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 GUILDERLAND, N.Y., Aug. 1 /PRNewswire/ -- Intermagnetics General Corporation (AMEX: IMG) today reported net income of $3,140,000 of 41 cents per share for the fiscal year ended May 30, 1993, compared with $4,264,000 of 55 cents per share in the prior fiscal year.
 Total revenues for the year of $57,295,000 were approximately 3 percent lower than last year's $59,179,000. Fourth quarter earnings were $591,000 or 8 cents per share on revenues of $14,203,000 as compared with earnings of $1,096,000 or 14 cents per share on revenues of $15,829,000 in the last three months of the previous fiscal year.
 Per share amounts for all periods have been adjusted to reflect the 3 percent stock dividend declared of June 1, 1993, payable to shareholders of record as of Aug. 2, 1993.
 "As reported in previous quarters, the revenue decline in the current fiscal year was caused principally by the softness in the MRI market resulting from the concern over escalating health care costs in the United States, as well as the continuing lack of improvement in general economic conditions," said Carl H. Rosner, president and chief executive officer. "Through strict expense control, we were able to maintain operating expenses at last year's level and thus minimize the effect of the decline in revenues. Interest expenses and income taxes increased due to a State of Connecticut disallowance of the apportionment of part in a subsidiary's income to other states. Additionally, income taxes were affected by the complete utilization last year of the company's net operating loss carryforwards."
 The company does not expect the softness of the MRI market to improve during the company's 1994 fiscal year. The company is therefore taking several actions to reduce the cost structure and to improve its competitive position in MRI and other markets. In the area of cost control, the company has transferred responsibility for marketing and a variety of administrative matters to its business units and has recently eliminated those functions at the corporate level. In order to improve its competitive position and attempt to achieve renewed growth, the company has been engaged in significant new product development activities. These include a new family of magnets and associated refrigeration devices and FRIGC, a refrigerant which is the subject of a previous release. The new magnet products are intended to increase sales to existing customers as well as to attract new customers. The developments in ultra-low temperature refrigeration equipment will give the company expanded product offerings which are meant to be attractive based on their performance features and price. Commenting on these activities, Rosner stated, "We believe strongly that our new product development activities will enable Intermagnetics to resume the growth pattern that was interrupted two years ago by the slowdown in the MRI market."
 Rosner added, "We have continued to maintain a strong financial position, including positive cash flow which allowed us to pay cash for approximately $3,000,000 of the $6,000,000 increase in our investment in Ultralife Batteries, Inc. The balance of the increase was paid with IGC common stock. The $5,000,000 GE debenture which matures in December 1993 is included in current liabilities. We are exploring alternative means of financing the repayment of this debenture, but, if necessary, have sufficient availability on our line of credit to handle maturity."
 In other developments, the company announced that it was reducing its backlog for permanent magnets by $8,600,000 due to one of its customer's -- Sopha Medical in France -- entry into receivership. The company will not incur and material loss in connection with this insolvency. Although Sopha Imaging, a subsidiary of Sopha Medical is being offered for sale and may continue as a viable entity, the company has removed the contract with Sopha from its backlog until the situation become more clear. No possible releases of orders for FRIGC under the previously announced arrangement with Chrysler Corporation are presently included in backlog.
 Intermagnetics General is a leading manufacturer of superconducting magnets, wire and associate ultra-low temperature refrigeration equipment, the combination of which is especially useful in medical diagnostic imaging (MRI) systems. The company is dedicated to the development and commercialization of applied superconducting systems and also manufactures specialty refrigeration, permanent magnet and material separation systems.
 Consolidated Statements of Income
 (Dollars in thousands, except per share amounts)
 Three Months Ended Twelve Months Ended
 6/30/93 6/31/92 6/30/93 6/31/92
 Net sales $13,811 $15,590 $56,308 $58,219
 Other revenue 392 239 987 960
 Total revenue 14,203 15,829 57,295 59,179
 Costs and Expenses:
 Cost of products sold 10,085 11,176 40,030 41,256
 Product research and
 development 579 550 2,021 1,890
 Marketing, general
 and administrative 2,445 2,580 10,059 10,175
 Interest and other
 expense 383 288 1,284 1,084
 Total 13,492 14,594 53,394 54,405
 Income before income taxes 711 1,235 3,901 4,774
 Provision for income taxes 120 139 761 510
 Net income $591 $1,096 $3,140 $4,264
 Per primary share $0.08 $0.14 $0.41 $0.55
 Primary shares 7,788,428 7,688,503 7,735,854 7,756,820
 Note: Primary shares and earnings per share have been adjusted to reflect a 3 percent stock dividend declared June 1993.
 Condensed Consolidated Balance Sheet
 (Dollars in thousands)
 6/30/93 6/31/92
 Current Assets
 Cash and cash equivalents $1,653 $1,001
 Trade accounts receivable 9,373 11,597
 Costs and estimate earnings
 in excess of billings on
 uncompleted contracts 2,851 1,336
 Inventories 16,270 18,071
 Prepaid expenses and other 1,056 407
 Total current assets 31,203 32,422
 Property, plant and equipment, net 17,767 17,431
 Intangible and other assets 9,389 3,334
 Total 58,359 53,187
 Liabilities And Shareholders Equity
 Current liabilities
 Current portion of long-term debt $5,810 $956
 Accounts payable 2,163 2,618
 Salaries, wages and related items 1,379 1,643
 Customers advances and deposits 589 819
 Product warranty reserve 553 494
 Other liabilities and accrued expenses 1,110 926
 Total current liabilities 11,604 7,456
 Long-term debt, less current portion 4,991 10,650
 Shareholders' equity 41,764 35,081
 Total 58,359 53,187
 -0- 8/1/93
 /CONTACT: Carl H. Rosner, president of Intermagnetics General, 518-456-5456/

CO: Intermagnetics General Corporation ST: New York IN: SU:

SM -- NYSU003 -- 8097 08/01/93 17:20 EDT
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Publication:PR Newswire
Date:Aug 1, 1993

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