DESIGNATRONICS REPORTS FIRST QUARTER RESULTS
DESIGNATRONICS REPORTS FIRST QUARTER RESULTS NEW HYDE PARK, N.Y., Jan. 15 /PRNewswire/ -- Designatronics Inc.
(AMEX: DSG) today announced that sales for the first quarter ended Nov. 30, 1991 were $6,224,000 compared to $5,878,000 for the prior year period, an increase of 5.9 percent. Domestic sales increased 5.3 percent while foreign sales increased 12.7 percent compared to their respective prior year periods. The net loss for the first quarter was ($10,000) or $0.00 per share as compared to net loss of ($129,000) or ($0.04) per share for the same quarter last year.
The company's consolidated gross profit margin for the three month period ended Nov. 30, 1991 was 32.3 percent compared to 28.5 percent as of Nov. 30, 1990. This increase was mainly due to a more favorable product mix. Selling, general and administrative expenses, as a percentage of sales, were 32.8 percent in the current quarter as compared to 32.4 percent as of Nov. 30, 1990. The company's working capital position was $9,900,000 at Nov. 30, 1991 compared to $10,100,000 at Aug. 31, 1991. The company has suspended operations at its Haiti location in compliance with an Executive Order issued by President Bush dated Oct. 28, 1991. This Executive Order has placed an embargo on trade with Haiti as of Dec. 5, 1991. The company has expanded its operations in Miami to maintain production to meet customer commitments and has transferred most of its significant inventory and machinery from the Haiti location to Miami. The company is currently investigating the advisability of permanently closing the Haitian operation. The continuance of the embargo beyond the company's expectations has resulted in the loss of a major customer of its services in Haiti. In addition, the company has been unable to obtain price increases from other customers and of finding other offshore facilities to produce at comparable costs. Due to these factors management believes that there may be a potential adverse effect on operations during this transition period. Management is currently reviewing the future viability of the electronic segment operations. 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 $000s, except share data) Three Months Ended Nov. 30 1991 1990 Net sales $6,224 $5,878 Income (loss) from operations (32) (227) Income (loss) before income taxes (27) (224) Income tax provision (credit) (17) (95) Net income (loss) (10) (129) Earnings (loss) per share (0.00) (0.04) Weighted average number of shares outstanding 2,870,306 2,908,556 Selected Data of Financial Position ($000s) Three Months Ended Nov. 30 1991 1990 Current assets $12,076 $12,408 Current liabilities 2,181 1,929 Working capital 9,895 10,479 Total assets 14,505 14,916 Long term debt 1,805 2,376 Shareholders' equity 10,501 10,580 Per share book value 3.66 3.64 -0- 1/15/92 /CONTACT: Sol Schwartz, president, Martin Hoffman, senior vice president, or Victor Francois, assistant controller of Designatronics, 516-328-3300, or Arum Advertising Associates, 516-328-3333, for Designatronics/ (DSG) CO: Designatronics Inc. ST: New York IN: SU: ERN FC-KW -- NY065 -- 0090 01/15/92 15:01 EST
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|Date:||Jan 15, 1992|
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