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GEONEX REPORTS FIRST QUARTER RESULTS

 GEONEX REPORTS FIRST QUARTER RESULTS
 ST. PETERSBURG, Fla., Feb. 3 /PRNewswire/ -- Geonex Corporation


(NASDAQ: GEOX) reported today results for the first quarter ended Dec. 31, 1991.
 Geonex Corporation ("Geonex" or the "company") completed the first quarter of fiscal 1992 during a period of decreased demand in our traditional utility and municipal markets. The continuing economic recession has caused clients to spread the company's assignments over a longer period of time. Hence, the company will experience reduced revenue in the near term. The company is also experiencing negative pressure on proposal pricing and increased competition resulting from tighter spending budgets among its existing and prospective clients.
 Another situation developing during the fourth quarter of fiscal 1991 and continuing in fiscal 1992 is the start-up by the company of several new contracts, primarily utility, all within the same time frame. This necessitates the company incurring the costs of retraining personnel, acquiring equipment, software development, and additional rework. This results in a lowering of profits and significant revenue is not realized until full production is underway.
 In summary, our higher margin on-going utility business has been replaced in part by lower margin start-up activity. Consequently, during the quarter the company initiated a cost reduction program that will reduce production and administrative costs by approximately $3.6 million over the remainder of fiscal 1992.
 We believe the results of this reduction will greatly aid the company's ability to return to growth in profitability during the third and fourth quarter of fiscal 1992.
 Revenues for the three month period ended Dec. 31, 1991 were $15,166,000, an increase of $1,062,000 or 7.5 percent over the prior year period. Revenues from the international segment was up 58 percent. This increase included $1,547,000 from an acquisition that occurred after the first quarter of last year. In addition, new international revenue was $636,000. Revenues from the domestic segment decreased by $1,121,000, or 12 percent as compared to the prior year period. The decrease was primarily in the utility market resulting from the current economic climate.
 Gross profit margin for the three month period ended Dec. 31, 1991 was 24.8 percent as compared to 31.4 percent for the prior year period. In absolute dollars, gross profit for the three month period has decreased by 15.1 percent. Gross profit margin has been adversely impacted by price concessions required by the current market conditions and the higher costs associated with the several start-up contracts in the utility area.
 Selling, general and administrative expenses were 23.0 percent of revenue in the three month period ended Dec. 31, 1991 as compared to 23.8 percent in the prior year period. The company continued its cost-reduction programs in the period such as administrative personnel cuts and travel reduction, among other items, that are intended to lower selling, general and administrative expenses during the remainder of fiscal 1992.
 Operating income decreased by $788,000 for the three month period ended Dec. 31, 1991 as compared to the prior year period. The decrease in operating income is attributable to the decrease in gross profit.
 Interest expense for the three month period ended Dec. 31, 1991 was 2.2 percent of revenue as compared to 3.8 percent of revenue in the prior year period. This results from significantly more favorable interest rates during the first quarter of fiscal 1992.
 The company's short-term cash requirements have been funded through cash from operations and bank borrowings pursuant to various credit facilities with its domestic and foreign banks. Borrowings under these short-term lines of credit increased to $3,565,000 at Dec. 31, 1991 from $3,002,000 at Sept. 30, 1991. At Dec. 31, 1991 there was $3,033,000 available under these short-term lines of credit. During the quarter ended Dec. 31, 1991, the company's domestic credit line bank approved an additional $2 million in short-term borrowing capacity under the existing credit agreement. The increase was formally made available subsequent to Dec. 31, 1991.
 Long-term debt, including the current portion, was $16,838,000 at Dec. 31, 1991, compared to $14,543,000 at Sept. 30, 1991. The major portion of this increase was due to the funding of the final dividend payment relating to the company's acquisition of Aerodat Limited.
 Geonex, based in St. Petersburg, Fla., is the world's largest commercial supplier of digital maps and maps utilizing advanced photo and image interpretation. Digital mapping data bases created by Geonex allow telephone, electric, gas and water utilities to combine detailed engineering records with geographic information to facilitate the design, construction, management and maintenance of their physical assets. Geonex also offers laboratory analysis of air and water quality, and hazardous site surveying.
 GEONEX CORPORATION
 Comparative Three-Month Data:
 Quarter Results: Q1 FY91 Q1 FY92
 Revenues $14,104,000 $15,166,000
 Gross Profit 4,429,000 3,761,000
 Operating Income 1,067,000 279,000
 Net Income 404,000 5,000
 Earnings Per Share: .12 .00
 Weighted Average Number of
 Shares Outstanding 3,426,000 4,587,000
 -0- 2/3/92
 /CONTACT: H.A. Moshell of Geonex Corporation, 813-823-3300/
 (GEOX) CO: Geonex Corporation ST: Florida IN: SU: ERN


AW-CM -- FL002 -- 6071 02/03/92 10:31 EST
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Date:Feb 3, 1992
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