Xeikon N.V. Reports Second Quarter 1998 Results
Business Wire - July 29, 1998 06:39
MORTSEL, Belgium--(BUSINESS WIRE)--July 29, 1998-- Company Reports Revenues up 78% to Record $33.9 Million and Net Income of $3.7 Million or $0.13 Per Share for the Quarter
Xeikon N.V. (Nasdaq: XEIKY) today announced results for the second quarter and first six months of fiscal 1998.
For the quarter ending June 30, 1998, Xeikon reported a 78% increase in revenues to $33.9 million, compared to $19.0 million in the second quarter of 1997. Gross profit rose 111% to $11.8 million from $5.6 million one year ago as gross margin increased to 35% from 30% as a result of larger sales volume and an improved product mix. Net income during the quarter was $3.7 million, or $0.13 per share on a basic and diluted basis, compared to $340,000, or $0.01 per share on a basic and diluted basis in the corresponding 1997 period. Revenues from "non-equipment" sales, which include consumables, parts and service, continue to run at approximately 30% of revenues.
Revenues for the first six months of 1998 were up 95% to $60.1 million compared to $30.9 million during the corresponding six months of 1997. Xeikon's net income for the first six months of 1998 was $5.5 million, or $0.19 per share on a basic and diluted basis, compared to a net loss of $3.6 million, or $0.13 per share, in the comparable 1997 period. Xeikon's 1997 results included a nonrecurring first quarter charge of $1.7 million, or approximately $0.06 per share, related to the acquisition of a research and development unit of Agfa-Gevaert. Excluding this charge, the net loss for the first half of 1997 would have been $1.9 million, or a loss per share of $0.07.
The results for the second quarter of 1998 were adversely affected by an appreciation in the value of the U.S. dollar versus the Belgian franc, the functional currency of the Company. The U.S. dollar appreciated 3% versus the Belgian franc in the second quarter of 1998 compared to the second quarter of 1997.
Second quarter shipments of 120 printing systems represented an increase of 50% over the 80 printing systems that were shipped in the second quarter of 1997. This brings the total number of systems shipped for the six-month period ended June 30, 1998 to a record number of 224, compared to the 108 systems shipped in the same period one year ago. Xeikon has now shipped over 1,172 printing systems to more than 40 countries since commercial production began just four years ago.
Alfons Buts, President and Chief Executive Officer said, "These record shipments and revenues indicate that Xeikon's focus on broadening its product line, strengthening its distribution channels and increasing its marketing efforts are yielding strong results. We are particularly gratified to have generated significant profit growth even at a time when we are investing heavily in the future of our company, as evidenced by such product extensions as the recently announced DCP/50-S."
Xeikon N.V. develops, produces and markets commercial digital color printing systems and related consumables specifically designed to meet the quality, speed, reliability, cost, variable content and on-demand requirements of the global digital color printing market. Xeikon supplies both original equipment manufacturers, as well as a global network of more than 30 value-added distributors (VADs) operating in more than 40 countries.
This press release may contain forward-looking information, and actual results may vary from those expressed or implied herein. Factors that could affect these results include those mentioned in the Company's 1997 Annual Report and its annual and quarterly filings with the Securities and Exchange Commission.
|
