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INTERMAGNETICS GENERAL CORPORATION ANNOUNCES SECOND QUARTER RESULTS AND OTHER DEVELOPMENTS

 GUILDERLAND, N.Y., Jan. 5 /PRNewswire/ -- Intermagnetics General Corporation (AMEX: IMG) today reported total revenues of $12,307,000 for the quarter ended Nov. 28, 1993, compared to $15,349,000 for the same period last year. Revenues for the first half of fiscal 1994 were $23,462,000 as compared to $28,878,000 for the same period a year ago.
 Net income for the second quarter amounted to $176,000 or $.02 per primary share as compared to $906,000 or $.12 per primary share last year. For the first half of fiscal 1994, income before accounting change amounted to $398,000 or $.05 per share versus $1,986,000 or $.26 per share last year. During the first half of fiscal 1994, the company adopted the provisions of Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes." The effect of such adoption, which in accordance with the terms of the SFAS has been treated as the cumulative effect of a change in accounting method, was to record net deferred income tax assets of $888,000. This change increased reported net income for the first half of fiscal 1994 to $1,286,000 or $.15 per share, thereby expanding shareholder equity. Income taxes have increased to essentially statutory rates during the current year in contrast to prior years, which benefited from net operating loss and investment credit carry forwards."
 Commenting on the results, Carl H. Rosner, president and chief executive officer, explained, "Due to the ongoing slowdown in the MRI marketplace, consolidated sales, as expected, continued to trail those of last year. However, gross margins improved as a percentage of sales due to continuing improvements in manufacturing efficiencies. Research and development expenses decreased for the second quarter as a result of increased external funding; however, for the first half of 1994, these expenses increased due to the previously announced new magnet and refrigerant development activities. Very positive benefits are now visible in that the magnet development program resulted in the announcement, in November 1993, of a new line of MRI magnets with excellent performance and smaller size characteristics. The initial product announcement, generating much interest, was made in coordination with Philips Medical Systems, one of our major customers. Already, we are making final arrangements to sell similar magnets to another customer and anticipate expanding our market share in our next fiscal year. Work is progressing well on the development of the FRIGC(TM) CFC replacement refrigerants, in accordance with the general time frame previously announced."
 In further developments, the company announces the recent signing of a new three-year agreement to supply quantities of superconductive wire to the General Electric Company (NYSE: GE) for use in their MRI magnet manufacturing, as well as the repayment by Intermagnetics of a subsidiary's $5,000,000 debenture due Dec. 31, 1993, to General Electric. Commenting on these events, Rosner remarked, "We are extremely pleased to have again extended our nearly ten-year business relationship as a supplier of GE's superconductive wire requirements. We are equally gratified to have justified the tangible faith in Intermagnetics, expressed by GE in 1987, when it purchased the just repaid $5 million debenture, from a then newly created subsidiary of Intermagnetics, IGC Advanced Superconductors Inc.
 "Our balance sheet continues to show a strong cash position as well as growing net worth. The proceeds of our previously completed $30,000,000 convertible subordinated debenture, not used for the on- going building consolidation program and the repayment of indebtedness (including the GE debenture), remain invested in short-term investments pending identification of appropriate uses."
 Intermagnetics is a leading manufacturer of superconducting magnets, wire and associated low-temperature refrigeration equipment, the combination of which is especially useful in magnetic resonance imaging (MRI) systems. The company is dedicated to the development and commercialization of applied superconducting systems and also manufactures permanent magnet systems and material separation equipment.
 INTERMAGNETICS GENERAL CORPORATION
 Consolidated Statements of Income
 (Dollars in Thousands, Except Per Share Amounts)
 (Unaudited)
 Three Months Ended
 Nov. 28, Nov. 29,
 1993 1992
 Net sales $12,007 $15,101
 Other revenue 300 248
 Total revenue 12,307 15,349
 Costs and expenses:
 Cost of products sold 8,254 10,672
 Product research and development 450 636
 Marketing, general and
 administrative 2,748 2,621
 Interest and other expense 575 241
 Total 12,027 14,170
 Income before income taxes 280 1,179
 Provision for income taxes 104 273
 Income before cumulative effect
 of accounting change 176 906
 Cumulative effect as of
 May 30, 1993 of change in
 method of accounting for
 income taxes 0 --
 NET INCOME $176 $906
 PER PRIMARY SHARE:
 Income before cumulative effect
 of accounting change $.02 $.12
 Cumulative effect of accounting
 change -- --
 NET INCOME .02 .12
 Primary shares 8,795,012 7,703,170
 Six Months Ended
 Nov. 28, Nov. 29,
 1993 1992
 Net sales $23,015 $28,592
 Other revenue 446 286
 Total revenue 23,461 28,878
 Costs and expenses:
 Cost of products sold 15,422 19,855
 Product research and development 1,243 1,038
 Marketing, general and
 administrative 5,329 4,950
 Interest and other expense 825 488
 Total 22,819 26,331
 Income before income taxes 642 2,547
 Provision for income taxes 244 561
 Income before cumulative effect
 of accounting change 398 1,986
 Cumulative effect as of
 May 30, 1993 of change in
 method of accounting for
 income taxes 888 --
 NET INCOME $1,286 $1,986
 PER PRIMARY SHARE:
 Income before cumulative effect
 of accounting change $.05 $.26
 Cumulative effect of accounting
 change .10 --
 NET INCOME .15 .26
 Primary shares 8,674,569 7,669,468


NOTE: Shares and earnings per share have been adjusted to reflect a three percent stock dividend distributed Sept. 1, 1993.
 INTERMAGNETICS GENERAL CORPORATION
 Condensed Consolidated Balance Sheets
 (Dollars in Thousands)
 Nov. 28, 1993 May 30, 1993
 (Unaudited)
 ASSETS
 CURRENT ASSETS
 Cash and cash equivalents $24,200 $ 1,653
 Trade accounts receivable 9,517 9,373
 Cost and estimated earnings
 in excess of billings on
 uncompleted contracts 2,852 2,851
 Inventories 20,979 16,270
 Prepaid expenses and other 1,635 1,056
 TOTAL CURRENT ASSETS 59,183 31,203
 PROPERTY, PLANT AND EQUIPMENT, net 20,602 17,767
 INVESTMENT AND INTANGIBLE AND
 OTHER ASSETS 10,769 9,389
 TOTAL $90,554 $58,359
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Current portion of long-term debt $ 5,225 $ 5,810
 Accounts payable 2,507 2,163
 Salaries, wages and related items 1,469 1,379
 Customer advances and deposits 1,363 589
 Product warranty reserve 589 553
 Other liabilities and accrued
 expenses 1,522 1,110
 TOTAL CURRENT LIABILITIES 12,675 11,604
 LONG-TERM DEBT, less current
 portion 33,508 4,991
 SHAREHOLDERS' EQUITY 44,371 41,764
 TOTAL $90,554 $58,359
 -0- 1/5/94
 /CONTACT: William Dunk of William Dunk Partners, 214-960-9611, for Intermagnetics General; or Carl H. Rosner, president, of Intermagnetics General, 518-456-5456/
 (IMG)


CO: Intermagnetics General ST: New York IN: CPR MTC SU: ERN

KL-BM -- CL006 -- 9320 01/05/94 11:50 EST
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