Cognitronics Reports Second Quarter Net Income Equal to 30 Cents vs.
42 Cents And Record Six Months Net Income Equal to 59 Cents vs. 56
Cents
DANBURY, Conn. July 29 /PRNewswire/ -- Cognitronics Corporation (Amex: CGN - news) today reported:
Quarterly net income per share on a diluted basis for the second quarter of 1998 equal to $.30 versus $.42 a year ago.
Record six months net income per share on a diluted basis for the period ended June 30, 1998 equal to $.59 versus
$.56 in 1997.
For the quarter ended June 30, 1998, net income was $1,186,000 compared to $1,614,000 for the same quarter of 1997.
Sales for the second quarter were $7.1 million in 1998, down from a record $9.6 million in 1997.
The company said that the decrease in second quarter 1998 sales from the comparable 1997 period was primarily attributable
to a decrease in sales by its domestic operations, partially offset by higher sales of distributorship products into the British
telecommunications market. In the 1997 second quarter, sales by domestic operations experienced an unusually strong
demand from two customers for the company's McIAS(TM) 16xx series products.
For the six months ended June 30, 1998, the Company reported record net income of $2,385,000, up 13% from $2,118,000
for the same period in 1997. Sales for the six-month period were $14.6 million in 1998, compared to $15.2 million in 1997.
''To date, the year 1998 has continued with a strong performance in both the company's domestic operations and its UK
distributorship operations,'' said Brian J. Kelley, president and chief executive officer of Cognitronics, ''Trailing earnings per
diluted share for the twelve months ended June 30, 1998 were $.98, up from $.72 and $.93 for the same periods ended June
30 and December 31, 1997, respectively.
''During the second quarter of 1998, the company's UK subsidiary, Dacon Electronics Plc, was selected by a major customer
in the British telecommunications industry to supply additional products expected to result in sales in excess of $1.5 million
annually over the next few years. Sales are expected to begin in the third quarter.
''Further, earlier this month, the company announced that Nextlink Communications, a nationwide competitive communications
company providing local, long distance and enhanced communications services to commercial customers, will install the
Cognitronics' McIAS l6xx/IP series products on its switching systems to provide voice information services to its customers.
Sales under this recently signed agreement are also expected to begin in the third quarter.
''New product development continues and the investment in research and development is expected to continue to increase in
1998 to expand the capabilities of the MclAS 16xx/IP series products. We believe that the telecommunications market will
require an enhanced intelligent peripheral for use in an Advanced Intelligent Network (AIN). Further, we believe that the
McIAS 16xx series products will continue to offer our customers reliable, cost effective solutions for their current and future
voice processing requirements,'' Kelley concluded.
Statements contained herein which are not historical facts are forward-looking statements. The forward-looking statements in
this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve a number of risks and uncertainties including, but not limited to, variability of sales volume
quarter to quarter, product demand, market acceptance, litigation, risk of dependence on significant customers, third party
suppliers and intellectual property rights, risks in product and technology development and other risk factors detailed in the
company's Securities and Exchange Commission filings.
Cognitronics is a leading manufacturer and supplier of voice information systems, including telephone network and call
management products, to telephone operating companies, other telecommunications providers and original equipment
manufacturers.
COGNITRONICS CORPORATION
SUMMARY OF RESULTS
Three Months
Ended June 30,
1998 1997
Net sales $7,069,000 $9,645,000
Net income $1,186,000 $1,614,000
Net income per share:
Basic $.32 $.47
Diluted $.30 $.42
Weighted average number
of shares outstanding:
Basic 3,687,609 3,435,528
Diluted 4,009,000 3,856,824
Six Months
Ended June 30,
1998 1997
Net sales $14,609,000 $15,193,000
Net income $2,385,000 $2,118,000
Net income per share:
Basic $.65 $.62
Diluted $.59 $.56
Weighted average number
of shares outstanding:
Basic 3,686,678 3,431,117
Diluted 4,015,667 3,764,101
SOURCE: Cognitronics Corporation |
