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ELECTRONIC ASSOCIATES REPORTS LEADERSHIP CHANGE AND QUARTERLY RESULTS

 WEST LONG BRANCH, N.J., Nov. 15 /PRNewswire/ -- The resignation of Richard G. Rogers as president, chief executive and a director was announced by Electronic Associates, Inc. (NYSE: EA). Charles A. Milo, previously vice president and general manager of EAI, was elected by the board of directors to succeed Rogers.
 Rogers stated, "Since I joined the company two years ago, significant steps have been taken to position EAI as a contract manufacturing company operating in the advantageous locations of the Northeastern and Southwestern parts of this country, as well as in Mexico. The time has come for met to step aside and have Chuck Milo, an experienced and successful contract manufacturing executive, lead EAI into a new era of potentially exciting growth."
 Milo, 41, served as vice president of operations since early 1993, overseeing contract manufacturing activities in New Jersey, Arizona and Mexico. He joined the company in 1992 when EAI acquired Milo Technologies, Inc. (MTI), which he founded in 1983. He subsequently was elected to the EAI board. As chief executive of MTI, Milo guided its growth to membership in the "Inc. 500 Fastest Growing Companies." MTI's plants in Tucson, Ariz., and Nogales, Mexico, became EAI's Southwestern Division.
 The company reported a net loss of $1,000,000 or $.38 per common share in the third quarter ended Sept. 30, 1993, versus a break-even result for the same period last year.
 EAI's sales of continuing operations rose to $5,931,000 in the third quarter of 1993 from $5,657,000 last year. For the nine-month period ended Sept. 30, EAI reported a net loss of $1,573,000 or $.59 per share on sales of $20,472,000 in 1993, versus a loss of $626,000 or $.24 per share on sales of $15,337,000 in 1992. The nine-month results included a gain of $969,000 or $.37 per share from the sale of EAI's Field Service Division and reflect the discontinuation of operations of the Product Engineering Division. The sale was completed and the discontinuation effective on June 30, 1993. The company's losses from continuing operations for the quarter and nine months ended Sept. 30, 1993 were $1,005,000 and $2,883,000, respectively, compared with losses of $141,000 and $1,113,000 for the comparable prior year periods.
 Charles T. Parton, chairman of the board of EAI, stated, "Chuck Milo is uniquely and highly qualified to assume leadership of our company, which now is a focused contract manufacturing organization. He is known and respected throughout the industry. At EAI, he has built a strong contract manufacturing management team to take us forward."
 Parton paid tribute to Rogers, who "led EAI through a complex series of obstacles during his tenure. These included the sale and consolidation of business segments unrelated to contract manufacturing, the Milo acquisition, restructuring of EAI's credit facility, and renegotiation of the lease arrangement for our New Jersey headquarters location. We are very appreciative of Dick's efforts in these difficult situations."
 EAI is a contract manufacturing company, providing manufacturing services for products designed and marketed by customers. The company's common stock has traded on the New York Stock Exchange since 1962.
 ELECTRONIC ASSOCIATES, INC., AND SUBSIDIARIES
 Consolidated Condensed Statement of Operations
 (Unaudited, thousands of dollars except per share data)
 For the periods Third Quarter Nine Months
 ended Sept. 30, 1993 1992 1993 1992
 (Restated) (Restated)
 Sales $5,931 $5,657 $20,472 $15,337
 Cost of Sales 5,579 4,427 18,766 12,836
 Selling, General and
 Administrative Expenses 1,509 1,362 5,267 4,034
 Income (Loss) from
 Operations before
 Nonrecurring Items (1,157) (132) (3,561) (1,533)
 Nonrecurring (Income)/
 Expense Items (272) 0 (357) 0
 Income (Loss) from
 Operations (885) (132) (3,204) (1,533)
 Other (Income) Expense:
 Interest Income 0 0 0 0
 Interest Expense 122 82 353 154
 Other, Net 0 0 0 0
 Income (Loss) from
 Continuing Operations
 before Provision
 (Benefit) for Taxes (1,007) (214) (3,557) (1,687)
 Income Tax Provision
 (Benefit) (2) (73) (674) (574)
 Income (Loss) from
 Continuing Operations (1,005) (141) (2,883) (1,113)
 Income (Loss) from
 Discontinued Operations
 Net of Applicable Taxes -- 141 341 487
 Income from Disposition
 of Discontinued
 Operations Net of
 Applicable Taxes 5 0 969 0
 Net Income (Loss) ($1,000) $0 ($1,573) ($626)
 Income (Loss) per
 Common Share:
 Income (Loss) from
 Continuing Operations ($0.38) ($0.05) ($1.09) ($0.43)
 Income (Loss) from
 Discontinued Operations $0.00 $0.05 $0.13 $0.19
 Income (Loss) from
 Disposition of
 Discontinued Operations $0.00 $0.00 $0.37 $0.00
 Earnings (Loss) per
 Common Share ($0.38) $0.00 ($0.59) ($0.24)
 Average Common Shares
 Outstanding 2,646 2,604 2,646 2,596
 Note Results of operations for periods of less than a year are not necessarily indicative of results for the full year.
 ELECTRONIC ASSOCIATES, INC. AND SUBSIDIARIES
 Consolidated Condensed Balance Sheet
 (Unaudited, thousands of dollars)
 Sept. 30, 1993 Dec. 31, 1992
 (restated)
 Assets:
 Current Assets $8,533 $14,547
 Fixed Assets-Net 3,817 4,344
 Long-term Receivable from
 Sales of Discontinued
 Operations 737 0
 Other Assets 2,894 945
 Total Assets 15,981 19,836
 Liabilities and Shareholders'
 Equity:
 Current Liabilities 7,879 11,594
 Noncurrent Liabilities 6,899 5,466
 Shareholders' Equity 1,203 2,776
 Total Liabilities and
 Shareholders' Equity 15,981 19,836
 Shares Outstanding 2,646 2,646
 -0- 11/15/93
 /CONTACT: James F. Shanley of Electronic Associates, 908-229-1100, ext. 655/
 (EA)


CO: Electronic Associates ST: New Jersey IN: SU: ERN PER

LD-WB -- NY124 -- 4697 11/15/93 17:10 EST
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Date:Nov 15, 1993
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