Earnings out. Not too bad a story it seems to me.
Thursday April 29, 5:27 pm Eastern Time
Company Press Release
Scan-Optics Announces First Quarter Results
MANCHESTER, Conn.--(BUSINESS WIRE)--April 29, 1999--Scan-Optics, Inc.
(Nasdaq National Market:SOCR), a leader in high volume document processing systems
and information management solutions, today reported its fourteenth consecutive quarter of
profitability.
For the 1999 first quarter ended March 31st, total revenues were $13,232,000. In the 1998 comparable period, revenues
were $12,892,000. Net income for the quarter was $80,000, or $0.01 per diluted share, compared to $428,000 or $0.06 for
the same period in 1998.
James C. Mavel, Chairman, Chief Executive Officer and President of Scan-Optics, commented, ''We are pleased to report
that the Company continued to grow in three established business units that we have focused on to diversify our sources of
revenue: Solutions; Maintenance Services; and Manufacturing Services. Strong Solutions growth in the United States and
Europe allowed us to once again offset the $5.7M revenue gap from our Japanese Ministry of Health transaction in the first
quarter of 1998. Our North American solutions business grew 97% on revenues of $6.8M and our European activities
generated new business in the UK and Italy. The maintenance services business increased 41%, while professional service
revenues increased 75% compared with the same period in 1998. In addition, our contract manufacturing initiatives resulted in
$400,000 in revenue for the quarter. Our continued growth from these different revenue sources resulted in higher total
revenues for the quarter.''
Mr. Mavel added, ''We continued to invest in the development of our Company as a ''Total Solutions'' provider by acquiring
the source code rights to DocWise, a comprehensive object management, workflow, COLD and Internet access system.
DocWise's capabilities complement our ''world class'' Vista Capture suite of products and high performance image scanning
and OCR systems. We also recently announced our intent to acquire scanning systems, maintenance services and new
technology from Photomatrix Corporation. Our internal research and development activities grew as a result of ongoing
investment in refining current products and enhancing capabilities for existing users and prospects.''
Mr. Mavel concluded, ''With our success in diversifying revenue sources through the Solutions, Maintenance Services and
Manufacturing Services business units, while keeping a constant eye on identifying strategic acquisitions, we believe
Scan-Optics is well positioned for growth in the remainder of 1999 and beyond.''
Scan-Optics, Inc., with headquarters in Manchester, Connecticut, is recognized internationally as an innovator and solution
provider in the information management and imaging business. It designs, manufactures and services products and systems for
character recognition, imaging processing and display, data capture, data entry, and multi-user business computers.
Scan-Optics' systems and software are marketed worldwide to commercial and government customers directly and through
distributors. The Company has sales and service offices located throughout the United States and abroad. Additional
information is available at www.scanoptics.com.
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this
press release other than historical facts are ''forward-looking statements'' made under safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could materially affect future
results. Among these risk factors are changes in general economic and business conditions in the United States and foreign
markets, increased competition or a slowdown in growth within the scanning and imaging market, alternate forms of processing,
inability to consummate accretive acquisitions, and other risk factors and cautionary statements listed from time to time in the
Company's periodic reports filed with the Securities and Exchange Commission, including but not limited to the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 1998.
SCAN-OPTICS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended
March 31,
(thousands, except share data) 1999 1998
----------------------------------------------------------------------
Revenues
Product sales $ 6,579 $ 8,538
Service revenues 6,571 4,256
Engineering revenues 73 67
Other operating revenues 9 31
------------ -------------
Total revenues 13,232 12,892
Costs and Expenses
Cost of product sales 4,481 5,739
Service expenses 4,538 2,930
Sales and marketing expenses 1,359 1,353
Research and development expenses 1,484 1,284
General and administrative expenses 1,081 943
Interest expense 222 -
------------ -------------
Total costs and expenses 13,165 12,249
------------ -------------
Operating income 67 643
Other income, net 52 61
------------ -------------
Income before income taxes 119 704
Income taxes 39 276
------------ -------------
Net income $ 80 $ 428
============ =============
Basic earnings per share $ .01 $ .06
============ =============
Basic weighted-average shares 6,965,521 6,812,689
Diluted earnings per share $ .01 $ .06
============ =============
Diluted weighted-average shares 7,068,944 7,149,461 |
