TRICONEX REPORTS RECORD FIRST QUARTER RESULTS; TO ACQUIRE TRI-SEN SYSTEMS INC.
IRVINE, Calif., April 13 /PRNewswire/ -- Triconex Corp. (NASDAQ: TCNX) today reported record revenues and earnings for the first quarter of 1993. Revenues rose 11 percent to $7,761,000, compared with revenues of $7,008,000 in the 1992 first quarter. Net income increased by 38 percent to $1,285,000, or $0.25 a share, vs. net income of $928,000, or $0.25 a share, in the 1992 quarter. (Average shares outstanding totaled 5,173,000 in the 1993 quarter and 3,743,000 in the 1992 quarter.) William K. Barkovitz, chairman and chief executive officer, said that operating income kept pace with the company's growth, totaling 15 percent of revenues in both the 1993 and 1992 quarters. He said that the company's gross margin for the 1993 quarter was 53 percent, up from 50 percent last year. Barkovitz said that 44 percent of first quarter revenues were produced by North American product installations, and 56 percent from Triconex' growing international customer base. Triconex' 12-month pipeline of orders was approximately $62,000,000 at the end of March 1993, compared with approximately $52,000,000 last year, he said. Barkovitz also announced today that Triconex has singed a letter of intent to acquire Tri-Sen Systems Inc., a La Marque, Texas-based developer and manufacturer of digital turbomachinery control systems and equipment. Founded in 1977, Tri-Sen has offices in Connecticut, Indiana, North Carolina, Saudi Arabia, the United Kingdom and Singapore. Tri-Sen has an installed base of more than 3,000 turbomachinery control systems in more than 40 countries, Barkovitz said. Tri-Sen's customers include major chemical, pharmaceutical, food and beverage, oil and gas, petrochemical, pulp and paper, utility and metals companies throughout the world, he said. Barkovitz said that Tri-Sen is a profitable company with revenues in excess of $10 million and pre-tax margins of approximately 10 percent. Per the letter of intent, the acquisition price is approximately $8 million in cash, Barkovitz said, with an additional earn-out provision based on Tri-Sen meeting or exceeding future revenue targets. He noted that Triconex intends to complete the acquisition by June 30, 1993. The acquisition of Tri-Sen is expected to have no dilutive effect on Triconex' common shares, he said. Closing of the acquisition is subject to a definitive purchase agreement, completion by Triconex of necessary due diligence and approvals of the boards of directors of Triconex and Tri-Sen, Barkovitz said. "This acquisition is a product of the corporate strategy we have developed since 1990," Barkovitz said. "Prior to 1990, Triconex was basically a product company, selling hardware and software into applications developed by others. "Triconex is now evolving into a `solutions' company in addition to its traditional product orientation," he said. "We are the recognized leader in triple modular redundant (TMR) systems technology; our goal is to become the leader in developing turnkey system solutions that meet the specific applications requirements in our target markets. "We are achieving our goal in emergency shutdown applications, where our combination of technical leadership and applications expertise is building an international reputation and significant market share," he said. "Going forward, we intend to achieve the same applications leadership in other markets, including turbine control, fire and gas monitoring and burner management systems markets." Barkovitz said that Triconex has three strategic objectives: -- To maintain leadership in TMR control systems technology with a continuing strong R&D program focused on improving performance and driving down costs to broaden potential TMR system application and industry targets. -- To build sales of TMR control systems by providing turnkey solutions to customers in targeted application niches. -- To increase the range and volume of Triconex products by supplying more elements of turnkey control systems. Barkovitz said that Triconex intends to develop TMR technology and additional products internally while gaining expertise, market share, and market-specific products in target markets through selective acquisitions and joint ventures. "The acquisition of Tri-Sen fits our strategic plan perfectly," Barkovitz said. "Tri-Sen not only is a leader in developing turbine control products, but has established an outstanding reputation for its turbine control application expertise and its project management and system integration abilities. A combined Triconex/Tri-Sen will be a serious contender in the turbine control markets. "Tri-Sen also meets another important acquisition criterion in that we believe it has the potential for significant revenue growth and improved operating income performance," he said. Triconex is a worldwide leader in the development of fault- tolerant TMR safety and control systems used in critical industrial process control applications, principally in the chemical, refining, oil and gas production and electric utility industries. The company's proprietary systems are used to control a variety of high- risk safety applications. Triconex' software-intensive 32-bit microcomputer-based safety and control systems are based on TMR architecture which had its genesis in NASA's space program. Triconex distributes its safety and control systems both domestically and internationally through its own direct sales force and through numerous distribution agreements. The company has an installed base of more than 750 systems at more than 150 plant sites in 35 countries throughout North and South America, Europe, Australia, Asia and Africa. Triconex' customers include many major chemical companies, such as Dow, DuPont, Elf Aquitaine, Hoechst Celanese and Union Carbide, as well as many of the largest petroleum exploration and refining companies, including Chevron, Exxon, Mobil, Royal Dutch Shell and Saudi ARAMCO For information on Triconex by fax, dial 800-PRO-INFO, ext. 022. TRICONEX CORP. Consolidated Income Statements (In Thousands Except Per Share Data) (Unaudited) Three Months Ended March 31, 1993 1992 Revenues $7,761 $7,008 Cost of sales 3,671 3,500 Gross margin 4,090 3,508 R&D 905 733 SG&A 2,028 1,711 Total operating expense 2,933 2,444 Operating income 1,157 1,064 JV Income 15 --- Interest, net 312 3 Income before taxes 1,484 1,067 Income taxes 199 139 Net income $1,285 $928 Per share data: Earnings per share $0.25 $0.25 Pro Forma EPS (Assumes 38 percent taxes) $0.18 $0.18 Weighted average common equivalent shares 5,173,000 3,743,000 TRICONEX CORP. Consolidated Balance Sheets (In thousands) (Unaudited) March 31, Dec. 31, March 31, 1993 1992 1992 Assets Cash $20,756 $19,796 $17,004 Accounts receivable, net 4,641 4,724 4,639 Inventory, net 2,774 2,768 3,103 Other current assets 536 439 346 Total current assets 28,707 27,727 25,092 Total long-term assets 1,964 1,652 1,048 Total assets $30,671 $29,379 $26,140 Liabilities and Shareholders' Equity Accounts payable and accruals $2,823 $2,907 $3,467 Other current liabilities 277 208 117 Total current liabilities 3,100 3,115 3,584 Total long-term liabilities --- --- 26 Common stock 38,362 38,331 38,086 Additional paid-in capital 1,200 1,199 1,127 Retained deficit (11,991) (13,266) (16,683) Total shareholders' equity 27,571 26,264 22,530 Total liabilities and equity $30,671 $29,379 $26,140 -0- 4/13/93 /CONTACT: Charles W. McBrayer, CFO of Triconex, 714-768-3709; Nick Farina (Chicago), 312-266-7800, or Tom Wick or John Muir (Los Angeles), 818-783-2400, both of Financial Relations Board, for Triconex/ (TCNX)
CO: Triconex Corp. ST: California IN: SU:
EH-MS -- LA017 -- 5287 04/13/93 14:20 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 13, 1993|
|Previous Article:||HEALTH ALLIANCE PLAN ANNOUNCES NEW PRODUCT|
|Next Article:||MAESA PETROLEUM INC. PROVIDES UPDATE|