its financial objectives for fiscal 1993.
Revenues for the quarter ending Sept. 25, 1992, increased four percent to $16,922,000 from $16,251,000 in the comparable period last year. Net income for the second quarter decreased to $132,000, or $0.03 per share, from $380,000, or $0.09 per share, in the second quarter last year. Lower net earnings were caused primarily by a substantial increase in spending on research and development for the DataMover product line, but were also affected by an increase in interest expense and lower profit margins on large military projects. The company's backlog increased sharply to a record level. At Sept. 25, 1992, the backlog was $62.8 million, which is 30 percent higher than the $48.4 million at the end of the second fiscal quarter a year ago. Six-month sales were down 2.4 percent to $31,090,000 from $31,857,000 a year ago. Net earnings for the first half of fiscal 1993 were $382,000, or $0.09 per share, compared with $771,000, or $0.19 per share, through the first half of the previous fiscal year. "During the later part of the second quarter, Comptek's cash flow improved," Dr. John R. Cummings, Comptek's chairman and CEO, stated. "By the end of the quarter, long-term debt had decreased to $5.7 million from $8.5 million at the end of the first quarter. Just after the close of the second quarter, the company completed its sale of a building in downtown Buffalo for approximately $2.5 million, further reducing long-term debt. This transaction will contribute approximately $780,000 to pretax earnings in the third fiscal quarter." Cummings further commented, "The company had expected to offset the increased R&D expenses and related selling, general, and administrative expenses with increased product sales, which did not occur in the second quarter. For the entire second quarter, we shipped only 300 DataMover units, but the shipment rate is picking up: In October alone we will ship over 450 units." The DataMover 2000 enables automated bank teller machines to be linked through wireless radio networks, which are more flexible, more reliable, and much less expensive than data communications networks that require hard-wired, leased telephone lines. The DataMover technology for wireless data communications networking has application potential beyond teller machines. Comptek is the exclusive manufacturer of the DataMover products, which are marketed globally by Bison Data Corporation, a joint venture in which Comptek owns a 31 percent interest. International sales of the DataMover 2000 are gaining momentum. On the domestic side, Comptek in a separate statement today announced its release for field testing by NYNEX Mobile Communications Company a cellular frequency version of the DataMover with an enhanced processing speed. "I believe the business trends we are seeing indicate that Comptek will achieve record sales and earnings for all of fiscal 1993," Cummings said. Comptek Research, Inc., with 13 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. COMPTEK RESEARCH, INC. SUMMARY FINANCIAL DATA Three Months Ended Sept. 25, 1992 Sept. 27, 1991 Net Sales $ 16,922,000 $ 16,251,000 Operating earnings 277,000 625,000 Earnings before income taxes 162,000 607,000 Net earnings $ 132,000 $ 380,000 Earnings per share $0.03 $0.09 Weighted average number of common shares and common share equivalents outstanding 4,466,000 4,042,000 Six Months Ended Sept. 25, 1992 Sept. 27, 1991 Net sales $ 31,090,000 $ 31,857,000 Operating earnings 739,000 1,281,000 Earnings before income taxes 528,000 1,233,000 Net earnings $ 382,000 $ 771,000 Earnings per share $0.09 $0.19 Weighted average number of common shares and common share equivalents outstanding 4,463,000 4,048,000 -0- 10/27/92 /CONTACT: Christopher A. Head, vice president of Comptek Research, Inc., 716-842-2700; or William K. Hart or Douglas A. Fox (investors), both of SM Berger & Co., 216-464-6400, for Comptek Research/ (CTK) CO: Comptek Research, Inc. ST: New York IN: TLS SU: ERN
KK -- CL006 -- 5194 10/27/92 09:00 EST
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|Date:||Oct 27, 1992|
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