LOWRANCE REPORTS YEAR END RESULTS
LOWRANCE REPORTS YEAR END RESULTS TULSA, Okla., Nov. 12 /PRNewswire/ -- Lowrance Electronics, Inc.
(NASDAQ-NMS: LEIX), today reported sales of $53,587,000 for the year ended July 31, 1991, down 12 percent from $60,713,000 in sales during the previous year. Net loss was $2,442,000, or minus $.72 per share, compared to net income of $262,000, or $.08 a share last year.
Darrell Lowrance, president of the company, described the year-end results as "very disappointing despite our aggressive efforts to offset the combined effects of war, recession and a continued decline in new boat sales by significantly cutting costs." He cited extensive promotion of a "three-dimensional" model by a principal competitor as another significant factor in the sales decline and noted that the company filed suit in Federal Court in Tulsa, Okla., in February of 1991 alleging false and misleading advertising of the "Dimension 3" product. Lowrance stated that the company was particularly hard hit by the timing of the war in the Persian Gulf and the magnitude of the U.S. recession, both of which occurred during the company's prime selling season, January through April, when historically 40 to 50 percent of the company's annual sales occur. Further, he reported that industry figures suggest new boat sales declined significantly for the third consecutive year in fiscal 1991 and are now believed to be at a nine- year low. "Operating expenses were cut in November of 1990 and February of 1991, resulting in a reduction of $1.2 million in costs for fiscal 1991. The full impact of the personnel reductions and other expense reductions were not fully realized in fiscal 1991 due to the timing of the cuts and cost of meeting severance obligations to employees," explained Lowrance. He further noted, "The operating expense reductions were unfortunately partly offset by increased legal and other expenses resulting from the company's lawsuit charging false and deceptive advertising against its primary competitor's Dimension 3' product and increased costs of the company's comparative advertising and video campaign designed to reduce the company's losses sustained as a result of the Dimension 3' advertising campaign. "While we are pleased with our current backlog of orders in excess of $15 million, our backlog is $1 million less than last year at this time," stated Lowrance. "We are cautiously optimistic that with the full effect of our expense reductions implemented in fiscal 1991 and an expected improvement in new boat sales and the anticipated sales increases of the company's products at both the OEM and retail level, fiscal 1992 results should significantly exceed 1991 levels. Further, our diversification into the Global Positioning System market, with six new GPS products which incorporate Rockwell International's new NavCore V GPS receiver, holds promise for sales through both our traditional sonar outlets and through our Lowrance Contracts, Inc., subsidiary," he added. Lowrance Electronics, Inc., manufactures sonar equipment, Loran-C and GPS navigation receivers and plotters for sport fishing and recreational boating markets under the brand names "Lowrance" and "Eagle." -0- 11/12/91 /CONTACT: Graham Wilson of Lowrance Electronics, 1-800-331-4105/ (LEIX) CO: Lowrance Electronics, Inc. ST: Oklahoma IN: SU: ERN GK -- NY060 -- 3506 11/12/91 13:37 EST
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|Date:||Nov 12, 1991|
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