Printer Friendly

DATA SWITCH REPORTS FOURTH-QUARTER PROFIT

 DATA SWITCH REPORTS FOURTH-QUARTER PROFIT
 SHELTON, Conn., Jan. 31 /PRNewswire/ -- Data Switch Corporation


(NASDAQ: DASW) today reported fourth-quarter net income of $897,000, or $.08 per share, vs. $1,532,000, or $.12 per share, for the same period last year. Fourth-quarter revenues of $29,259,000 were an improvement over third-quarter sales but were down from $32,692,000 in 1990's final quarter.
 As a result of the previously reported $32,996,000 third-quarter write-down of goodwill associated with the T-Bar acquisition, Data Switch posted a net loss for the year of $32,423,000, or $2.73 per share. The company ended the year with positive cash flow and a small operating profit, prior to the goodwill amortization. In 1990, Data Switch earned $6,091,000, or $.52 per share. Revenues declined to $103,000,000 in 1991 from $121,798,000 last year.
 J. Roger Moody, recently elected president and chief executive officer, explained that 1991 sales were affected primarily by the lingering recession and transitions in the IBM mainframe market. "Market changes primarily dampened data processing switch sales, while channel extension and service revenues were up for the period," Moody said.
 "Gross profit margins were down slightly because of product mix and some competitive pricing pressures," he added. "The company reduced expenses during the year, although the full effect of expense reductions won't be realized until 1992."
 In looking ahead, Moody said: "We are conservative about our revenue estimates for 1992, especially in the first half of the year. However, the combination of a lower break-even point, new products under development, and management's focus on key markets should position us well for growth when the economy improves."
 DATA SWITCH
 Summary of Operations
 (Dollars in thousands, except per-share data)
 Periods ended Three months Year
 Dec. 31 1991 1990 1991 1990
 Revenues $29,259 $32,692 $103,000 $121,798
 Cost of goods sold 15,158 15,157 52,147 59,441
 Gross profit 14,101 17,535 50,853 62,357
 Operating expenses 11,201 12,949 44,560 46,057
 Goodwill amortization 43 656 34,450 2,888
 Other expense, net 809 1,036 3,775 5,269
 Pretax income (loss) 2,048 2,894 (31,932) 8,143
 (Provision for) benefit
 from taxes (1,151) (1,804) (916) (4,872)
 Income (loss) before
 extraordinary gain 897 1,090 (32,848) 3,271
 Extraordinary gain -- 442 425 2,820
 Net income (loss) 897 1,532 (32,423) 6,091
 EPS before extraordinary
 gain $.08 $.09 $(2.76) $.28
 EPS .08 .12 (2.73) .52
 Average shares outstg. 11,935 11,780 11,892 11,693
 Balance Sheet
 (Dollars in thousands)
 Dec. 31 1991 1990
 Cash $753 $1,130
 Receivables 32,840 30,863
 Inventories 20,182 22,237
 Other current assets 766 1,102
 Total current assets 54,541 55,332
 Property and equipment 6,685 7,656
 Goodwill 2,812 37,589
 Other 4,647 4,288
 Total assets 68,685 104,865
 Short-term debt 1,396 340
 Other current liabilities 12,389 13,825
 Total current liabilities 13,785 14,165
 Long-term debt 32,176 35,701
 Shareholders' equity 22,724 54,999
 Total liabilities and
 shareholders' equity 68,685 104,865
 -0- 1/31/92
 /CONTACT: Linda L. Bachmann of Data Switch, 203-926-1801/
 (DASW) CO: Data Switch Corporation ST: Connecticut IN: CPR SU: ERN


CK-OS -- NY023 -- 5569 01/31/92 11:24 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 31, 1992
Words:570
Previous Article:FIRST EASTERN PROMOTES TRUDEL TO COLLECTION/REO MANAGER
Next Article:NEW VOLUME LONG-DISTANCE DISCOUNTS OFFERED FROM MICHIGAN BELL
Topics:


Related Articles
DATA SWITCH REPORTS SECOND QUARTER PROFIT
DATA SWITCH POSTS THIRD-QUARTER PROFIT
DATA SWITCH POSTS SMALL FOURTH-QUARTER PROFIT
DATA SWITCH REPORTS FIRST QUARTER PROFIT
DATA SWITCH REPORTS THIRD QUARTER RESULTS
DATA SWITCH THIRD QUARTER NET EARNINGS ARE $.08 PER SHARE VERSUS A NET LOSS OF $.06 PER SHARE
DATA SWITCH FOURTH QUARTER NET INCOME IS $.08 PER SHARE VERSUS A NET LOSS OF $.19 PER SHARE
NACT Telecommunications Reports Fourth Quarter And Year-End FY 1997 Financial Results
Tellabs Annual Revenue Exceeds $1.6 Billion.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters