Ocal Inc. Announces Results for the Fourth Quarter and Year
VAN NUYS, Calif.--(BUSINESS WIRE)--Feb. 20, 1998--Ocal Inc. (Nasdaq:OCAL), Friday reported results for the fourth quarter and year ended Dec. 31, 1997.
Fourth-quarter sales were $5,945,000, a 2 percent decrease compared with fourth-quarter 1996 sales of $6,075,000. Net income for the fourth quarter of 1997 was $333,000, or 6 cents per share, a decrease of 41 percent compared with fourth quarter 1996 net income of $565,000, or 10 cents per share.
On a pro forma basis, net income for the fourth quarter of 1997 decreased 28 percent compared with fourth quarter 1996 pro forma net income of $465,000 or 8 cents per share. The pro forma adjustments in 1996 were necessary to provide income taxes as if all of the company's income prior to the initial public offering had been taxed at C corporation rates.
For the current year, sales were $24,279,000, a 3 percent decrease compared with 1996 sales of $25 million. Net income for the year was $1,508,000, or 26 cents per share, a decrease of 36 percent compared with 1996 net income of $2,356,000, or 45 cents per share. On a pro forma basis, 1996 net income was $2,116,000, or 41 cents per share.
Ocal President Ilan Bender stated: "There was little growth in the industry in general during 1997. We were expecting higher sales from two major accounts during the fourth quarter of 1997, but the orders slipped into the first quarter of 1998, therefore our sales were a bit below our target.
"Although our volumes were up slightly compared to the year ago period, price competition has resulted in lower prices and we have continued to price aggressively to increase our market share."
Bender continued: "We believe that our product features and manufacturing capability are our most significant competitive advantages, and we have focused on improving those in-house capabilities. During the fourth quarter, we upgraded much of our tooling which has improved our production workflow.
"We also obtained injection molds which will enable us to increase our output with lower labor costs, and are continuing to develop improved equipment which should reduce our costs further."
Bender added: "Our capital position remains very strong with approximately $4.5 million in cash and cash equivalents. We are continuing to evaluate acquisition opportunities within the industry or in complementary products where we can apply our manufacturing expertise.
"We have also been purchasing shares of the company's common stock through our repurchase program, and have purchased 89,000 shares since the program was approved by our Board."
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