GENISCO REPORTS $1.1 MILLION FIRST QUARTER EARNINGS
GENISCO REPORTS $1.1 MILLION FIRST QUARTER EARNINGS ANAHEIM, Calif., Feb. 14 /PRNewswire/ -- Genisco Technology Corp.
(AMEX: GES) reported today a FY 1992 first quarter net income of $1.1 million (or $.027 per share) on revenues of $5.2 million for the three-month period ended Dec. 31, 1991. The $1.1 million net income for the first quarter of FY 1992 was primarily a result of a $1.4 million extraordinary gain recognized on the difference between the value of equity exchanged for bank debt, which accounted for a positive effect on per share earnings of approximately $0.34 per share. This compares with a net loss of $225,000 (or $0.08 per share) and revenues of $5.3 million for the same period in FY 1991.
The company's equity increased $4.5 million since Dec. 31, 1990 to a total of $5.5 million. This increase was primarily a result of the distribution of an additional 14 million shares represented by various equity securities. The majority of those shares were issued to the company's prior landlord for a negotiated settlement and to the company's bank in a debt-for-equity exchange. Phillip C. Friedman, Genisco's chairman and chief executive officer, stated that "the company is currently in the strongest financial position since the new management team started almost four years ago." In addition, Friedman added that "despite our primary focus on solidifying our financial positioning, Genisco has adapted to market changes by expanding its products to include industrial-grade UNIX workstations, Mil-spec graphics monitors and custom power supplies." Genisco also reported the recent promotion of two senior officers within the organization. Jerry Gross was promoted to the new position of vice president and general manager of the Solaris Systems Division. John Gallogly was promoted to the new corporate position of vice president, finance. Genisco Technology Corp. is a producer of computer workstations, peripherals and electronic components for aerospace, defense and industrial markets. Its products include UNIX-based workstations, high density storage devices, custom EMI filters, and power supplies, all of which meet stringent environmental requirements. GENISCO TECHNOLOGY CORP. Statement of Income (Unaudited) Three Months Ended Dec. 31, 1991 1990 Revenues $5,167,361 $5,337,196 Costs and expenses --- --- Cost of sales 3,730,238 3,975,756 Selling, general and administrative 1,453,144 1,348,948 Compensation via option grants 151,563 --- Total costs and expenses 5,334,945 5,324,704 Income (loss) from operations (167,584) 12,492 Interest expense (131,411) (238,340) Other income 28,035 --- Loss before provision for income taxes - second extraordinary item (270,960) (225,848) Provision for income taxes --- --- Loss before extraordinary item (270,960) (225,848) Extraordinary item - gain on debt forgiveness 1,399,898 --- Net income (loss) 1,128,938 (225,848) Per Share Data: Income (loss) before extraordinary item ($0.07) ($0.08) Extraordinary item 0.34 --- Net income (loss) $0.27 ($0.08) Number of shares used in calculation 4,170,412 2,685,066 -0- 2/14/92 /CONTACT: Phillip C. Friedman, chairman and CEO of Genisco Technology, 714-563-4300, or Frank Widder of Dateline Communications, 310-649-9099, for Genisco Technology/ (GES) CO: Genisco Technology Corp. ST: California IN: CPR SU: ERN
DM-AL -- LA008 -- 0224 02/14/92 13:05 EST
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|Date:||Feb 14, 1992|
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