IRT ANNOUNCES FINANCIAL RESULTS FOR FISCAL 1992
IRT ANNOUNCES FINANCIAL RESULTS FOR FISCAL 1992 SAN DIEGO, June 30 /PRNewswire/ -- IRT Corp. (AMEX: IX) today
announced revenues of $16.6 million and operating income from continuing operations of $714,000 for its fiscal year ended March 31, 1992. After preferred dividend and provision for taxes, net income from continuing operations was $298,000 or $0.05 per share. Additionally, the company adopted SFAS 109 effective April 1, 1991, and the cumulative effect of this accounting change of $2,250,000 or $0.42 per share is reported for fiscal year 1992. For its fiscal year 1991, the company reported revenues of $17.1 million and net income from continuing operations after preferred dividend and provision for taxes of $2,087,000 or $0.39 per share.
For the fourth quarter of fiscal 1992, IRT reported revenues of $4.1 million and an operating loss of $472,000. After preferred dividend and provision for taxes the net loss from continuing operations was $681,000 or $0.13 per share. The cumulative effect of the accounting change was recorded in the fourth quarter in the amount of $2,250,000 or $0.42 per share. This compares with $3.9 million in revenue and a net income after preferred dividend and provision for taxes of $633,000, or $0.12 per share, for the fourth quarter of fiscal year 1991. The above financial results for fiscal years 1992 and 1991 have been restated to reflect the discontinuation of the company's standard, manual X-ray inspection systems business. The company earlier announced its decision to concentrate its efforts on the sale of highly automated X-ray inspection products, particularly for electronic printed circuit boards and automotive airbag applications, certain custom projects, its new personnel security scanning system and the providing of radiation services. It is pursuing the sale of the now-discontinued business. The company posted losses in the discontinued business in fiscal year 1992 of $3,408,000, or $0.63 per share, and in fiscal year 1991 of $1,683,000, or $0.31 per share. The company also announced today that it has entered into a letter of intent with the landlord of its corporate headquarters relating to a proposed lease termination transaction which, if completed, would for certain consideration allow the company to vacate the headquarters facility and move to smaller, less costly facilities. At the end of fiscal year 1992, IRT's contract backlog was $2.3 million, compared to $3.6 million at the end of fiscal year 1991. As of June 26, 1992, the company's backlog was $3.4 million. IRT's revenue for fiscal 1992 declined 3 percent from the previous year. Despite this overall decline, the company experienced significant growth in the electronic systems product sales. All product and service businesses were adversely affected by the economic recession. The company stated that operating expenses increased for the year due primarily to expenditures to develop a new computer architecture for its automated X-ray inspection systems, to support the world-wide marketing of that equipment, to launch the manufacture and sale of its new security screening equipment, and to absorb the one-time charges for severance associated with personnel, the 12 percent headcount reductions, and for recruitment and relocation expense incurred in replacing several key members of management. Interest expense rose as a result of increased borrowings under the company's line-of-credit. "Since I joined the company during the fourth quarter of its 1992 fiscal year, our approach as been straightforward," said Peter W. Sognefest, president and chief executive officer. "First, we focused on regaining profitability through cost control; second, we discontinued our least profitable business; third, we will concentrate our energies on expanding our presence in the profitable high-growth niches where we are market leaders today." The company further announced today that its revolving line-of- credit with Sanwa Bank California was extended through March 31, 1993. IRT Corp. is the technology leader in automated real-time X-ray inspection systems with computerized defect-detection capability. The company develops and manufactures inspection and process monitoring systems, including integrated systems for electronics, automotive, aerospace, and ordnance applications. IRT also operates a commercial radiation processing facility that provides high-energy electron-beam processing for a number of commercial applications. The company's newest line of business is the SECURE(TM) 1000, a security scanning system used to detect concealed metallic and nonmetallic objects on individuals. Company headquarters are in San Diego. IRT CORP. Results of Fourth Quarter of Fiscal Years 1992 and 1991 ended March 31, 1992 and March 31, 1991 (a) Fourth Quarter Fiscal Year to Date FY92 FY91 FY92 FY91 Revenues $4,089 $3,968 $16,641 $17,115 Cost of revenues 2,071 1,647 7,748 7,749 Gross margin 2,018 2,321 8,893 9,366 Operating expense 2,325 1,422 7,530 6,368 Interest expense 147 131 664 564 Other (income/expense) 18 9 (15) 64 Operating income (loss) before tax provision (472) 759 714 2,370 Provision for taxes 140 57 140 57 Dividend requirement on preferred stock 69 69 276 226 Net income (loss) after dividend requirement Continuing income (681) 633 298 2,087 Cumulative effect of accounting change 2,250 --- 2,250 --- (Loss) from dis- continued operations net of tax effects (1,838) (547) (3,408) (1,683) Total ($269) $86 ($860) ($404) Weighted average shares outstanding 5,396,425 5,296,425 5,396,425 5,296,425 Per share net income (loss) Continuing operations ($0.13) $0.12 $0.05 $0.39 Cumulative effect of accounting change 0.42 --- 0.42 --- Discontinued operations (0.34) (0.10) (0.63) (0.31) Total ($0.05) $0.02 ($0.16) $0.08 (a) The financial results for fiscal years 1992 and 19921 have been restated to reflect the discontinuance of IRT's standard, manual X-ray inspection systems business. -0- 6/30/92 /CONTACT: Peter W. Sognefest, president and CEO, or Vicki Foote of IRT Corp., 619-450-4343/ (IX) CO: IRT Corp. ST: California IN: CPR SU: ERN EH-KJ -- SD002 -- 5036 06/30/92 09:25 EDT
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|Date:||Jun 30, 1992|
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