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ISCO REPORTS FISCAL 1993 AND FOURTH QUARTER RESULTS

 LINCOLN, Neb., Sept. 28 /PRNewswire/ -- Isco Inc. (NASDAQ: ISKO) today reported results for the fiscal year ended July 30, 1993:
 Fiscal 1993 Fiscal 1992
 Earnings per share $0.72 $1.20
 Sales $37,644,000 $42,847,000
 Earnings 3,435,000 5,708,000
 Cash flow from operations 5,425,000 6,550,000
 The Environmental Division generated operating income of $4.3 million on sales of $25.6 million. This compares with operating income of $7.0 million and sales of $28.0 million in the previous year. The Separation Instruments Division generated an operating loss of $1.1 million on sales of $12.0 million. This compares with operating income of $588,000 on sales of $14.8 million in the previous year.
 Earnings for the fourth quarter ended July 30, 1993 were $812,000 or 17 cents per share on sales of $9.2 million. For the like period last year earnings were $1.1 million or 23 cents per share on sales of $10.4 million.
 Results for each division in the fourth quarter of fiscal 1993, the previous quarter, and the fourth quarter a year ago were:
 4Q F1993 3Q F1993 4Q F1992
 Sales (000's)
 Environmental $6,215 $6,439 $6,975
 Separation
 Instruments 2,940 2,787 3,441
 Operating Income (000's)
 Environmental $899 $1,148 $1,436
 Separation
 Instruments (278) (436) (128)
 "As expected, our performance in fiscal 1993 was down as sales and earnings declined 12 percent and 40 percent, respectively, from the previous year. Incoming orders for fiscal 1993 were down 9 percent compared with fiscal 1992. Environmental Division orders were down 8 percent while the Separation Instruments Division orders were down 13 percent," said Robert Allington, president of Isco.
 "We believe that lackluster conditions in the domestic economy, coupled with uncertainty in environmental regulations and enforcement, were the primary drivers of the sales decline from fiscal 1992 to fiscal 1993. In the Environmental Division, industrial and commercial customers, who account for approximately 50 percent of the division's sales, significantly reduced their purchases during the fiscal year.
 "In the Separation Instruments Division, sales of liquid chromatography products to the life sciences market were 21 percent lower in fiscal 1993 compared with fiscal 1992. The delay in regulatory influence for environmental testing and the on-going need to develop methods for the food processing market led to lower sales for supercritical fluid extraction products in fiscal 1993 compared with fiscal 1992.
 "In response to the profitability decline, we initiated company-wide cost reduction programs. As a result, SG&A expenses in fiscal 1993 were down by 4 percent compared with the previous year. Further, the number of employees at the end of fiscal 1993 was 8 percent lower than at the beginning of the year.
 "One of the bright spots for Isco was international sales, which increased from $7.1 million in fiscal 1992 to a record $7.4 million in fiscal 1993. The Environmental Division's international sales rose by 17 percent, while those of the Separation Instruments Division declined by 7 percent.
 "As planned, we increased research and engineering spending from $3.7 million in fiscal 1992 to $4.6 million in fiscal 1993, or more than 12 percent of total sales. The majority of the increase occurred in the Environmental Division.
 "During fiscal 1993 the Environmental Division introduced the PAL 1110, our initial product offering for parameter-based monitoring. Since the end of the fiscal year the division has introduced a number of significant new products. They include the VOC 6000, the first automatic sampler for volatile organic compounds; the 4100 series flow logger which includes the area velocity sensor for expanded applications; and the 3700C compact wastewater sampler.
 "Design efforts in the Separation Instruments Division were focused on the Foxy Jr. fraction collector and the SFX 3560 automated supercritical fluid extraction system. We expect the Foxy Jr. to ship early in fiscal 1994, while the SFX 3560 is scheduled for the latter half of the year."
 Looking forward, Allington commented, "We anticipate that our new products, along with a pick-up in the economy, will result in improved order rates. Therefore, we are planning for growth of 8 percent to 9 percent for revenue and earnings in fiscal 1994. We will closely monitor our operating expenses to insure that our spending is consistent with improving sales performance."
 Isco manufactures water pollution monitoring equipment, and is the leading producer of wastewater samplers and open-channel flow measuring devices. Isco also manufactures chemical separation instruments for industrial, environmental and research use.
 ISCO INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
 Three Months Ended Twelve Months Ended
 (Unaudited)
 July 30, July 31, July 30, July 31,
 1993 1992 1993 1992
 (Amounts in thousands, except per share data)
 Net Sales $9,155 $10,416 $37,644 $42,847
 Cost of sales 3,901 4,264 15,154 16,370
 5,254 6,152 22,490 26,477
 Expenses:
 Selling, general
 and administrative 3,437 3,873 14,587 15,177
 Research and
 engineering 1,196 971 4,648 3,731
 4,633 4,844 19,235 18,908
 Operating income 621 1,308 3,255 7,569
 Non-operating income 318 273 1,183 1,079
 Earnings before income
 taxes and cumulative
 effect of a change in
 accounting principle 939 1,581 4,438 8,648
 Income taxes 127 506 1,244 2,940
 Earnings before
 cumulative effect of a
 change in accounting
 principle 812 1,075 3,194 5,708
 Cumulative effect of
 changing the method
 of accounting for
 income taxes --- --- 241 ---
 Net earnings $812 $1,075 $3,435 $5,708
 Net earnings per share
 Earnings before
 cumulative effect of
 a change in
 accounting principle $.17 $.23 $.67 $1.20
 Cumulative effect of
 changing the method
 of accounting for
 income taxes --- --- .05 ---
 Net earnings $.17 $.23 $.72 $1.20
 Weighted average
 number of
 shares outstanding 4,772 4,772 4,773 4,772
 Cash dividend per share $.05 $.05 $.20 $.20
 -0- 9/28/93
 /CONTACT: John Korab of Isco, 402-474-2233; or Wayne Brown of Carl Thompson Associates, 303-494-5472/
 (ISKO)


CO: Isco Inc. ST: Nebraska IN: SU: ERN

MC -- DV002 -- 6326 09/28/93 11:09 EDT
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Date:Sep 28, 1993
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