Read 'em and weap
Ampex Corporation Reports Second Quarter Net Income of $1.7 Million and Earnings of $0.04 Per Share
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Aug. 12, 1998--Ampex Corporation (Amex:AXC) reported today net income of approximately $1.7 million, and diluted earnings per share of $0.04 for the second quarter of 1998. Net income and earnings per share in the second quarter of 1997 were $2.3 million and $0.05, respectively. Sales in the second quarter of 1998 were $15.2 million compared to $21.3 million in the second quarter of 1997.
Diluted earnings in the second quarter of 1998 were reduced by approximately $0.06 per share as a result of a charge for acquired in-process research and development resulting from the recently announced acquisition of MicroNet Technology, Inc. During the quarter, the Company also recorded an income tax benefit of approximately $0.10 per share in connection with the ongoing liquidation of its subsidiary in Italy.
Net sales in the second quarter of 1998 declined by $6.1 million (28.7%) from those in the second quarter of 1997, due to a decline in shipments of instrumentation recorders and television products offset by an increase in sales of 19-millimeter mass data storage systems. Gross profit in the second quarter of 1998, declined by $4.1 million (38.9%), primarily as a result of the decline in sales.
Selling and administrative expenses and research, development and engineering expenses declined by $1.3 million (20.5%) and $0.8 million (19.7%), respectively reflecting continuing expense controls, reduced patent litigation expense, and the substantial completion of certain engineering projects.
Interest expense increased by $0.9 million compared to the second quarter of 1997, as a result of the issuance by the Company of $30 million of 12% Senior Notes in January 1998. A portion of the proceeds of the issuance of the Notes has been used to fund the acquisition of MicroNet Technology, Inc., which took effect on July 1, 1998. Subsequent to the end of the second quarter, the Company issued a further $14.0 million of 12% Senior Notes on identical terms. The proceeds are available for use in acquisitions of or investment in new businesses.
|
