INNOVEX REPORTS SECOND QUARTER RESULTS
INNOVEX REPORTS SECOND QUARTER RESULTS HOPKINS, Minn., April 23 /PRNewswire/ -- Innovex, Inc.
(NASDAQ-NMS: INVX) today reported net sales of $8,903,000 for the second quarter of fiscal 1992 ended March 31, up slightly from $8,690,000 in the same period last year. Net income came to $5,800 (no per share amount), compared to $56,000 or $.01 per share in the second quarter of fiscal 1991.
For the first six months of fiscal 1992, net sales declined 11 percent to $14,836,000. The net loss for this period amounted to $575,000 or $.13 per share, compared to earnings of $128,000 or $.03 per share in the first half of fiscal 1991. Sales of the Photo Equipment Market Group fell 12 percent in the second quarter to $4,364,000. Although the photo equipment market has remained soft over the past nine months due to the recession, the company said sales started strengthening in the second quarter in comparison to this year's first quarter and the fourth quarter of fiscal 1991. The company said photo equipment sales have also been affected by the difficulty experienced by some professional photo laboratories in securing equipment financing. The company added that the market for traditional, non-automated photo equipment is continuing to mature. Since most of the photo group's future sales growth will be driven by automated systems, developmental work is proceeding on four new lab automation products. Engineering expenses associated with these new products remained high in the second quarter, which affected the group's profitability. Development work on several automated systems is behind schedule, but the company anticipates second half sales of its new automated packaging and quality control products. The lower sales of the photo group were offset by the continued strong performance of the Disk Drive Market Group. Sales of the disk drive group rose 25 percent in the second quarter to $4,539,000, reflecting the continuation of strong demand for thin-film lead wire assemblies. The group's gross margin and operating profit showed a sharp increase compared to a year ago. Lead wire production reached approximately one million pieces per week in March, compared to 400,000 per week a year ago. High-speed laser automation now accounts for substantially all of the group's lead wire output. This efficient, proprietary technology is fully meeting expectations, while subcontracting operations in Mexico and Thailand are also proceeding on plan. The company's Mar Engineering subsidiary reported another operating loss in the second quarter. Although discussions are continuing with potential buyers for this non-core business, the company, as Mar's majority shareholder, voted in March to dissolve this corporation with the goal of downsizing Mar and merging it into the disk drive group. The company said it believes the dissolution process could be completed before the end of fiscal 1992. The sale or restructuring of Mar represents another strategic step toward refocusing Innovex on its core markets. Moreover, this measure would strengthen Innovex's financial performance in fiscal 1993. The company said it continues to expect increased sales and earnings for the remainder of fiscal 1992. The photo group anticipates a stronger second half despite the continuation of high product development expenses. The company is also encouraged by the favorable outlook for its thin-film lead wire business. Innovex is the nation's leading manufacturer of lead wire assemblies for thin-film disk drives and multi-image printers and related automated systems 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 Six Months Ended 3/31/92 3/31/91 3/31/92 3/31/91 Net sales $8,902,859 $8,690,072 $14,836,098 $16,602,324 Cost of sales 6,011,708 6,068,671 10,587,881 11,337,376 Gross margin 2,891,151 2,621,401 4,248,217 5,264,948 Selling and administrative 1,743,900 1,631,530 3,026,087 3,295,658 Research and development 1,160,921 942,622 2,135,105 1,854,802 Operating profit (13,670) 47,249 (912,975) 114,488 Net interest income (2,248) (15,513) (27,161) (36,956) Other income (19,221) (19,893) (26,647) (40,037) Income before income taxes 7,799 82,655 (859,167) 191,481 Provision for income taxes 2,000 27,000 (284,000) 63,000 Net income $5,799 $55,655 $(575,167) $128,481 Net income per share $.00 $.01 $(.13) $.03 Weighted average number of shares outstanding 4,419,673 4,415,724 4,417,999 4,412,493 -0- 4/23/92 /CONTACT: Jeffrey L. Burnham of Innovex, 612-938-4155/ (INVX) CO: Innovex, Inc. ST: Minnesota IN: SU: ERN
AL -- MN014 -- 2098 04/23/92 16:17 EDT
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|Date:||Apr 23, 1992|
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