PEAK TECHNOLOGIES GROUP ANNOUNCES FIRST QUARTER RESULTS.
NEW YORK, April 28 /PRNewswire/ -- The Peak Technologies Group, Inc., (NASDAQ: PEAK) today announced that it had achieved first quarter revenues of $19.3 million versus $16.6 million for the first quarter ended March 31, 1993. Net income was a loss of $95,000, or ($0.02) per share, compared to income of $105,000, or $0.04, in the first quarter of last year. After tax profit was negatively impacted by reduced revenues. Sales of data storage products were reduced by approximately $1.5 million at the end of the quarter because Peak canceled shipments to one OEM customer due to credit concerns. In addition, a major manufacturing company delayed an order in excess of $1 million as a result of management changes. SG&A increased due to additional expenses relating to the opening of new offices in Pittsburgh, Texas and California, and higher product development expenses. Commenting on these results, Nicholas H. Toms, chairman and CEO, stated, "While the first quarter tends to be the softest quarter of the year, this shortfall in net profit was very disappointing, but management deemed it to be prudent to cancel certain significant sales despite the adverse impact to earnings, rather than carry the risk of a large receivable not being paid. Some orders anticipated for the first quarter have not been completed but, in our judgment, should be completed later in the year. We have, however, experienced very positive sales growth from our core bar code lines, including those of NORAND, Zebra and Welch-Allyn, and activity is generally up in this area. Our Telpar subsidiary is showing improved results after a disappointing second half of 1992. The increases in SG&A were initiated when our sales outlook for the first quarter was much higher, and therefore would not have caused a material change in our operating margin. We believe the circumstances that negatively impacted first quarter results should be largely behind us." The Peak Technologies Group, Inc., is a full service value added distributor and systems integrator of bar code based data collection systems; mass storage systems; information systems printing equipment; and related supplies. Peak markets the products of more than 50 manufacturers. THE PEAK TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES Consolidated Statement of Operations (Dollars in thousands, except per share amounts - Unaudited) Three months ended March 31 1993 1992 Sales: Equipment $14,601 $13,525 Maintenance 4,675 3,038 Total 19,276 16,563 Cost of sales: Equipment 10,945 10,066 Maintenance 2,601 1,550 Total 13,546 11,616 Gross Profit 5,730 4,947 Selling, general, engineering and administrative expenses 5,128 3,729 Amortization of intangibles 255 278 Income from Operations 347 940 Other income (expense): Interest income 6 8 Interest expense (331) (635) Amortization of debt issuance costs (89) (88) Total (414) (715) Income (loss) before income taxes (67) 225 Provision for income taxes 28 120 Net income (loss) (95) 105 Primary and fully diluted earnings per common share $ (0.02) $ 0.04 Weighted average shares outstanding 5,434 2,630 -0- 4/28/93 /CONTACT: Nicholas Toms, chairman & CEO, 212-832-2833, Ed Stevens, executive vice president and CFO, , 410-997-6702, both of Peak Technologies Group, Desmond Towey or Bernadette McLaughlin of Desmond Towey & Associates, 212-888-7600, for Peak Technologies/ (PEAK)
CO: Peak Technologies Group, Inc. ST: New York IN: SU: ERN
SM -- NY115 -- 2327 04/28/93 17:57 EDT
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|Date:||Apr 28, 1993|
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