Printer Friendly

TELEMATICS ANNOUNCES RECORD SECOND QUARTER AND YEAR-TO-DATE REVENUES

 FORT LAUDERDALE, Fla., July 20 /PRNewswire/ -- Telematics International, Inc. (NASDAQ: TMAX) announced today record revenues of $19,249,000 for the second quarter of 1993, up $2,635,000 or 16 percent vs. $16,614,000 for the comparable 1992 period which generated a 40 percent increase in income from operations. Second quarter 1993 income before extraordinary credit was $1,847,000 or $.11 per share compared to $1,465,000 or $.09 per share in the same period in 1992. Net income for the second quarter of 1993 was $1,847,000 or $.11 per share compared to $1,977,000 or $.12 per share during the same period in 1992. The second quarter 1992 results included a $512,000 or $.03 per share extraordinary tax credit.
 Income from operations for the three months ended June 30, 1993 was $2,538,000, up $722,000 or 40 percent over $1,816,000 in the corresponding 1992 period. This is attributable to a $1,786,000 increase in the gross profit margin, largely due to an increase in new product sales related to the support of frame relay customer applications, which was partially offset by a $1,064,000 increase in operating expenses due primarily to increased personnel related expenses, travel expenses, professional fees and additional software development expense.
 For the six months ended June 30, 1993, revenues were $35,352,000, up $3,509,000 or 11 percent compared to $31,843,000 for the corresponding 1992 period. Income from operations amounted to $3,974,000 for the six-month period ended June 30, 1993, up $1,157,000 or 41 percent from $2,817,000 in the corresponding 1992 period. Improvement in the first six months of 1993 is due to a $2,848,000 or 15 percent increase in the gross profit margin largely due to an increase in new product sales related to the support of frame relay customer applications and improved inventory management over the prior year, which is partially offset by a $1,691,000 or 11 percent increase in operating expenses to $17,745,000 compared to $16,054,000 in the same period in 1992 due to increased personnel related expenses, additional software development expense and increased travel expenses.
 The company reported net income of $3,729,000 or $.21 per share for the six-month period ended June 30, 1993, a $868,000 or 30 percent increase from the comparable period in 1992. The results for the first six months of 1992 included an extraordinary tax credit of $947,000 or $.06 per share, while the results for the current year include an $887,000 or $.05 per share increase in net income which represents the cumulative effect of a change in the method of accounting for income taxes as required by FAS 109, "Accounting for Income Taxes."
 William A. Hightower, president and chief executive office, stated, "We are pleased with the positive market acceptance of Telematics' new subscriber oriented networking strategy and resultant products announced in late 1992. The company achieved record revenues for both the first and second quarters in 1993, with second quarter revenues up 16 percent to $19.2 million over the same period in the prior year. Despite the continued competitive pressures in the marketplace, we are pleased to report a 31 percent and 7 percent increase in domestic and international revenues, respectively, during the second quarter of 1993 over the prior year. Operating income increased approximately 40 percent for the three-month period ended June 30, 1993 over the comparable 1992 period."
 He added, "The company achieved record revenues for the first six months in 1993, an increase of 11 percent to $35.4 million over the same period in 1992, with domestic revenues up 13 percent and international revenues up 9 percent. Operating income increased approximately 41 percent for the six-month period ended June 30, 1993 over the same period in 1992. The company's financial position continues to strengthen with cash at approximately $19.7 million, working capital up $3.7 million from year-end 1992 to $39.2 million and a current ratio of 6:1."
 Founded in 1982, Telematics designs, manufactures, sells and supports a complete line of wide area networking products designed for voice and data communications applications and networks worldwide. This includes a full range of programmable packet switching systems, frame relay systems, access communications processors and T1/E1 networking multiplexers. Telematics, headquartered in Fort Lauderdale, Fla., has approximately 380 employees worldwide with facilities in five U.S. locations, Basingstoke, England, Frankfurt, Germany, and Paris.
 TELEMATICS INTERNATIONAL, INC.
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except per share data)
 (Unaudited)
 Three Months Ended Six Months Ended
 June 30 June 30 June 30 June 30
 1993 1992 1993 1992
 Sales:
 Systems $ 16,596 $ 14,202 $ 29,931 $ 26,915
 Service 2,653 2,412 5,421 4,928
 19,249 16,614 35,352 31,843
 Operating costs and expenses:
 Systems cost of sales 5,345 4,801 9,840 9,454
 Service cost of sales 2,045 1,740 3,793 3,518
 Product development 3,226 2,911 6,141 5,519
 Sales and marketing 4,111 3,629 7,835 7,222
 General and administrative 1,984 1,717 3,769 3,313
 16,711 14,798 31,378 29,026
 Income from operations 2,538 1,816 3,974 2,817
 Other income (expense):
 Interest income 164 156 323 283
 Interest expense (1) (1) (1) (2)
 Foreign exchange
 gain (loss) 10 272 28 135
 Other (35) (5) (206) (19)
 138 422 144 397
 Income before income
 taxes 2,676 2,238 4,118 3,214
 Provision for income taxes 829 773 1,276 1,300
 Income before extraordinary
 credit and cumulative
 effect of change in
 accounting method 1,847 1,465 2,842 1,914
 Extraordinary tax credit
 resulting from utilization
 of loss carryforwards --- 512 --- 947
 Cumulative effect of change
 in accounting method --- --- 887 ---
 Net income $ 1,847 $ 1,977 $ 3,729 $ 2,861
 Earnings per share:
 Income before
 extraordinary credit
 and cumulative effect
 of change in accounting
 method $ .11 $ .09 $ .16 $ .11
 Extraordinary credit --- .03 --- .06
 Cumulative effect of
 change in accounting
 method --- --- .05 ---
 Net income $ .11 $ .12 $ .21 $ .17
 Weighted average
 shares outstanding 17,520 17,114 17,594 17,112
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 June 30, Dec. 31,
 1993 1992
 (Unaudited) (Audited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 19,734 $ 19,414
 Accounts receivable, net 18,134 15,477
 Inventories 7,635 6,329
 Refundable income taxes 318 330
 Deferred income taxes 368 ---
 Prepaid expenses and other 1,276 1,051
 Total current assets 47,465 42,601
 Equipment and leasehold
 improvements, net 4,480 3,991
 Software production costs, net 7,113 7,076
 Deferred income taxes 772 ---
 Other assets 1,076 1,584
 $ 60,906 $ 55,252
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 1,719 $ 2,048
 Accrued compensation 2,217 2,075
 Accrued expenses and other 3,999 2,587
 Income taxes payable 308 35
 Deferred income taxes 53 398
 Total current liabilities 8,296 7,143
 Long-term deferred facility costs 1,103 992
 Total liabilities 9,399 8,135
 Shareholders' equity:
 Preferred stock, $1.00 par value;
 authorized 5 million shares,
 issued none --- ---
 Common stock, $.01 par value;
 authorized 24 million shares,
 issued 17,323,234 at June 30,
 1993 and 17,181,434 at
 Dec. 31, 1992 173 172
 Capital in excess of par value 52,463 51,803
 Treasury stock at cost, 559,000
 shares (1,587) (1,587)
 Retained earnings (deficit) 458 (3,271)
 Total shareholders' equity 51,507 47,117
 $ 60,906 $ 55,252
 -0- 7/20/93
 /CONTACT: William A. Hightower, president and chief executive officer of Telematics International, 305-772-3070/
 (TMAX)


CO: Telematics International, Inc. ST: Florida IN: CPR SU: ERN

AW-RC -- FL001 -- 6554 07/20/93 08:26 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 20, 1993
Words:1314
Previous Article:APACHE REPORTS SECOND QUARTER NET INCOME OF $11.5 MILLION
Next Article:TELEMATICS ANNOUNCES RESIGNATION OF CFO
Topics:


Related Articles
TELEMATICS INTERNATIONAL TO REPORT IMPROVED OPERATING INCOME FOR 1991 AND UNUSUAL FOURTH QUARTER CHARGES
TELEMATICS INTERNATIONAL ANNOUNCES INCREASED SALES AND PROFITS FOR FIRST QUARTER 1992
TELEMATICS INTERNATIONAL ANNOUNCES 53 PERCENT IMPROVED PROFITS IN SECOND QUARTER AND 71 PERCENT IN FIRST HALF OF 1992
TELEMATICS INTERNATIONAL DOUBLES PROFITS YEAR-TO-DATE 1992
TELEMATICS INTERNATIONAL POSTS RECORD PROFITS IN 1992
TELEMATICS INTERNATIONAL REPORTS RECORD FIRST QUARTER REVENUES AND INCOME
Gentex Reports Record Revenues for the Second Quarter of 2000.
I/NET Reports Second-Quarter Results.
Astrata Grows Telematics Revenue by More Than 55% in Second Quarter Fiscal 2006.
Ituran Location and Control Ltd. Presents Record Revenues for the Fourth Quarter and Full Year of 2007.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters