COMPUTER PRODUCTS REPORTS 1991 RESULTS
COMPUTER PRODUCTS REPORTS 1991 RESULTS BOCA RATON, Fla., Jan. 30 /PRNewswire/ -- Computer Products, Inc.
(NASDAQ: CPRD) today reported a loss of $9.6 million, or $0.49 per share, for fiscal 1991 which ended Jan. 3, 1992, after giving effect to a $6.3 million restructuring charge pertaining to the Power Conversion Division and a $5.5 million loss from discontinued operations. Fiscal 1991 net income from continuing operations excluding the restructuring charge was $2.2 million, or approximately $0.11 per share. Fiscal 1991 sales of $83.2 million versus $95.7 million in 1990 have been adjusted to reflect the announced plan to divest the Government Electronics Division, which is treated as a discontinued operation.
The Company reported a fourth quarter loss of $10.7 million, or $0.54 per share, including the restructuring charge and loss from discontinued operations. Fourth quarter 1991 net income from continuing operations excluding the restructuring charge was $0.9 million, or approximately $0.04 per share. Fourth quarter 1991 sales of $20.8 million vs. $21.8 million in 1990's fourth period have been adjusted to treat the Government Electronics Division as a discontinued operation. Overall demand remained at about the same level for the past 12 months. Fourth quarter orders were about the same as a year ago, and down somewhat from the third quarter of 1991, in which the Measurement and Control Division booked several large projects. Sales in the fourth quarter were up slightly from the third quarter (adjusted for the discontinuation of Government Electronics) but down from a year ago as noted above. Gross margins have held at above 40 percent and marketing, general and administrative expenses (excluding the effects of restructuring) were lower than both the third quarter and the year ago period. Commenting on fiscal 1991 results, John N. Lemasters, chairman, president, and CEO said, "We have completed a year of significant progress. Despite continued weak demand and intense competition, we have been able to hold our gross margins. This performance is a testimony to the strong position our products enjoy in the marketplace as well as the effectiveness of our cost control measures." During the year, the Company accelerated new product development activities and took steps to improve sales penetration and coverage. "These moves, coupled with the acquisition of Heurikon Corporation, give rise to our optimism that growth will resume despite the continuing recession," said Lemasters. The year end 1991 balance sheet was affected by several previously announced events which occurred in the fourth quarter: the restructuring of the Power Conversion Division, the decision to divest the Government Electronics Division and the completion of the acquisition of Heurikon Corporation. The Company's cash position was down significantly due primarily to the acquisition of Heurikon Corporation. Goodwill increased due to the acquisition of Heurikon, partially offset by the write-off of goodwill associated with the Government Electronics Division and certain items relating to the Power Conversion restructuring. The decrease in lease liabilities and other assets from the prior year occurred primarily from the reclassification of a capital lease to a net lease obligation as a result of the restructuring of the Power Conversion Division. Stockholders' equity was impacted primarily by the write-downs associated with the Power Conversion restructuring and the Government Electronics divestiture. The net impact of the elimination of Government Electronics and the inclusion of Heurikon did not materially affect other balance sheet categories. Computer Products, Inc., headquartered in Boca Raton, Fla., is a multinational manufacturer of standard and custom-designed electronic products and subsystems for power conversion, industrial automation and other real-time systems applications. The Company has operations in Pompano Beach, Fla.; Madison, Wis.; Boston; Fremont, Calif.; Hong Kong; and the Republic of Ireland. COMPUTER PRODUCTS, INC. CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In thousands except per share amounts) QUARTER ENDED YEAR ENDED Jan. 3, Dec. 28, Jan. 3, Dec. 28, 1992 1990 1992 1990 ORDERS $21,333 $22,310 $85,507 $88,342 SALES: Power Conversion $15,715 $16,526 $63,151 $75,698 Measurement and Control 5,106 5,263 20,089 20,039 TOTAL SALES 20,821 21,789 83,240 95,737 COST OF SALES 12,010 12,415 48,081 56,134 GROSS PROFIT 8,811 9,374 35,159 39,603 EXPENSES: Sales, general and administrative 5,753 5,911 24,342 25,630 Research and development 1,619 1,090 6,154 5,418 Restructuring charge 6,300 1,120 6,300 1,120 TOTAL EXPENSES 13,672 8,121 36,796 32,168 OPERATING INCOME (LOSS) (4,861) 1,253 (1,637) 7,435 OTHER (INCOME) EXPENSE: Interest expense 1,206 1,393 4,722 4,921 Interest income (519) (768) (2,295) (2,654) TOTAL OTHER (INCOME) EXPENSE 687 625 2,427 2,267 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EXTRAORDINARY ITEMS (5,548) 628 (4,064) 5,168 PROVISION FOR INCOME TAXES (52) 247 170 1,100 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEMS (5,496) 381 (4,234) 4,068 INCOME (LOSS) FROM DISCONTINUED OPERATIONS (5,226) (44) (5,495) 11 EXTRAORDINARY GAIN - REPURCHASE OF SUBORDINATED DEBENTURES, NET OF INCOME TAXES 313 313 EXTRAORDINARY CREDIT - UTILIZATION OF NET OPERATING LOSS CARRYFORWARDS 47 232 91 901 NET INCOME (LOSS) ($10,675) $882 ( $9,638) $5,293 PER SHARE AMOUNTS: Income (loss) from continuing operations before extraordinary items ( $.28) $.02 ( $.21) $.20 Income (loss) from discontinued operations ( .26) ( .28) Extraordinary gain - repurchase of subordinated debentures, net of income taxes .01 .01 Extraordinary credit - utilization of net operating loss carryforwards .01 .05 Net income (loss) ( $.54) $.04 ( $.49) $.26 Weighted average number of common and equivalent shares outstanding 19,845 20,069 19,848 20,304 CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Dollars in thousands) Jan. 3, 1992 Dec 28, 1990 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and short-term investments $27,177 $35,691 Accounts receivable, net 16,624 16,532 Inventories 13,000 11,324 Prepaid expenses 1,295 1,653 Total current assets 58,096 65,200 PROPERTY, NET 19,252 18,688 OTHER ASSETS: Goodwill, net 20,096 13,861 Other assets, net 4,086 8,540 Assets of discontinued operations 3,893 9,071 Total other assets 28,075 31,472 TOTAL ASSETS $105,423 $115,360 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES $22,588 $14,769 LONG-TERM LIABILITIES: Long-term debt 9,249 5,985 Lease liability 5,888 14,109 Convertible subordinated debentures 37,895 37,895 Liabilities of discontinued operations 1,272 2,396 Total long-term liabilities 54,304 60,385 TOTAL LIABILITIES 76,892 75,154 STOCKHOLDERS' EQUITY 28,531 40,206 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $105,423 $115,360 -0- 01/30/92 /CONTACT: John Lemasters of Computer Products, 407-451-1000; or Claudia Zaner of CMZ International, 212-237-2769, for Computer Products, Inc./ (CPRD) CO: Computer Products, Inc. ST: Florida IN: CPR SU: ERN
AW -- FL001 -- 5078 01/30/92 08:47 EST
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|Date:||Jan 30, 1992|
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