Friday March 19, 2:14 pm Eastern Time
Company Press Release
PSC Expects Strong First Quarter Results
Completes Consolidation of Some Manufacturing Operations
ROCHESTER, N.Y.--(BUSINESS WIRE)--March 19, 1999--PSC Inc. (Nasdaq: PSCX -
news), a leading manufacturer and marketer of bar code scanners, today announced that it
expects earnings for the first quarter ending April 2, 1999 will be in the range of $0.22 to $0.25, before special charges, well above
analysts' consensus estimate of $0.19, as reported by First Call. The Company anticipates revenues will be in the range of $57
million to $59 million, reflecting strong sales of Magellan SL(tm) Scanners and U-Scan® Express Self-Checkout Systems.
The Company also announced plans to complete the consolidation of all high volume handheld scanner manufacturing at its
Eugene, Oregon facility over the next four months. In the second half of 1997, the Company adopted a new operating plan that
focused the Eugene plant solely on high volume production and the Webster manufacturing facility on producing lower volume,
customized products and systems.
The planned consolidation will include transferring production of the 5300 Handheld Bar Code Scanner line, currently
manufactured in Webster, New York. The Webster plant will continue to develop and manufacture customized high-speed
unattended scanners and multi-sided scanning tunnel systems for automated materials handling and sortation applications;
U-Scan® Express Self-Checkout Systems; bar code verifiers; and digital imaging products. To support this consolidation, the
Eugene organization will add approximately 90 positions and approximately 120 people will be released in Webster.
''Even though the decision to complete the streamlining of our manufacturing operations is difficult because it affects a significant
number of employees, it will enable PSC to further reduce costs and more effectively increase unit production to support our
higher level of sales,'' said Robert C. Strandberg, PSC's President and Chief Executive Officer. ''We will continue to focus on
operating efficiently while investing strategically in new product development, marketing and other growth drivers to produce even
better results that will enhance value for our shareholders. I am pleased with the excellent progress we've made this quarter to
meet our 1999 goals for sales and earnings growth.''
Strandberg said that in addition to the transfer of some product manufacturing from Webster to Eugene, PSC plans to consolidate
all remaining Webster manufacturing at its headquarters facility at 675 Basket Road and exit leased space in Webster.
PSC expects to announce complete financial results for the first quarter ended April 2, 1999 on April 26, 1999. The Company said
that it expects to record a pre-tax charge for the consolidations of approximately $2.1 million or $0.10 per share after tax. The
manufacturing consolidations will result in annualized savings of approximately $1.5 million.
PSC Inc. is a leading manufacturer and marketer of bar code scanning and automatic data collection solutions of the highest
quality and exceptional reliability. Its broad range of products includes a line of laser and non-laser based handheld and fixed
position bar code scanners, bar code engines and verifiers and automated carton dimensioning systems. These products are used
in automated data collection solutions in the retail, manufacturing, warehousing, logistics and package handling markets.
Headquartered in the Rochester, New York, suburb of Webster, PSC has manufacturing facilities in Webster and Eugene,
Oregon. PSC has sales and service offices throughout Europe, Asia, Australia and the Americas.
The forward-looking statements contained in this release are based on estimates of future performance and are highly dependent
upon a variety of factors that could cause actual results to differ materially from these estimates. These factors include the market
acceptance of products, competitive product offerings and pricing pressures, the ability to control manufacturing and operating
costs, foreign currency and interest rate fluctuations and the disposition of legal issues. Reference should be made to filings with
the Securities and Exchange Commission for further discussions of factors that could affect PSC's future results.
PSC's internet address is: pscnet.com
Contact:
MEDIA:
Dennis T. Hopwood, Vice President, Human Resources
Linda J. Miller, Vice President, Marketing
More Quotes and News:
PSC Inc (Nasdaq:PSCX - news)
Related News Categories: computers, telecom
Help
Copyright © 1999 Business Wire. All rights reserved. All the news releases provided by Business Wire are copyrighted. Any forms of copying
other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is
strictly forbidden, including but not limited to, posting, emailing, faxing, archiving ina public database, redistributing via a computer network or
in a printed form.
See our Important Disclaimers and Legal Information.
Questions or Comments? |
