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To: Jeffrey L. Henken who wrote (3118)	8/12/1999 9:33:00 AM
From: dexx	Read Replies (1) \| Respond to of 3514

Smith Corona News Out! $.15 EPS for the Quarter. Big things coming. Smith Corona Reports Net Income In Q4 '99 vs. Loss In Q4 '98 Reports Full-Year Financial Results CORTLAND, N.Y.--(BUSINESS WIRE)--Aug. 12, 1999--Smith Corona Corp. (Nasdaq:SCCO - news) today announced its financial results for the fourth quarter and fiscal year ended June 30, 1999. For the fourth quarter, the company reported net income of $0.6 million, or $0.15 earnings per diluted share, on sales of $7.9 million, compared with a loss of $4.4 million, or $1.51 per share, on sales of $12.0 million for the same period last year. The fourth-quarter results reflect an approximately 50 percent reduction in selling, general and administrative expenses, as well as gains of $0.3 million from the sale of the former headquarters facility and tax benefits of $2.6 million from the final liquidation of one of the company's international subsidiaries. Gross margins for the period were 15.6 percent of sales compared with 8.4 percent for the same period last year. ''We are extremely pleased with our fourth-quarter results, which are indicative of the many improvements that have taken place at Smith Corona this year,'' stated John A. Bermingham, president and chief executive officer of Smith Corona. ''As expected, the fourth quarter shows the benefits of the company's year-long restructuring program and return to our core business. This has been an extraordinary year of change for Smith Corona with the successful rebuilding of the management and sales teams and relocation of the company's headquarters to facilities suited to a sales and marketing organization. ''The expansion of our distribution capabilities resulted in the renewal of important customer relationships that are bringing new sales opportunities to Smith Corona. Chief among these is our recently announced agreement with Office Depot Inc., which represents our first licensing agreement for office products. The agreement will bring increased market exposure of the Smith Corona name and new product sales that will add royalty dollars direct to the bottom line in calendar year 2000.'' Bermingham affirmed that the licensing agreement presents no conflict with the company's business strategy to introduce new products that support the company's legacy in printed document and data transmission. He announced that the company is in the process of introducing a new product line in inkjet replacement cartridges called Inkjet Solutions, which feature a proprietary Snap 'n Fill(TM) cap and provide branded products at highly competitive prices. This fall, Smith Corona will also expand its line of headsets to include a new commercial product line. The new TelEsprit(TM) headsets and amplifiers feature lightweight, comfort construction and provide high margin potential with minimal marketing expense. For the fiscal year ended June 30, 1999, Smith Corona reported a net loss of $15.9 million, or $5.27 per share, on sales of $43.7 million, compared with a loss of $6.6 million, or $2.36 per share, on sales of $58.9 million for the same period last year. Results this year included nonrecurring restructuring expense of $1.3 million, while last year's results included gains of $3.9 million from the sale of manufacturing operations and $1.2 million from favorable claims resolution. Sales declines in typewriters and related supplies were partially offset by newly sourced product sales of $6.0 million for the year, compared with new-product sales of $3.8 million last year. Selling, general and administrative expenses in 1999 improved to 42.9 percent of sales from 44.8 percent of sales last year. Gross margins for fiscal year 1999 were 2.7 percent of sales compared with 23.0 percent of sales for 1998. Margin performance in 1999 was significantly affected by clearance sales for telephony and facsimile products, as well as inventory-related writedowns and manufacturing contract penalties. Smith Corona is dedicated to providing information solutions through new and emerging technology products in addition to marketing and developing its traditional electronic typewriters and related accessories and supplies. Smith Corona can also be reached electronically at smithcorona.com. Certain matters discussed in this news release constitute forward-looking statements that are estimates by the company's management of future performance and are subject to a variety of risks and uncertainties that could cause results to differ from management's current expectations. __________________ Complete release at: biz.yahoo.com