Printer Friendly

TELEMATICS INTERNATIONAL POSTS RECORD PROFITS IN 1992

 FORT LAUDERDALE, Fla., Feb. 16 /PRNewswire/ -- Telematics International, Inc. (NASDAQ: TMAX) announced today that revenues for the year ended Dec. 31, 1992 were $67,254,000, compared to $64,413,000 in 1991. Income from operations for the year ended Dec. 31, 1992 is up $3,227,000 or 87.1 percent to $6,932,000 from $3,705,000 in 1991. This is attributable to a $2,118,000 or 5.5 percent increase in gross profit margin primarily due to higher revenue levels, reduced spending and a $1,109,000 or 3.2 percent reduction in operating expenses.
 The company reported net income of $6,766,000 or $.40 per share for 1992, a $10,532,000 increase from a net loss of ($3,766,000) or ($.22) per share in 1991. The results for 1992 include an extraordinary tax credit of $1,290,000 or $.08 per share. The net loss for 1991 was due primarily to unusual fourth quarter charges of: $3,843,000 associated with restructuring activities; $2,150,000 related to the write-off of the company's loans and minority investment in Network Automation Holdings, Pty. Ltd.; and $1,215,000 in professional fees associated with terminated merger negotiations.
 For the quarter ended Dec. 31, 1992, revenues were $18,526,000 as compared to $17,634,000 for the corresponding 1991 period. Income from operations amounted to $1,989,000 in the fourth quarter of 1992, up $1,336,000 or 204.6 percent from $653,000 in the corresponding 1991 period. Improvement in the quarter ended Dec. 31, 1992 is due to a $1,090,000 or 10.5 percent increase in the gross profit margin and a $246,000 or 2.5 percent reduction in operating expenses compared to the same period in 1991.
 The company had net income of $2,026,000 or $.12 per share for the quarter ended Dec. 31, 1992, which includes an extraordinary tax credit of $314,000 or $.02 per share, as compared to a net loss of ($5,868,000) or ($.34) per share for the corresponding period in 1991.
 William A. Hightower, president and chief executive officer, stated, "The company achieved its 1992 goal of returning to sustained profitability by achieving record profits, increasing shareholder value and introducing new products into the marketplace to position the company for long-term growth. In 1992, the company's financial strength continued to improve with cash up $5,292,000 or 37 percent to $19,414,000, inventories down 19 percent and working capital up 17 percent over the prior year despite the worldwide economic recession." He added, "Telematics has maintained its commitment to product development as evidenced in November of 1992 with the introduction of one of the most complete frame and cell relay product lines in the industry. We believe these new product lines will provide our customers a seamless migration path to substantially improved networking price- performance while protecting their initial capital investments. These new offerings along with our current products and services should provide Telematics the opportunity for future revenue growth and improved profitability."
 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 360 employees worldwide with facilities in five U.S. locations; Basingstoke, England; Frankfurt, Germany; and Paris.
 TELEMATICS INTERNATIONAL, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share data)
 Three Months Ended 12 Months Ended
 (Unaudited) (Audited)
 Dec. 31 Dec. 31 Dec. 31 Dec. 31
 1992 1991 1992 1991
 Sales:
 Systems $ 15,808 $ 15,358 $ 57,013 $ 55,275
 Service 2,718 2,276 10,241 9,138
 18,526 17,634 67,254 64,413
 Operating costs and expenses:
 Systems cost of sales 5,304 5,626 19,457 19,544
 Service cost of sales 1,799 1,675 7,179 6,369
 Product development 2,963 3,536 11,348 12,667
 Sales and marketing 4,399 4,325 15,179 15,754
 General and administrative 2,072 1,819 7,159 6,374
 16,537 16,981 60,322 60,708
 Income from operations 1,989 653 6,932 3,705
 Other income (expense):
 Loss from equity investment --- (267) --- (950)
 Interest income 149 158 574 831
 Interest expense (2) (9) (4) (83)
 Foreign exchange
 gain (loss) (498) 408 (632) 170
 Restructuring and other (50) (3,834) 126 (3,730)
 Abandoned merger expenses --- (1,215) --- (1,215)
 Loss on writeoff of
 loans & investments --- (2,150) --- (2,150)
 (401) (6,909) 64 (7,127)
 Income (loss) before income
 tax provision and
 extraordinary credit 1,588 (6,256) 6,996 (3,422)
 Provision for income taxes (124) (388) 1,520 344
 Income (loss) before
 extraordinary credit 1,712 (5,868) 5,476 (3,766)
 Extraordinary credit --
 income tax benefit
 resulting from
 utilization of net
 operating loss carryforwards 314 --- 1,290 ---
 Net income (loss) $ 2,026 $ (5,868) $ 6,766 $ (3,766)
 Earnings (loss) per share:
 Income (loss) before
 extraordinary credit $ .10 $ (0.34) $ .32 $ (0.22)
 Extraordinary credit .02 --- .08 ---
 Net income (loss) $ .12 $ (0.34) $ .40 $ (0.22)
 Weighted average
 shares outstanding 17,302 17,106 17,091 17,062
 CONSOLIDATED BALANCE SHEETS
 (Audited)
 (In thousands)
 Dec. 31, Dec. 31,
 1992 1991 (A)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 19,414 $ 14,122
 Accounts receivable, net 15,477 15,777
 Inventories 6,329 7,767
 Refundable income taxes 330 66
 Prepaid expenses and other 1,051 1,530
 Total current assets 42,601 39,262
 Plant, equipment and leasehold
 improvements, net 3,991 3,958
 Software production costs, net 7,076 6,373
 Other assets 1,584 1,634
 $ 55,252 $ 51,227
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 2,048 $ 2,973
 Accrued compensation 2,075 1,891
 Accrued expenses and other 2,587 3,865
 Income taxes payable 35 349
 Deferred income taxes 398 ---
 Total current liabilities 7,143 9,078
 Long-term deferred facility costs 992 550
 Total liabilities 8,135 9,628
 Shareholders' equity:
 Preferred stock, $1.00 par value;
 authorized 5,000,000 shares,
 issued none --- ---
 Common stock, $.01 par value;
 authorized 24,000,000 shares,
 issued 17,181,434 at Dec. 31,
 1992 and 17,099,524 at
 Dec. 31, 1991 172 171
 Capital in excess of par value 51,803 51,465
 Treasury stock at cost, 559,000
 shares in 1992 (1,587) ---
 Retained earnings (deficit) (3,271) (10,037)
 Total shareholders' equity 47,117 41,599
 $ 55,252 $ 51,227
 (A) -- Certain accounts as of Dec. 31, 1991 have been reclassified to conform to the Dec. 31, 1992 presentation.
 -0- 2/16/93
 /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

AW-CM -- FL001 -- 6691 02/16/93 08:25 EST
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:Feb 16, 1993
Words:1172
Previous Article:DCX INC. FIRST QUARTER EARNINGS DOWN
Next Article:U.S. ALCOHOL TESTING OF AMERICA INC. ANNOUNCES REVENUE AND LOSSES
Topics:


Related Articles
TELEMATICS INTERNATIONAL ANNOUNCES THREATENED LAWSUIT
TELEMATICS REPORTS FRAME RELAY SUCCESS FOR GE INFORMATION SERVICES
TELEMATICS INTERNATIONAL DOUBLES PROFITS YEAR-TO-DATE 1992
DATA SWITCH POSTS THIRD-QUARTER PROFIT
TELEMATICS ANNOUNCES NINE NEW FRAME RELAY PLATFORMS SPANNING ACCESS, ADAPTION AND BACKBONE FUNCTIONS UP TO 150,000 SWITCHED FRAMES PER SECOND
TELEMATICS INTERNATIONAL ANNOUNCES NEW LAN STRATEGY FOR MULTI-PROTOCOL ACCESS; COMPLETE SUITE OF LAN SOLUTIONS FOR ALL TCP/IP APPLICATIONS
TELEMATICS SETS RECORD DATE AND SPECIAL MEETING DATE TO APPROVE PROPOSED MERGER WITH ECI TELECOM
TELEMATICS TO INSTALL AND MANAGE THE SUPPORTING INFRASTRUCTURE OF MERCURY COMMUNICATIONS' WIRELESS ONE-2-ONE UK NETWORK
CHINESE PTT SELECTS TELEMATICS X.25 DATA NETWORK EQUIPMENT; CONTRACT WORTH $800,000 TO TELEMATICS' DISTRIBUTOR, DATACRAFT CHINA
TELEMATICS ANNOUNCES REMOTE ACCESS INTERNET PROVISIONING WITH UNIVERSAL NETWORK ACCESS(TM)

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters