Can someone please post the replay # for CC?
Also, anybody who listened to the CC has any comments?
Sequentilly, the backlog has comedown from $47MM to $44 MM. Any idea if this is due to seasonal reasons or the mostly the asian issue?
Thanks in advance.
>> biz.yahoo.com <<
Monday February 2, 4:01 pm Eastern Time
Company Press Release
SOURCE: General Scanning Inc.
General Scanning Announces Fourth Quarter Results
WATERTOWN, Mass., Feb. 2 /PRNewswire/ -- General Scanning Inc. (Nasdaq: GSCN - news) today announced results for the fourth quarter and year ended December 31, 1997.
For the three months ended December 31, 1997, General Scanning's sales totaled $53.5 million, an increase of 34% over $40.0 million in sales in the fourth quarter of 1996. Excluding one-time charges associated with the Company's acquisition of Reel-Tech, Inc. late in the fourth quarter of 1997, income from operations increased 76% to $6.4 million from $3.6 million in the fourth quarter of 1996. Net income after tax, excluding the one-time charges associated with the acquisition, increased to $4.2 million, or $0.33 per share based upon 12.9 million common shares on a dilutive basis, compared to $2.2 million in net income, or $0.18 per share based upon 12.5 million common shares on a dilutive basis in the fourth quarter of 1996.
On a sequential basis, comparing the fourth quarter just ended with the third quarter of 1997, sales in the fourth quarter increased 13% to $53.5 million from $47.6 million in the third quarter. Diluted net income per share in the fourth quarter, excluding the one-time charges associated with the acquisition, increased 18% to $0.33 from $0.28 in the third quarter.
For the year ended December 31, 1997, General Scanning's sales totaled $181.5 million, an increase of 16% over $156.5 million in sales in 1996. In 1997, approximately 56% of total sales were in the United States, 27% in Asia and 17% in Europe. Sales outside of the United States include direct exports out of the United States to overseas subsidiaries of U.S.-based multinational manufacturers. Excluding one-time charges associated with the Company's acquisition of Reel-Tech, Inc. in 1997 and excluding one-time merger expenses associated with the Company's acquisition of View Engineering in 1996, income from operations increased 32% to $18.3 million from $13.8 million in 1996. Net income after tax, excluding the one-time charges noted above, increased to $12.2 million, or $0.96 per share based upon 12.7 million common shares on a dilutive basis for 1997, compared to $8.6 million in net income, or $0.69 per share based upon 12.5 million common shares on a dilutive basis for 1996.
In the fourth quarter of 1997, the Company adopted SFAS No. 128 relating to the calculation and presentation of Earnings per Share. This standard requires presentation of both basic and fully diluted earnings per share on the face of the income statement. Basic EPS is calculated using the weighted average common shares outstanding and diluted EPS is calculated using the weighted average common and common equivalent shares outstanding. Diluted EPS during periods of net loss is calculated using only weighted average common shares outstanding. The discussion of EPS in this release focuses on diluted EPS. All previously disclosed quarterly and annual earnings per share, including those for 1996 included in this press release, that were reported in prior periods as ''net income per common and common equivalent shares outstanding'' are now reported as ''diluted income per common share.''
Late in the fourth quarter of 1997, the Company acquired Reel-Tech, Inc., an integrator of electronic components handling systems for marking, inspection, sorting and packaging. The transaction was accounted for as a purchase of assets; and the Company recorded a one-time charge of $10.6 million for acquired in-process research and development (pre-tax, equivalent to approximately $7.1 million after tax) during the fourth quarter.
In 1996, the Company acquired View Engineering, a manufacturer of systems employing image processing technology for applications requiring precision inspection, measurement and process control in several industries. The transaction was accounted for as a pooling of interests, and included a onetime charge of $1.95 million in fees and expenses related to the acquisition. In addition, the Company's 1996 effective tax rate was higher than the 1997 effective rate due to the non-deductibility of certain merger expenses and the inability to deduct losses incurred by View prior to the acquisition.
Including the one time charges associated with the Company's acquisition of Reel-Tech in 1997 and View in 1996, in the fourth quarter of 1997, the Company incurred a net loss of $2.8 million, or $0.23 loss per share, compared to net income of $2.2 million, or $0.18 per common share on a dilutive basis in the fourth quarter of 1996. Including the one-time charges associated with these two acquisitions, for the year 1997, net income was $5.1 million, or $0.40 per common share on a dilutive basis as compared to $6.6 million, or $0.53 per common share on a dilutive basis for the year 1996.
For the quarter ended December 31, 1997, laser systems and component sales increased 37% to $45.4 million from $33.3 million in the comparable period of 1996. Sales increases were driven by trim and test systems for mixed signal devices and laser markers for both electronics and industrial applications. Thermal printer sales increased 20% to $8.1 million from $6.8 million in the comparable period of 1996 due primarily to shipment of the Company's newly introduced ''Slimline'' photo greeting card printer to Eastman Kodak's Qualex subsidiary for use primarily in Qualex photo labs located in retail chain locations.
For the year ended December 31, 1997, laser systems and component sales increased 17% to $154.5 million from $131.9 million in 1996. Thermal printer sales increased 9% to $27.0 million from $24.7 million in 1996.
Backlog at December 31, 1997 was approximately $44 million compared to $36 million at December 31, 1996.
To the extent this news release discusses financial projections, information or expectations about General Scanning's products or markets, or otherwise makes statements about the future, such statements are forward looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the fact that the Company's sales have been, and are expected to continue to be, dependent upon customer capital equipment expenditures which are, in turn, affected by business cycles in the markets served by those customers. Other factors include continued volatility in the semiconductor industry, the risk of order delays and cancellations, the risk of delays by customers in introducing their new products and market acceptance of products incorporating subsystems supplied by the Company, similar risks to the Company in delays in its new product introductions and market acceptance of new products, and other risks detailed in the Company's Annual Report on Form 1O-K with respect to the 1996 fiscal year and the Quarterly Report on Form 1O-Q with respect to the fiscal third quarter 1997.
General Scanning Inc., headquartered in Watertown, Massachusetts, develops and manufactures a broad line of laser systems for a wide range of applications in the medical, semiconductor, electronics, and aircraft industries. In addition, the Company produces a line of laser subsystems and components which are used in the Company's own systems as well as sold to other manufacturers of laser systems. General Scanning also designs and manufactures under ISO 9001 certification a line of thermal printers for leading medical instrument companies.
Condensed consolidated statements of income and balance sheets for the Company are attached.
A conference call is scheduled for 5:00 p.m. Eastern time, today, Monday, February 2, 1998.
To participate, call 1-800-634-1574 no later than 4:55 p.m. Eastern time and identify yourself to the operator.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share amounts)
Three months ended Twelve months ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1997 1996
Net sales
Laser systems
and components $45,408 $33,251 $154,536 $131,867
Thermal printers 8,135 6,765 26,994 24,666
Total sales 53,543 40,016 181,530 156,533
Costs and expenses:
Cost of sales 27,550 22,121 94,805 84,853
Research and product
development 6,246 4,410 22,302 18,400
Selling, general and
administrative 13,388 9,883 46,169 39,475
Acquired in-process
research 10,600 --- 10,600 ---
and development
Total costs and expenses57,784 36,414 173,876 142,728
Income (loss) from
operations (4,241) 3,602 7,654 13,805
Merger expenses --- --- --- (1,950)
Other income
(expense), net (115) 53 (43) 113
Income (loss) before
income taxes (4,356) 3,655 7,611 11,968
Income taxes (1,528) 1,460 2,502 5,367
Net income (loss) ($2,828) $2,195 $5,109 $6,601
Basic income (loss)
per common share ($0.23) $0.19 $0.42 $0.56
Diluted income (loss)
per common share ($0.23) $0.18 $0.40 $0.53
Weighted average common shares
outstanding and dilutive
potential common shares12,310 12,456 12,657 12,476
Net income excluding acquired
in-process research and development
in 1997 and merger
expenses in 1996 $4,246 $2,195 $12,183 $8,608
Diluted income per
common share $0.33 $0.18 $0.96 $0.69
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, 1997 Dec. 31, 1996
ASSETS
Cash and cash equivalents $8,418 $17,655
Accounts receivable 44,425 32,213
Inventories 34,051 26,051
Property, plant and
equipment, net 14,611 12,922
Other assets 13,537 6,732
Total assets $115,042 $95,573
LIABILITIES and
STOCKHOLDERS' EQUITY
Accounts payable and
accrued expenses $28,854 $20,812
Notes payable, long-term debt
and deferred compensation 7,959 6,472
Total liabilities 36,813 27,284
Total stockholders' equity 78,229 68,289
Total liabilities and
stockholders' equity $115,042 $95,573
SOURCE: General Scanning In |
