EARNINGS
Tuesday April 28, 4:07 pm Eastern Time
Company Press Release
Galileo Reports Second Quarter Fiscal 1998 Results
STURBRIDGE, Mass.--(BUSINESS WIRE)--April 28, 1998--Galileo Corporation (NASDAQ National Market:GAEO - news) today reported record revenues for the second quarter of fiscal 1998.
Revenues for the second quarter were $11,866,000 versus $8,721,000 in the second quarter of last year. As previously reported, during its second quarter of fiscal 1997 the Company lost its then largest customer, Xerox Corporation [NYSE:XRX - news]. Excluding sales to Xerox, second quarter revenues almost doubled from the comparable prior year period. For the second quarter, the Company realized a loss of $704,000, or a loss of $0.09 per share.
William T. Hanley, President and Chief Executive Officer, commented, ''We are pleased with our second quarter operational progress. Both internal and acquisition-related growth has successfully replaced all of the revenues lost from our Xerox relationship. During our second quarter we were pleased with the progress we've achieved in successfully integrating our newly- acquired OFC and Galenica operations, and we are very excited about the significant growth opportunities in our recently announced supply and distribution agreement with PSS World Medical, Inc. (f/k/a Physicians Sales & Service, Inc.).''
Galileo, along with its recently acquired wholly-owned subsidiary, OFC Corporation, develops, manufactures and markets products based on its core optical and photonic technologies for applications in medical products and instruments, telecommunications products, analytical instruments and office equipment. The Company markets its products to OEMs, through marketing partners, distributors and direct to end-users. Leisegang Medical, a wholly-owned subsidiary, develops, manufactures, and markets women's health-related medical products.
Please visit our web sites at www.galileocorp.com, www.ofccorp.com and www.leisegang.com for additional information.
Note to Investors
Forward-looking statements in this release, including statements regarding the continuing operations of recently acquired companies and the expected growth from the above-referenced supply and distribution agreement are based on information available to the Company on the date hereof. The Company's actual results could differ materially from those stated or implied by such forward-looking statements, due to risks and uncertainties associated with the continued integration of newly acquired operations and the Company's dependence on a major distributor. The forward-looking statements should be considered in the context of these and other risk factors disclosed in the Company's fiscal 1997 SEC Form 10-K.
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GALILEO CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(Amounts in thousands except per share data)
For the Three For the Six
Months Ended Months Ended
March 31, March 31,
1998 1997 1998 1997
Net sales $11,866 $8,721 $20,433 $18,432
Cost of sales 7,702 5,798 3,474 11,234
Gross profit 4,164 2,923 6,959 7,198
Engineering expenses 1,575 1,379 2,966 2,562
Selling and administrative
expenses 3,199 2,273 5,765 4,434
Reduction in carrying value
of certain long-lived
assets -- -- -- 2,226
Reorganization costs -- 6,872 -- 6,872
4,774 10,524 8,731 16,094
Operating loss (610) (7,601) (1,772) (8,896)
Other income (expense) (121) 243 (63) 493
Provision (benefit) for
income taxes (27) 20 (20) 141
Net loss $ (704) $(7,378) $(1,815) $(8,544)
Basic and diluted loss per
share $ (0.09) $ (1.08) $ (0.25) $ (1.25)
Weighted average shares
outstanding 7,621 6,847 7,248 6,842
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GALILEO CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
Mar. 31, Sept. 30,
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $ 2,068 $ 9,546
Accounts receivable, net 8,074 5,639
Inventories, net 10,391 6,614
Other current assets 478 187
Total current assets 21,011 21,986
Property, plant and equipment, net 18,277 15,372
Excess of cost over the fair value of
assets acquired, net 20,133 3,873
Other assets, net 1,816 1,496
Total assets $61,237 $42,727
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 6,512 $ 5,669
Note payable 1,223 --
Total current liabilities 7,735 5,669
Other liabilities 1,357 956
Long-term debt 8,880 --
Total liabilities 18,112 6,625
Shareholders' equity:
Common stock 80 69
Additional paid-in capital 52,000 42,951
Accumulated deficit (8,735) (6,918)
Total shareholders' equity 43,345 36,102
Total liabilities and shareholders'
equity $61,237 $42,727
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Contact:
Galileo Corporation
Gregory Riedel, Investor Relations
(508) 347-4222 |
