Thursday April 10 9:29 AM EDT
Personal Computer Products, Inc. reports record revenues and
earnings for third fiscal quarter
Total revenues up 181%
SAN DIEGO--(BUSINESS WIRE)--April 10, 1997--Personal Computer Products, Inc. (NASD symbol: PCPK)
("PCPI"), today reported record quarterly revenues and earnings for the third fiscal quarter ended March 31,
1997. Fiscal 1997 third quarter revenues of $7,904,000 increased 181% from revenues of $2,814,000
reported for the third quarter of fiscal 1996. Net income for the quarter ended March 31, 1997 was
$847,000, $0.07 per share, compared to a loss of $2,017,000, ($0.55) per share, reported for the quarter
ended March 31, 1996.
Consolidated revenues for the nine months ended March 31, 1997 were $22,623,000, an increase of 181%
over revenues of $8,044,000 reported for the same period last year. Net income for the nine months was
$155,000, or $0.01 per share, compared to a loss of $3,757,000, or ($1.05) per share.
Included in the consolidated results of operations for the nine months ended March 31, 1997 are pre-merger
net sales of NewGen Systems Acquisitions Corporation ("NewGen") of $7,190,000 and a net loss after taxes
of $1,550,000 from NewGen for the six month period ended December 31, 1996. The net loss included
non-recurring charges of $1,157,000 which included $780,000 of purchased research and development
associated with the original purchase of certain product lines from NewGen Systems Corporation by
NewGen in July 1996; a $349,000 writedown of certain prepaid licenses and royalties; and a $28,000 other
miscellaneous items. Without giving effect to pre-merger losses, net income for the nine months ended
March 31, 1997 would have been $1,647,000, or $0.16 per share.
PCPI receives non-recurring engineering fees for developing embedded controllers for printers, copiers,
and multifunction products. For the third quarter ended March 31, 1997, PCPI recognized engineering fees of
$1,531,000 up 64% as compared to $931,000 recognized in the same quarter a year ago. As discussed in the
past, license fees and royalty revenue have shown significant period-to-period fluctuations as these are
dependent upon our customers delivery of PCPI designed products to market. During the quarter ended
March 31, 1997, no license fees and royalty revenue was recognized by the Company.
Dr. Harry Saal, Chairman of PCPI, added, "This represents PCPI's fourth consecutive profitable quarter and it
has been one of our most productive periods. Besides closing the merger with NewGen Systems, the
Company received significant new development contracts from Apple Computer and Elex Tech of Korea. Our
agreement with Apple will have us provide product development services for their future printing
products. Elex Tech selected PCPI to develop advanced imaging laser printer controllers. We also
completed a 1-for-5 reverse stock split and applied for listing on the Nasdaq SmallCap Market during the
quarter." |
