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TELXON REPORTS FIRST QUARTER RESULTS

 AKRON, Ohio, July 14 /PRNewswire/ -- Telxon Corporation (NASDAQ: TLXN), one of the leading worldwide providers of portable and wireless tele-transaction systems, today reported results for its first fiscal quarter ended June 30, 1993.
 For the quarter, the company reported revenues of $56.5 million compared with $67.4 million recorded in the first quarter of the prior year. The company reported a net loss for the quarter of $2.0 million, or $.13 per share, compared with net income of $3.9 million, or $.27 per share, recorded in the first quarter a year ago. Net income for the comparable first quarter which ended June 30, 1992, includes a cumulative charge of $.4 million, or $.03 per share, as a result of the adoption of SFAS 109, Accounting for Income Taxes.
 "Telxon's return to profitability and growth is progressing as planned," said Dan R. Wipff, Telxon's president and chief operating officer. "Our operating results, before restructuring charges, have improved since the fourth quarter ended March 31, 1993. Revenues and backlog increased while operating losses, before restructuring charges, declined. Our domestic product sales were up while customer service and international revenues were lower than anticipated. Overall, the first quarter results were largely as we expected.
 "While not satisfied with any loss, it is clear that the restoration of long-term, profitable growth is based in large part on our ongoing investment in product development, technology and strategic marketing. Equally as important are our continuing steps to control production and operating costs as we strive to lower our break-even point going forward.
 "The re-engineering of Telxon, which began in the fourth quarter last year, is taking hold," added Wipff. "We are focusing on a few specific vertical markets, providing portable and wireless tele- transaction systems tailored to the specific needs of customers in each market. To provide the required focus, we have established three Strategic Business Groups: 1) the Retail Group, which addresses Telxon's largest market; 2) the Industrial Systems Group, which serves the warehousing, distribution and manufacturing markets; and 3) the Mobile Workforce Group, which includes the recent acqusition of Itronix.
 "Our objective continues to be a return to profitability in the second half of the current fiscal year, based on revenue growth from new products. Our balance sheet remains strong with cash of $17.3 million, a current ratio of 2.9 to 1 and debt as a percentage of equity stands at 19.7 percent."
 Telxon Corporation, serving more than 7,000 customers in 47 countries around the world, is one of the leading providers of portable and wireless tele-transaction systems. The company integrates advanced Portable Tele-Transaction Computers (PTCs) with wireless and network communication technology, a wide array of peripherals and application- specific software to a diverse group of vertical markets.
 Telxon's executive and engineering offices are headquartered in Akron, Ohio; its manufacturing facility is in Houston.
 Telxon Corporation and Subsidiaries
 CONSOLIDATED BALANCE SHEET
 (In thousands, except per share data)
 June 30, March 31,
 1993 1993
 ASSETS (unaudited)
 Current assets:
 Cash and short-term
 investments $ 17,299 $ 27,160
 Accounts receivable, net 44,337 43,908
 Notes and other accounts
 receivable 1,760 1,603
 Refundable income taxes 6,018 4,803
 Inventories 50,022 51,340
 Prepaid expenses and
 other 8,021 9,132
 Total current assets 127,457 137,946
 Property and equipment, net 31,775 31,337
 Intangible and other
 assets, net 40,407 43,338
 Total $199,639 $212,621
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 14,473 $ 16,650
 Capital lease obligations due
 within one year 525 679
 Income taxes payable 2,430 2,521
 Accrued liabilities 26,971 33,358
 Total current liabilities 44,399 53,208
 Capital lease obligations 134 196
 Convertible subordinated
 debentures 24,734 24,734
 Other long-term liabilities and
 deferred income taxes 4,787 6,264
 Total liabilities 74,054 84,402
 Stockholders' equity:
 Preferred Stock, $1.00
 par value per share;
 500,000 shares authorized,
 none issue --- ---
 Common Stock, $.01 par
 value per share;
 50,000,000 shares
 authorized, 15,288,624
 and 13,920,544 shares
 outstanding 153 152
 Additional paid-in capital 74,195 73,370
 Retained earnings 55,633 57,612
 Equity adjustment for
 foreign currency translation (2,963) (2,115)
 Unearned restricted stock awards (1,433) (800)
 Total stockholders' equity 125,585 128,219
 Total $199,639 $212,621
 Telxon Corporation and Subsidiaries
 CONSOLIDATED STATEMENT OF INCOME -- (unaudited)
 (In thousands, except per share data)
 Three Months
 Ended June 30,
 1993 1992
 Revenue:
 Product revenues $ 46,350 $ 57,761
 Customer service 10,191 9,651
 Total revenues 56,541 67,412
 Costs and expenses:
 Cost of revenues 32,096 40,558
 Selling expenses 12,622 10,451
 Product development &
 engineering expenses 6,060 3,770
 General and administrative
 expenses 7,329 5,566
 Total 58,107 60,345
 Income (loss) from
 operations (1,566) 7,067
 Interest income 235 539
 Interest expense (540) (555)
 Income (loss) before income taxes,
 and cumulative effect of an
 accounting change (1,871) 7,051
 Provision (benefit) for income taxes 106 2,679
 Income (loss) before cumulative
 effect of an accounting change (1,977) 4,372
 Cumulative effect of a change
 in accounting for income taxes --- (439)
 Net income (loss) $ (1,977) $ 3,933
 Earnings per common and common
 equivalent share:
 Income (loss) before cumulative effect
 of an accounting change $ (.13) $ .30
 Cumulative effect of a change
 in accounting for income
 taxes --- (.03)
 Net income (loss) per share $ (.13) $ .27
 Average common and common equivalent
 shares outstanding 15,294 14,526
 -0- 7/14/93
 /CONTACT: Roger Murphy, vice president, corporate development, Telxon Corporation, 216-867-3700, or Mark Metzger of Miller Communications, 617-536-0470, for Telxon Corporation/
 (TLXN)


CO: Telxon Corporation ST: Ohio IN: CPR SU: ERN

AR -- CL023 -- 1586 07/14/93 16:29 EDT
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Date:Jul 14, 1993
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