SOCR OTC BB .28/.35...two prifitable qtrs in a row and nice jump in rev this qtr:
B: Scan-Optics Announces Second Quarter Profit
B: Scan-Optics Announces Second Quarter Profit
MANCHESTER, Conn., Aug 6, 2002 (BUSINESS WIRE) -- Scan-Optics, Inc. (OTC BB:
SOCR), a leader in Information Capture and Customer Service Solutions for
Government, Insurance, Order, Proxy, Test Scoring and other paper-intensive
businesses, today announced financial results for the second quarter of 2002.
For the second quarter ended June 30, 2002, total revenues were $7.8 million,
compared to $7 million in the 2001 second quarter. The Company reported net
income for the quarter of $.2 million, or $.03 per diluted share, compared to a
net loss of $.9 million, or $.13 per diluted share, for the same period in 2001.
For the six months ended June 30, 2002, total revenues were $15.7 million, with
a net income of $.4 million, or $.05 per diluted share, compared to revenues of
$17.9 million and a net loss of $1.6 million, or $.23 per diluted share, in the
first six months of 2001.
EBITDA (earnings before interest, taxes, depreciation and amortization), another
key measure of the Company's performance, increased 101% from $.6 million in the
second quarter of 2001 to $1.3 million in the second quarter of 2002. For the
six months ended June 30, 2002 EBITDA was $2.4 million, compared to $1.7 million
in the first six months of 2001.
In discussing the results, James C. Mavel, Chairman, Chief Executive Officer and
President of Scan-Optics, stated, "the results from the second quarter continue
to build on the solid first quarter performance even with the significant
economic uncertainty that exists. We are pleased to report that not only did
profitability continue but also revenue grew by 12% over the same period last
year. Also, our second quarter results continue to demonstrate that our fiscal
controls are producing the desired impact with an improvement in gross margin
and a reduction in operating expense. We will continue to focus on the demand
side of our business in the third quarter while continuing to aggressively
manage expenses. Although Scan-Optics was able to perform well this quarter in a
very uncertain economy and market, we must be cautious as long as this economic
trend continues."
Scan-Optics, Inc., with headquarters in Manchester, Connecticut, is recognized
internationally as an innovator and solution provider in the information
management and imaging business. It designs, manufactures and services products
and systems for character recognition, image processing and display, data
capture and data entry. Scan-Optics systems and software are marketed worldwide
to commercial and government customers directly and through distributors.
Through its Manufacturing Services Division, Scan-Optics also provides
contract-manufacturing services to customers, outsourcing the manufacturing of
complex, electro-mechanical assemblies. The Company has sales and service
offices located throughout the United States and abroad. Additional information
concerning the Company is available at www.scanoptics.com. Information contained
on the Company's web site is not incorporated by reference herein.
Statements about the Company's future expectations, including future revenues
and earnings, and all other statements in this press release other than
historical facts are "forward-looking statements" made under safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 and involve a
number of risks and uncertainties that could materially affect future results.
Among these risk factors are changes in general economic and business conditions
in the United States and foreign markets, which impact capital investments by
customers, the cyclical nature of funding within federal and state government
agencies, adverse changes in the Company's banking relationship, insufficient
cash resources, increased competition from similar products, the implementation
of other technologies which may provide alternative solutions, ability to
complete projects in a timely manner, and other risk factors and cautionary
statements listed from time to time in the Company's periodic reports filed with
the Securities and Exchange Commission, including but not limited to the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2001.
SCAN-OPTICS, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Six Months Ended
June 30 June 30
(thousands, except
share data) 2002 2001 2002 2001
Revenues
Hardware and software $2,889 $1,722 $6,296 7,886
Professional services 1,708 1,943 3,334 3,386
Access services 3,245 3,326 6,036 6,627
Total revenues 7,842 6,991 15,666 17,899
Costs of Revenue
Hardware and software 2,130 1,545 4,214 5,944
Professional services 742 1,104 1,428 2,300
Access services 2,271 2,689 4,566 5,430
Total costs of revenue 5,143 5,338 10,208 13,674
Gross Margin 2,699 1,653 5,458 4,225
Operating Expenses
Sales and marketing 815 913 1,665 1,895
Research and development 507 686 1,066 1,431
General and administrative 923 545 1,875 1,530
Interest 221 439 439 951
Total operating expenses 2,466 2,583 5,045 5,807
Operating income (loss) 233 (930) 413 (1,582)
Other income, net 6 (2) 12 8
Income (loss) before
income taxes 239 (932) 425 (1,574)
Income tax expense 21 8 41 30
Net Income (Loss) $218 $(940) $384 (1,604)
Basic earnings (loss)
per share $0.03 $(0.13) $0.05 $(0.23)
Basic weighted-average
shares 7,026,232 7,027,712 7,026,232 7,026,972
Diluted earnings (loss)
per share $0.03 $(0.13) $0.05 $(0.23)
Diluted weighted-average
shares 7,308,118 7,027,712 7,357,627 7,026,972
CONTACT: Scan-Optics, Inc.
Catherine Stephenson, 860/645-7878
cstephen@scanoptics.com |
