Zomax Announces That Second Quarter 1999 Earnings Will Significantly Exceed Analysts' Expectations
PR Newswire - June 23, 1999 22:20
MINNEAPOLIS, June 23 /PRNewswire/ -- Zomax Incorporated (Nasdaq: ZOMX) today announced that its second quarter 1999 earnings will significantly exceed analysts' expectations. Sales for the second quarter ended June 25, 1999 are expected to be approximately $54 million with earnings expected to be approximately $.55 per diluted share. For the second quarter ended June 26, 1998, sales were $14.5 million with earnings of $.15 per diluted share.
James T. Anderson, President and CEO, stated, "Second quarter operating results were strongly influenced by the acquisition of the Kao Infosystems business that is now firmly under our control. The four major factors that have led to increased operating margins are: (1) the implementation of improved financial and operational controls at the acquired Kao sites, (2) the operation of all manufacturing plants at higher capacity utilization rates, (3) the strengthening of our customer mix, and (4) the cross selling of additional value added services to existing customers. We are definitely succeeding in improving operational margins at the former Kao sites. We are very pleased with the financial performance in the quarter and look forward to continued strong performance through the second half of the year."
The Company has scheduled a conference call for 10:30 a.m. (CST) on June 24, 1999 to comment on preliminary earnings for the second quarter and answer questions. To participate in this conference call please call 913-981-5509. Zomax will announce final second quarter 1999 earnings on Monday, July 19, 1999, after the market closes.
Zomax Incorporated is a leading outsource service provider to software publishers, computer manufacturers and other producers of multimedia products. These services include call center and customer support solutions; E-commerce solutions; CD and DVD mastering; CD, DVD diskette and cassette replication; graphic design; print management; assembly; packaging; warehousing; inventory management; distribution and fulfillment; and RMA processing. The Company's Common Stock is traded on the Nasdaq National Market under the symbol "ZOMX."
Statements contained in this press release such as the Company's ability to continue with strong sales and earnings are forward-looking, based on current expectations. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors that could cause results to differ materially from those anticipated, including: strategies of competitors, reduced market demand, general economic factors, such as consumer confidence and inflation, increased costs and lower gross margin and the Company's ability to successfully assimilate its newly acquired software replication business. Investors are cautioned that all forward-looking statements involve risk and uncertainty.
SOURCE Zomax Incorporated
/CONTACT: Jim Anderson, President and CEO, or Jim Flaherty, Chief
Financial Officer, both of Zomax, 612-553-9300/
/Web site: zomax.com
(ZOMX) |
