WESTPORT, Conn.--(BUSINESS WIRE)--Oct. 20, 1997--Tridex Corporation (Nasdaq
National Market: TRDX), a leading manufacturer of peripheral devices and integrated systems
for retail point-of-sale (''POS'') and other transaction-based markets, today announced
financial results for the three and nine month periods ended September 27, 1997 (see attached
table).
Sales from continuing operations for the third quarter ended September 27, 1997 were
$6,872,000 as compared to sales of $7,180,000 for the comparable prior year period.
Operating income in the 1997 third quarter increased 7% to $166,000 from $155,000 for the
same period last year. Pre-tax income from continuing operations for the 1997 third quarter
was $340,000, versus a pre-tax loss from continuing operations of $85,000 in last year's third
quarter which excludes a one-time gain of $6,200,000 attributable to the initial public offering
of common stock by TransAct Technologies Incorporated (''TransAct''), a then subsidiary of
the Company. Income from continuing operations for the 1997 third quarter was breakeven,
compared to a loss of $104,000 exclusive of the aforementioned gain. For the comparable
period in 1996, income from discontinued operations totaled $974,000, or $.23 per share,
consisting primarily of the equity in earnings of TransAct. The net income for the 1997 third
quarter was breakeven, compared to net income of $7,070,000, or $1.67 per share, in the third
quarter of 1996 which includes the one-time gain and income from discontinued operations.
For the first nine months of 1997, sales from continuing operations increased 14.5% to
$18,592,000 from $16,241,000 last year. Tridex incurred an operating loss of $530,000 for the
first nine months of 1997, compared to operating income of $242,000 for the same period last
year. The pre-tax loss from continuing operations for the 1997 nine month period was
$199,000, versus a pre-tax loss from continuing operations of $597,000, which excludes the
aforementioned $6,200,000 gain, in the first nine months of 1996.
The loss from continuing operations for the 1997 nine month period was $175,000 compared to
loss from continuing operations of $481,000, excluding the one-time gain for the same period
last year. Income from discontinued operations for the 1997 nine month period totaled
$607,000, or $0.11 per share, compared to income from discontinued operations for the 1996
nine month period of $2,954,000, or $0.72 per share. Net income for the 1997 nine month
period of $432,000, or $0.08 per share, compared to net income of $8,673,000, or $2.12 per
share, last year which includes the one-time gain and income from discontinued operations.
Results for the 1997 three and nine month periods were impacted by non-cash expenses of
$195,000 and $794,000, respectively, associated with the stock incentive compensation
agreement with the principal executives of Ultimate. The remainder of the non-cash expense
associated with the agreement will be recognized at the rate of $195,000 per quarter for the
balance of 1997 and at a rate of $60,000 per quarter in 1998. Additionally, the Company's
provision for income taxes in the 1997 third quarter was $340,000 due principally to
non-deductible goodwill amortization. The Company expects to have an unusually high
effective tax rate through the remainder of the year.
While 1997 third quarter sales from continuing operations increased 11.3% from the 1997
second quarter, sales were 4% lower than the all-time quarterly record sales reported in the
1996 third quarter. Gross margins for the 1997 third quarter rose to 25.5% from 24.7% in the
same period last year. This improvement was due primarily to increased sales of higher margin
manufactured products as opposed to distributed products.
Seth M. Lukash, Chairman and Chief Executive Officer of Tridex Corporation, commented,
''Ultimate has begun shipping second generation UTC POS hardware to Crown Books pursuant
to an agreement announced in August, and we have also begun delivering alphanumeric POS
keyboards to Siemens Nixdorf Information Systems for use with Siemens PC-based Beetle POS
system. To complement internal growth through the procurement of orders from new and
existing customers and the development and expansion of Ultimate's product line, we are
continuing to explore strategic acquisitions and appropriate joint ventures/alliances. In this
regard, a strong balance sheet at September 27, 1997 is highlighted by cash and cash
equivalents of $14,933,000, or $2.79 per share, working capital of $18,642,000, and no long
term debt.''
Tridex Corporation, which is comprised of its Ultimate Technology Corporation subsidiary, the
Tridex Ribbon Division, and a minority interest in the buyer of Cash Bases, manufactures
terminals and other peripheral devices and integrated systems for retail point-of-sale and other
transaction-based markets. Visit Tridex on the World Wide Web at www.tridex.com.
The statements contained in this release which are not historical facts may be deemed to
contain forward-looking statements with respect to events, the occurrence of which involve
risks and uncertainties, including, without limitation, uncertainties detailed in the Company's
Securities and Exchange Commission filings.
TRIDEX CORPORATION AND SUBSIDIARIES
COMPARATIVE CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE QUARTERS AND NINE MONTHS ENDED
SEPTEMBER 27, 1997 AND SEPTEMBER 28, 1996
(Unaudited)
Quarters Ended Nine Months Ended
September 27, September 28, September 27, September 28,
1997 1996 1997 1996
Net sales $6,872,000 $7,180,000 $18,592,000 $16,241,000
Operating
income
(loss) 166,000 155,000 (530,000) 242,000
Other charges
(credits), net 1,000 (6,158,000)(A) 9,000 (6,134,000)(A)
Income before
interest, income
taxes and
discontinued
operations 165,000 6,313,000 (539,000) 6,376,000
Interest expense
(income),
net (175,000) 198,000 (340,000) 773,000
Income (loss)
from continuing
operations
before income
taxes 340,000 6,115,000 (199,000) 5,603,000
Provision
(benefit) for
income taxes 340,000 19,000 (24,000) (116,000)
Income (loss)
from continuing
operations 0 6,096,000 (175,000) 5,719,000
Discontinued
operations 0 974,000 607,000 2,954,000
Net income $ -- $7,070,000 $432,000 $8,673,000
Earnings per common
and common
equivalent share:
Primary:
Income (loss)
from continuing
operations $ -- $ 1.44 $(0.03) $1.40
Income (loss)
from discontinued
operations 0.00 0.23 0.11 0.72
$ -- $ 1.67 $ 0.08 $2.12
Average common
and common
equivalent shares
outstanding:
Primary 5,531,000 4,234,000 5,252,000 4,085,000
(A) 1996 Amounts include $6,200,000 (or $1.46 per share) gain on
sale of subsidiary stock.
-0-
TRIDEX CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Dollars in Thousands) (Unaudited)
September 27, December 31,
1997 1996 ASSETS Current assets:
Cash and cash equivalents $14,933 $2,787
Receivables 3,470 2,783
Inventories 3,455 4,258
Deferred tax assets 140 140
Other current assets 67 146
Total current assets 22,065 10,114
Plant and equipment, net 1,093 1,044 Excess of cost over fair
value of net assets acquired 2,641 3,014
Other assets 1,069 1,923 Investment in net assets
of discontinued operations:
Cash Bases GB Ltd. 605 6,153
TransAct Technologies Inc. -- 11,573
$27,473 $33,821
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Current portion of long term debt $ 0 $3,628
Accounts payable 1,852 2,189
Accrued liabilities 1,571 2,234
Total current liabilities 3,423 8,051
Long term debt, less current portion 0 0
Shareholders' equity:
Common stock, at stated value 1,377 1,043
Additional paid-in capital 25,069 23,361
Retained earnings (deficit) (206) 2,239
Unearned compensation (432) --
Receivables from sale of stock (816) --
Common shares held in treasury, at cost (942) (873)
24,050 25,770
-0- $27,473 $33,821 |
