Cognitronics Reports First Quarter Net Income Equal to 30 Cents Vs 14
Cents
DANBURY, Conn., April 28 /PRNewswire/ -- Cognitronics Corporation (Amex: CGN - news) today reported net income
per share on a diluted basis for the first quarter of 1998 equal to $.30, up 114% from $.14 a year ago.
For the quarter ended March 31, 1998, net income was $1.2 million versus $.5 million for the same quarter of 1997.
Sales for the first quarter were $7.5 million in 1998, up 36% from $5.5 million in 1997.
The company said that the significant increase in first quarter 1998 sales over the comparable 1997 period was attributable to
a 38% increase in sales by its domestic operations and a 32% increase in sales of distributorship products into the British
telecommunications market. Further, the gross margin percentage increased 4% overall due to increased sales of higher margin
products in both operating areas and cost reductions of distributorship products in the UK.
''The year 1998 began with continued strong performance in both the company's domestic and UK distributorship
operations,'' said Brian J. Kelley, president and chief executive officer of Cognitronics. ''The increase in sales of domestic
operations is attributable to the continuing success of the McIAS(TM) l6xx series products, particularly the company's flagship
McIAS 1623/IP, sold to switch manufacturers, competitive access providers and competitive local exchange carriers.
''During the 1998 first quarter, the term of the agreement under which Siemens Telecom Networks (formerly Siemens
Stromberg-Carlson) purchases the company's McIAS 16xx voice processing systems was extended to September 30, 2000.
Since the last quarter of 1996, Siemens Telecom Networks has been one of the company's significant customers.
''Also, the term of the agreement with Alcatel Indetel Industria de Telecomunicacion, S.A. de C.V. was extended to
December 31, 1999. Under this agreement, we are optimistic that sales of the company's McIAS 16xx products for
installation in the Mexican telecommunications market will begin in 1998.
''New product development continues and the investment in research and development is expected to continue to increase in
1998 to expand the capabilities of the McIAS 16xx/IP series products. We believe that the telecommunications market will
require an enhanced intelligent peripheral for use in an Advanced Intelligent Network (AIN). Further, we believe that the
McIAS 16xx series products will continue to offer our customers reliable, cost effective solutions for their current and future
voice processing requirements,'' Kelley concluded.
Statements contained herein which are not historical facts are forward-looking statements. The forward-looking statements in
this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve a number of risks and uncertainties including but not limited to, variability of sales volume
quarter to quarter, product demand, market acceptance, litigation, risk of dependence on significant customers, third party
suppliers and intellectual property rights, risks in product and technology development and other risk factors detailed in the
company's Securities and Exchange Commission filings.
Cognitronics is a leading manufacturer and supplier of voice information systems, including telephone network and call
management products, to telephone operating companies, other telecommunications providers and original equipment
manufacturers. |
