4/23/96 16:59 Proxima Corp. reports fourth-quarter fiscal 1996
results; record fourth quarter and annual revenues
SAN DIEGO (April 23) BUSINESS WIRE -April 23, 1996--Proxima Corp.
(NASDAQ:PRXM) Tuesday announced that revenue for the fiscal year ended
March 31, 1996, increased 18 percent over last year.
For fiscal year 1996, Proxima reported net income of $9,690,000, or
$1.37 per share, on revenues of $159,797,000, compared with net
income of $13,109,000, or $1.91 per share, on revenues of $135,750,000 in
fiscal 1995.
For the fourth quarter ended March 31, 1996, Proxima reported net income
of $3,458,000, or 47 cents per share, on revenues of $47,591,000, compared
with net income of $3,930,000, or 56 cents per share, on revenues of
$40,746,000 in the same period last year.
John E. Rehfeld, president and chief executive officer of Proxima since
February 1996, stated: ''With an ample supply of most of our leading
products, we achieved record revenues in the fourth quarter. The past-due
backlog of DP5100s, which had been in short supply, was nearly eliminated,
and overall backlogs were reduced by about 40 percent.
''Price cutting and discounting in the market increased in the month of
March and slowed our incoming order rates. While we reduced prices late
in the quarter and shipped a record number of the lower-margin DP5100s,
the lower average selling prices were almost entirely offset by lower
component and manufacturing costs resulting in gross margins of 38
percent.
''Although gross margins were strong in the quarter, we expect to see
margins in the mid- to low 30s during the first half of fiscal year 1997.
With the transition and repositioning of both new and existing products,
sales and earnings will be significantly impacted during the
first half of the year.
''For the current quarter, the company is expecting revenues above
the level achieved in the same period last year but below the level
achieved in the fourth quarter of fiscal 1996, and earnings may be as
low as break-even. However, we expect the new products to help
Proxima establish a strong position in the market for the second half of
the year. ''
Rehfeld further commented: ''In fiscal year 1997, we are committed to
broadening our product line, increasing our global distribution
and increasing operational efficiencies. We have already made
progress in each of these areas, and you should see the results of these
efforts within the next few quarters.
''We will soon be introducing several new projectors that will offer
features that will differentiate our products from the competition. These
projectors will each use one of the following light-valve technologies:
amorphous silicon, polysilicon and Texas Instruments' Digital Light
Processing.
''Included in this new set of products will be a high-resolution
workstation projector for the engineering conference room. ''
Proxima is a leading developer, manufacturer and marketer of desktop
projection products that bring the power of the computer to the
workgroup. These systems increase the productivity and effectiveness of
business meetings, interactive workgroup sessions, training and
computer-based presentations.
This news release contains forward-looking statements relating
to future results, new products, operational efficiencies and global
distribution. Actual results could differ materially from those
projected in the forward-looking statements.
Certain risk factors (such as those relating to short product lives,
technological change and technical difficulties with new products,
competition, pricing pressures and the uncertainties of international
product distribution) could materially affect the projections.
Investors are strongly encouraged to review the risk factors set forth in
the company's last filed Forms 10-K and 10-Q. -0-
PROXIMA CORP.
Consolidated Statements of Income
(In thousands, except per-share data)
Three months ended Year ended
March 31, March 31,
1996 1995 1996 1995
(Unaudited) (Unaudited) (Unaudited)
Sales $ 47,591 $ 40,746 $159,797 $135,750
Cost of sales 29,525 22,529 101,459 79,813
Gross profit 18,066 18,217 58,338 55,937
Operating expenses:
Selling and marketing 6,758 5,918 21,838 19,163
Research and development 3,897 3,351 12,852 8,782
General and
administrative 1,717 2,581 7,129 7,291
Total 12,372 11,850 41,819 35,236
Income from operations 5,694 6,367 16,519 20,701
Other income (expense):
Interest and other
income 295 246 927 610
Equity in loss of
affiliate (315) (504) (1,052) (504)
Total (20) (258) (125) 106
Income before income
taxes 5,674 6,109 16,394 20,807
Provision for income taxes 2,216 2,179 6,704 7,698
Net income $ 3,458 $ 3,930 $ 9,690 $13,109
Earnings per share 47 cents 56 cents $ 1.37 $ 1.91
Weighted average common
and common-equivalent
shares 7,333 6,981 7,069 6,847
-0-
Balance Sheet Items
March 31,
1996 1995
(Unaudited)
Cash and short-term investments $21,421 $15,697
Accounts receivable 27,255 26,751
Inventories 24,416 21,883
Shareholders' equity 73,170 59,289
CONTACT: Proxima Corp., San Diego
Todd Savitt, 619/457-5500, ext. 1208 |
