SAZTEC INTERNATIONAL REPORTS RESULTS OF FIRST QUARTER FISCAL 1992
TWO NEW ACQUISITIONS ANNOUNCED
KANSAS CITY, Mo., Nov. 1 /PRNewswire/ -- SAZTEC International Inc. (NASDAQ: SAZZ) of Kansas City, today announced the results for the first quarter of fiscal 1992, ended Sept. 30, 1991.
As expected for the first quarter of 1992, the company announced a net loss of $331,212, or 9 cents per share, on revenues of $5,017,551. For the first quarter of 1991, the company reported a net income of $83,170, or 2 cents per share, on revenues of $5,983,579.
"The first quarter results were disappointing, but in line with our earlier forecast," said Richard C. Thompson, SAZTEC's president and chief operating officer. "But in September and October, we saw the start of a recovery which resulted in strong increases in our business. Because of this trend, we are optimistic about our second quarter."
SAZTEC continues to pursue an aggressive acquisition strategy and announced two more transactions, making a total of five acquisitions with the past year.
The first of these acquisitions was Castle Microfilm Service located in Winchester, England. This 12-year-old company generates approximately $1.5 million in annual revenues and performs traditional microfilm services for a variety of businesses, including SAZTEC.
"Castle enjoys an excellent reputation and has been consistently profitable," said Gary N. Abernathy, vice chairman and chief international officer. "They recognize the need to incorporate electronic imaging technology into their operations and looked to SAZTEC, which had an established capability in image processing, for a complementary partnership."
Castle will be acquired for cash and stock and will operate as a wholly-owned subsidiary of SAZTEC Europe contingent upon a transaction expected to be completed within several weeks.
The second SAZTEC acquisition will be operated as a subsidiary company under the name of Chartnet Inc., a medical transcription business with operations in Dallas, and Manila, Philippines. "This acquisition will initially generate modest revenues, but it is strategically very significant. It represents an opportunity to enter the medical transcription marketplace by using off-shore resources in the same way that such resources have been utilized for years in the information conversion business," said Robert P. Dunne, chairman.
"Chartnet will add to the utilization of our Information Conversion Express (ICE)(SM) network which already links our U.S. offices to production facilities in Manila by utilizing high-speed, fiber-optic circuits," Dunne added. Terms of the acquisition were not disclosed.
SAZTEC International, a world leader in information management, provides services for database construction and information conversion utilizing computer processing, electronic imaging, optical character recognition, data entry and other technologies.
SAZTEC International, is traded in the over-the-counter market and is quoted on NASDAQ under the symbol SAZZ. For more information, contact David W. Roberts, senior vice president, treasurer, SAZTEC International Inc., 6700 Corporate Dr., Kansas City, MO 64120. The telephone number is 816-483-6900.
SAZTEC INTERNATIONAL INC.
For The Three Months Ended
Revenue $5,017,551 $5,983,579
Gross Profit $936,033 $1,747,897
Net income (loss) $(331,212) $83,170
Earnings per share (loss) $(.09) $.02
Weighted average number
of shares outstanding 3,508,038 3,702,878
/CONTACT: David W. Roberts of SAZTEC International, 816-483-6900/
(SAZZ) CO: SAZTEC International inc. ST: Missouri IN: CPR SU: ERN BB -- DV009 -- 0353 11/01/91 16:03 EST