INNOVEX REPORTS THIRD QUARTER EARNINGS
INNOVEX REPORTS THIRD QUARTER EARNINGS HOPKINS, Minn., July 30 /PRNewswire/ -- Innovex, Inc.
(NASDAQ-NMS: INVX) today reported net sales of $9,875,000 for the third quarter of fiscal 1992 ended June 30, virtually unchanged from $9,923,000 in the same period a year ago. Third quarter earnings come to $500,000 or $.11 per share, down modestly from $540,000 or $.12 per share in the same period last year.
For the first nine months of fiscal 1992, net sales declined 7 percent to $24,711,000. The company reported a net loss of $75,000 or $.02 per share for the current period, compared to earnings of $668,000 or $.15 per share for the first nine months of fiscal 1991. Thomas W. Haley, Innovex's chairman and chief executive officer, said the company's third quarter results were significantly improved from the first half, due partly to the enhanced profitability of the Photo Equipment Market Group. In comparison to the year earlier period, the relatively flat third quarter earnings, he said, reflected weak results by the Mar Engineering subsidiary, the continuation of high development costs for new photo products, and temporarily reduced lead wire volume. Sales of the Photo Equipment Market Group rose 6 percent in the third quarter to $5,735,000. The group's operating profit increased 60 percent, but its performance continued to be affected by engineering costs related to the development of new lab automation systems. As previously reported, discussions are continuing with several potential buyers of the photo group. If a sale is not realized within a reasonable period of time, management may elect to spin off the photo group to Innovex's shareholders. Sales of the Disk Drive Market Group declined 8 percent to $4,141,000 in the third quarter due to temporary order slowdowns from several disk drive manufacturers. However, the rate of incoming orders increased significantly toward the end of the quarter. The profitability of the disk drive group remained strong in the third quarter but was affected by the operating loss of Mar Engineering and the absence of higher-margin IBM business. Lead wire profit margins continued to benefit from the growing efficiencies of automated manufacturing processes and stabilized pricing. While efforts to sell the Mar Engineering division continue, steps have been taken to reduce the ongoing cost of the operation by downsizing and merging it into the disk drive group's Hopkins facility. This move will reduce Mar's cost structure for the balance of fiscal 1992, after which the company will exit from the precision grinding business. Due to the continuation of strong order levels for lead assemblies, the fourth quarter outlook of the disk drive group is positive. Additional improvements are anticipated in the photo group's performance, but the extent of fourth quarter improvements will depend upon further strengthening of the photo equipment market. 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 Nine Months Ended 6/30/92 6/30/91 6/30/92 6/30/91 Net sales $9,875,183 $9,923,103 $24,711,281 $26,525,427 Cost of sales 6,540,580 6,653,145 17,128,461 17,990,521 Gross margin 3,334,603 3,269,958 7,582,820 8,534,906 Selling and administrative 1,703,069 1,681,434 4,729,156 4,977,092 Research and development 922,321 1,033,081 3,057,426 2,887,883 Operating profit 709,213 555,443 (203,762) 669,931 Net interest income (expense) 12,348 (1,795) 39,509 35,161 Other income (expense) 24,717 123,284 51,364 163,321 Income before income taxes 746,278 676,932 (112,889) 868,413 Provision for income taxes 246,000 137,000 (38,000) 200,000 Net income $500,278 $539,932 $(74,889) $668,413 Net income per share $.11 $.12 $(.02) $.15 Weighted average number of shares outstanding 4,418,547 4,423,132 4,418,182 4,416,039 -0- 7/30/92 /CONTACT: Thomas W. Haley of Innovex, 612-938-4155/ (INVX) CO: Innovex, Inc. ST: Minnesota IN: SU: ERN
KH -- MN017 -- 5205 07/30/92 15:09 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 30, 1992|
|Previous Article:||CROWN SUSPENDS REGULAR DIVIDEND ON COMMON STOCK|
|Next Article:||RESIDENTIAL FUNDING MORTGAGE CERTIFICATES 1992-S2 4 RATED 'AAA/AA' BY FITCH -- FITCH FINANCIAL WIRE --|