TEXSCAN REPORTS SECOND QUARTER PROFIT
TEXSCAN REPORTS SECOND QUARTER PROFIT EL PASO, Texas, Dec. 5 /PRNewswire/ -- Texscan Corporation
(AMEX: TSX), today reported a profit for the fiscal quarter ending Oct. 26, 1991. Texscan is a leading manufacturer of electronic advertising insertion equipment and distribution electronics for cable television and is also an integrator of fiber optic systems.
The company reported net income and income per share of $108,000 and $.05, respectively, on revenue of $10,254,000 for the quarter compared to net income of $226,000 or $.10 per share on revenue of $9,405,000 for the prior year period. William H. Lambert, chairman, president, and chief executive officer, commenting on the second quarter stated, "We are encouraged by the increase of revenues of 9 percent from the prior year quarter and 16 percent from the first quarter. The increases was driven by our MSI advertising insertion business and our Op-Tech fiber system integration business, both of which are performing well. The portion of our revenue and resources being generated by these two businesses is growing and we anticipate continued future growth. The uncertainty surrounding the recovery of our CATV distribution electronics business remains, but our two growth businesses have performed well enough to generate a profit for the corporation in the quarter." The company reviewed its CATV cost infrastructure in the second quarter and made adjustments as dictated by current market conditions for CATV distribution products. The backlog of $8.0 million at the end of the second quarter remains strong while having decreased from first quarter end. The company's conservative management of its costs and cash has allowed it to retain a strong balance sheet during the difficult times facing it's CATV distribution electronics business. Quarter ending cash balance of $6.5 million is below our year end balance because of increased working capital requirements of our fiber optic system integration business. The working capital needs of this business, which has experienced significant growth, are associated with specific contracts recently awarded. The company's current ratio is 3.7 at the end of the second quarter. Headquartered in El Paso, Texas, Texscan Corporation is best known as a manufacturer of advertising insertion equipment and CATV distribution electronics and is a large-scale fiber optic systems integrator for road and railway applications in Europe. TEXSCAN CORPORATION & SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (All amounts in thousands, except per share data) Three months ended Six months ended 10/27/90 10/28/89 10/27/90 10/28/89 Net sales 10,254 9,405 19,068 19,490 Cost of sales 7,337 6,077 13,003 12,173 Gross profit 2,917 3,328 6,065 7,317 Engineering, selling & admin. expenses 2,578 3,122 5,833 6,493 Income from operations 339 206 232 824 Interest & other income, net of other expense 187 208 362 435 Interest expense 482 469 964 961 Exchange gain (loss) 77 271 25 493 Income before provision for income taxes 121 216 (345) 791 Provision for income tax (12) (10) (25) 141 Net income (loss) 109 226 (370) 650 Net income per share .05 .10 (.17) .29 Weighted average shares & dilutive stock options outstanding 2,188,262 2,227,106 2,202,981 2,233,008 Selected Balance Sheet Data 10/26/91 4/30/91 Cash & equivalents $6,476 $9,350 Net receivables 7,267 6,924 Inventories 10,903 9,488 Total current assets 25,246 26,180 Total assets 34,139 34,682 Total current liabilities 6,808 17,056 Long-term debt 17,050 17,056 Stockholders' equity 10,285 10,658 Stockholders' equity per share $4.67 $4.83 -0- 12/5/91 /CONTACT: Harold C. Tamburro of Texscan Corporation, 915-594-3555, or Ed Kearney of Kearney Assoc., 215-579-9029 for Texscan/ (TSX) CO: Texscan Corporation ST: Texas IN: SU: ERN SM-KW -- NY090 -- 9875 12/05/91 17:24 EST
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|Date:||Dec 5, 1991|
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