Printer Friendly

ORTHOMET ANNOUNCES RESULTS

 ORTHOMET ANNOUNCES RESULTS
 MINNEAPOLIS, April 22 /PRNewswire/ -- Orthomet, Inc. (NASDAQ: OMET)


announced final results for its fiscal third quarter ended March 31, 1992, confirming a preliminary announcement made March 23 that the quarter's sales would be disappointing and that the company would report a loss.
 Sales in the third quarter were $3,421,000 versus $4,246,000 in the comparable period last year. The loss in the third quarter was $1,093,000, or $.25 per share; a year ago, Orthomet earned $277,000, or $.09 per share, in the third quarter. The loss was due primarily to the sales performance, but also included a one-time charge of $210,000, or $.05 per share, for severance benefits related to reductions in executive staff that were announced earlier this month.
 For the nine months ended March 31, 1992, sales were $11,422,000 and the loss was $1,422,000, or $.36 per share, compared to the prior year's nine month sales of $11,557,000 and loss of $1,684,000, or $.55 per share.
 The company had previously reported that sales results in the third quarter were affected in part by certain of its stocking distributors not making product purchases in order to adjust their inventory levels. Richard D. Nikolaev, chairman and chief executive, said, "The number of our devices actually being implanted continues to increase along with acceptance and demand on the part of physicians. Our number one priority is to meet this demand by strengthening and expanding distribution channels, working with existing distributors and with the sales agent network we have been building to gain nationwide coverage."
 Nikolaev added, "While fourth quarter sales levels should improve slightly over the third quarter, we will incur a loss for the full fiscal year that will end June 30, 1992."
 Orthomet stated that it will continue to pursue the acquisition of Endotec, Inc. under an agreement in principle announced Feb. 25, 1992. If completed, the acquisition would add to Orthomet's position in the reconstructive hip market and expand its implantable products offerings.
 Orthomet, Inc. is in the business of designing, manufacturing and marketing selected orthopedic reconstructive implant products and related surgical instrumentation.
 ORTHOMET, INC.
 STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
 Three Months Ended Nine Months Ended
 3/31/92 3/31/91 3/31/92 3/31/91
 Net sales $3,421 $4,246 $11,422 $11,557
 Cost of sales 1,677 1,675 5,496 4,856
 Gross profit 1,744 2,571 5,926 6,701
 Operating expenses (income):
 Sales and marketing 1,246 1,063 3,372 2,793
 General and administrative 905 844 2,375 2,408
 Research and development 433 329 1,132 1,025
 Provision for inventory --- --- --- 1,750
 Provision for officer
 severance 210 --- 210 275
 Other operating (income) (21) (40) (68) (87)
 --- 2,773 2,196 7,021 8,164
 Operating earnings (loss) (1,029) 375 (1,095) (1,463)
 Other income (expense):
 Interest and financing
 expense (67) (83) (315) (153)
 Interest income 33 15 78 22
 Earnings (loss) before income
 taxes (1,063) 307 (1,332) (1,594)
 Income taxes (benefit) --- --- --- ---
 Net earnings (loss) (1,063) 307 (1,332) (1,594)
 Less preferred stock cash
 dividends 30 30 90 90
 Net earnings (loss) applicable
 to common stock $(1,093) $277 $(1,422) $(1,684)
 Earnings (loss) per common
 share $(.25) $.09 $(.36) $(.55)
 Weighted average number of
 common shares and common
 share equivalents
 outstanding 4,296,566 3,137,299 3,918,310 3,064,224
 ORTHOMET, INC.
 BALANCE SHEETS
 (In thousands, except per share amounts)
 3/31/92 6/30/91
 Assets
 Current assets:
 Cash and cash equivalents $3,558 $261
 Accounts receivable (net) 2,598 4,649
 Employee and distribution advances 177 16
 Officer notes and receivables --- 16
 Inventories 6,139 6,963
 Prepaid expenses and other assets 389 378
 Total current assets 12,861 12,283
 Property and equipment (net) 3,807 4,058
 Other assets 299 83
 Total assets $16,967 $16,424
 Liabilities and shareholders' equity
 Current liabilities:
 Notes payable to bank --- $1,916
 Notes payable to directors --- 650
 Accounts payable 1,049 1,680
 Employee compensation 357 420
 Other liabilies and accrued expenses 543 644
 Accrued severance costs 261 193
 Accrued rework costs 36 200
 Current portion of lease obligation 284 251
 Total current liabilities 2,530 5,954
 Lease obligations 918 1,022
 Redeemable convertible preferred
 stock 2,000 2,000
 Shareholders' equity:
 Common stock, par value $.10 per share
 -- authorized -- 7,500,000 shares;
 issued and outstanding March 31, 1992
 -- 4,308,858 shares; June 30, 1991 --
 3,120,547 shares 430 312
 Additional paid-in capital 15,342 9,968
 Retained earnings (deficit) (4,253) (2,832)
 Total shareholders' equity 11,519 7,448
 Total liabilities and
 shareholders' equity $16,967 $16,424
 -0- 4/22/92
 /CONTACT: James C. Hawley of Orthomet, 612-944-6112/
 (OMET) CO: Orthomet ST: Minnesota IN: MTC SU: ERN


MA -- MN014 -- 1431 04/22/92 16:05 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 22, 1992
Words:833
Previous Article:FISHER-PRICE REPORTS FIRST QUARTER PROFITS
Next Article:HARMON REPORTS PROFIT FOR FIRST QUARTER 1992


Related Articles
ORTHOMET ADDS VICE PRESIDENT, SALES
ORTHOMET ANNOUNCES APPOINTMENT OF CHAIRMAN AND CEO
ORTHOMET REPORTS SECOND QUARTER RESULTS
ORTHOMET ANNOUNCES AGREEMENT TO ACQUIRE ENDOTEC
ORTHOMET PROJECTS THIRD QUARTER LOSS
ORTHOMET ANNOUNCES EXECUTIVE CHANGES
ORTHOMET ANNOUNCES FOURTH QUARTER RESULTS
ORTHOMET NAMES HAWLEY EXECUTIVE VICE PRESIDENT; ANNOUNCES FDA HAS APPROVED IMPORTANT KNEE IMPLANT PRODUCT FOR MARKETING
ORTHOMET NAMES HAWLEY EXECUTIVE VICE PRESIDENT; ANNOUNCES FDA HAS APPROVED IMPORTANT KNEE IMPLANT PRODUCT FOR MARKETING
ORTHOMET ANNOUNCES TERMINATION OF DISCUSSION WITH ENDOTEC

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters