Here are preliminary results.. Markets seem to like them as TLXN is up 1-1/8. Comments?
JK
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Monday April 28 9:45 AM EDT
Company Press Release
Source: Telxon Corporation
Telxon Announces Preliminary Results for Fourth Quarter Ended
March 31, 1997
AKRON, Ohio, April 28 /PRNewswire/ -- Telxon Corporation (Nasdaq:TLXN), today announced preliminary results for
its fourth quarter ended March 31, 1997.
Frank E. Brick, Telxon's President and CEO, stated, ``Although final results will be announced May 20, 1997, we are
releasing preliminary results for the fourth quarter, prior to several presentations at investor conferences in late April and
early May.''
Brick continued, ``Preliminary results for the fourth quarter include, revenues of $121 million, a 20% sequential increase
over revenues from continuing operations in Q3 and gross profit margins above 39%, an increase of 2% over Q3 and 7%
over the first half of fiscal 1997.''
``We expect after-tax operating earnings to be $.25 per share, in line with earlier management guidance. In addition, the
company plans to take non- recurring charges of $5.5 million, or $.22 per share, related to the previously announced
retirement of the company's Chairman and CEO and a $500,000, or $.02 per share, adjustment related to the December
1996 sale of the company's former Itronix subsidiary.''
Kenneth W. Haver, Telxon's Senior Vice President and CFO, stated, ``During the fourth quarter, the company repurchased
618,000 shares of its common stock pursuant to its open market repurchase program announced in June, 1996. To date, the
company has repurchased a total of 718,000 shares, or nearly 5% of our outstanding shares, under this program.''
Brick concluded, ``I am confident in our team's ability and commitment to increase value for our shareholders, customers
and employees. We have now realized the majority of the benefits of our initiatives to lower our product costs, improve our
operating efficiencies and lower our overall operating expenses. Many of these benefits have been realized from narrowing
our focus on the company's core retail, logistics, industrial and manufacturing markets. Continuing improvements are
expected based upon our new product development initiatives that will be announced in the near-term and throughout fiscal
1998.''
``As previously indicated, we support analysts estimates for continued revenue and earnings growth for fiscal 1998.''
The preliminary financial results reported above are subject to adjustment pending completion of the company's annual
audit. This news release also contains forward-looking statements that are inherently subject to risks and uncertainties
which could cause Telxon's actual results to differ materially from the forward-looking statements. The important factors
affecting the realization of those results include, without limitation, general and industry-specific economic conditions, the
company's ability to timely develop, introduce and gain market acceptance of new and enhanced products, competitive
pressures and rapid technological change, and its ability to identify, acquire and manage new businesses and technologies
while controlling manufacturing and other costs. Reference should be made to the discussion of these and other factors
affecting Telxon's business and results as included from time to time in the company's filings with the Securities and
Exchange Commission.
Telxon Corporation is a leading global designer and manufacturer of wireless and mobile transaction solution systems for
vertical markets. The company integrates advanced mobile computing and wireless data communication technology with a
wide array of peripherals, application-specific software and global technical services for its customers in more than 50
countries around the world. Telxon's executive, engineering, marketing and sales offices are headquartered in Akron, Ohio;
its world manufacturing and domestic customer service facilities are located in Houston, Texas. Telxon International
Division is headquartered in Brussels, Belgium. Telxon's World Wide Web site address is: telxon.com.
SOURCE: Telxon Corporation
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