VARITRONICS REPORTS FISCAL 1992 RESULTS
VARITRONICS REPORTS FISCAL 1992 RESULTS MINNEAPOLIS, Sept. 18 /PRNewswire/ -- Varitronic Systems, Inc.
(NASDAQ: VRSY) reported today that net earnings for its fiscal year ended July 31, 1992, were $1,452,000, or 43 cents per share, compared with $2,913,000, or 80 cents per share, for fiscal 1991. Net sales for fiscal 1992 were $36,094,000, a decline of 7.8 percent from $39,165,000 in fiscal 1991.
Net earnings for the fourth quarter ended July 31, 1992, were $77,000, or 3 cents per share, compared with $367,000, or 10 cents per share, for the fourth quarter of 1991. Net sales were $8,903,000 in the fourth quarter of 1992, compared with $9,131,000 in the comparable period last year. Varitronics said these results are consistent with its Aug. 21 announcement concerning preliminary results for fiscal 1992. The company said it experienced an involuntary shutdown of its manufacturing and distribution facility from July 28, 1992, until Aug. 5, 1992, after an armed intruder entered the plant and damaged the production area. As a result, approximately $1 million in orders which were scheduled for shipment by July 31 were not shipped until early August. As of July 31, 1992, Varitronics' balance sheet included $1.7 million in cash and $16.6 million in working capital. There was no outstanding debt, and shareholders' equity totalled $19.5 million, or $6.47 per share. The company has repurchased 288,000 shares of its common stock since April 10, 1992. As of Sept. 17, 1992, there were 2,907,000 shares of common stock outstanding, and 212,000 shares remain authorized for repurchase. Scott Drill, chairman, president and CEO, commented, "Sales and earnings for 1992 fell short of our expectations; however, we accomplished a great deal in the area of new product development. Spending on product development in 1992 increased by $428,000, or 40 percent, over the 1991 level. We introduced our new Accent(TM) labeling system in the third quarter of fiscal 1992, and two additional new products are being introduced in the first quarter of fiscal 1993." On Sept. 14, Varitronics launched its newest product, the PosterLynx(TM), to its domestic dealer network. The PosterLynx connects IBM-compatible computers to Varitronics' PosterPrinter(TM) Plus to produce professional-looking charts and banners faster and at lower costs than commercial methods. In October, Varitronics plans to launch a second new product, the EasyStep(TM) 4000 custom labeling system, which prints durable labels up to four inches high for a variety of industrial labeling and signage applications. The company also announced that G.L. Hoffman has resigned as a member of the Board of Directors. G.L. Hoffman was a co-founder of the company, and since resigning from the company in 1990 has been chief executive officer of Insignia Systems, Inc. He resigned from the Board due to his responsibilities at Insignia Systems. Varitronics is a Minnesota-based developer, manufacturer and marketer of graphics products 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 Year Ended July 31, July 31, 1992 1991 1992 1991 Net sales $8,903 $9,131 $36,094 $39,165 Net income 77 367 1,452 2,913 Net income per share $.03 $.10 $.43 $.80 Weighted average common shares outstanding 3,065 3,672 3,356 3,651 -0- 9/18/92 /CONTACT: Curt Swenson of Swenson Falker Eilertsen Inc., 612-371-0000 or Debbie Moore of Varitronic Systems, Inc., 612-542-1500/ (VRSY) CO: Varitronic Systems, Inc. ST: Minnesota IN: SU: ERN
KH -- MN007 -- 1045 09/18/92 10:55 EDT
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|Date:||Sep 18, 1992|
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