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WITH DESIGN IN MIND REPORTS FISCAL 1992 RESULTS; MANAGEMENT SAYS TURNAROUND ON SCHEDULE

 CHATSWORTH, Calif., Dec. 29 /PRNewswire/ -- With Design In Mind International Inc. (NASDAQ: WDIM) today reported its results for its fiscal year ended Sept. 30, 1992. Net sales dropped to $3,634,000 in 1992, compared with net sales of $6,767,000 in fiscal 1991, primarily because the company discontinued its giftware product line, and revenues from Hologram Ventures, a joint venture that provides optical kits to Sega Enterprises Ltd. for the arcade game Hologram Time Traveler, decreased by $2,160,000. Sega has ceased production of the game and no revenues are anticipated from the joint venture in fiscal 1993.
 The company reported a net loss of $4,608,000, or $1.23 per share, in fiscal 1992, compared to a net loss of $427,000, or $0.19 per share, in fiscal 1991.
 Sheldon F. Morick, president and chief executive officer, said that in addition to the impact of lower revenues, fiscal 1992 profitability was affected by three principal factors: First, expenses in fiscal 1992 include $1,220,000 of costs associated with the decision to discontinue the manufacture and sale of the company's gift product line, including writedown of inventories, write-off of product development costs and writedown of production molds and tooling. (Of these costs, $660,000 was taken in the second and third quarters and $560,000 in the fourth quarter.) Morick cited decreasing demand for novelty gift items and unfocused branding strategy as major reasons for this decision.
 Second, expenses in fiscal 1992 included $458,000 of costs and reserves associated with the investigation of and suit against former officers and directors of the company. Settlement of the suit was reached on Dec. 9, with the former officers returning 703,753 shares owned by them to the company, paying the company $200,000 in cash and giving the company a note for $50,000.
 Third, expenses in fiscal 1992 include $450,000 of costs associated with the write-down in value of assets related to the company's MicroTheatre product line. To date, the company has been unable to successfully exploit the MicroTheatre technology and may abandon it. However, before making a decision to abandon MicroTheatre, management has decided to expend a limited amount of R&D funds in an attempt to develop a counter-top MicroTheatre unit for point-of-purchase applications.
 Morick said that the company is on schedule with its restructuring program, which includes major overhead reductions, the development and introduction of a new juvenile product line and consideration of potential acquisition candidates.
 New Product Line Acceptance Encouraging
 He said that the juvenile product line, which he characterized as "practical products that appeal to parents and kids alike," is in the final stages of development, and early responses from major U.S. mass merchants have been encouraging. The juvenile product line will be officially introduced at the Housewares Show in Chicago in January 1993, and the Toy Show in New York in February 1993. The company expects to begin shipments of the new products to customers in late April 1993.
 With the winding down of the gift product line, and the children's product line not generating revenues until April 1993, revenues for the first and second quarters of fiscal 1993 will be minimal, Morick said. However, he said this should not be a problem given the company's major reductions in overhead and it healthy financial position. He noted that at Sept. 30, the company had $3,742,000 in cash and certificates of deposit, working capital of $3,691,000 and a current ratio of 5-to-1.
 WITH DESIGN IN MIND
 Consolidated Statements of Operations
 Year Ended Sept. 30, 1992 and 1991
 1992 1991
 Net sales $3,634,433 $6,767,363
 Costs and Expenses:
 Cost of sales 2,325,716 3,413,655
 Selling, general and
 administrative 4,428,506 3,043,577
 Total costs and
 expenses 6,754,222 6,457,232
 Operating income (loss)
 before restructuring and
 other non-recurring
 items (3,119,789) ---
 Restructuring and other
 non-recurring items (1,458,129) ---
 Operating income (loss) (4,577,918) 310,131
 Other income (expense):
 Interest income 196,527 102,453
 Interest expense (70,600) (171,489)
 Total other income
 (expense) (125,927) (69,036)
 Income (loss) before
 minority interest and
 income tax benefit (4,451,991) 241,095
 Minority stockholder's
 interest in the income
 of Hologram ventures (156,270) (782,558)
 Los before income tax (4,608,261) (541,463)
 Income tax benefit --- (114,548)
 Net loss ($4,608,261) ($426,915)
 Loss per share ($1.23) ($0.19)
 Weighted average number
 of shares outstanding 3,751,474 2,221,229
 -0- 12/29/92
 /CONTACT: Sheldon F. Morick, president and CEO, or Michael S. Manahan, VP and CFO, of With Design In Mind, 818-407-1286; or Thomas Wick, John Muir or William F. Coffin of Financial Relations Board Los Angeles, 818-783-2400, for With Design In Mind/
 (WDIM)


CO: With Design In Mind ST: California IN: HOU SU: ERN

EH-KJ -- LA014 -- 0353 12/29/92 13:48 EST
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Date:Dec 29, 1992
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