GenRad Reports Strong Second Quarter Results
Revenues at Record Level
WESTFORD, Mass.--(BUSINESS WIRE)--July 17, 1997--
Second Quarter 1997 Net Income of $7,921,000
Versus 1996 Second Quarter Net Income of $5,711,000
GenRad, Inc. (NYSE:GEN) today reported a 39 percent increase in net income on a record 35 percent increase in revenues over the second quarter of 1996. This was the seventh consecutive quarter of higher revenues for GenRad. Orders for the second quarter were up 32 percent from the second quarter of 1996.
Orders for the second quarter of 1997 increased by 32 percent to $56,892,000 from second quarter 1996 orders which were $43,153,000.
Revenues for the first six months of 1997 increased by 28 percent to $113,550,000 from revenues of $88,722,000 for the first six months of 1996.
Year-to-date net income, excluding a deferred tax benefit, was $14,250,000 or $.50 per share as compared to year-to-date 1996 net income which, excluding a deferred tax benefit, was $10,180,000 or $.43 per share.
Year-to-date net income, including a deferred tax benefit of $5,388,000, was $19,638,000 or $.69 per share as compared to year-to-date 1996 net income which, including a deferred tax benefit of $2,480,000, was $12,660,000 or $.53 per share.
Fully diluted average common and common equivalent shares increased by 19 percent in the second quarter of 1997 to 28,741,000 as compared to 24,160,000 in the comparable period in 1996. This increase was due primarily to the conversion of the convertible debentures in the fall of 1996.
GenRad's President and Chief Executive Officer, James F. Lyons, commented on the quarter, ``GenRad demonstrated strong, accelerating, year-to-year sales, orders and net income growth for the second quarter across all geographies. Quarterly revenues, at a record level, were paced by our Board Test, GENEVA and ADS products. New customers represented over 50 percent for the quarter. Gross Margins for EMS and ADS were up in the second quarter over a year ago.''
``Our Electronic Manufacturing Systems (EMS) division continued to expand its presence in the communications arena, as evidenced by our recent multi-million dollar Cabletron win. We continue to differentiate ourselves to these customers by providing valuable, focused, customer-specific solutions to the high-speed networking industry,'' Mr. Lyons stated.
Mr. Lyons continued, ``Our Advanced Diagnostic Solutions (ADS) division successfully leveraged its expertise in the European transportation industry resulting in its recent selection by Ford USA to be the full service supplier for Ford's Worldwide Diagnostic System (WDS) project. Ford is a strategic win for GenRad and will be a reference account for ADS in North America. ADS revenues in the second quarter were over 70 percent above the second quarter of 1996.''
GenRad Background
GenRad, Inc., provides electronics OEMs and their customers with hardware, software and services to optimize manufacturing and after-market service productivity through increased yields and lower life cycle costs. GenRad employs approximately 1,400 people worldwide, of whom, 35 percent are applications, software and hardware engineers.
-financials follow-
BY USING GENRAD, INC.'S INVESTOR RELATIONS FAX-ON-DEMAND SERVICE,YOU CAN RECEIVE GENRAD'S MOST CURRENT SHAREHOLDER INFORMATION.PLEASE CALL 1-800-469-1261.
Statements made in this press release which are not historical, including statements regarding product demonstration, product capabilities and markets are forward looking statements and as such are subject to a number of risks. Please see the Company's 1996 Annual Report on Form 10K and other reports filed pursuant to the Securities Exchange Act of 1934 for additional disclosure regarding such risk factors.
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GENRAD, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)
Q2 - Three Months Ended
June 28, 1997 June 29, 1996 % change
Orders $56,892,000 $43,153,000 32%
Total Sales $61,050,000 $45,168,000 35%
Net Income $7,921,000 $5,711,000 39%
Average Shares Outstanding:
Primary 28,177,000 23,981,000 17%
Fully diluted 28,741,000 24,160,000 19%
Net Income Per Share:
Primary $0.28 $0.24 17%
Fully diluted $0.28 $0.24 17%
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Q2 - Six Months Ended
June 28, 1997 June 29, 1996 % change
Orders $118,158,000 $91,423,000 29%
Total Sales $113,550,000 $88,722,000 28%
Net Income $19,638,000 $12,660,000 55%
Average Shares Outstanding:
Primary 28,097,000 23,570,000 19%
Fully diluted 28,404,000 23,940,000 19%
Net Income Per Share:
Primary $0.70 $0.54 30%
Fully diluted $0.69 $0.53 30%
Net Income Excluding
Tax Benefit $14,250,000 $10,180,000 40%
Per Share Data - Fully diluted:
Net Income as Reported $0.69 $0.53
Tax Benefit $(0.19) $(0.10)
Net Income Excluding
Tax Benefit $0.50 $0.43 16%
Note: The tax benefit is due to a reduction in the Company's
deferred tax asset valuation allowance.
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Contact:
GenRad, Inc.
Claire M. Murphy
508-589-7451 |
