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DESIGNATRONICS INC. REPORTS THIRD QUARTER RESULTS

 NEW HYDE PARK, N.Y., June 17 /PRNewswire/ -- Designatronics Inc. (AMEX: DSG) today announced that sales from continuing operations for the third quarter ended May 31, 1993 were $6,422,000 compared to $5,888,000 for the prior year period, an increase of 9.1 percent. Domestic sales increased 7.7 percent while foreign sales increased 27.1 percent compared to their respective prior year periods. Income from continuing operations before an extraordinary item was $405,000 or $0.14 per share for the third quarter ended May 31, 1993, as compared to a loss of $152,000 or $(0.05) per share for the prior fiscal year period. Income from discontinued operations was $597,000 or $0.20 per share as compared to a loss of $284,000 or $(0.10) per share for the prior year period. Net income after giving effect to an extraordinary item was $1,305,000 or $0.45 per share in the current quarter as compared to a net loss of $436,000 or $(0.15) per share for the period ended May 31, 1992.
 For the nine month period ended May 31, 1993, net sales were $17,865,000 compared to $16,710,000 which represents a 6.9 percent increase as compared to the prior year period. Domestic sales increased 6.1 percent while foreign sales increased 16.8 percent. Income from continuing operations before an extraordinary item was $823,000 or $0.29 per share for the nine months ended May 31, 1993, as compared to a loss of $18,000 or $(0.00) per share for the prior fiscal year period. Income from discontinued operations was $597,000 or $0.20 per share as compared to a loss of $623,000 or $(0.22) per share for the prior year period. Net income after giving effect to an extraordinary item was $1,956,000 or $0.68 per share as compared to a net loss of $641,000 or $(0.22) per share for the period ended May 31, 1992.
 The company's consolidated gross profit margin for continuing operations for the periods ended May 31, 1993 were 38.8 percent in the current quarter and 36.2 percent year-to-date as compared to the prior year figures of 38.9 percent and 36.8 percent respectively.
 Selling, general and administrative expenses for the continuing operations, as a percentage of sales, were a constant 27.6 percent for the current quarter and year-to-date periods as compared to 30.9 percent and 31.8 percent for the comparable prior year periods. This decrease was mainly due to a reduction in advertising expenses and fixed costs as they related to increased sales.
 In the fourth quarter of 1992, the board of directors approved a plan to discontinue the electronic components segment of the business, and accordingly, the operating results of this segment have been separately reflected in the Statements of Operations. On Jan. 22, 1993, the company sold the fixed assets and inventory of its Automatic Coll Corp. subsidiary to Raven Industries for the amount of $132,500. The successful sale of this subsidiary, rather than the closing of the operation, resulted in substantial savings when compared to year-end estimates. As such, the current quarter reflects income from discontinued operations of $597,000.
 The company's working capital position was $7,646,000 at May 31, 1993 as compared to $8,162,000 at Aug. 31, 1992. The current ratio at May 31, 1993 is 3.1:1 and was 2.9:1 at Aug. 31, 1992.
 Designatronics Inc. designs, manufactures and markets a wide array of factory automation machinery, CAD/CAM systems and mechanical and electro-mechanical components.
 DESIGNATRONICS INC.
 Consolidated Condensed Statements of Income
 (In $000, except share data, unaudited)
 Periods ended Third quarter Nine months
 May 31 1993 1992 1993 1992
 Net sales $6,422 $5,888 $17,865 $16,710
 Income from continuing
 operations 719 467 1,525 824
 Income from continuing
 operations before provision
 for income taxes 715 (281) 1,374 (68)
 Provision for income taxes 310 (129) 551 (50)
 Income from continuing
 operations before
 extraordinary item 405 (152) 823 (18)
 Discontinued operations:
 (Loss) from discontinued
 operations (net of
 provision for taxes) -- (284) -- (623)
 Reduction of estimated
 loss on disposal of
 discontinued operations 597 -- 597 --
 Income/(loss) before
 extraordinary item 1,002 (436) 1,420 (641)
 Utilization of net operating
 loss carryforward 303 -- 536 --
 Net income/(loss) 1,305 (436) 1,956 (641)
 Income/(loss) per common share:
 Continuing operations $0.14 $(0.05) $0.29 $0.00
 Discontinued operations 0.20 (0.10) 0.20 (0.22)
 Extraordinary item 0.11 0.00 0.19 0.00
 Net income/(loss) per share 0.45 (0.15) 0.68 (0.22)
 Weighted average number
 of shares outstanding 2,873,438 2,843,556 2,864,438 2,854,256
 SELECTED DATA OF FINANCIAL POSITION
 ($000)
 5/31/93 8/31/92
 (unaudited) (audited)
 Current assets $11,265 $12,544
 Current liabilities 3,619 4,382
 Working capital 7,646 8,162
 Total assets 13,243 14,604
 Long term debt 98 2,697
 Shareholders' equity 9,514 7,513
 Per share book value $3.32 $2.63
 -0- 6/17/93 R
 /CONTACT: Martin Hoffman, president and chief executive officer, or Victor Francois, controller or Arum Advertising Associates, 516-328-3300, all for Designatronics Inc./
 (DSG)


CO: Designatronics Inc. ST: New York IN: SU: ERN

PS -- NY047 -- 3500 06/18/93 10:32 EDT
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Date:Jun 18, 1993
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