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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Wes Stevens who wrote (16568)	6/24/1999 10:24:00 AM
From: kendall harmon	Read Replies (1) \| Respond to of 56537

ZOMX preannounces much better than expected earnings-this one will go still higher today MINNEAPOLIS, June 23 (Reuters) - Zomax Inc said on Wednesday its second quarter earnings would significantly beat analysts' expectations due to the purchase of a Japanese information business in December and increased operating margins. The company said it expects to report second quarter earnings of about $0.55 per diluted share on sales of about $54 million compared with earnings of $0.15 per diluted share on sales of $14.5 million in the same year-ago period. Wall Street analysts' estimates for the quarter is $0.31 cents a share, said First Call, a company that tracks such forecasts. James Anderson, President and CEO, said in a release that second quarter operating results were boosted by the acquisition of the Japan-based Kao Infosystems business. ''We are definitely succeeding in improving operational margins at the former Kao sites,'' Anderson said. The CEO pointed to the implementation of improved financial and operational controls at the acquired Kao sites along with higher capacity utilisation rates at plants for the better results. He said the strengthening of the company's customer mix and the cross selling of additional value added services to existing customers have also helped profits. Zomax Inc is a leading outsource service provider to software publishers, computer manufacturers and other producers of multimedia products. Shares of Zomax closed up at 27-9/16 on the Nasdaq Stock Market Wednesday.