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ENHANCED IMAGING TECHNOLOGIES REPORTS FOURTH-QUARTER AND YEAR-END RESULTS

 IRVINE, Calif., March 4 /PRNewswire/ -- Enhanced Imaging Technologies Inc. (NASDAQ: EITI) today reported results of the fourth quarter and year ended Dec. 31, 1992. Revenues for the quarter increased 36.7 percent to $11,972,000, compared with $8,757,000, for the fourth quarter of 1991. Revenues for the fourth quarter of 1992 included $1,615,000, resulting from the acquisitions of Cine Film Systems Inc. (CFS) and Cine-Cath Imaging Inc. (CCI) during the quarter. Including a noncash, nonoperating charge related to its year-end debt restructuring of $1,041,000, the net loss for the quarter was $466,000, or seven cents per share, compared with net income of $496,000, or nine cents per share, for the fourth quarter of 1991. Weighted average shares outstanding for the fourth quarter ending Dec. 31, 1992, were 6,331,594 versus 5,011,152 for the fourth quarter ending Dec. 31, 1991.
 Revenues for the year ended Dec. 31, 1992, increased 50.4 percent to $45,287,000, compared with $30,111,000 for the year ended Dec. 31, 1991. Including the year-end debt restructuring charge, net income for the year increased 62.6 percent to $2,807,000, or 46 cents per share, compared with $1,726,000, or 34 cents per share for 1991. Results for the year ended Dec. 31, 1992, include those of Optical Devices Inc. (ODI), which was acquired on July 26, 1991, and accounted for approximately $13,889,000 of the revenues in 1992, compared with $4,044,000 in 1991, and also includes those of CFS and CCI, which accounted for $1,615,000 in 1992.
 "The fourth quarter reflects continued revenue growth from Vari-X," said Peter P. Tong, president and chief executive officer. "Vari-X revenues grew 48.9 percent in the fourth quarter compared with the fourth quarter of 1991. Excluding the $1,615,000 attributable to CFS and CCI in the quarter, Vari-X grew 22.8 percent comparing the same periods.
 "Although ODI's revenues increased 7.3 percent in the fourth quarter compared with the fourth quarter of 1991, they declined 29.6 percent compared to the third quarter of 1992," continued Tong. "We believe that the primary factors causing this downward trend in revenue at ODI was increased competition in the optical filter market brought about by lower prices in coated glass worldwide and the decision by a significant customer to discontinue purchases of ODI filters.
 "The competitive environment for ODI products changed significantly during 1992," Tong added. "With the prices of coated glass falling, we are facing increased pricing pressure. The number of companies producing filters has also increased. To address these issues, we have developed a distribution strategy that we believe will create long-term growth and stability. We have put together an aggressive plan to build on our strengths to increase OEM sales, to improve name brand recognition of our products in the United States, to broaden our domestic and international distribution and to create new and innovative products that will distinguish us from the competition. While we expect that ODI's contribution to earnings will be minimal throughout 1993, we believe that the actions being implemented will benefit the company over the long term. We continue to believe that there is a large worldwide market for optical filters for the installed base of computer monitors and we believe that ODI's solid European distribution network, proprietary circular polarizing technology, product design capabilities and low-cost manufacturing methods give it the ability to realize a significant share of this market. Exploiting these strengths has become our top priority at EIT. Drew Hofmann, our chief operating officer, is now dedicating a large portion of his time to ODI. He has added several well-seasoned professionals with substantial combined experience in sales, marketing and product development of optical filters.
 "At our Vari-X subsidiary we have now fully integrated the two fourth-quarter acquisitions. The integration had a negative effect on fourth-quarter earnings, primarily because of fewer-than-expected conversions from competitors' cine film to Vari-X film products, which caused the fixed costs of the acquisitions to be spread over a smaller revenue volume. However, we are very pleased with the quality of the people who have joined us as a result of the acquisitions. The acquisitions have not only increased our market share and added new film products, but have further strengthened our leadership position as providers of technical service to cardiac cath labs," concluded Tong.
 Enhanced Imaging Technologies Inc. operates through two wholly owned subsidiaries, Vari-X Inc. and Optical Devices Inc. As a result of the recent acquisitions of Cine-Cath Imaging and Cine Film Systems, Vari-X is now the leading supplier of specialized films and film-related imaging products and services designed to optimize the quality of cardiac images produced in cardiac catherization laboratories. Its products include cine angiography film manufactured by AGFA, Ilford and DuPont, digital imaging products and numerous related accessories. Optical Devices develops, manufactures and markets optical filters that enhance the image quality and safety of electronic visual displays. Many of Optical Devices' products are distributed under the Vu-Tek(R) or Vu-Pro-Tek(R) name.
 ENHANCED IMAGING TECHNOLOGIES INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited, dollars in thousands, except per share data)
 3 Months 12 Months
 Ended Dec. 31: 1992 1991 1992 1991
 Net revenues $11,972 $ 8,757 $45,287 $30,111
 Cost of sales 6,328 3,977 22,345 14,822
 Gross profit 5,644 4,780 22,942 15,289
 Selling, general and
 administrative expenses 4,485 3,178 14,486 10,688
 Income before interest
 and taxes 1,159 1,602 8,456 4,601
 Interest, net 383 609 1,569 1,400
 Other interest charges 1,041 --- 1,041 ---
 Income before income
 taxes (265) 993 5,846 3,201
 Provision for income taxes 201 497 3,039 1,475
 Net income $ (466) $ 496 $ 2,807 $ 1,726
 Net income per common share
 and equivalent common
 share $ (0.07) $ 0.09 $ 0.46 $ 0.34
 Weighted average common
 shares and equivalent
 common shares
 outstanding 6,331,594 5,011,152 6,082,764 5,011,152
 ENHANCED IMAGING TECHNOLOGIES AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands, except per share data)
 Dec. 31,
 1992 1991
 ASSETS (unaudited)
 Current Assets:
 Cash and cash equivalents $ 2,073 $ 263
 Accounts receivable-trade, net 9,784 6,212
 Inventories 6,268 4,792
 Prepaid income taxes --- 460
 Other current assets 259 492
 Total current assets 18,384 12,219
 Property and equipment, net 1,634 1,231
 Other assets 811 560
 Intangible assets, net 5,698 6,358
 Excess of cost over acquired net
 assets, net 16,535 15,344
 Total assets $43,062 $35,712
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current Liabilities:
 Accounts payable $ 1,657 $ 1,820
 Accrued liabilities 1,263 875
 Notes payable, due within one year 1,495 258
 Notes payable to stockholders 453 5,399
 Deferred income taxes 175 758
 Total current liabilities 5,043 9,110
 Notes payable 2,931 2,643
 Notes payable to stockholders 2,252 7,590
 Other liabilities 246 121
 Total liabilities 10,472 19,464
 Commitments and contingencies --- ---
 Total stockholders' equity 32,590 16,248
 Total liabilities and stockholders'
 equity $43,062 $35,712
 -0- 3/4/93
 /CONTACT: Doug Sherk or Ken Dennard, 415-296-7383, or David Walke or Miriam Adler, 212-986-5900, all of Morgen-Walke, for Enhanced Imaging/
 (EITI)


CO: Enhanced Imaging Technologies Inc. ST: California IN: CPR SU: ERN

GT-SG -- SF009 -- 2732 03/04/93 06:31 EST
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Date:Mar 4, 1993
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