Schmitt Announces Second-Quarter Sales and Earnings
PORTLAND, Ore.--(BUSINESS WIRE)--Jan. 5, 1998--Schmitt Industries' (NASDAQ:SMIT - news) operations
improved during the second quarter of fiscal-year 1998, ended Nov. 30, 1997, as evidenced by increases in sales and profit
levels.
Sales for the second quarter were from the SBS Balancer and SMS Measurement products and set a new record of
$3,220,475 for the quarter, an 18 percent increase over the same period last year. Net income for the second quarter
increased 15 percent totaling $695,449 vs. $607,344 for the same period last year. These record results were achieved
despite minor operating losses in Europe.
Sales for the six-month period were from both SBS Balancer products and SMS Measurement products and totaled
$5,887,416 for the period, a 30 percent increase over the same period last year. Gross profits increased 19 percent over last
year with net earnings up 40 percent for the six-month period.
Net earnings per share for the six-month period increased 40 percent to $0.14 vs. $0.10 in fiscal-year 1997.
SIX-MONTH RESULTS -- FY 1997 VS. FY 1998
(Period Ending 11/30/96 and 11/30/97)
SALES GROSS PROFIT NET PROFIT AFTER TAX
FY-97 FY-98 FY-97 FY-98 FY-97 FY-98
$4,532,012 $5,887,416 $2,795,234 $3,338,226 $747,620 $1,050,000
Quarterly 1998 net earnings per share increased to $.09 vs. $.08 in fiscal-year 1997 due to the increased sales levels of all
products for the quarter.
Sales for the second-quarter FY-98 set a new record of $3,220,475 vs. $2,738,314 for the same second-quarter period last
year. Gross profits for the second quarter FY-98 were $1,833,637 vs. $1,725,676 for FY-97.
During the second quarter the company successfully introduced its new DTM-2000 laser texture measurement machine. This
product verifies microroughness at the rate of 1200 computer disks per hour. This throughput allows the industry to move
towards 100 percent inspection. To the company's knowledge, there is no competitive product offered similar to the
DTM-2000. The company expects to aggressively market the DTM-2000 in 1998 and beyond.
The company is currently analyzing the impact of the economic turmoil in Asia, which may or may not decrease product sales.
The company expects minimal impact on its balancing product lines, and impact on its measurement product lines is unknown
at this time.
Schmitt Measurement products are currently being marketed by Veeco Instruments of Santa Barbara, Calif. This
marketing/distribution arrangement allows Schmitt to concentrate on new product development and still have its products sold
worldwide with an established metrology sales and service organization. Schmitt expects fiscal 1998 and 1999 will result in
added market penetration for its measurement products, utilizing Veeco's distribution channels.
The information contained in this release includes ''forward-looking statements'' within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Exchange Act of 1934, and is subject to the safe harbor created by those
sections. The company cautions investors that any forward-looking statements made by the company are not guarantees of
future performance; actual results may differ materially from those projected in the forward-looking statements as a result of
various factors including, but not limited to, those set forth in the company's 8-K filed with the Securities and Exchange
Commission on June 6, 1996. |
