Jan, to correctly predict, you must also look at the future. Your 10K information is quite old. Most, if not all of those points have already been "fixed". Regarding recent 10Q, you left out many positive references of the business. Including the fact that sales increased 42%, expenses are under control, and the CEO anticipates returning to profitability! I appreciate your opinion. Below is company release:
TULSA, Okla.--(BUSINESS WIRE)--Nov. 25, 1997--Lowrance Electronics Inc. (NASDAQ:LEIX - news) Tuesday
announced that sales for the first quarter of fiscal 1998 ended Oct. 31, 1997 increased 42% to a record $20,039,000 from
$14,110,000 for last year's first quarter, paced by a 38% increase in unit sales of sonar and hand-held global positioning
system (GPS) products.
The operating loss for the period declined to $245,000, compared to an operating loss of $2,952,000 for the fiscal 1997 first
quarter. The net loss for the quarter was $838,000, or $.25 per share, compared to a net loss of $2,371,000, or $.71 per
share, for the same period last year.
''We expect Lowrance to return to profitability this fiscal year as we take advantage of continuing favorable market conditions
and our customers' enthusiastic acceptance of our latest product offerings, all of which currently are shipping. Sales and
earnings also should benefit from lower production costs at our Mexico manufacturing facility and reduced selling and
administrative expenses,'' said President and Chief Executive Officer Darrell Lowrance.
''First quarter sales were aided by the availability of several sonar and hand-held GPS products which were not yet available
during the first quarter of last year. Operating expenses declined significantly in dollar terms and as a percentage of sales due to
lower marketing, administrative and research and development expenses, and continuing cost-reduction efforts,'' Lowrance
added.
Current order backlog is approximately $11.0 million compared to backlog of approximately $21.0 million at this time last
year. Last year's backlog reflected initial orders for a variety of sonar and GPS products that did not begin shipping until late in
the second quarter.
Lowrance Electronics designs and manufactures sonar products and orbital satellite receivers, plotters and mapping systems
using the global positioning system (GPS) under the brand names ''Lowrance,'' ''Eagle'' and ''Sea'' Electronics. These
products are used primarily for sport fishing, hunting, recreational boating and other outdoor applications as well as in general
aviation.
This news release contains ''forward looking statements'' concerning the company's projected financial performance for fiscal
1998 as allowed in the Securities Litigation Reform Act of 1995. The company believes that these statements are based on
reasonable assumptions, however, no assurances can be given that the projected results will be achieved. Unforeseen
production delays due to raw materials shortages or other factors which are discussed in the company's Securities and
Exchange Commission filings could have a material adverse effect on the company's performance.
LOWRANCE ELECTRONICS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
($ 000 omitted, except for per share and share data) (unaudited)
Three Months Ended
Oct. 31,
1997 1996
Net sales $ 20,039 $ 14,110
Cost of sales 14,698 10,038
Gross profit 5,341 4,072
Operating expenses
Selling and administrative 4,796 5,999
Research and development 790 1,025
Total operating expenses 5,586 7,024
Income (loss) from operations (245) (2,952)
Other expenses
Interest expense 741 404
Other, net 304 292
Total other expenses 1,045 696
Income (loss) before
income taxes (1,290) (3,648)
Income tax provision (benefit) (452) (1,277)
Net earnings (loss) $ (838) $ (2,371)
Net earnings (loss)
per common share $ (.25) $ (.71)
Weighted average common
shares outstanding 3,352 3,352
CONDENSED CONSOLIDATED BALANCE SHEET
($ 000 omitted)
Oct. 31, July 31,
ASSETS 1997 1997
(audited) (audited)
Current Assets $42,471 $48,036
Property, Plant &
Equipment, Net 10,636 11,209
Other Assets 1,521 2,121
Total $54,628 $61,366
LIABILITIES AND EQUITY
Current Liabilities $22,886 $30,238
Long Term Debt 22,651 21,176
Stockholders' Equity 9,091 9,952
Total $54,628 $61,366 |
