Printer Friendly


 MILFORD, Mass., Aug. 30 /PRNewswire/ -- TSI Corporation (NASDAQ: TSIN) today announced its preliminary financial results for the three and twelve months ended June 27, 1993.
 For the three-month period, revenue increased 32.9 percent to $14,909,000 from $11,220,000 in the same period of 1992 reflecting growth in the existing businesses as well as businesses acquired after the fourth quarter of 1992. The net loss for the fourth quarter of 1993 narrowed to $112,000 on a pre-tax profit of $430,000. This compared to a loss of $7,108,000 in the same period of 1992 when the company reported a total of $4,473,000 in one-time charges and adjustments.
 Revenues and costs of sales as reported in the fourth quarter were adversely affected by the fact that the company recognized more in contract revenues and less in costs of sales in prior periods for one of its subsidiaries than now seems appropriate. In light of the current information, revenues recognized for the first nine months of 1993 should have been $798,000 lower and costs of sales for that period should have been $268,000 higher than those previously reported. Had the company more accurately estimated revenues and expenses for the prior nine months, the company would have reported total revenues of $15,707,000 for the fourth quarter with operating income of $600,000 and pre-tax income of $417,000 before the partial reversal of a third quarter restructuring charge. The company's estimate of the cost of restructuring its operations was reduced because management determined that certain reductions in operations previously under consideration were not necessary. This prompted a 1993 fourth quarter reversal of $1,079,000 of the restructuring charge reported in the 1993 third quarter.
 $402,000 of the fourth quarter tax provision represents the tax liability for the company's German operations which cannot be offset by operating losses in the U.S. However, this is a non-cash item because, for German tax purposes, the company is able to use the accumulated tax losses of the German subsidiary arising from operations before its acquisition by the company.
 "I am pleased with the progress that the TSI team has made in implementing the previously announced restructuring and reducing the costs in our system while simultaneously building revenues," commented Robert W. Baldridge, TSI's chairman and CEO. "We have already removed approximately $7 million in annual costs from our operations, and there is still opportunity for improvement. We are coordinating our marketing on a company-wide basis, consolidating administration functions that are duplicated at some locations, and improving our systems for management information and control. We are also taking a fresh look at our basic operating efficiencies in the delivery of our customer services. I am greatly encouraged at the prospects of restoring sound operations at TSI."
 For th ?12 month period ended June 27, 1993, revenue increased to $58,300,000 compared to $35,355,000 in fiscal 1992, again reflecting growth in the existing businesses as well as businesses acquired after the fourth quarter of fiscal 1992. The loss for the year was $27,016,000 or $(1.30) per share, up from a loss of $11,203,000 or $(.64) per share, in fiscal 1992. The 1993 loss included $15,647,000 of charges related to the company's restructuring announced in the 1993 third quarter.
 TSI is a life sciences company offering in vitro and in vivo preclinical and toxicology testing services, human clinical testing services and diagnostic intermediate products. TSI is developing advanced toxicology tests and disease models based on genetic engineering and transgenic techniques to improve the efficiency of the pharmaceutical/clinical development process.
 Consolidated Statements of Operations
 (Unaudited, in thousands except per share data)
 Three months Twelve months
 6/27/93 6/28/92 6/27/93 6/28/92
 Services $ 11,428 $ 7,602 $ 44,482 $ 23,048
 Products 2,815 2,463 10,962 7,899
 Research and
 development 654 881 2,662 3,752
 Interest 12 274 194 656
 Total 14,909 11,220 58,300 35,355
 Cost and operg. expenses:
 Services 9,366 7,969 37,207 19,763
 Products 2,439 2,403 9,951 6,990
 Research and
 development 645 879 2,829 3,542
 General and
 administrative 2,925 6,855 16,813 14,484
 Restructuring (1,079) -- 15,647 --
 Total 14,296 18,106 82,447 44,779
 Operating inc. (loss) 613 (6,886) (24,147) (9,424)
 Other inc. (expense):
 Interest expense (183) (138) (699) (468)
 Other non-recurring expense:
 -- acquisition costs -- (45) -- (779)
 -- R&D repurchase option -- -- -- (672)
 -- disposal of opers. -- -- (1,320) --
 Inc. (loss) bef. inc. taxes
 and minority interest 430 (7,069) (26,166) (11,343)
 Provision (benefit)
 for income taxes 542 39 850 (52)
 Loss before minority
 interest (112) (7,108) (27,016) (11,291)
 Minority interest -- -- -- 88
 Net income (loss) (112) (7,108) (27,016) (11,203)
 Net income (loss) per
 common share $(.01) $(.35) $(1.30) $(.64)
 Weighted average number
 shares outstng. 20,860,442 20,516,716 20,788,256 17,615,400
 Consolidated Balance Sheets
 6/27/93 6/28/92
 Cash and short term investments $ 2,366 $21,985
 Other current assets 15,132 14,105
 Property, plant & equipment, net 19,481 17,593
 Other assets 7,044 10,939
 Total 44,023 64,622
 Current liabilities 22,027 15,194
 Long term debt 4,565 4,411
 Other long term debt liabilities 925 1,146
 Stockholders' equity 16,506 43,871
 Total 44,023 64,622
 -0- 8/30/93
 /CONTACT: Steven T. Shedd, vice president/CFO, of TSI Corporation, 508-478-0877, or Peter Feinstein, president, of Feinstein Partners, Inc., 617-577-8110/

CO: TSI Corporation ST: Massachusetts IN: MTC SU: ERN

TS-MP -- NE002 -- 6982 08/30/93 09:34 EDT
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:Aug 30, 1993

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