Printer Friendly

TELEMATICS INTERNATIONAL ANNOUNCES 53 PERCENT IMPROVED PROFITS IN SECOND QUARTER AND 71 PERCENT IN FIRST HALF OF 1992

 TELEMATICS INTERNATIONAL ANNOUNCES 53 PERCENT IMPROVED PROFITS
 IN SECOND QUARTER AND 71 PERCENT IN FIRST HALF OF 1992
 FORT LAUDERDALE, Fla., July 23 /PRNewswire/ -- Telematics International Inc. (NASDAQ: TMAX), announced today that net income for the second quarter ended June 30, 1992 was $1,977,000 or $.12 per share, a 52.9 percent increase from $1,293,000 or $.08 per share for the comparable period in 1991. Revenues for the second quarter of 1992 were $16,614,000 compared to $17,167,000 for the corresponding 1991 period. The second quarter 1992 results include an extraordinary tax credit of $512,000 or $.03 per share.
 Income before income tax provision and extraordinary credit increased $748,000 or 50.2 percent to $2,238,000 in the second quarter of 1992 as compared to $1,490,000 in the same 1991 period. This improvement was due primarily to a $662,000 or 7.4 percent decline in operating expenses, a $466,000 increase in foreign exchange gain and the elimination of equity investment losses of $256,000, offset by a $467,000 decline in the gross profit margin due to slightly reduced revenue levels and increased service spending.
 For the first six months of 1992, Telematics reported net income of $2,861,000 or $.17 per share, a 71.2 percent increase from $1,671,000 or $.10 per share for the comparable 1991 period. Revenues for the six months ended June 30, 1992 were $31,843,000 as compared to $31,741,000 for the corresponding 1991 period. The results for the six months ended June 30, 1992 include an extraordinary credit of $947,000 or $.06 per share.
 Income from operations for the six month period ended June 30, 1992 increased by $513,000 or 22.3 percent to $2,817,000 from the same period in 1991. This was largely attributable to a $1,007,000 reduction in operating expenses which was partially offset by a $494,000 decline in the gross profit margin over the comparable 1991 period due primarily to increased service spending. Other income (expense) increased $736,000 during the six month period ended June 30, 1992 over the same period in 1991 due primarily to an increase in foreign exchange gain and the elimination of equity investment losses.
 William A. Hightower, president and chief executive officer, stated, "We are pleased to report that income from operations for the first six months has improved 22.3 percent over last year with a slight increase in revenues. The company's financial position continues to strengthen with quarterly net income and net cash at their highest levels since 1988. The balance sheet reflects improvement from Dec. 31, 1991 with cash up $1,517,000 to $15,639,000, accounts receivable down $677,000 and working capital up $2,696,000 or 9.1 percent to $32,330,000 through sustained expense and asset management. The company continues to sharpen its focus on strategic customer opportunities, seeking improved profitability and higher levels of service for our customers."
 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. The company's products include a full range of programmable packet switching systems, access communications processors, T1/E1 networking multiplexers and Frame Relay switches. Telematics has approximately 360 employees worldwide. Headquartered in Fort Lauderdale, Fla., Telematics also has facilities in five domestic locations and Basingstoke, England; Paris; and Frankfurt, Germany.
 TELEMATICS INTERNATIONAL, INC.
 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
 (Unaudited)
 (In thousands, except per share data)
 Three Months Ended Six Months Ended
 June 30, June 30, June 30, June 30,
 1992 1991 (A) 1992 1991(A)
 Sales:
 Systems $ 14,202 $ 14,958 $ 26,915 $ 27,083
 Service 2,412 2,209 4,928 4,658
 16,614 17,167 31,843 31,741
 Operating costs and expenses:
 Systems cost of sales 4,801 5,141 9,454 9,344
 Services cost of sales 1,740 1,486 3,518 3,032
 Product development 2,911 3,105 5,519 6,253
 Sales and marketing 3,629 3,857 7,222 7,564
 General and administrative 1,717 1,957 3,313 3,244
 14,798 15,546 29,026 29,437
 Income from operations 1,816 1,621 2,817 2,304
 Other income (expense):
 Losses on equity investment -- (256) -- (437)
 Interest income 156 283 283 473
 Interest expense (1) (12) (2) (68)
 Foreign exchange gain (loss) 272 (194) 135 (391)
 Other (5) 48 (19) 84
 422 (131) 397 (339)
 Income before income tax
 provision and
 extraordinary credit 2,238 1,490 3,214 1,965
 Provision for income taxes 773 197 1,300 294
 Income before
 extraordinary credit 1,465 1,293 1,914 1,671
 Extraordinary credit --
 income tax benefit resulting
 from utilization of net
 operating loss carryforwards 512 -- 947 --
 Net income $ 1,977 $ 1,293 $ 2,861 $ 1,671
 Earnings per share:
 Income before
 extraordinary credit $ .09 $ .08 $ .11 $ .10
 Extraordinary credit .03 -- .06 --
 Net income $ .12 $ .08 $ .17 $ .10
 Weighted average shares
 outstanding 17,114 17,017 17,112 16,999
 (A) -- Results for three months and six months ended June 30, 1991 reflect the elimination of extraordinary credits (income tax benefits resulting from utilization of net operating loss carryforwards) of $453,000 or $.03 per share and $546,000 or $.03 per share, respectively, previously recorded based on projected taxable income for the full year and subsequently revised as the result of recording a loss for the 1991 year.
 TELEMATICS INTERNATIONAL, INC.
 CONSOLIDATED CONDENSED BALANCE SHEETS
 (In thousands)
 June 30, Dec. 31,
 1992 1991
 (Unaudited) (Audited)
 ASSETS
 Current assets:
 Cash and cash equivalents $15,639 $14,122
 Accounts receivable, net 15,100 15,777
 Inventories 7,831 7,767
 Prepaid expenses and other 1,369 1,596
 Total current assets 39,939 39,262
 Plant, equipment and leasehold
 improvements, net 3,661 3,958
 Software production costs, net 6,717 6,373
 Other assets 1,752 1,634
 $52,069 $51,227
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 1,844 $ 2,973
 Accrued compensation 1,562 1,891
 Accrued expenses and other 3,584 4,415
 Income taxes payable 619 349
 Total current liabilities 7,609 9,628
 Shareholders' equity
 Preferred stock, $1.00 par value;
 authorized 5,000,000 shares,
 issued none -- --
 Common stock, $.01 par value; a
 authorized 24,000,000 shares,
 issued and outstanding 17,106,724
 at June 30, 1992 & 17,099,524
 at Dec. 31, 1991 171 171
 Capital in excess of par value 51,465 51,465
 Retained earnings (deficit) (7,176) (10,037)
 Total shareholders' equity 44,460 41,599
 $52,069 $51,227
 -0- 7/23/92
 /CONTACT: Miriam K. Frazer, chief financial officer and corporate secretary of Telematics International, 305-772-3070/
 (TMAX) CO: Telematics International, Inc. ST: Florida IN: CPR SU: ERN


JB-SS-AW -- FL004 -- 2265 07/23/92 08:29 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 23, 1992
Words:1160
Previous Article:ACKERLEY COMMUNICATIONS' SECOND-QUARTER SALES UP 9 PERCENT; ADJUSTED OPERATING PROFIT UP 65 PERCENT
Next Article:AZTAR REPORTS GAINS AT ALL THREE PROPERTIES IN SECOND QUARTER
Topics:


Related Articles
COSTCO WHOLESALE ANNOUNCES RECORD OPERATING RESULTS FOR SECOND QUARTER, FIRST HALF OF FISCAL 1992
COSTCO WHOLESALE ANNOUNCES RECORD OPERATING RESULTS FOR SECOND QUARTER, FIRST HALF OF FISCAL 1992
TELEMATICS INTERNATIONAL ANNOUNCES INCREASED SALES AND PROFITS FOR FIRST QUARTER 1992
SIGNET BANKING CORPORATION REPORTS SECOND QUARTER EARNINGS
TENNECO REPORTS MAJOR IMPROVEMENT IN SECOND QUARTER RESULTS:
TELEMATICS INTERNATIONAL DOUBLES PROFITS YEAR-TO-DATE 1992
CONAGRA REPORTS RECORD SECOND QUARTER AND FIRST HALF EARNINGS
TELEMATICS INTERNATIONAL REPORTS RECORD FIRST QUARTER REVENUES AND INCOME
TELEMATICS ANNOUNCES RECORD SECOND QUARTER AND YEAR-TO-DATE REVENUES
GTE REPORTS INCREASE IN SECOND-QUARTER EARNINGS; EXCLUDING ONE-TIME CHARGE, EARNINGS PER SHARE WERE UP 13 PERCENT

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