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TRICONEX REPORTS RECORD REVENUES, EARNINGS FOR 1992

 IRVINE, Calif., Feb. 2 /PRNewswire/ -- Triconex Corp. (NASDAQ: TCNX), manufacturer of fault tolerant safety and control systems, today reported record revenues and earnings for 1992, continuing an unbroken sequence of record years since the company sold its first products in 1986.
 Revenues and operating income rose more than 30 percent, and net income grew nearly 70 percent in 1992.
 Revenues were $29,028,000 in the year ended Dec. 31, 1992, up 30.1 percent from revenues of $22,305,000 in 1991. Operating income was $4,236,000, 34.5 percent higher than operating income of $3,149,000 last year. Net income was $4,397,000, or $0.91 per share, a 68.0 percent increase over last year's net income of $2,618,000, or $0.75 a share.
 Fourth quarter results marked the 11th consecutive quarter of increasing Triconex profitability. Revenues were $7,752,000, vs. revenues of $6,999,000 last year. Operating income was $1,220,000, vs. $1,084,000, and net income was $1,262,000, or $0.24 a share, vs. $919,000, or $0.25 a share, in the 1991 quarter.
 Earnings per share for the year and the fourth quarter reflect increased shares outstanding in 1992 resulting from the company's initial public offering in March 1992.
 Announcing the 1992 results, William K. Barkovitz, chairman and chief executive officer, said that Triconex had increased its gross margin from 50 percent to 51 percent. Operating expenses were held constant at 36 percent of revenues, increasing operating income to 15 percent of revenues from 14 percent last year.
 International Orders Grow
 "The substantial investments we have made in international sales since 1990 have kept Triconex growing in a challenging economic environment," Barkovitz said. He said that 54 percent of the company's revenues in both 1991 and 1992 were for installations outside North America. The Middle East, Asia Pacific and Latin American regions accounted for 37 percent of revenues in 1992, compared with 20 percent in 1991, he said.
 "The international share of our business will increase still further in 1993 and future years," Barkovitz said. Fifty-nine percent of orders booked in 1992 were scheduled for installation outside North America, compared with 47 percent in 1991, he said. He also noted that 70 percent of Triconex's 12-month project pipeline (active projects for which the company is competing) represents international installations. "We believe this changing distribution of our business is healthy and represents the overall market potential for Triconex systems," he said.
 Barkovitz said that the previously announced joint venture with Oiltools Ltd., a Singapore-based oil services company with 22 sales personnel, should begin to contribute additional revenues in Southeast Asia in 1993. "The credibility provided by Triconex ownership in a value-added capability in the region, coupled with the existing relationships of the Oiltools sales organizations, will significantly strengthen our market position in this high-potential area," he said.
 Expanding World Market
 Barkovitz said that the market for all forms of redundant control systems is expected to double from $500 million in 1991 to $1 billion in 1995. Applications accessible to triple modular redundant (TMR) technology are projected to grow from 10 percent to 40 percent of the total market during this period, he said. "Triconex has a 45 percent share of today's TMR market, and we continue to invest more than 10 percent of the company's gross revenues in research and development to ensure that the company will retain a dominant share of tomorrow's larger market," he said. He noted that system developments announced in 1992 included the Version 7.0 Tricon/Tristation control system, with a new, advanced hardware platform and improved software, and a new product line, code-named "Ultralite," that expands the range of applications for TMR systems.
 "The 12-month project pipeline grew from $39 million at the end of 1991 to $62 million in 1992," Barkovitz said. "The pipeline is a leading indicator of future revenue trends, and increases of this magnitude are harbingers of continued strong growth in revenues and earnings in 1993."
 Barkovitz noted that Triconex has the financial resources to sustain its current growth. The company's working capital was $24.6 million at Dec. 31, 1992. Cash and equivalents totaled $19.8 million, held principally in investment-grade, interest bearing securities. The company has no debt.
 Triconex Corp is an international leader in fault-tolerant triple modular redundant (TMR) safety and control systems used in the chemical refining, oil and gas production and electric utility industries -- markets facing increasingly rigorous safety and environmental pressures. Triconex systems control such high-risk and environmentally sensitive systems as emergency shutdown, burner management, fire and gas monitoring and turbine control.
 Triconex distributes its systems worldwide through its own direct sales force and numerous distribution agreements including an international arrangement with Honeywell, a world leader in process control systems. Since 1986, the company has sold more than 750 systems at more than 150 plant sites in 35 countries on six continents.
 Triconex' customers include major chemical companies such as Dow, DuPont Elf Aquitaine, Hoechst Celanese and Union Carbide, and petroleum exploration and refining companies including Chevron, Exxon, Mobil, Royal DuND SUBSIDIARY
 Consolidated Statements of Operations
 (In thousands except per share data)
 Years Ended Three Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenue $29,028 $22,305 $7,752 $6,999
 Cost of sales 14,273 11,137 3,556 3,487
 Gross margin 14,755 11,168 4,196 3,512
 Operating expenses:
 Research and development 3,177 2,514 978 756
 Sales, G & A 7,342 5,505 1,998 1,672
 Total operating
 expenses 10,519 8,019 2,976 2,428
 Operating income 4,236 3,149 1,220 1,084
 Loss from joint venture (45) --- (45) ---
 Interest, net 887 (130) 300 (24)
 Income before income
 taxes 5,078 3,019 1,475 1,060
 Income taxes 681 401 213 141
 Net income $4,397 $2,618 $1,262 $919
 Per Share Data:
 Earnings per share $0.91 $0.75 $0.24 $0.25
 Pro forma earnings per
 share prior to
 utilization of
 net operating loss $0.65 $0.54 $0.18 $0.18
 Weighted average number
 of shares outstanding 4,816,000 3,470,000 5,174,000 3,602,000
 TRICONEX CORP. AND SUBSIDIARY
 Consolidated Balance Sheets
 (In thousands)
 Pro Forma
 Historical (See Note Below)
 Dec. 31, Dec. 31, Dec. 31,
 1992 1991 1991
 Assets
 Cash and cash
 equivalents $19,796 $318 $318
 Accounts receivable,
 net 4,724 3,822 3,822
 Inventory, net 2,768 3,188 3,188
 Other current assets 439 362 362
 Total current assets 27,727 7,690 7,690
 Total long-term assets 1,652 972 972
 Total assets $29,379 $8,662 $8,662
 Liabilities and
 shareholders' equity
 Accounts payable
 and accruals $3,115 $2,925 $2,925
 Other current
 liabilities --- 1,026 1,026
 Total current
 liabilities 3,115 3,951 3,951
 Total long-term
 liabilities --- 36 36
 Redeemable preferred
 stock --- 950 ---
 Convertible redeemable
 preferred stock --- 20,781 ---
 Shareholders' equity
 Common stock 38,331 372 21,153
 Additional paid
 in capital 1,199 177 1,127
 Retained deficit (13,266) (17,605) (17,605)
 Total shareholders'
 equity 26,264 (17,056) 4,675
 Total liabilities
 and equity $29,379 $8,662 $8,662
 Note: Pro forma balance sheet at Dec. 31, 1991, recognizes the March 1992 contribution to additional paid-in capital of all outstanding redeemable preferred stock and the conversion of all outstanding convertible redeemable preferred stock to common shares outstanding.
 -0- 2/2/93
 /CONTACT: Charles W. McBrayer, CFO of Triconex, 714-768-3709; or Tom Wick or John Muir of Financial Relations Board, 818-783-2400, for Triconex/
 (TCNX)


CO: Triconex Corp. ST: California IN: CHM SU: ERN

JB-LS -- LA007 -- 1676 02/02/93 08:50 EST
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Date:Feb 2, 1993
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