HOWTEK INC. ANNOUNCES 1991 THIRD QUARTER RESULTS
HOWTEK INC. ANNOUNCES 1991 THIRD QUARTER RESULTS HUDSON, N.H., Nov. 7 /PRNewswire/ -- Howtek, Inc. today announced
summary results of its operations for the third quarter ended Sept. 30, 1991. The company recorded third quarter revenues of $2,937,000, a decrease of 54 percent from the $6,441,000 recorded in the same period in 1990. In addition, the company announced a third quarter loss of $1,600,000, or (21 cents) per share, vs. a profit of $668,000, or 9 cents per share, recorded for the same period in 1990. During the quarter, the company received $4.6 million in settlement of an arbitration proceeding against the manufacturer of the previously announced Personal Color Printer. The company has deferred recognition, until the fourth quarter, of the income associated with this settlement pending a full assessment of expenses and the impact on the company's operations resulting from the unavailability of the printer.
The company attributed lower sales in the third quarter of 1991 to the ongoing slowdown in the world economy and increased competition in the digital desktop color scanner market. These conditions will continue for the balance of the year and possibly into the first half of 1992. The company anticipates that the Scanmaster D4000, which was introduced in the third quarter, will broaden the targeted scanner market and contribute incremental revenue beginning in first quarter of 1992. The company did not recognize any sales for the Colorscan system, during the third quarter, as economic conditions in both the domestic and international newspaper markets continue to force deferral of capital expenditures. While the company expects this condition will continue to impact sales in the newspaper market, improvements in Colorscan software and hardware, introduced in the third quarter for shipment in the fourth quarter, have provided an avenue for additional revenue from the commercial prepress marketplace. During the third quarter the company introduced the Scanmaster D4000 drum scanner at the Print '91 exposition in Chicago. The D4000 scans a 10" x 10" area at resolutions ranging from 50 to 4,000 dpi. This differs from Howtek's previous lower resolution and lower cost CCD scanners, because it employs photomultiplier tube technology. It has a retail price of $39,700 and is targeted at the professional and high end desk top publishing markets. According to David Bothwell, Howtek's President, "The combination of the quality, flexibility, and affordability of the D4000 makes it unrivaled in the current marketplace. Due to its affordability, the D4000 is an ideal price/ performance solution for the many people seeking in-house control over their separations." The D4000 will be available in the first quarter of 1992, and will be sold as both an OEM peripheral product and an input scanning station for the company's Colorscan system. Howtek was founded in 1984 by Robert Howard, who was also founder of Centronics Data Computer Corp. in 1969 and co-founder and chairman of Presstek, Inc. in 1987. Howtek's product offering includes: COLORSCAN(R), a complete prepress color separation and page make-up system for newspapers, publishers and graphics arts markets; SCANMASTER(tm), a series of reflective and transparent copy and 35mm film scanners. The company also offers workstations for design, composition, image capture and output, which operate interactively on local area networks incorporationg various Howtek peripherals and proprietary software. Howtek is a publicly held corporation whose stock is traded on the American Stock Exchange under the symbol HTK. ---- NOTE: SCANMASTER, and COLORSCAN are Howtek trademarks. HOWTEK, INC. CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 1991 1990 1991 1990 Revenues $2,936,573 $6,441,022 $9,079,549 $17,808,818 Cost of sales 1,907,370 3,620,006 6,276,098 10,595,830 Gross profit 1,029,203 2,821,016 2,803,451 7,212,988 Operating costs 2,480,350 2,119,652 6,697,061 5,955,674 Net income (loss) (1,600,049) 667,636 (4,282,262) 1,236,071 Net income (loss) per share (21 cents) 9 cents (57 cents) 16 cents Weighted shares outstanding 7,565,435 7,561,140 7,565,435 7,553,769 -0- 11/7/91 /CONTACT: Connie Webster of Howtek, Inc., 603-882-5200/ (HTK) CO: Howtek, Inc. ST: New Hampshire IN: CPR SU: ERN KM-DD -- NE014 -- 2301 11/07/91 14:29 EST
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|Date:||Nov 7, 1991|
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