earnings up
CEM REPORTS IMPROVEMENT IN FIRST-QUARTER
EARNINGS
CHARLOTTE, N.C.--(BUSINESS WIRE)--Oct. 21, 1997--CEM Corporation
(Nasdaq/NM:CEMX) today announced an increase in net income for the first fiscal quarter ended
September 30, 1997. Net income for the quarter totaled $241,000, or $0.07 per share, compared
with $106,000, or $0.03 per share, a year ago. For the first quarter of fiscal 1998, net sales totaled
$6.6 million, unchanged from the year-earlier period.
''We are encouraged by the improvement in profitability for the first quarter,'' remarked Michael J.
Collins, President and Chief Executive Officer. ''The first quarter was also highlighted by the
introduction of MARS, our next generation closed-vessel digestion system with revolutionary
capabilities. This new instrument, which is the result of an intensive two-year development program,
was shown to customers and prospective accounts in key European, Asian and Latin American
markets during the first quarter. In early October, the marketing campaign was expanded to include
a series of seminars throughout the United States that is part of the most extensive launch by the
Company for any new system. The advanced performance characteristics of MARS have been well
received, and we are pleased with the initial interest in this instrument that we believe will become the
new standard for microwave-based, digestion systems.''
Collins noted, ''We experienced some difficulty in achieving a year-to-year gain in net sales for the
first quarter partly because the introduction of MARS reduced demand for our existing digestion
systems. We believe this effect will prove temporary as shipments of MARS should start to
contribute to our revenues, especially during the second fiscal half. In addition, we experienced some
softness in Asia, particularly in Japan. We continue to emphasize the importance of containing
expenses and improving operating efficiency to enhance CEM's competitive position in the
instrument market.''
CEM manufactures microwave-based instrumentation for testing, analysis and process control. The
Company's products are used worldwide in the general analytical laboratory market and in many
manufacturing and processing industries, including chemical and food processing. |
