GGIT
While it is a penny stock current = 1 1/16 x 1 1/4 off 7/8. It is the biggest losser of the day so far. Will be 50% on the next sell at this bid.
BLAINE, Wash.--(BUSINESS WIRE)--June 12, 1997--Ronald S. Deans, Chairman, President and CEO of GEOGRAPHICS, INC. (NASDAQ/NNM: GGIT) (TSE: GGI) announced today that the Company expects to report revenues for the fiscal year ended March 31, 1997 of approximately $24 million, compared with $22.6 million for the year ended March 31, 1996. The Company expects to report revenues for the quarter ended March 31, 1997 of approximately $5 million compared with $6.1 million for the quarter ended March 31, 1996.
The Company also announced that it expects to report a net loss for the year ended March 31, 1997 of at least $6.5 million, compared with net income of $1.2 million for the year ended March 31, 1996. The loss is attributable to a decline in gross margin, an expected write down in the range of $500,000 to $750,000 of certain assets related to the Company's information systems, a reserve for write down of potentially obsolete inventory and other matters. Without regard to any additional reserves for obsolete inventory, the Company expects to report gross margin in the range of $4.5 million (18% of net revenue) to $5.5 million (23% of net revenue) for the year ended March 31, 1997, down from $8.4 million (37.2% of net revenue) for the year ended March 31, 1996. Actual results for the year, including the reserve for obsolete inventory, are subject to further management review and completion of the Company's audit, with final results expected to be announced by June 30, 1997.
Without regard to any additional reserves for obsolete inventory, the anticipated lower gross margin is primarily attributable to a decline in selling prices for the Company's paper products coupled with modest cost increases and a continuing shift in mix of sales to lower margin products. Planned efficiency improvements in the manufacture of its paper products were not realized during the year due to delays and extra expenses incurred during implementation of automated production machinery. As a result, the Company experienced increases in both the direct labor and overhead elements of its product costs. In addition, the Company experienced modest raw material cost increases during the second half of fiscal 1997. |
