SCIENCE DYNAMICS ANNOUNCES THIRD QUARTER RESULTS
SCIENCE DYNAMICS ANNOUNCES THIRD QUARTER RESULTS CHERRY HILL, N.J., Nov. 11 /PRNewswire/ -- Science Dynamics
Corporation (NASDAQ: SIDY), manufacturer of distributed microprocessor equipment for the telephone industry and cryptographic systems for government and industrial applications, announced today third quarter financial results.
SCIENCE DYNAMICS CORPORATION Periods ended Three months Six months Sept. 30 1991 1990 1991 1990 Net sales $2,010,719 $645,056 $4,285,678 $2,685,689 Operating costs and expenses 1,940,824 1,171,103 4,601,700 3,881,262 Operating (loss) 69,895 (526,047) (316,022) (1,195,573) Interest income 11,212 28,688 40,661 143,253 Income (loss) before provision (credit) for income tax 81,107 (497,359) (275,361) (1,052,320) Provision (credit) for income taxes --- (283,000) --- (114,000) Net income (loss) $81,107 $(383,359) $(275,361) $(769,320) Net income (loss) per common share and common share equivalent $.03 $(.13) $(.09) $(.26) Both the third quarter and nine month sales and profit results were much improved over the 1990 period performances. Though the very poor performance in the first quarter of this year has continued to plague the ongoing year, it is expected that the fourth quarter will continue to vastly improve the total 1991 performance. It should be noted that start-up costs for the company's subsidiary, Communications Security Corporation (CSC), has penalized the 1991 performance by almost a quarter of a million dollars, which could have increased profits had this investment not been made. This would have had the effect of almost totally eliminating the nine-month deficit. The investment in CSC for the design of cryptographic systems has been made to take advantage of the continuing ever-increasing requirement for protection of government, corporate, and personal communications security. Prototypes of encrypted desk telephones, cellular encryptors, fax encryptors, and hand-held radios have been designed and produced, with other devices scheduled for implementation. These crypto devices scramble information and descramble that information at the receiving end, when not functioning in the clear mode. It is planned that initial sales will be made to both domestic and selected foreign governmental agencies, with later sales made to telco's unregulated marketing groups, fax, and cellular providers. R&D expenditures for design of the company's digital platform has continued at the rate of 21 percent of nine-month sales. The first system, amounting to some $400,000, was delivered to Hong Kong Telephone and is successfully undergoing commissioning tests. The company said it believes that this very versatile digital platform, with the capability of myriad product offerings to telephone companies, will become the premier company sales vehicle, in concert with cryptographic systems. /delval/ -0- 11/11/91 /CONTACT: Lyndon A. Keele, president of Science Dynamics, 609-424-0068/ (SIDY) CO: Science Dynamics Corporation ST: New Jersey IN: CPR SU: ERN CC-MK -- PH006 -- 2996 11/11/91 11:13 EST
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|Date:||Nov 11, 1991|
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