INNOVEX REPORTS FISCAL 1991 EARNINGS
INNOVEX REPORTS FISCAL 1991 EARNINGS HOPKINS, Minn., Nov. 25 /PRNewswire/ -- Innovex, Inc.
(NASDAQ: INVX), today reported net sales of $35,005,000 for the fiscal year ended Sept. 28, 1991, up slightly from $34,385,000 in fiscal 1990. Fiscal 1991 earnings declined to $662,000 or $.15 per share from $1,667,000 or $.38 per share a year ago.
Thomas W. Haley, Innovex's chairman and chief executive officer, said the company's goal of posting record fiscal 1991 earnings remained attainable until the third quarter, when the weak economy started affecting sales of its photo equipment business. He said this recession-related slowdown offset steady improvements at the company's disk drive group. As previously reported, the company completed the sale of its small Sensor Market Group in the second quarter of fiscal 1991. This cash transaction did not have a material impact on full-year results. Sales of the Photo Equipment Market Group declined 4 percent in fiscal 1991 to $18,205,000. The group's $3,000,000 sales shortfall from the plan was realized entirely in the second half, which is normally the strongest period of the year for the photo business. The company said this shortfall reflected the decision of professional photo labs to defer major capital expenditures on new equipment due to the recession. Revenues of the Disk Drive Market Group rose 12 percent in fiscal 1991 to $16,565,000. The lower growth rate of the disk drive group in comparison to previous years was related to continued pricing pressures on lead wire assemblies, which partially offset increased unit volume. Reflecting the efficiencies of the group's new high-speed laser automation, lead wire margins rose to 25 percent by year-end from under 20 percent at the beginning of fiscal 1991. The company said it is encouraged by this substantial improvement even though margins are down from 1990, when it benefited from a higher volume of IBM business. The company said posting steadily rising margins in spite of pricing pressures and a strong shift toward non-IBM business speaks well of the new laser automation. The profitability of the disk drive group was adversely affected by short-term costs related to the laser conversion and the operating loss of its Mar Engineering unit. The company said it intends to sell Mar in fiscal 1992, which will allow Innovex to better focus on its primary businesses. Improved results are anticipated in fiscal 1992. However, a first quarter loss is expected, reflecting the continuation of weak conditions in the photo equipment market. The company also said it expects to report most of its fiscal 1992 earnings in the second half. Innovex is the nation's largest manufacturer of lead wire assemblies for thin-film disk drives as well as automated systems and printers for professional photo laboratories. The company's common stock is traded on the National Market System under the NASDAQ symbol INVX. INNOVEX, INC. CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) Three Months Ended Twelve Months Ended 9/28/91 9/30/90 9/28/91 9/30/90 Net sales $8,479,353 $10,918,821 $35,004,780 $34,384,641 Cost of sales 5,993,156 6,628,148 23,983,677 21,736,436 Gross margin 2,486,197 4,290,673 11,021,103 12,648,205 Selling and administrative 1,649,594 1,916,388 6,626,686 6,698,773 Research and development 929,179 850,736 3,817,062 3,256,724 Operating profit (loss) (92,576) 1,523,549 577,355 2,692,708 Net interest income (expense) 12,684 14,759 47,845 37,764 Other income (expense) 17,865 (260,609) 181,186 (211,250) Income (loss) before income taxes (62,027) 1,277,699 806,386 2,519,222 Provision for income taxes (56,000) 438,000 144,000 851,800 Net income (loss) $(6,027) $839,699 $662,386 $1,667,422 Net income per share $.00 $.19 $.15 $.38 Weighted average number of shares outstanding 4,414,730 4,405,585 4,417,212 4,404,733 -0- 11/25/91 /CONTACT: Jeffrey L. Burnham of Innovex, 612-938-4155/ (INVX) CO: Innovex, Inc. ST: Minnesota IN: SU: ERN
KH-DS -- MN007 -- 6757 11/25/91 10:47 EST
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|Date:||Nov 25, 1991|
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