uesday December 16, 8:01 am Eastern Time
Company Press Release
SOURCE: Research, Inc.
Research, Inc. Q1 to be Affected by Asian Sales Shortfall
Company Still Expects 20% Growth for Fiscal Year
MINNEAPOLIS, Dec. 16 /PRNewswire/ -- Research, Inc. (Nasdaq: RESR - news) said today that it expects results for its
first quarter of fiscal 1998, ended December 31, 1997, to be lower than anticipated due to a delay of several weeks for a large
order from a Korean reflow oven customer. The company expects its first quarter sales to be in the range of those reported for
the same period a year ago, $4.5 million to $5.0 million. Income for the first quarter of last year included a one-time net gain of
$1.1 million from the sale of land. Research, Inc. also said that due to the order delay and increased new product development
activities, it would report a loss for the period significantly greater than the $59,000 loss from operations of a year ago.
Said Claude C. Johnson, President and Chief Executive Officer, ''While we are disappointed with the prospect of beginning
the fiscal year below plan, we are heartened that our first quarter order bookings are significantly above our billings, and we
remain confident that we will achieve 20 percent revenue growth in fiscal 1998.'' Concluded Johnson, ''Overall, orders from
Asia as a percent of total sales will most likely be down from the 25 percent we expected for the current fiscal year. However,
we have a strengthened distribution network in place in Europe to enable us to take advantage of the current technology shift
toward the European Community on the part of our reflow oven customers. This should enable us to make up the quarter's
shortfall by fiscal year end.''
Research, Inc. designs and manufactures complete product solutions based on its core competency: the precise control of heat.
The Company does business worldwide through its four divisions: Drying, Research International, Thermal Solutions, and
Control Systems. The Company's products target high-growth markets including printing (ink drying) and semiconductor
assembly and packaging. Research, Inc. is headquartered in Eden Prairie, Minn. and has subsidiary operations in Humberside,
England. The Company's common stock trades on the Nasdaq National Market tier of the Nasdaq Stock Market under the
symbol: RESR. Additional news and information can be found on the Company's website at researchinc.com
Forward-Looking Information: The statements included here, which are not historical and are current or forward-looking facts
are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are certain
important factors that could cause actual results to differ materially from those anticipated by some of the statements here.
Investors are cautioned that all forward-looking statements involve risks and uncertainty. Some of the factors that could affect
results are the effectiveness of new product introductions, the product mix of sales, the amount of sales generated, or volatility
in major markets, competition, and general economic conditions.
SOURCE: Research, Inc. |
