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GENISCO TECHNOLOGY REPORTS FY 1991 RESULTS

 GENISCO TECHNOLOGY REPORTS FY 1991 RESULTS
 Reflects $3.7 Million in Net Non-Cash, Non-Recurring Costs
 ANAHEIM, Calif., Jan. 21 /PRNewswire/ -- Genisco Technology Corp. (AMEX: GES) reported a net loss of $2.9 million ($1.06 per share) on revenues of $23.8 million for the fiscal year ended Sept. 30, 1991. The company added that the $2.9 million loss included $3.7 million in net non-cash and non-recurring costs.
 For the corresponding period a year earlier, Genisco posted a net loss of $1.2 million ($0.43 per share) on revenues of $28.7 million. The prior year loss included a $2.1 million non-cash writedown for inventory related to discontinued products.
 The $3.7 million of non-cash expenses for FY 1991 were associated with: 1) a negotiated equity settlement of an $11 million lawsuit representing a net $1.2 million expense; 2) a writedown of $1.4 million in inventory attributable to discontinued products; and, 3) stock option grants representing $1.1 million in non-cash compensation expense to the company.
 In addition, the FY 1991 financial statements include a pro-forma balance sheet which reflects the equity to be issued as a result of the lawsuit settlement and a negotiated $4 million bank debt-to-equity conversion. The conversion will generate a $1.5 million gain in the first quarter of FY 1992. As a result of the above items, the pro-forma equity of the company increased $4.2 million at Sept. 30, 1991, to $5.4 million.
 Phillip C. Friedman, Genisco's chairman and chief executive officer, said, "Costs associated with the recent recapitalization have adversely affected the fiscal year 1991 operations statement. However, the company's equity has improved dramatically.
 "In addition, the reduction of $4 million in bank debt will save approximately $350,000 per year in bank interest," Friedman added.
 For the fourth quarter ended Sept. 30, 1991, Genisco reported a net loss of $2.8 million ($1.03 per share) on revenues of $6.1 million. The fourth quarter loss was primarily attributable to a $1.2 million net non-cash landlord settlement expense, a $1.4 million non-cash writedown of inventory and a $1.1 million non-cash expense associated with the issuance of stock options. The fourth quarter results ended Sept. 30, 1991, compared to a net loss of $1.4 million for the FY 1990 corresponding period which included a $1.8 million inventory writedown.
 Genisco Technology Corp. is a producer of computer workstations, peripherals and electronic components for aerospace, defense and industrial markets. Its products include ruggedized UNIX-based workstations, high-density data storage devices, EMI filters and high voltage power supplies.
 GENISCO TECHNOLOGY CORP.
 Consolidated Statements of Operations
 (Unaudited)
 Statement of Three months ended Twelve months ended
 Income: Sept. 30, Sept. 30,
 1991 1990 1991 1990
 Revenues $6,137,408 $6,415,866 $23,833,221 $28,738,694
 Cost of goods sold:
 Material, labor
 and overhead 4,393,690 4,760,256 17,340,413 21,802,311
 Provision for
 excess and
 obsolete
 inventories 1,391,000 1,800,000 1,391,000 2,095,000
 Subtotal cost
 of goods
 sold 5,784,690 6,560,256 18,731,413 23,897,311
 Selling,
 general and
 admini-
 strative 1,047,090 1,111,874 5,186,833 5,271,900
 Provision for
 settlement
 of litigation
 and recapital-
 ization costs 2,204,000 --- 2,204,000 ---
 Gain on lease
 settlement (962,000) --- (962,000) ---
 Compensation via
 option grants 1,123,788 --- 1,123,788 ---
 Total costs
 and expenses 9,197,568 7,672,130 26,284,034 29,169,211
 Income (loss)
 from
 operations (3,060,160) (1,256,264) (2,450,813) (430,517)
 Other income
 (expense):
 Gain on sale
 of assets 350,024 --- 350,024 81,820
 Interest (114,010) (231,077) (793,409) (889,583)
 Royalty and
 other income 28,900 76,611 28,900 76,611
 Total other
 income
 (expense) 264,914 (154,466) (414,485) (731,152)
 Income (loss)
 before income
 taxes (2,795,246) (1,410,730) (2,865,298) (1,161,669)
 Provision for
 income taxes --- 76,187 --- ---
 Income (loss)
 before extra-
 ordinary
 credit (2,795,246) (1,334,543) (2,865,298) (1,161,669)
 Extraordinary
 credit --
 reduction of
 income taxes
 arising from
 utilization of
 tax loss
 carryforward --- (66,904) --- ---
 Net income
 (loss) ($2,795,246) ($1,401,447) ($2,865,298) ($1,161,669)
 Per share data:
 Income (loss)
 before extra-
 ordinary credit ($1.03) ($0.50) ($1.06) ($0.43)
 Extraordinary
 credit --- (0.02) --- ---
 Net income
 (loss) ($1.03) ($0.52) ($1.06) ($0.43)
 Number of shares
 used in
 calculation 2,722,786 2,684,561 2,694,800 2,681,116
 -0- 1/21/92
 /CONTACT: Phillip C. Friedman, chairman and CEO of Genisco Technology Corp., 714-563-4300; or Frank Widder of Dateline Communications, 213-649-9099, for Genisco Technology Corp./
 (GES) CO: Genisco Technology Corp. ST: California IN: CPR SU: ERN


EH-JL -- LA005 -- 1656 01/21/92 09:07 EST
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Date:Jan 21, 1992
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