From 5/5: TII Industries announces third quarter results sales increase 11% for three month period
COPIAGUE, N.Y.--TII Industries, Inc. (Nasdaq NMS:TIII) reported that sales for the third quarter, ended March 28, 1997, increased by 11% to $12.5 million from $11.3 million reported during the same quarter last year.
Sales for the first nine months of fiscal 1997 increased 17% to $37.5 million from $32.1 million reported during the first nine months of fiscal 1996. (Fiscal year 1996 three month and nine month sales were adjusted to eliminate a payment of $875,000 received from AT&T during the third quarter of that year which is no longer recurring.)
Third quarter and nine month results reflect $3,000,000 ($.38 per share) of restructuring and other charges previously announced by the company.
Principally as a result of these charges, the company reported a loss of $2,325,000 and $668,000 for the third quarter and first nine months of fiscal 1997, respectively, compared to net income of $1,781,000, and $3,115,000 during the same periods of fiscal 1996.
Timothy J. Roach, president and CEO, commented, "We believe that the actions we are taking to streamline our operations, eliminate marginal products and reduce expenses will further improve future profitability. We are confident that TII will return to profitability during the during the fourth quarter and, that sales for the fiscal year ending June 27 will exceed $50 million.
"We also continue to remain confident in the future growth and profitability of our company due, in part, to the excellent prospects for a number of recently developed products. Several of our new products, including our patented coaxial protector, a new network interface line and several fiber optic products, are presently under evaluation by large potential users."
Roach continued, "We remain particularly optimistic about the prospects for the environmentally sealed overvoltage protectors now being jointly manufactured and marketed with Raychem. These state-of-the-art products, which incorporated TII's overvoltage protection and Raychem's proprietary Gelguard(R) sealing technology, are designed to reduce or eliminate two of the most costly maintenance items that affect the telephone companies' outside plant network -- damage caused by lightning and other hazardous overvoltages and damage caused by moisture and other contaminants.
"By reducing or eliminating system downtime from these causes, telephone companies can significantly improve quality of service while saving considerable maintenance expenses."
TII's arrangement with Raychem resulted from the previously announced discontinuance of future operations by Access Network Technologies (ANT, a joint venture between Lucent Technologies Inc. and Raychem Corp.). As a result, Raychem has assumed all of ANT's rights to this product line. TII and Raychem intend to continue to cooperatively manufacture and market these products in the future, as well as evaluate new product opportunities which incorporate each parties' advanced technologies.
During March, TII launched its home page on the Internet. Located at tii-industries.com, the company's home page has been a success from its very beginning. Within the first month on the web, TII's home page has logged over 1,000 hits. TII finds this site an efficient and immediate way to communicate with its customers and the global investing community. The company hopes that customers, analysts and shareholders alike will find www.tii-industries.com a valuable and useful tool for gathering information on TII.
TII Industries Inc., with facilities in Copiague, New York, North Carolina, Puerto Rico and the Dominican Republic, specializes in the design, manufacture and sale of overvoltage surge protection, fiber optic, network interface and electronic products, principally for use in the telecommunications industry. TII markets its products directly or indirectly to the Regional Bell and independent telephone operating companies and CATV providers, as well as original equipment suppliers who sell to the global communications marketplace. Its overvoltage protectors are required by the National Electric Code to be installed on the user's home or office telephone lines to prevent injury or damage caused by lightning and other electrical occurrences. Its customers service over 165 million subscriber lines in the United States.
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