<<<<<Highest Quarterly and Nine Months Sales From Continuing Operations
BRIARCLIFF MANOR, N.Y.--(BUSINESS WIRE)--Dec. 23, 1998--Mr. Gene Pian, President of Seto Holdings, Inc. (OTC BB: SETO - news) today announced that the Company realized its highest quarterly and nine months net sales in its history from continuing operations. Net sales for the nine months ended October 31, 1998 was $1,882,093 as compared to $1,491,823 for the comparable period ended October 31, 1997, an increase of 26%. For the quarter ended October 31, 1998 compared to the quarter ended October 31, 1997, net sales increased to $684,811 as compared to $557,043 or an increase of 23%. Income from continuing operations was $194,843 ($.02 per share utilizing the undiluted common shares outstanding as of the reporting period ending) for the nine months ended October 31, 1998 as compared to $109,007 for the nine months ended October 31, 1997, or an increase of 79%. The latter nine month income was the highest the Company has realized for this period of time.
The President pointed out that on September 15, 1998, the Company, on a friendly basis, reversed its acquisition of Teik Tatt Holding (1979) Sdn. Bhd. (''TTH'') for mutually beneficial reasons. The discontinuance of the TTH subsidiary and its operations reflected on the Company's Statement of Income mostly as a non-cash, accounting transaction, so that when taken into effect, the Company showed net income losses of $224,860 for the nine months ended October 31, 1998. Because the impact of the disassociation is a one time event and the fact that the balance of the Company remaining in place is materially unaffected by it, Management believes that reporting and reviewing financial results for the continuing operations is the best and only way to appreciate where it stands now and in the future.
Looking ahead, Mr. Pian expects that for the current fiscal year ending January 31, 1999, the Company will realize record annual sales and profits from continuing operations. This trend, he believes, should extend into the next year with a substantial part of the growth emanating from Fuji Fabrication Sdn Bhd (''Fuji''), the Malaysian subsidiary manufacturing cellular phone batteries. Although not material at the moment, but more significant next year as sales volume rises, Fuji received a tax free exemption for all local sales and has applied for a duty free and corporate tax exemption which it expects will be approved for the next fiscal year. In addition, beneficial to all the Malaysian subsidiaries, he stated that the Malaysian Government has waived income taxes for calender 1999.
Mr. Pian also addressed the Malaysian economic downturn because of the Company's presence there. For one thing, he commented, the inherent business aspects of source of material supply and destination of sales insulates the Company to a large extent from any such problems. For another, he added, Management believes that steps taken by the Malaysian Government have had a calming and stabilizing effect on the country's economy.
SETO HOLDINGS, Inc., formally Semicon Tools Inc., has been a public Company since 1987 and operates as a broad-based technical manufacturer in two major product groupings:
Technical products: to industry: inclusive of diamond tools, wafer fab supplies and technical ceramics.
Consumer products: inclusive of cellular phone batteries and audiovisual entertainment systems.
''Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995 - Statements contained in this release which are not historical facts are forward looking statements that involve risks and uncertainties that could cause actual results to differ from projected results. These statements could include expressions about management's confidence, strategies and expectations such as ''expect'', ''believe'', ''anticipate'', ''may'', or similar variations of such terms. Factors that could cause actual results to differ materially include, among others, economic and political events in or effecting Malaysia and effecting the Company's markets, the Company's dependence on the semiconductor industry, the level of merger and acquisition enhancements, and other risk factors detailed in the Company's Securities and Exchange Commission filings.
------------------------------------------------------------------------
Contact:
Parrex Associates, Inc.
Paul Alper, 973/492-2208
Fax: 973/492-2550
stidiamond.com
Email: stiandecs@aol.com>>>>>>
Buy or sell, I look for things to get better and better
for our little Gem - SETO.
Happy investing!
KZAP |
