Dynatech-DYT .report three
Dynatech Reports Record Results for Third Quarter
BURLINGTON, Mass.--(BUSINESS WIRE)--Jan. 15, 1998--Dynatech Corporation (NYSE:DYT - news) reported today its financial results for the third quarter ended December 31, 1997. Sales of $133.1 million increased 45 percent from $92.0 million, due to base business growth and the acquisition of Itronix Corp. Excluding the impact of the Itronix acquisition, sales were up 22 percent. Third-quarter net income was $12.7 million, or $0.73 per share on a diluted basis. Net income in the prior year was $10.5 million, or $0.58 per share on a diluted basis, excluding a charge for purchased incomplete technology related to the acquisition of Itronix on December 31, 1996. Including the charge, the company reported a net loss of $2.9 million, or $0.16 per share on a diluted basis, for the third quarter of last year.
For the nine months of fiscal 1998, sales of $353.3 million were up 36 percent from $258.9 million a year ago, due to base business growth of 17 percent and the acquisition of Itronix. Net income was $32.2 million, or $1.85 per share on a diluted basis, which compared to $28.2 million, or $1.56 per share on a diluted basis, excluding the acquisition-related charge in the prior year.
By product area in the third quarter, sales of communications test equipment increased 19 percent to $70.2 million. Sales of industrial computing and communications products of $43.5 million were up from $14.2 million a year ago primarily as a result of the acquisition of Itronix. Visual communications product sales of $19.4 million increased 2 percent compared to a year ago.
Ending order backlog as of December 31, 1997 was $77.5 million, compared to $90.0 million as of September 30, 1997.
Dynatech Corporation is a global communications equipment company focused on network technology solutions. Its products address communications test, industrial computing and communications, and visual communications applications. Headquartered in Burlington, Massachusetts, Dynatech sells its products worldwide through subsidiaries located throughout the Americas, Europe and Asia. (Internet URL: www.dynatech.com)
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This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgment on certain issues. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors which could cause actual results to differ materially are described in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.
Dynatech Corporation
Consolidated Statements of Income (Unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
December 31, December 31,
1997 1996 1997 1996
Sales $133,138 $ 92,007 $353,314 $258,854
Cost of sales 58,265 33,522 151,714 95,032
Gross profit 74,873 58,485 201,600 163,822
Selling, general and
admin. expense 38,512 30,084 103,549 84,031
Product development expense 14,484 10,163 41,563 30,065
Purchased incomplete technology -- 20,627 -- 20,627
Amortization of intangibles 1,445 1,558 4,327 4,683
Operating income (loss) 20,432 (3,947) 52,161 24,416
Interest expense (164) (86) (945) (365)
Interest income 886 942 2,250 2,166
Other income 244 130 694 552
Income (loss) before income
taxes 21,398 (2,961) 54,160 26,769
Income tax provision (benefit) 8,663 (65) 21,933 11,976
Net income (loss) $ 12,735 ($ 2,896) $ 32,227 $ 14,793
Income per common share:
Basic (a) $ 0.76 ($ 0.17) $ 1.92 $ 0.86
Diluted $ 0.73 ($ 0.16) $ 1.85 $ 0.82
Weighted average number of
common shares:
Basic 16,817 17,074 16,826 17,257
Diluted 17,395 18,161 17,413 18,124
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