Cognitronics Reports Second Quarter Net Income Equal to 38 Cents vs. 30 Cents
and Record Six Months Net Income Equal to 70 Cents vs. 59 Cents
Wednesday, July 28, 1999 08:30 AM
DANBURY, Conn., July 28 /PRNewswire/ -- Cognitronics Corporation (Amex: CGN) today reported
-- Quarterly net income per share on a diluted basis for the second
quarter of 1999 equal to $.38, up 27% from $.30 a year ago
-- Record six months net income per share on a diluted basis for the
period ended June 30, 1999 equal to $.70, up 19% from $.59 in 1998.
Earlier this month, the company announced a three-for-two stock split to be distributed in the form of a
50% stock dividend to be distributed on August 20th to stockholders of record on July 30th. Taking into
account the effect of the pending stock split, net income per share on a diluted basis for the second
quarter was $.25 versus $.20 a year ago and for the 1999 six month period was $.47 versus $.40 in the
same 1998 period.
For the quarter ended June 30, 1999, net income was $1,512,000 compared to $1,186,000 for the
same quarter of 1998.
Sales for the second quarter were $8.3 million in 1999, versus $7.1 million in 1998.
The company said that the 18% increase in second quarter 1999 sales over the comparable 1998
period was primarily attributable to an increase in sales of the company's McIAS(TM) 16xx series
product line to the North American telecommunications market, partially offset by lower sales of
distributorship products into the British telecommunications market.
For the six months ended June 30, 1999, the Company reported record net income of $2,795,000, up
from $2,385,000 for the same period in 1998. Sales for the six-month period were $16.1 million in 1999,
compared to $14.6 million in 1998.
"To date, the year 1999 has continued with a strong performance in the company's domestic
operations," said Brian J. Kelley, president and chief executive officer of Cognitronics. "Trailing
earnings per diluted share (excluding the effect of the pending stock split) for the twelve months ended
June 30, 1999 were $1.28.
"During the second quarter, the company announced the signing of an agreement with Lucent
Technologies, Inc. which provides for the purchase and resale by Lucent Technologies of the
company's McIAS 16xx product line. Sales under this agreement began in the first quarter and are
continuing.
"Also, during the second quarter the company announced the introduction of its newest product line,
the Cognitronics Exchange (CX). The CX product line was developed in response to emerging market
needs and will provide for Cognitronics entry into new market segments by delivering new capabilities,
network interfaces and software not previously found in our products. These new telecommunications
market segments are much larger in size and potential growth rates than the company's traditional
area of third party network announcers and represent exciting opportunities for Cognitronics to become
a major player in a dynamic marketplace. Laboratory evaluations are scheduled with several major
telecommunications providers over the next few months.
"New product development continues and the investment in research and development is expected to
continue to increase in 1999 to expand the capabilities of the McIAS 16xx/IP and CX series product
lines," 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.
COGNITRONICS CORPORATION
SUMMARY OF RESULTS
Three Months
Ended June 30,
1999 1998
Net sales $8,334,000 $7,069,000
Net income $1,512,000 $1,186,000
Net income per share (a):
Basic $.41 $.32
Diluted $.38 $.30
Weighted average number of
shares outstanding (a):
Basic 3,679,109 3,687,609
Diluted 4,012,460 4,009,000
(a) Taking into account the 3-for-2 stock split to be distributed on
August 20, 1999, net income per share was: Basic -- $.27 on 5,518,663
shares in 1999 and $.21 on 5,531,414 shares in 1998 and Diluted --
$.25 on 6,018,690 shares in 1999 and $.20 on 6,013,500 shares in 1998.
YESSSSS ...........Here we go!
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