VARITRONICS REPORTS EARNINGS FOR FIRST QUARTER ENDED OCT. 31, 1991
MINNEAPOLIS, Nov. 14 /PRNewswire/ -- Varitronic Systems, Inc. (NASDAQ: VRSY) today reported net earnings of 16 cents per share, or $581,000, for its first quarter ended Oct. 31, 1991 on sales of $9,252,000. This compares to earnings of 22 cents per share, or $800,000, on sales of $10,013,000 in the year-ago period.
Net sales for the quarter ended Oct. 31, 1991 decreased 7.6 percent, or $761,000, from the comparable quarter last year. Machine sales declined from the first quarter of last year while consumable supply sales were stable, totalling $6,144,000 in the current quarter and $6,136,000 in the year-ago quarter. Sales to independent domestic dealers increased slightly over the first quarter of last year; however, international sales were down 21.7 percent from last year's first quarter.
Scott Drill, chairman, president and CEO, commented, "First quarter sales to independent domestic dealers met our expectations, and we are pleased with the effectiveness of our domestic marketing programs.
"We have experienced a decline in international sales during the past six months and a key short-term objective will be to strengthen international distribution, particularly in Western Europe. We will also be focusing on the recruitment of new international distributors to market our PosterPrinter as we continue to launch that product overseas."
Varitronics also reported that the company has repurchased 108,000 shares of its common stock in the open market since Aug. 13, 1991 at an average price of $6.53 per share. As of Nov. 14, 1991 there were 3,584,000 common shares outstanding. The company is authorized to repurchase an additional 436,000 shares of common stock in the open market or in privately negotiated transactions.
Varitronics is a Minnesota-based developer, manufacturer and marketer of graphics systems that enhance the quality, professionalism and effectiveness of a wide range of communications.
VARITRONIC SYSTEMS, INC.
Results of Operations
(in thousands, except per-share amounts)
Three Months Ended
Net sales $9,252 $10,013
Net income 581 800
Net income per share $.16 $.22
Weighted average common
shares outstanding 3,613 3,638
/CONTACT: Curt Swenson of Swenson/Falker Associates for Varitronic Systems, 612-371-0000; or Debbie Moore of Varitronic Systems, 612-542-1500/
(VRSY) CO: Varitronic Systems, Inc. ST: Minneapolis IN: SU: ERN KH -- MN006 -- 4401 11/14/91 11:45 EST