Tuesday August 26 1:07 PM EDT
Company Press Release
Source: TELS Corporation
TELS Corporation Reports Improved Earnings For Second Quarter
SOUTH JORDAN, Utah, Aug. 26 /PRNewswire/ -- Stephen M. Nelson, President
of TELS Corporation (Nasdaq:TELS), today reported financial results for
the quarter ended June 30, 1997.
Consolidated net income from operations for the second quarter of 1997
was $21,104 or $.01 per share (3,891,774 outstanding shares). This is a
significant improvement when compared to the 1996 second quarter net
loss of $35,214. Consolidated net sales, $1,628,804 for the second
quarter of 1997, decreased 4% when compared to 1996. However, sales of
telephone call accounting products were up 15% for the six months ending
June 30, 1997. Selling, general, and administrative expenses were
$717,164, for the second quarter of 1997, a decrease of 13% when
compared to the same period in 1996.
For the six months ended June 30, 1997, TELS incurred a net loss of
$62,327 or $.02 per share. However, this is a favorable change in
operating results when compared to the net loss of $102,889 for the same
period of 1996.
Comments from Stephen M. Nelson, President
``Although we still have much to accomplish, we are encouraged by the
improved results of the second quarter of 1997. Sales of our telephone
call accounting products have increased steadily for the first time
since the NANP changes of 1994 and 1995, and despite the fact that sales
in our manufacturing sector are down 40%, we have been able to improve
our gross profit margin from 27% to over 32% in that division. We are
also now seeing the positive results of our continuing efforts to reduce
administrative expenses. We have made progress, and as we continue to
focus on our core strengths, we believe a return to profitability is
well within our reach.''
TELS Corporation through its subsidiaries, designs, builds, assembles,
sells and services call accounting and other telecommunications systems.
The company also assembles electronic systems on a contract basis, as
well as designs, sells and services computer software products.
This release contains forward-looking statements that involve risks and
uncertainties, actual results may vary materially from projected
results.
Summary Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
Net Sales $1,628,804 $1,692,771 $2,997,403 $3,531,777
Cost of goods sold 826,594 852,605 1,563,135 2,010,468
Gross Profit 802,210 840,166 1,434,268 1,521,309
Research and
development expenses 44,040 23,246 70,444 67,352
Selling, general and
administrative expenses 717,164 820,112 1,422,883 1,546,278
Operating income (loss) 41,006 3,192 59,059 92,321
Net Other (15,801) (25,100) (38,667) (35,620)
Income (loss)
from operations before
income tax benefit (provision)25,205 (28,292) (97,726) (127,941)
Income tax benefit,
(provision) (4,101) (6,922) 35,399 25,052
Net income (loss) $21,104 $(35,214) $(62,327) $(102,889)
Net income (loss) per
common and common
equivalent share $.01 $(.01) $(.02) $(.03)
Condensed Consolidated Balance Sheets
June 30, December 31,
1997 1996
(Unaudited) Audited
Assets
Current Assets
Cash and cash equivalents $87,114 $31,980
Cash investments 63,614 62,399
Receivables 874,702 854,463
Inventories 718,049 750,427
Prepaid expenses 143,082 158,367
Deferred income taxes 195,368 195,368
Total current assets 2,081,929 2,053,004
Property, plant and equipment, net 797,449 894,705
Software development
costs, net 171,891 146,142
Intangible assets, net 159,330 199,144
Deferred income taxes 696,108 657,709
Other assets 181,092 161,673
$4,087,799 $4,112,377
Liabilities and Stockholders' Equity
Current Liabilities
Current portion of long-term debt 706,666 624,276
Trade accounts payable 372,962 401,433
Accrued and other expenses 508,747 519,628
Total Current Liabilities 1,588,375 1,545,337
Long-term debt,
excluding current
installments 210,200 235,739
Net stockholders' equity 2,289,224 2,331,301
$4,087,799 $4,112,377 |
