TRBO has acted very strong lately..Almost like a new stock(part of MYG?)earnings.......TurboChef Reports 1998 First Quarter Results
DALLAS -- TurboChef, Inc. (Nasdaq: TRBO) today announced revenues for the first quarter ended March 31, 1998 of $1.7 million compared to $0.7 million reported in the same quarter of 1997. The net loss for the first quarter of 1998 was $0.8 million, or basic and diluted loss per share of $.05, on 14.6 million weighted average shares outstanding, versus a loss of $1.0 million, or basic and diluted loss per share of $.07, on 13.8 million weighted average shares outstanding in the comparable quarter of 1997.
The increase in first quarter 1998 revenues is attributable to the Maytag Corporation (NYSE: MYG) payment of $750 thousand in research and development fees and a higher average selling price for the Model D-2 cooking system.
The decrease in net loss in the first quarter of 1998, as compared to the 1997 period, is the result of the Maytag revenues, partially offset by a $0.5 million increase in selling, general and administrative and research and development expenses. Gross margin on net oven sales for the quarter increased to 36%, compared to 32% for the same period of 1997.
"The rise in overhead expenses reflects the Company's continued commitment to assembling a strong executive management team, building our international presence and further developing a quality research and development staff capable of meeting the product research and innovation tasks on the horizon," commented Marion H. Antonini, TurboChef's newly appointed Chairman and acting CEO. "Furthermore, 1998 results reflect expenses associated with European business development efforts not incurred in the comparable period of 1997."
Antonini also noted that the initial project undertaken in accordance with the strategic alliance with Maytag, entered into in late 1997, has been extended and includes increased levels of research and development funding from Maytag.
Antonini concluded, "While we continue in our efforts to join forces with a commercial foodservice equipment distributor to expand our marketing reach in the U.S., we had several noteworthy cooking system installations during the quarter. These include a six-oven Choice Picks(R) food court in the U.S. Capitol building operated by Guest Services, Inc. This installation serves over 1,500 lunch patrons each weekday in a one and one-half hour period. Other U.S. installations include a 'home meal replacement' test established in a San Antonio based H.E. Butts(R) supermarket and a Connie's Pizza(R) kiosk located in a Sony/Loew's(R) movie theater in the Chicago area. In the UK, the Hilton Park Lane(R) in London is utilizing a TurboChef system to provide room service to over 1,000 guests each week. While we have not yet entered into ongoing purchase contracts with these customers, we are pleased with the relationship progress to date."
TurboChef is a foodservice technology company engaged in designing, developing and marketing high-speed cooking systems and in applying the Company's proprietary technologies to other foodservice products, processes and concepts for customers seeking a competitive advantage in commercial and residential foodservice markets. The TurboChef cooking system employs proprietary hardware and software technologies that "cook-to-order" a variety of foods at speeds that are 10 to 15 times faster and with superior quality as compared to other commercial ovens currently available. In late 1997, the Company entered into a strategic alliance with Maytag Corporation. The alliance is aimed at the development and commercialization of innovative products based on TurboChef's leading-edge technologies in heat transfer, thermodynamics and control systems. The alliance entails a mutual purchase of each company's common stock valued at approximately $10 million and Maytag's payment to TurboChef for certain research and development activities related to targeted product initiatives.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this release which are not historical facts are forward-looking and involve a number of risks and uncertainties, including but not limited to, the Company's limited operating history, uncertainty of market acceptance, dependence on a significant customer, likelihood of contracting new customers, uncertainty of existing customers purchasing additional products, uncertainty of new product development and other risks described in the Company's Securities and Exchange Commission filings.
TURBOCHEF, INC.
CONDENSED OPERATING RESULTS
(in thousands except per share data)
First Quarter Ended
March 31
(unaudited)
1998 1997
Total Revenues $ 1,704 $ 693
Total Expenses 2,478 1,657
Net Loss $ (774) $ (964)
Loss per Common Share-Basic and Diluted $ 0.05 $ 0.07
Weighted Average Shares Outstanding 14,559 13,836
CONDENSED BALANCE SHEETS
(in thousands)
March 31, December 31,
1998 1997
(unaudited)
Cash and Marketable Securities $ 9,446 $ 8,674
Other Current Assets 1,847 1,683
Net Property and Equipment 477 491
Other Assets 7,065 5,592
Total Assets $18,835 $16,440
Total Current Liabilities $ 800 $ 776
Other Liabilities 33 36
Total Stockholders' Equity 18,002 15,628
Total Liabilities and Stockholders'
Equity $18,835 $16,440
/CONTACT: Dennis J. Jameson, Chief Financial Officer of TurboChef, Inc.,
214-341-9471, or Fax: 214-340-8477/
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