DANBURY, Conn., July 23 /PRNewswire/ -- Cognitronics Corporation (AMEX:CGN) today
reported record quarterly net income for the second quarter of 1997 equal to $.42 per share, up
significantly from $.12 per share a year ago.
For the quarter ended June 30, 1997, net income was $1,614,000 compared to $430,000 for the
same quarter of 1996.
Sales for the second quarter were a record $9.6 million in 1997, up 91% from $5.1 million in 1996.
The company said that the significant increase in second quarter 1997 sales over the comparable
1996 period was attributable to a 162% increase in sales by its domestic operations, partially offset
by lower sales of distributorship products into the British telecommunications market. Sales of the
company's McIAS(TM) 16xx series products increased significantly in the second quarter of 1997
over the same quarter of 1996.
``In the second quarter, sales by domestic operations experienced an exceptionally strong demand
for the McIAS 16xx series products from our existing telephone company customers, switch
manufacturers and Competitive Local Exchange Carriers (''CLECs``),'' said Brian J. Kelley,
president and chief executive officer of Cognitronics. ``The CLECs are engaged in the initial buildup
of their infrastructures in order to offer competitive local communications services. Further, we
anticipate that some of this momentum will continue into the second half of this year. The sales order
backlog at the end of the 1997 second quarter was $3.1 million.''
For the six months ended June 30, 1997, the company reported net income of $2,118,000, or $.57
per share, versus $538,000, or $.15 per share, for the same period in 1996. Sales for the six-month
period were $15.2 million in 1997, up from $8.8 million in 1996.
Statements contained herein which are not historical facts are forward- looking statements. The
forward-looking statements in this release are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of
risks and uncertainties including, but not limited to, product demand, market acceptance, litigation,
risk of dependence on significant customers, third party suppliers and intellectual property rights,
risks in product and technology development and other risk factors detailed in the company's
Securities and Exchange Commission filings.
Cognitronics is a leading manufacturer and supplier of voice processing equipment, including
telephone network and call management products and interactive voice response (IVR) systems, to
telephone operating companies, original equipment manufacturers and commercial end-users.
COGNITRONICS CORPORATION
Summary of Results
Three Months
Ended June 30,
1997 1996
Net sales $9,645,000 $5,051,000
Net income $1,614,000 $430,000
Net income per share $.42 $.12
Weighted average number of shares outstanding 3,828,247 3,589,243
Six Months
Ended June 30,
1997 1996
Net sales $15,193,000 $8,816,000
Net income $2,118,000 $538,000
Net income per share $.57 $.15
Weighted average number of shares outstanding 3,736,283 3,600,041 |
