DESIGNATRONICS INC. REPORTS THIRD QUARTER RESULTS
DESIGNATRONICS INC. REPORTS THIRD QUARTER RESULTS NEW HYDE PARK, N.Y., July 16 /PRNewswire/ -- Designatronics Inc.
(AMEX: DSG) today announced that sales for the third quarter ended May 31, 1992
were $7,126,000 compared to $6,537,000 for the prior year period, an increase of 9.0 percent. Domestic sales increased 11.7 percent while foreign sales increased 26.8 percent compared to their respective prior year periods. The net loss for the third quarter was ($436,000) or ($0.015) per share as compared to a net profit of $2,000 or $0.00 per share for the same quarter last year.
The company reported the sale of substantially all of the inventory and fixed assets of its Accusonic Systems Corp. subsidiary in the current quarter. The net effect of the sale was a pretax loss of $623,000 and an after tax loss of $546,000. The effect on current quarter and year-to-date earnings per share was a loss of $0.19. Had the sale not been reported in the current quarter the company would have shown a net profit of $110,000 or $0.04 per share. The year-to-date figures would have been a loss of ($95,000) or ($.03) per share. For the nine month period ended May 31, 1992, net sales were $19,701,000 compared to $18,334,000 which represents a 7.5 percent increase as compared to the same period last year. The net loss for the nine months was ($641,000) or ($0.22) per share as compared to ($177,000) or ($.06) per shares for the same period last year. The company's consolidated gross profit margins for the three and six month periods ended May 31, 1992 increased to 34.0 percent and 31.9 percent respectively as compared to the prior year figures of 33.6 percent and 30.5 percent. This increase was mainly due to a more favorable product mix. Selling general and administrative expenses, as a percentage of sales, were 29.6 percent in the current quarter and 31.6 percent on a year-to-date basis as compared to 31.5 percent and 31.7 percent respectively for the comparable prior year periods. The company recorded a loss of $41,000 in the current quarter for unrecoverable funds transferred to Payroll Express Co., a payroll check cashing service, which subsequently filed for bankruptcy. The company's working capital position was $10.3 million at May 31, 1992 as compared to $10.1 million at Aug. 31, 1991. The current ratio at May 31, 1992 is 5.5:1 and was 6.6:1 at Aug. 31, 1991. The company had suspended operations at its Haiti location in compliance with an executive order issued Oct. 28, 1991. The company expanded its operations in Miami to maintain production to meet customer commitments and has transferred most of its inventory and machinery from the Haiti location to Miami. The current quarter financial statements reflect a charge $26,000 for the write-off of the fixed assets that remained in Haiti. Management continues to review the electronic segment operations and its' future viability. Designatronics Inc. designs, manufactures and markets a wide array of mechanical, electro-mechanical and electronic components and sub-assemblies. Its products are distributed worldwide for use in factory automation, robotics, computer peripherals and telecommunications equipment. DESIGNATRONICS INC. Consolidated Condensed Statements of Income (in $000, except share data, unaudited) Periods ended Third Fiscal Quarter Nine Months May 31 1992 1991 1992 1991 Net Sales $7,126 $6,537 $19,701 $18,334 Income (loss) from operations 314 139 56 (216) (Loss) bef. income taxes (453) 78 (691) (244) Income tax (benefit)/ provision (17) 76 (50) (67) Net (loss) (436) 2 (641) (177) (Loss) per share $(0.15) $(0.00) $(0.22) $(0.06) Weighted avg. no. of shares outstnd. 2,843,556 2,879,233 2,8554,256 2,897,083 DESIGNATRONICS INC. Selected Data of Financial Position (In $000) (Unaudited) (Audited) Periods ended 5/31/92 8/31/91 Current assets $12,586 $11,938 Current liabilities 2,287 1,804 Working capital 10,299 10,134 Total assets 15,055 14,368 Long term debt 2,905 2,006 Shareholders' equity 9,845 10,533 Per share book value $3.45 $3.62 -0- 7/16/92 /CONTACT: Sol Schwartz, president, or Martin Hoffman, senior vice president, Victor Francois, assistant controller, or Herb Arum of Arum Advertising, 516-328-3300, all for Designatronics/ (DSG) CO: Designatronics Inc. ST: New York IN: SU: ERN
SM-AH -- NY103 -- 9989 07/16/92 17:03 EDT
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|Date:||Jul 16, 1992|
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