RECOGNITION ANNOUNCES IMPROVED FIRST QUARTER RESULTS
RECOGNITION ANNOUNCES IMPROVED FIRST QUARTER RESULTS DALLAS, Feb. 20 /PRNewswire/ -- Recognition Equipment Incorporated
(NYSE: REC) (REI) today reported net income for the quarter ended Jan. 31, 1992, of $314,000, or 3 cents of primary earnings per share of common stock, compared to net income of $3,619,000, or 36 cents of primary earnings per share of common stock, for the same period of 1991. The results of operations for 1991 would have been a net loss of $1,922,000, or 19 cents per share of common stock, had the gain of $5,541,000, or 55 cents per share of common stock, for the sale of the Wand Products Division been excluded.
Revenues for the quarter ended Jan. 31, 1992, increased 15 percent to $41,719,000 compared to $36,224,000 for the first quarter of 1991. The improvement in revenues was a result of the shipment of a large order to the Japanese government which was entered into the company's backlog during the first quarter of 1991. The company's total backlog of orders believed to be firm at Jan. 31, 1992, of $35,030,000 declined as compared to the $38,753,000 of backlog at Jan. 31, 1991, due to the shipment of this order. Commenting on the results for the first quarter of 1992, Bob Vanourek, chief executive officer, said, "We are pleased with our results for the first quarter of 1992 as compared with 1991. The U.S. recession has expanded to worldwide proportions and continues to slow our revitalization. We continue to prudently invest in product development and our marketing channels to enhance our position as a leader in automating work processes for our customers." REI previously announced the signing of a letter of intent with TransTechnology Corporation of Los Angeles for REI to purchase certain assets of the Lundy Financial Systems Division, including the remittance processing, item exception and financial management systems businesses. The proposed transaction is subject to due diligence by REI, completion of a mutually satisfactory definitive agreement and approval of the boards of directors of both companies. REI, headquartered in Dallas, manufactures, sells and services automated work processing systems for customers throughout the world. RECOGNITION EQUIPMENT INCORPORATED Condensed Consolidated Statement of Operations (Unaudited) Three months ended Jan. 31: 1992 1991 Revenues $41,719,000 $36,224,000 Income before income taxes 2,061,000 4,457,000 Provision for income taxes (1,747,000) (838,000) Net income $314,000 $3,619,000 Earnings per share - primary (A) $.03 $.36 Earnings per share - assuming full dilution(A) $.02 $.33 (A) The weighted average common shares outstanding for the three-month periods ended Jan. 31 are: (1992) 12,498,000 and (1991) 10,177,000. The fully diluted weighted average shares outstanding for the three-month periods ended Jan. 31 are: (1992) 12,750,000 and (1991) 15,022,000. RECOGNITION EQUIPMENT INCORPORATED AND SUBSIDIARIES Consolidated Statement of Operations (Thousands, except per share - Unaudited) Three months ended Jan. 31 1992 1991 Revenues: Product $19,142 $14,408 Customer service 22,577 21,816 Total 41,719 36,224 Cost of revenues: Product 11,147 8,297 Customer service 15,818 15,935 Total 26,965 24,232 Gross profit 14,754 11,992 Operating expenses: Research and development 1,969 2,426 Marketing 5,874 6,155 General and administrative 3,220 3,189 Restructuring -- (5,431) Other operating 1,095 685 Operating income 2,596 4,968 Interest income 1,388 1,662 Interest expense - related party -- (392) Interest expense - other (1,195) (1,278) Foreign exchange losses - net (357) (146) Other expense - net (371) (357) Income before income taxes 2,061 4,457 Provision for income taxes (1,747) (838) Net income $314 $3,619 Earnings per share - primary $.03 $.36 Earnings per share - assuming full dilution $.02 $.33 Weighted average share outstanding: Primary 12,498 10,177 Fully diluted 12,750 15,022 -0- 2/20/92 /CONTACT: Larry H. Lattig of Recognition Equipment, 214-579-6314/ (REC) CO: Recognition Equipment Incorporated ST: Texas IN: CPR SU: ERN SM -- NY026 -- 0846 02/20/92 10:28 EST
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|Date:||Feb 20, 1992|
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