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 COLUMBIA, Md., Aug. 10 /PRNewswire/ -- Essex Corporation (NASDAQ-NMS: ESEX), a diversified technology-based firm, today reported revenues of $2,307,000 for the second quarter of 1993, a decrease of 25 percent compared to $3,071,000. Revenues for the first half of 1993 totaled $4,614,000, or $1,506,000 (25 percent) lower than the $6,120,000, reported in the first half of 1992. For the second quarter of 1993, Essex is reporting a net loss of $508,000, or 28 cents per share compared to a net income of $1,000 (0 cents per share) in the 1992 second quarter. For the first half of 1993, Essex Corporation is reporting a net loss of $803,000 (45 cents per share) compared to the net loss of $286,000 (17 cents per share) in the first half of 1992.
 Harry Letaw, chairman and CEO, stated: "The fundamental changes underway in Essex project far higher profit potentials in both product and service areas than could have been expected previously. Despite major geopolitical eruptions, we executed this process with reasonable facility before the 1992 national election. Since then, until quite recently, normal-course government business expected to bridge this period of development came to a virtual standstill. Coupled with the protested DOE award of a $14 million contract, this has sharply impacted revenues and operating results."
 He added, "Despite these pressures, Essex has made excellent progress in our corporate development program. With the cooperation of our bank, we are proceeding toward an orderly termination of our relationship by conversion of our line of credit to a $500,000 term loan amortized ratably through July 1994. Meanwhile, interest in our product plans and the business opportunities thereby created has been stimulated in U.S., European and Japanese business circles by Advent International. We are confident that revenues are now trending upward and that we will attract financing necessary to complete our development program."
 As in the 1993 first quarter, the lower revenue volume continued in the company's Space and Defense Division (SDD) located in Huntsville, Ala., and was a major factor in the net loss. Several programs were completed in 1992 but replacement business has not yet been developed. Management has continued to direct significant resources into product and other business development efforts, although such expenditures are not recoverable from current low revenues.
 Essex Corporation is a publicly-traded, technology-based company supplying training/counter human-error products and services and Signal Image Processing apparatus to government and industry.
 Selected Financial Data
 13 Week 26 Week
 Periods Ended Periods Ended
 June 27, June 28, June 27, June 28,
 1993 1992 1993 1992
 Revenues $2,307,000 $3,071,000 $4,614,000 $6,120,000
 Income (Loss) Before
 Taxes $ (628,000) $ 1,000 $ (993,000) $(396,000)
 Net Income (Loss) $ (508,000) $ 1,000 $ (803,000) $(286,000)
 Weighted Average
 Number of Shares
 Outstanding 1,814,000 1,684,000 1,771,000 1,684,000
 Income (Loss) Per
 Share $(0.28) $(0.00) $(0.45) $(0.17)
 Working Capital $ 527,000 $1,120,000
 Current Ratio 1.29:1 1.36:1
 Current & Long-Term
 Debt $ 513,000 $ 593,000
 Bank Line of Credit 456,000 1,648,000
 Total Debt $ 969,000 $2,241,000
 Stockholders' Equity $2,793,000 $3,349,000
 Debt/Equity Ratio 0.35:1 0.67.1
 -0- 8/10/93
 /CONTACT: Harry Letaw Jr., chairman and CEO, Essex Corporation, 410-730-1097/

CO: Essex Corporation ST: Maryland IN: CPR SU: ERN

IH-KD -- DC016 -- 1201 08/10/93 12:32 EDT
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Publication:PR Newswire
Date:Aug 10, 1993

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