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SYNERCOM ANNOUNCES NEW CHAIRMAN OF THE BOARD AND RESULTS FOR SECOND QUARTER AND SIX MONTHS

 HOUSTON, May 21 /PRNewswire/ -- Synercom Technology, Inc. (NASDAQ-NMS: SYNR) announced today that the board of directors elected Marshall D. Butler to the position of chairman of the board. Butler recently retired as the chief executive officer of AVX/Kyocera, a subsidiary of Kyocera Corporation, a diversified Japanese high technology manufacturing company. Butler remains a director of Kyocera Corporation. In 1973, Butler joined AVX Corporation, then a $20 million manufacturer of ceramic capacitors, as chief executive officer. He became chairman the following year and built AVX into the world's leading manufacturer of ceramic and tantalum capacitors with revenues in excess of $650 million.
 In 1990, AVX was merged with Kyocera Corporation. Additionally, Butler is a director of Mass Mutual Corporate Investors and Mass Mutual Participating Investors. Donald K. Grierson, former Synercom chairman of the board, was elected to the position of vice chairman of the board.
 Synercom also reported today a net loss of $199,000 or $.03 per share on revenues of $2,572,000 for the company's second quarter ended April 30, 1993 compared to net income of $51,000 or $.01 per share on revenues of $3,580,000 in the second quarter of the prior year. Results for the six months ended April 30, 1993 reflected net income of $532,000 or $.09 per share on revenues of $5,988,000. The comparable period in fiscal 1992 reflected a net loss of $566,000 or $.10 per share on revenues of $6,801,000. Included in the net loss for the quarter ended April 30, 1993 is $155,000 which in aggregate represents fees and expenses related to the selection of Robert Fleming Pacific Inc., the company's investment banker, as well as, costs incurred in the settlement with the Synercom shareholder committee. Also, included in the net loss for the quarter ended April 30, 1993 are reversals of a portion of the income tax provision and the tax benefit from net operating loss carryforwards booked in the first quarter of fiscal 1993 of $70,000 and $62,000, respectively. Income taxes for the six months ended April 30, 1993 were reduced by an extraordinary credit from tax loss carryforwards of $188,000.
 The decrease in net results for the quarter ended April 30, 1993 compared to the quarter ended April 30, 1992 was primarily due to a decrease in total revenues, offset to an extent, by decreases in cost of revenues and operating expenses. The increase in net results for the six months ended April 30, 1993 compared to the same period of the prior year was primarily due to decreases in cost of revenues and operating expenses, offset to an extent, by a decrease in total revenues.
 The decreases in total revenues for the quarter and six months ended April 30, 1993 compared to the quarter and six months ended April 30, 1992 were primarily due to a reduction in revenue from the licensing of Synercom INFORMAP software and, to a lesser extent, a reduction in revenue from the resale of other vendors' products. These reductions were offset to an extent by a slight increase in service revenues. The company is focusing on providing solutions in the arena of combining work management and AM/FM functionalities to solve organizational business problems. The company is currently implementing WMIS, its work management system, at two customer sites. Also, included in total revenues for the quarter and six months ended April 30, 1993 are $200,000 and $500,000, respectively, related to the termination of an OEM agreement.
 In response to the decrease in total revenues experienced during the previous fiscal year, management effected reductions in staff and other expenses and continues to more efficiently focus the company's resources. Cost of service revenues for the quarter and six months ended April 30, 1993 decreased 12.7 percent and 15.1 percent, respectively, compared to the quarter and six months ended April 30, 1992. Reported operating expenses, inclusive of the aforementioned $155,000, for the quarter and six months ended April 30, 1993 decreased 20.1 percent and 24.3 percent compared to the quarter and six months ended April 30, 1992.
 Financial results can fluctuate from quarter to quarter and period to period as a result of the company's having a high concentration of large customers and also as a result of the timing of the build-out of customer spatial solutions. Purchase orders are issued throughout the build-out period at the customer's discretion.
 Synercom provides foundation technologies for spatial solutions that manage geographically dispersed assets and related information for major utilities and municipalities worldwide. By creating client-unique applications and integrating them with these foundation technologies, Synercom increases the efficiency, accuracy and cost- effectiveness of client activities that utilize spatial information. Synercom common stock is traded on the NASDAQ National Market System under the symbol SYNR.
 SYNERCOM TECHNOLOGY, INC.
 (Unaudited)
 Financial Highlights
 Quarter ended April 30 1993 1992
 Product licensing and sales $ 670,000 $ 1,849,000
 Services 1,902,000 1,731,000
 Total revenues 2,572,000 3,580,000
 Gross profit 1,512,000 2,206,000
 Operating expenses (A) 1,807,000 2,262,000
 Interest income 88,000 107,000
 Income (loss) before extraordinary
 charge (137,000) 51,000
 Extraordinary charge (B) (62,000) -
 Net income (loss) (199,000) 51,000
 Income (loss) per share before
 extraordinary charge ($0.02) $.01
 Net income (loss) per share ($0.03) $.01
 Shares used in computing net income
 (loss) per share 5,751,000 5,860,000
 Six Months Ended April 30 1993 1992
 Product licensing and sales $ 2,432,000 $ 3,394,000
 Services 3,556,000 3,407,000
 Total revenues 5,988,000 6,801,000
 Gross profit 3,942,000 3,927,000
 Operating expenses (A) 3,582,000 4,734,000
 Interest income 173,000 241,000
 Income (loss) before extraordinary
 credit 344,000 (566,000)
 Extraordinary credit (C) 188,000 -
 Net income (loss) 532,000 (566,000)
 Income (loss) per share before
 extraordinary credit $0.06 ($.10)
 Net income (loss) per share $0.09 ($.10)
 Shares used in computing net income
 (loss) per share 5,919,000 5,716,000
 (A) -- Capitalized research and development costs were $269,000 for the quarter ended April 30, 1992; and $31,000 and $411,000, respectively, for the six months ended April 30, 1993 and 1992.
 (B) -- A portion of the tax benefit from net operating loss carryforwards booked in the first quarter of fiscal 1993 was reversed due to the pre-tax loss recorded in the second quarter of fiscal 1993.
 (C) -- Tax benefit from net operating loss carryforwards. Selected Balance Sheet Data (Unaudited)
 April 30, 1993 1992
 Cash, cash equivalents and short-term
 investments $11,011,000 $10,477,000
 Working capital 8,437,000 9,972,000
 Total assets 15,855,000 17,284,000
 Stockholders' equity 11,060,000 13,773,000
 -0- 5/21/93
 /NOTE TO EDITORS: SYNERCOM and INFORMAP are registered trademarks of Synercom Technology, Inc./
 /CONTACT: David J. Stewart, president and chief executive officer of Synercom Technology, Inc., 713-954-7000/
 (SYNR)


CO: Synercom Technology, Inc. ST: Texas IN: SU: ERN PER

TS -- NY011 -- 1107 05/21/93 09:27 EDT
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Date:May 21, 1993
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