Printer Friendly

NORSTAN INC. ANNOUNCES RECORD SECOND QUARTER; NET INCOME ROSE 17.9 PERCENT ON REVENUES GAIN OF 17.6 PERCENT

 MAPLE GROVE, Minn., Nov. 23 /PRNewswire/ -- Citing sales gains in all its major businesses, Norstan, Inc. (NASDAQ: NRRD), a full-range provider of communications solutions that include business telephone systems, videoconferencing equipment, long distance services, voice processing products and network integration services, today reported record net income for the second quarter of fiscal 1994, up 17.9 percent, and record revenues, up 17.6 percent.
 "Norstan posted excellent sales and operating earnings gains in all U.S markets in this quarter, including the South," said Paul Baszucki, vice chairman and chief executive officer. "Call transaction processing products were particularly strong, with bookings up about 75 percent from the year-ago quarter. Further, all product segments registered growth from the prior year."
 Revenues in the second quarter ended October 30, 1993, were $57.4 million vs. $48.8 million the second quarter ended Oct. 31, 1992. Operating income was $2.9 million in the quarter, an increase of 21.0 percent from $2.4 million in the year-ago quarter. Net income in the second quarter of fiscal 1994 was $1.6 million or 37 cents per share compared to $1.3 million or 33 cents per share in second quarter of fiscal 1993.
 For the first two quarters of fiscal 1994, Norstan had revenues of $106.1 million, up 14.3 percent from $92.8 million in the first two quarters of fiscal 1993. Operating income rose 19.1 percent in the first half of fiscal 1994 to $4.9 million from $4.1 million in the year- ago period. Net income for the first two quarters of fiscal 1994 of $2.2 million or 52 cents per share includes a one-time charge of $375,000 or 9 cents per share in the first quarter for the cumulative effect of Statement of FAS No. 109 -- Accounting for Income Taxes. Net income for the first two quarters of fiscal 1993 of 2.3 million or 58 cents per share includes a first quarter pretax gain of $225,000 or net income of 3 cents per share related to the sale of the ROLM business in the Omaha area.
 The company noted that both gross margin and operating margin improved slightly for the quarter. Gross margin was 34.0 percent in the second quarter of fiscal 1994 compared to 33.8 percent a year ago. Operating margin was 5.1 percent vs. 5.0 percent during the same periods.
 Baszucki said its Canada business unit is improving but continues to experience pressures, primarily from a sluggish economy. "We believe that our Canada operations currently offer the same excellent service and product array as our U.S. regions and thus are an important competitive force," said Baszucki.
 Norstan, Inc. is a full-range provider of communications solutions that include business telephone systems, videoconferencing equipment, long distance services, voice processing products and network integration services. Its 1,600 employees serve 12,500 customers representing 1.25 million telephone lines in 18 states and Canada. In fiscal 1993, approximately 35 percent of the company's $195.9 million in revenues were generated by products and services Norstan did not offer five years ago.
 NORSTAN, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
 (Unaudited)
 Quarter Ended Six Months Ended
 10/30/93 10/31/92 10/30/93 10/31/92
 Revenues $57,442 $48,831 $106,112 $92,807
 Cost of sales 37,939 32,343 69,682 60,966
 Gross margin 19,503 16,488 36,430 31,841
 Selling, general and
 admin. expenses 16,561 14,057 31,558 27,751
 Operating income 2,942 2,431 4,872 4,090
 Interest expense (222) (195) (418) (421)
 Interest and other income,
 net (75) (31) (115) 208
 Income before cumulative effect of accounting
 change and provision for
 income taxes 2,645 2,205 4,339 3,877
 Provision for income
 taxes 1,085 882 1,779 1,551
 Income before cumulative
 effect of accounting
 change 1,560 1,323 2,560 2,326
 Cumulative effect of change
 in method of accounting
 for income taxes -- -- (375) --
 Net income $1,560 $1,323 $2,185 $2,326
 Net income per common and
 common equivalent share:
 Income before cumulative
 effect of accounting
 change $0.37 $0.33 $0.61 $0.58
 Cumulative effect of change
 in method of accounting
 for income taxes -- -- 0.09 --
 Net income per share $0.37 $0.33 $0.52 $0.58
 Weighted average number
 of common and common
 equivalent shares
 outstanding 4,207 4,017 4,208 4,002
 Certain amounts previously reported in fiscal year 1993 have been reclassified to conform to the fiscal year 1994 presentation. These reclassifications have no effect on previously reported operating income.
 -0- 11/23/93
 /CONTACT: Paul Baszucki, vice chairman, CEO, or Richard Cohen, vice chairman, CFO, of Norstan, 612-420-1100; or Fred Nachman, 312-266-7800, or Regina Ryan, 212-661-8030, both of the Financial Relations Board, for Norstan/
 (NRRD)


CO: Norstan, Inc. ST: Minnesota IN: CPR SU: ERN

DB-CP -- MN017 -- 7237 11/23/93 11:42 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 23, 1993
Words:838
Previous Article:MUSICLAND STORES CORPORATION SELLS FOUR MILLION SHARES OF COMMON STOCK AT $18.50
Next Article:BACHMAN ANNOUNCES SUPPORT FOR POWERBUILDER 3.0
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters