first profitable Q ....
Thursday May 1 11:31 AM EDT
Company Press Release
Source: EDITEK, Inc.
EDITEK, Inc. Reports First Quarter Profit in
Company's History
BURLINGTON, N.C., May 1 /PRNewswire/ -- EDITEK, Inc. (AMEX:EDI) announced
today its financial results for the quarter ended March 31, 1997. Revenues increased
over twenty-one percent to $6,806,000 from $5,623,000 during the first quarter of 1997
as compared to the same period in 1996. Net income for the quarter was $31,000, or
less than one cent per share, in 1997 compared to a net loss for the same period in
1996 of $1,725,000, or 14 cents per share. The reported loss for 1996 included
$855,000 or 7 cents per share, of restructuring charges. There was no such charge
during the first quarter of 1997. Revenue growth is primarily attributed to the inclusion of
MEDTOX results for three months this year versus two months last year.
``It is indeed gratifying to see the hard work begun by the current management team
begin to pay off. EDITEK's profit, albeit small, is the first that the company has ever
achieved. It is evidence of changes taking place at the company and management's
commitment to grow EDITEK and make it profitable on an annual basis,'' said Harry G.
McCoy, chairman and president. ``Our goal is to run the company to achieve success
over the long term, and investors should expect some quarterly variability in
performance due to the seasonal nature of hiring decisions by our corporate clients. As
a result, the company's laboratory business traditionally realizes higher sales in the
second quarter.''
McCoy went on to say that, ``the improved operating results reflect reduced overall
costs and improved operating efficiencies. A major contributor to our profitability was a
two percentage point improvement in gross margins by our laboratory operations, 37
percent this quarter versus 35 percent for the year ended December 31, 1996. We are
also pleased with the acceptance of the company's on-site drugs of abuse products
which achieved a 34 percent increase in sales compared to the same quarter last
year.'' McCoy added that, ``in addition to generating earnings, the company is
continuing to invest in research and development for new laboratory and on-site test
products and facility improvements, all of which are integral to our overall growth
strategy.''
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