Check out the cautionary statements - margins being pressured, tightening supplies. I am wondering why such discouraging talk in an PR that is otherwise dispensing splendid news. Can someone listen in on the conference call?
Wednesday October 13, 7:00 am Eastern Time
Company Press Release
SOURCE: Gentner Communications Corporation
Gentner Communications Reports Record First
Quarter Results
SALT LAKE CITY, Oct. 13 /PRNewswire/ -- Gentner Communications Corporation (Nasdaq: GTNR - news) today
announced record results for the first quarter of fiscal year 2000.
Financial Highlights
(unaudited)
Three Months Ended
9/30/99 9/30/98 Change
Sales $7,084,273 $5,497,943 +29%
Net Income $1,080,395 $508,797 +112%
Diluted earnings per share $0.12 $0.06 +100%
For the quarter ended September 30, 1999, Gentner reported net income of $1.1 million, or $0.12 per share, on sales of $7.1
million. For the same period in fiscal 1999, the company reported net income of $508,797, or $0.06 per share, on sales of
$5.5 million.
''We are extremely pleased with our results to date, which can be attributed to growth across all of our major product
and service lines,'' said Frances Flood, president and chief executive officer of Gentner. ''Especially noteworthy is that
we are starting to generate revenue from our videoconferencing product.''
''While we expect sales to remain strong, we are anticipating higher operating expenses going forward,'' continued
Flood. ''Specifically, we foresee increases in selling and marketing expenses. These increases will come as we introduce
new products and services, and enhance support for recent introductions such as the APV200-IP videoconferencing
system and TheDataPort.com(TM) Webconferencing service.
''Based on recent sales and earnings performance, and on the anticipated increases in spending, we expect top line
growth to continue at a rate of 30 percent year over year, and are forecasting earnings of $0.41 - $0.45 per share for fiscal
2000,'' she added.
According to Susie Strohm, Gentner's vice president and chief financial officer, gross margins during the first quarter
came in at 62 percent. ''The increase in gross margins is a result of a strong product mix and a continued focus on
operating efficiencies.
''While margins are yet again up from the previous quarter, we do not expect them to remain at this level,'' said Strohm.
''We are beginning to see the supply of raw materials tighten up, which could be an early indicator of price increases in
the semiconductor industry. Additionally, increased sales of products that we purchase from other manufacturers, such
as our videoconferencing systems, will put downward pressure on the gross margin percentage.''
Gentner will hold its quarterly conference call on Wednesday, October 13, at 2:15 p.m. Mountain time. To make a
reservation to participate in the call, dial 1-800 LETS MEET, or 801-974-3700. An Internet rebroadcast of the call will be
available on October 14th, and can be accessed via the company's Web site at www.gentner.com.
Gentner Communications Corporation provides technology, service and educational solutions for U.S. and international
markets. The company has a wide product and service mix featuring conferencing products, a nationwide conference
calling service, and remote facilities management and telephone interface systems.
To the extent any statement presented herein deals with information that is not historical, such statement is necessarily
forward-looking. As such, it is subject to the occurrence of many events outside the company's control that could cause
the company's results to differ materially from those anticipated. Please see the risk factors contained in the company's
10-KSB filed with the SEC.
Gentner Communications Corporation
Condensed Statement of Operations
(unaudited)
Three Months Ended
9/30/99 9/30/98
Sales 7,084,273 5,497,943
Cost of goods sold 2,715,618 2,517,362
Gross profit 4,368,655 2,980,581
Operating & other expenses 2,647,260 2,163,783
Income before taxes 1,721,395 816,798
Income tax expense 641,000 308,000
Net income 1,080,395 508,798
Basic earnings per share $0.13 $0.06
Fully diluted earnings
per share $0.12 $0.06
Basic shares outstanding 8,171,978 7,948,358
Fully diluted shares
outstanding 8,713,073 8,114,343
Balance Sheet
9/30/99 6/30/99
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents 4,228,128 3,922,183
Accounts receivable 2,797,391 2,242,294
Inventory 2,813,408 2,858,835
Deferred taxes 115,000 115,000
Other current assets 312,554 143,441
Total current assets 10,266,481 9,281,753
Property and equipment, net 2,193,853 2,125,959
Other assets, net 98,291 111,702
Total assets 12,558,625 11,519,414
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 422,691 725,193
Accrued expenses 1,808,004 1,553,619
Current portion of
long-term debt
Current portion of
capital leases 221,714 215,854
Total current liabilities 2,452,409 2,494,666
Capital lease obligations 397,713 455,389
Deferred tax liability 217,000 217,000
Total liabilities 3,067,122 3,167,055
Shareholders' equity:
Common stock 8,189 8,130
Additional paid-in capital 5,083,547 5,024,858
Retained earnings 4,399,767 3,319,371
Total shareholders'
equity 9,491,503 8,352,359
Total liabilities and
equity 12,558,625 11,519,414
SOURCE: Gentner Communications Corporation |
