Raster Graphics Reports Record Net Revenue and Net
Income for the Fourth Quarter and Year 1996
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 28, 1997-- RASTER GRAPHICS , a leader in
large-format, on-demand digital printing systems and software, today announced record net
revenue and net income for its fourth quarter and year ended December 31, 1996.
The Company reported net revenue of $11,032,000 for the fourth quarter, an increase of 46
percent as compared to $7,558,000 for the same period in 1995. Net income increased 765
percent for the fourth quarter to $1,133,000, as compared to $131,000 from a year earlier.
Earnings per share for the quarter were 11 cents, an increase of 450 percent, compared to 2 cents
per share for the fourth quarter of last year, while shares used in the earnings per share calculation
increased to 10,006,610 from 7,344,166 from the same period last year.
Net revenue for 1996 increased 51 percent to $39,395,000, as compared to $26,045,000 for
1995. Net income increased 180 percent to $3,298,000, or 39 cents per share for the year,
compared to $1,177,000, or 16 cents per share for 1995, excluding charges incurred during 1995
associated with the acquisition of Onyx Graphics. Reported results for 1995, including the charges
associated with the Onyx acquisition, were net income of $77,000, or 1 cent per share.
"We are very pleased with our revenue growth and operating results for the fourth quarter, which
represents our twelfth consecutive quarter of new revenue records," commented Rak Kumar,
Raster Graphics President and CEO. "For the quarter, our consumables and software business
achieved strong revenue gains of approximately 70 percent each."
"1996 was an important year for Raster Graphics," continued Kumar. "We completed a successful
public offering and moved forward in our strategy to provide our customers with complete system
solutions in the high-growth, large-format digital printing market. During the fourth quarter, we
introduced the PiezoPrintTM 1000 inkjet printing system, broadening our product line and giving
our customers the choice of an entry-level printing system complementary to our existing high end
production system, the DCS 5442."
"Additionally, we are pleased to announce another step forward in our strategy to expand our
global direct distribution capabilities," continued Kumar. "Raster Graphics has reached an
agreement in principle to acquire Colourpass, a distributor in the United Kingdom. If completed,
this acquisition will give us our second direct subsidiary servicing international markets. We hope
to conclude this transaction in February, 1997. This acquisition will enable us to better service our
customers in one of our largest markets and to better establish the Raster Graphics name
internationally. We anticipate accounting for this transaction using the pooling of interests method."
Raster Graphics, Inc. designs, manufactures and markets large-format color printing systems for
the on-demand, large-format color digital printing market. Its customers include graphic arts
service bureaus, photo labs, screen printers, exhibit and sign companies, and in-house graphics
services. The company offers customers complete large-format color printing solutions consisting
of its Digital ColorStationTM 5442 printer, the PiezoPrintTM 1000 printer, PosterShopTM
integrated image processing software, and related consumable products such as inks, varnish and
papers. Headquartered in San Jose, California, Raster Graphics can be reached by telephone at
(408) 232-4000, by fax at (408) 232-4100, or via the internet at rgi.com .
Raster Graphics, Inc.
Consolidated Statements of Income
(In thousands, except share and per share data)
Quarter Ended Year Ended
12/31/96 12/31/95 12/31/96 12/31/95
Net Revenue $11,032 $7,558 $39,395 $26,045
Cost of revenue 6,366 4,582 23,375 16,598
Gross profit 4,666 2,976 16,020 9,447
Operating expenses:
Research and development 1,190 999 4,516 3,373
Sales and marketing 1,696 1,290 6,011 3,640
General and administrative 717 426 2,147 1,434
Acquired in-process
research and development --- --- --- 889
Total operating expenses 3,603 2,715 12,674 9,336
Operating income 1,063 261 3,346 111
Interest income, net 196 11 309 49
Income before provision for
income taxes 1,259 272 3,655 160
Provision for income taxes 126 141 357 83
Net income $ 1,133 $ 131 $ 3,298 $ 77
Earnings per share $ 0.11 $ 0.02 $ 0.39 $ 0.01
Shares used in per share
calculation 10,006,610 7,344,166 8,445,212 7,187,423
Raster Graphics, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
12/31/96 12/31/95
ASSETS
Current assets:
Cash and cash equivalents $15,839 $ 1,550
Accounts receivable, net 9,952 5,567
Inventories 6,389 3,248
Prepaid expenses 453 132
Total current assets 32,633 10,497
Property and equipment, net 2,185 1,452
Deposits and other assets 687 136
Intangible assets related to
acquisition of Onyx Graphics --- 258
Total assets $35,505 $12,343
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable $ 3,726 $ 1,817
Accrued liabilities 3,055 1,840
Deferred revenue 1,162 1,114
Current portion of long term debt 303 355
Total current liabilities 8,246 5,126
Long term debt 178 504
Stockholders equity:
Preferred stock --- 24,769
Common stock 42,206 367
Accumulated deficit (15,125) (18,423)
Total stockholders equity 27,081 6,713
Total liabilities and stockholders
equity $35,505 $12,343
CONTACT: Raster Graphics, Inc.
Janice Benedict, 408/232-4067 |
