SOCR offer at .37...earned 9 cents for 9mo...out this am:
(COMTEX) B: Scan-Optics Announces Third Quarter Profit
B: Scan-Optics Announces Third Quarter Profit
MANCHESTER, Conn., Nov 7, 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 third quarter of 2002.
For the third quarter ended September 30, 2002, total revenues were $7.2
million, compared to $5.6 million in the 2001 third quarter, an increase of 28%.
The Company reported net income for the quarter of $.2 million, or $.03 per
diluted share, compared to a net loss of $1.8 million, or $.26 per diluted
share, for the same period in 2001, an increase of 112%.
For the nine months ended September 30, 2002, total revenues were $22.8 million,
with net income of $.6 million, or $.08 per diluted share, compared to revenues
of $23.5 million and a net loss of $3.4 million, or $.49 per diluted share, in
the first nine months of 2001.
During the third quarter of 2002, the Company negotiated a reduction in the
final payment due BlueBird Systems, Inc. for the 1999 purchase of the DocWise
source code license which resulted in a reversal of previously recorded
amortization expense of $.3 million.
In discussing the results, James C. Mavel, Chairman, Chief Executive Officer and
President of Scan-Optics, stated, "We believe that the key to our ultimate
success lies with our focus on customer satisfaction. The key is quality! As
evidence of our commitment to continuous improvement and quality we are
undergoing, in November, our first registration audit for enterprise wide
certification under ISO9001:2000. As testimony to the effectiveness of our focus
on customer satisfaction, I would like to share a quote from a letter that I
received in August from Gary Gresham, Vice President of BeMusic Service, part of
BeMusic, one of the world's biggest music retailers. Gary writes: 'Scan-Optics
delivers! Having completed the installation of four Scan-Optics 9000Ms for
BeMusic Service, the Scan-Optics Team fulfilled their mission of being a
solutions provider focused on service.'"
"We are delighted that our products and services work for our customers in a
manner that generates high levels of customer satisfaction. Our employees take
great pride in defining and implementing high quality solutions that solve our
customers' business problems. The financial benefits attributable to customer
satisfaction through quality are reflected in the attached third quarter
results."
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, lending and financing
relationships, 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 Nine Months Ended
September 30 September 30
(thousands, except share
data) 2002 2001 2002 2001
Revenues
Hardware and Software $ 2,799 $ 901 $ 9,095 $ 8,787
Professional Services 1,628 1,579 4,962 4,965
Access Services 2,741 3,106 8,777 9,733
Total revenues 7,168 5,586 22,834 23,485
Costs of Revenue
Hardware and software 1,785 1,121 5,999 7,065
Professional services 754 805 2,182 3,105
Access services 2,105 2,621 6,671 8,051
Total costs of
revenue 4,644 4,547 14,852 18,221
Gross Margin 2,524 1,039 7,982 5,264
Operating Expenses
Sales and marketing 874 935 2,539 2,830
Research and
development 323 642 1,389 2,073
General and
administrative 879 873 2,754 2,403
Interest 203 401 642 1,352
Total operating
expenses 2,279 2,851 7,324 8,658
Operating income (loss) 245 (1,812) 658 (3,394)
Other income, net (5) 4 7 12
Income (loss) before
income taxes 240 (1,808) 665 (3,382)
Income tax expense 20 1 61 31
Net Income (Loss) $ 220 $ (1,809) $ 604 $ (3,413)
Basic earnings (loss) per
share $ .03 $ (.26) $ .09 $ (.49)
Basic weighted-average
shares 7,026,232 7,026,232 7,026,232 7,026,232
Diluted earnings (loss)
per share $ .03 $ (.26) $ .08 $ (.49)
Diluted weighted-average
shares 7,229,109 7,026,232 7,314,788 7,026,232
CONTACT: Scan-Optics
Annmarie Gordon, 860/645-7878
agordon@scanoptics.com
or
Scan-Optics
Susan Lucek, 860/645-7878
slucek@scanoptics.com
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KEYWORD: CONNECTICUT
INDUSTRY KEYWORD: SOFTWARE
HARDWARE
COMPUTERS/ELECTRONICS
BANKING
EARNINGS
SOURCE:
Scan-Optics
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