Identix Reports First Quarter Results
Business Wire - October 28, 1997 07:32
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 28, 1997--Identix Inc. (ASE:IDX) today announced that for the first fiscal quarter ended Sept. 30, 1997, revenues rose to a record high of $18.9 million, an increase of approximately 56 percent compared to the previous year's first quarter revenues of $12.1 million.
Net product revenues rose to $8.9 million from the year-earlier $6.4 million, and services revenues rose to $9.9 million from the year-earlier $5.7 million. Net income for the quarter ended Sept. 30, 1997 was $526,000 or $0.02 per share, which included litigation reserves and expenses of $423,000 or $0.02 expense per share, versus last year's first-quarter net income of $10,000 or $0.00 per share, which included litigation reserves and expenses of $328,000 or $0.01 expense per share.
Chairman, President & CEO Randall C. Fowler commented, "Sales of both biometric imaging products and biometric ID products grew during the first quarter compared to the previous year, with notable sales in the financial services, immigration and law enforcement areas, among others. We were also pleased that gross profit margins on our product offerings rose to 54 percent for the quarter just ended, versus 47 percent in the like quarter of last year.
"In July we expanded our software offerings and our software development capability by acquiring Kansas City-based Biometric Applications and Technology, a company with whom, at the time of the acquisition, we were working with on a project for a consortium of air transportation agencies including the FAA, and on a personnel identification project for the U.S. Department of Defense. This acquisition further enhances our ability to provide complete solutions for our customers' biometric identification needs.
"We also began a relationship with Baltimore-based Sylvan Learning Systems by forming a joint venture for the purpose of offering 'civilian' fingerprint services through Sylvan Learning Centers. This has the potential to extend the scope and geographic availability of the type of service that Identix has been providing for some time in Illinois and Indiana under contract. Since there are millions of civilian fingerprints taken each year in the United States, we ware enthusiastic about the market opportunity this joint venture will address."
Fowler noted that the company's services revenues from its ANADAC subsidiary, rose strongly from the same period in the prior year. He pointed out that ANADAC annual revenues have grown consistently since Identix acquired ANADAC in Oct. 1992.
CFO James Scullion noted that R&D expense for the quarter approximately doubled to over $1.0 million or 12 percent of net product revenue, versus $537,000 or 8 percent of net product revenue in last year's first quarter. He said that EBITDA (earnings before interest, taxes, depreciation and amortization) also increased to $1.1 million for the Sept. 30, 1997 period, as compared to $538,000 for the same period in the prior year.
Identix Inc. is a leader in designing, developing, manufacturing and marketing products for the capture and/or comparison of fingerprints for security, anti-fraud, law enforcement and other applications.
The statements in this media release that relate to future plans, events and performance are forward-looking statements that involve risks and uncertainties, including risks and uncertainties associated with integrating acquired companies, carrying out strategic relationships, competition and technological change, obtaining customer orders, the governmental procurement process and other risks identified in the company's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Identix Incorporated
Selected Financial Data
Three Months Ended
Sept. 30,
1997 1996(a)
Revenues:
Net product revenues $8,907,000 $6,379,000
Services revenues 9,943,000 5,700,000
Total revenues 18,850,000 12,079,000
Costs and expenses:
Cost of product revenues 4,136,000 3,372,000
Cost of services revenues 8,564,000 4,650,000
Research, development and engineering 1,037,000 537,000
Selling, general & administrative 4,187,000 3,106,000
Litigation reserves and expense 423,000 328,000
Total costs and expenses 18,347,000 11,993,000
Income from operations 503,000 86,000
Other income (expense), net 23,000 (76,000)
Net income $526,000 $10,000
Net income per common share $0.02 $0.00
Weighted average common
shares outstanding 25,625,000 25,572,000
(a) Prior year adjusted for pooling of
Biometric Applications & Technology
acquisition. |
