STAR TECHNOLOGIES REPORTS SECOND QUARTER RESULTS
STAR TECHNOLOGIES REPORTS SECOND QUARTER RESULTS STERLING, Va., Nov. 12 /PRNewswire/ -- Star Technologies, Inc.
(NASDAQ: STRR) today announced revenue of $4.9 million for the second quarter ended Sept. 30, 1992, compared with revenue of $9.3 million for the same period last year. The company reported a loss of $283,000, or $.04 a share after preferred dividends, compared with net income of $233,000, or $0.01 a share after preferred dividends, reported for the same prior-year period.
For the six months, the company reported revenue of $11.6 million, compared with $18.8 million for the first half of last year. The company reported a net loss of $491,000, or $.08 a share after preferred dividends, compared with net income of $571,000, or $.02 a share after preferred dividends, reported for the same prior-year period. "The anticipated reduction in sales of array processors to GE Medical Systems, a principal OEM customer that has been implementing an inventory reduction program, had a sharp impact on revenue in the second quarter," said Robert C. Compton, Star's CEO. "However, our results benefited from sales of our Graphicon(TM) image generators, including activity on a Navy helicopter simulator program, and results of our aggressive cost-reduction programs initiated earlier in the year. These broad-based cost-cutting actions have reduced operating expenses by 48 percent for the quarter (as compared with the prior year) and will provide annual savings of $5 million." The company attributed the decline in revenue for the quarter to lower sales of its ST-CT array processor to GE medical Systems (GEMS) under a long-term OEM contract. As previously disclosed, sales to GEMS declined as GEMS continued to implement a program to reduce its level of on-hand inventory. The GEMS inventory reduction program, which commenced during the first quarter is expected be completed by Dec. 31, 1992. As a result, GEMS revenue is expected to remain at a comparable level for the third quarter, and then begin to gradually return to more historical levels. The GEMS decline was partially offset by sales of Graphicon image generators. During the quarter, Star continued work on the U.S. Navy's SH-60 program -- a multi-year, multimillion-dollar program to upgrade the Navy's helicopter simulation trainers. Under a subcontract, Star is supplying multiple Graphicon image generators and database services, which provide the visual imagery for the helicopter simulators. Through the end of the second quarter, the Navy has exercised five of eight potential contract options, which are valued at $8.9 million over the life of the subcontract. Aggressive cost-cutting actions moderated the impact of the quarter's anticipated revenue decline. These comprehensive and ongoing actions have sharply reduced operating expenses. The benefit of these actions is expected to continue throughout fiscal 1993. Also this quarter, Star signed an OEM distribution pact with Grant Tensor Geophysical Corp. for it to exclusively market Star array processors to the geophysical market in the People's Republic of China. With this agreement, Star's VP Series becomes the first high-speed array processor to receive an export license to China. Shipments are expected to begin in December, with initial systems going to the Daquing Oil Field, the oldest and largest oil field in China. Star Technologies, Inc. is a manufacturer of high-performance computing products, including array processors and image generators. Star is headquartered at 515 Shaw Road, Sterling, Va., 20166. Telephone 703-689-4400. Graphicon is a trademark of Star Technologies, Inc. STAR TECHNOLOGIES, INC. Comparative Results (Unaudited; in thousands, except per-share data) Periods ended Three months Six months Sept. 30: 1992 1991 1992 1991 Revenue $4,917 $9,317 $11,619 $18,809 Cost of revenue (2,665) (4,258) (6,291) (8,568) Operating expenses (2,478) (4,762) (5,707) (9,501) Operating income (loss) (226) 297 (379) 740 Interest and other expense (46) (64) (101) (169) Income taxes, net (11) -- (11) -- Net income (loss) (283) 233 (491) 571 Per share data: Net loss per common and common equivalent share ($.04) ($.01) ($.08) ($.02) Average shares outstanding 19,031 18,132 18,869 17,916 -0- 11/12/92 /CONTACT: Helen Ryan of Star Technologies, Inc., 703-689-4400, or Anne Lampert of Makovsky & Company, 212-532-6300, for Star Technologies/ (STRR) CO: Star Technologies, Inc. ST: Virginia IN: CPR SU: ERN
CK-AS -- NY050 -- 0202 11/12/92 13:02 EST
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|Date:||Nov 12, 1992|
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