OXBORO MEDICAL INTERNATIONAL REPORTS FISCAL YEAR RESULTS
OXBORO MEDICAL INTERNATIONAL REPORTS FISCAL YEAR RESULTS MINNEAPOLIS, Dec. 30 / PRNewswire / -- Oxboro Medical International,
Inc. (NASDAQ: OMED) announced today that net sales increased 13.5 percent to $2,663,313 during the fiscal year ended Sept. 30, 1991, up from $2,345,719 during the same period last year.
The company's net income, negatively affected by a $518,000 non- recurring settlement charge against operations, was $110,671, or $.05 per share, for the 12 months ended Sept. 30, 1991 compared to $478,620, or $.22 per share, for the same period one year ago. The settlement charge consisted of $460,000 in damages including costs, disbursements, interest, and legal fees awarded plaintiffs from litigation in which a former officer and the company were named as defendants. The legal action, which was initiated in 1988 by three former employees, alleged sexual harassment and sexual and religious discrimination. An additional $25,000 was assessed by the State of Minnesota as a civil penalty. Also, the company incurred an additional $33,000 of legal fees in connection with the settlement. Gross profit margin decreased to 74.0 percent of net sales during fiscal year 1991, compared to 76.5 percent last year primarily due to increased competition in markets served by the company. Selling, general, and
administrative expenses increased from 47.1 percent in 1990 to 49.3 percent of net sales in 1991 mainly due to additional legal expenses related to ongoing litigation and compensation increases, including bonuses based on operating results.
Harley Haase, Oxboro's president, stated, "While we are very disappointed about the magnitude of the settlement charge and the effect this has had on fiscal 1991 financial performance, results of operations during the year generally confirm the strength of Oxboro's core business. We increased sales by broadening our customer base, increasing sales to existing customers, and introducing new products. We also took advantage of an excellent business opportunity by building our new corporate headquarters in Ham Lake which allows for expansion in the future." Haase also noted, "Preliminary indications of Oxboro's first quarter operations indicate that the trend of increasing sales should continue throughout fiscal year 1992, while earnings should better reflect the strong continuing operations of the company." Oxboro Medical International, Inc., through its wholly owned subsidiary, Oxboro Medical, Inc., develops, manufactures, and markets medical and surgical devices. OXBORO MEDICAL INTERNATIONAL CONSOLIDATED STATEMENTS OF EARNINGS Years ended September 30 1991 1990 Net sales $2,663,313 $2,345,719 Cost of goods sold 691,865 550,429 Gross margin 1,971,448 1,795,290 Selling, general and administrative expenses 1,313,432 1,105,230 Interest expense (37,526) (10,493) Nonrecurring settlement charge (518,000) --- Loss from limited partnership (24,000) --- Other income, primarily interest 107,181 69,053 Earnings before income taxes 185,671 748,620 Income taxes 75,000 270,000 Net earnings $110,671 $478,620 Earnings per common and common equivalent share $.05 $.22 Weighted average common and common equivalent shares outstanding 2,474,709 2,209,780 -0- 12/30/91 /CONTACT: Harley Haase, president & CEO of Oxboro Medical International, 612-755-9516; or Tom de Petra of de Petra & Associates, 612-338-7630, for Oxboro Medical International/ (OMED) CO: Oxboro Medical International, Inc ST: Minnesota IN: MTC SU: ERN
KH -- MN004 -- 5732 12/30/91 16:35 EST
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|Date:||Dec 30, 1991|
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