Headline: Glenayre Technologies Reports Operating Results for Third Quarter
Ended September 30, 1997
======================================================================
CHARLOTTE, N.C., Oct. 22 /PRNewswire/ -- Glenayre Technologies Inc.
(NASDAQ:GEMS) announced today results for the third quarter ended September
30, 1997.
Net sales for the third quarter of 1997 increased 22% to $112.1 million
from $91.6 million for the third quarter of 1996. Income from operations for
the third quarter of 1997 increased 23% to $19.4 million from $15.8 million
for the third quarter of 1996. Earnings per share increased 9% to $0.24 per
share on a fully diluted basis for the third quarter ended September 30, 1997,
from $0.22 per share on a fully diluted basis for the third quarter ended
September 30, 1996.
Net sales for the nine months ended September 30, 1997, increased 15% to
$328.1 million from $286.0 million for the same period of 1996. Income from
operations for the nine months decreased 13% to $59.0 million from $67.8
million for the nine months ended September 30, 1996. Earnings per share
decreased 18% to $0.69 per share on a fully diluted basis for the nine months
ended September 30, 1997, from $0.84 per share on a fully diluted basis for
the nine months ended September 30, 1996.
Commenting on the quarter's results, President and CEO Gary Smith, said,
"The company achieving 22% topline growth during third quarter is largely
attributable to the Integrated Network Group increasing sales 255% over the
same quarter last year. Despite a decline in NPCS shipments during the
quarter, we are encouraged that the one-way U.S. market has seemingly ended
its slide, posting a 28% increase over second quarter 1997."
Stan Ciepcielinski, executive vice president and chief financial officer,
stated, "We anticipate that our recent acquisition of Open Development
Corporation and the expected acquisition of Wireless Access Inc. will result
in a one-time writeoff in fourth quarter 1997 between $110-$120 million for
purchased research and development. Although softness in orders caused the
book-to-bill ratio to slip below one-to-one during third quarter, we expect
both acquisitions to contribute to fourth quarter 1997 revenues."
Glenayre Technologies Inc. is a worldwide provider of telecommunications
infrastructure products and systems serving the paging, cellular, PCS, telco,
voice processing, and point-to-point wireless service provider markets.
Glenayre's net sales exceeded $390 million in 1996 and the company employs
approximately 2,100 people worldwide.
This news release contains statements which may be forward looking within
the meaning of applicable securities laws. The statements may include
projections regarding future earnings results, and are based upon the
company's current expectations and assumptions, which are subject to a number
of risks and uncertainties. Factors that could cause actual results to differ
are discussed in the company's most recently filed Form 10-Q.
GLENAYRE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Third Quarter Nine Months
Ended Ended
9/30/97 9/30/96 9/30/97 9/30/96
Net Sales $112,122 $91,572 $328,065 $286,035
Cost of Sales 52,438 43,830 153,559 129,429
Selling, General &
Administrative 25,175 21,171 73,132 58,226
Research & Development 10,165 7,290 28,183 20,697
Depreciation &
Amortization 4,949 3,479 14,234 9,855
Income from Operations 19,395 15,802 58,957 67,828
Interest Income
(Expense), Net 3,116 2,577 8,124 7,302
Other Income
(Expense), Net (306) 29 (1,049) 105
Income before Income
Taxes 22,205 18,408 66,032 75,235
Provision for Income
Taxes 7,171 4,607 22,592 21,495
Net Income $15,034 $13,801 $43,440 $53,740
Fully Diluted Income
Per Common Share $0.24 $0.22 $0.69 $0.84
Number of Shares used
to compute fully
diluted per share
data 63,511 63,748 63,310 63,867
BALANCE SHEET DATA
(In thousands)
(Unaudited)
9/30/97 12/31/96
Working Capital $280,833 $279,031
Total Assets 588,910 521,210
Stockholders' 508,597 455,861
Equity
NET SALES
Strategic Third Quarter
Marketing Units Ended
9/30/97 9/30/96
Wireless
Messaging $85,473 $77,711
Integrated
Network 19,430 5,468
Wireless
Interconnect 7,219 8,393
Total $112,122 $91,572
SOURCE Glenayre Technologies Inc.
-0- 10/22/97
/CONTACT: Stan Ciepcielinski, CFO, Glenayre Technologies Inc.,
704-553-0038 or Fax 704-553-7878/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 111723/ |
