lanz good earnings now it will reflect in bmra Thursday September 3, 9:00 am Eastern Time
Company Press Release
SOURCE: Lancer Orthodontics, Inc.
Lancer Orthodontics Announces 16%
Increase in Year End Profits
SAN MARCOS, Calif., Sept. 3 /PRNewswire/ -- Lancer Orthodontics, Inc. (Nasdaq: LANZ -
news) today announced net income of $259,485, or $0.12 per diluted share, for the fiscal year
ended May 31, 1998 compared to net income of $223,325, or $.10 per diluted share, for the fiscal
year ended May 31, 1997.
''The increase in net income is due to significant improvements in manufacturing efficiencies and
higher margin sales to new distributors,'' said Doug Miller, President and COO. Cost of sales as a
percentage of net sales decreased two percent in the fiscal year ended May 31, 1998 compared to
the previous fiscal year.
''Lancer has now enjoyed six consecutive years of profits. We expect expanded production
capacity and further advancements in manufacturing methods to positively impact our earnings this
year. We are also committed to expanding our marketing efforts worldwide,'' Miller said.
Net revenues for the fiscal year ended May 31, 1998 totaled $6.2 million compared to $6.3 million
for the comparable period ended May 31, 1997. Miller explained that the decrease is due to
dropping several unprofitable lines and increases in discounted products. At May 31, 1998, the
Company had over $268,000 in backlog.
Cash flows provided by operating activities increased 18 percent to $534,890 at May 31, 1998
compared to $453,028 in the previous fiscal year. Cash and cash equivalents at May 31, 1998
increased to $321,036 compared to $154,761 at May 31, 1997. The debt level of the Company is
the lowest in 20 years.
Zack Irani, Chief Executive officer of Biomerica, Inc. (Nasdaq: BMRA - news) which owns a 30
percent equity position in Lancer, said, ''We have been working with Lancer's management team
and are pleased by Lancer's financial performance during the past year. We anticipate continued
progress in the current reporting period.''
''Highlights of the fiscal year also included ISO 9002 certification and EN 46002 certification by the
prestigious British Standards Institution, which allows Lancer Orthodontics to market its products in
Europe with the coveted CE marking. The Company also announced new strategic alliances with
major orthodontic and dental suppliers, strengthening its position with rapidly growing Dental Health
Management Organizations. Lancer introduced and plans to introduce new, innovative and exclusive
products that reduce a patient's treatment time.
For the year ended May 31,
1998 1997
Net Revenues $6,194,183 $6,333,798
Net income $259,485 $223,325
Income per share (Diluted) $0.12 $0.10
Weighted Average Shares Outstanding* 2,178,251 2,208,239
* on a fully diluted basis
Lancer Orthodontics develops, manufactures and markets state-of-the-art orthodontic products
such as bands, brackets and buccal tubes worldwide |
