Imaging Technologies Corp. Reports Record Sales and Record Profits for Third Quarter of Fiscal 1998
SAN DIEGO--(BUSINESS WIRE)--May 13, 1998--
A 30% Increase In Revenue and 32% Increase in Income
Marks Eighth Consecutive Profitable Quarter
Imaging Technologies Corp. (NASDAQ:ITEC), pioneer in the
development of high-quality digital imaging solutions, today reported
record sales and profits for the third quarter of fiscal 1998, which
ended March 31, 1998.
Net income for the third quarter was $1,121,000, a 32% increase
over net income of $848,000 for the third quarter of fiscal 1997.
Earnings per share (diluted) increased to $.08 per share from $.07
per share for the third quarter of fiscal 1997. Revenues for the
quarter were $10,772,000, a 30% rise over revenues of $8,321,000 in
fiscal 1997.
Nine-month fiscal 1998 net income was $2,971,000, compared to
$39,000 for the first nine months of fiscal 1997. Earnings per share
(diluted) increased to $.22 per share from $0.0 per share for the
first three quarters of fiscal 1997. Revenues for the nine month
period were $28,320,000, compared to $23,717,000, reported in the
first nine months of fiscal 1997.
Brian Bonar, chief executive officer of Imaging Technologies
said, "We continue to press forward with our strategy of building a
stronger, more focused company to serve the worldwide needs of
digital imaging. The key to our success is the ability to leverage
diversified technical resources from across the corporation to create
new and unique solutions."
Bonar said the third quarter of fiscal 1998 was an extremely
active one for ITEC. "We undertook a number of actions that can
accelerate the company's growth and competitiveness as we implement
plans for Fiscal 1999." Among these efforts:
-- Integration of Color Solutions and McMican Corp., two
companies acquired during the second fiscal quarter.
Color Solutions develops color management software which
references ICC profiles to accurately reproduce color
across a wide range of peripheral devices. McMican
manufactures digital memory storage modules for digital
cameras, printers and handheld personal computers.
Both acquisitions were key elements in the company's
strategic plan.
-- The management team was strengthened with the addition
of several experienced, results-oriented individuals
who will help the company reach new levels of performance
in the areas of manufacturing, marketing and sales.
-- Establishment of ITEC Europe Ltd. as the new European
Headquarters near London. ITEC Europe will be a base
of operations for sales, technical support and financial
management in the UK and on the European Continent.
-- A corporate realignment plan that will consolidate and
integrate the company's independent operating subsidiaries
along functional lines. This realignment includes relocating
manufacturing for the company's Printing Systems
Division -- NewGen from Costa Mesa, Calif., to a site
adjacent to ITEC's headquarters in San Diego. Marketing and
sales operations will be located at ITEC's existing
facilities in Santa Clara, Calif. According to Bonar,
"Consolidating operations should reduce operating
expenses and produce significant savings over time. It
should also improve our ability to respond more rapidly
to changes in an increasingly dynamic market. This
strategy will take advantage of economies of scale by
centralizing product development, distribution and marketing,
as well as consolidating administration, engineering and
manufacturing. It should also improve our ability to
respond more rapidly to changes in an increasingly dynamic
market. We are investigating strategies to maximize the
financial impact of this move, while minimizing the costs
involved."
"It has been one year since we changed the name of the company to
Imaging Technologies Corporation and began implementing our plan for
the 'New ITEC'. Today we are positioned as a pioneer in the
development, manufacturing, licensing and distribution of
high-quality digital imaging solutions. We began with a core
technology in the design and development of Adobe(R) PostScript(R)
printer controllers and have expanded our product offerings to
include monochrome and color printers, digital image storage devices
and software. The market opportunities in the arenas we serve are
substantial. For example, one key product area on the horizon
involves our just announced line of network print servers. The new
Xtinguisher(TM) brand was first demonstrated last week at the On-Demand
Digital Printing Conference in New York. Xtinguisher(TM) external
servers enable printing of high-quality images on digital copiers and
wide format printers. This is a natural extension of our technical
strengths in embedded controllers.
"The 'New ITEC' can produce more competitive products and more
effectively sell the products we have on the drawing table. Through
this transition, ITEC has continued to exhibit revenue and earnings
growth each quarter. This is a strong testimony that our plan is
working. As we look to the future, growth should continue as we
evolve the next generation of technologically advanced imaging
products."
A one hour audio teleconference to announce earnings results is
scheduled for 1pm Pacific Daylight time. Brian Bonar, chief
executive officer, and Gerry Berg, acting chief financial officer,
will review the results of the quarter and answer questions. Those
interested in listening to the conference can call in on 212/346-6419
or 415/904-7359.
IMAGING TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
(Dollars in thousands)
ASSETS
March 31, June 30,
1998 1997
(Unaudited)
Current assets:
Cash $1,778 $255
Accounts receivable trade, net 8,139 2,556
Contract receivables:
Billed 2,490 1,415
Unbilled recoverable costs and
accrued profit on progress completed 4,538 3,208
Inventories 4,040 2,348
Other current assets 2,011 550
Total current assets 22,996 10,332
Property and equipment, net 1,523 1,672
Prepaid Licenses, net 1,020 697
Capitalized software, net 2,417 549
Income tax benefit 600 250
Goodwill 504 73
Other 49 50
------- -------
$29,109 $13,623
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,863 $2,877
Accrued expenses 878 1,417
Borrowings under bank lines of credit 5,028 955
Notes payable 262 349
Total current liabilities 11,031 5,598
Long-term debt 200 222
------ -----
11,231 5,820
Shareholders' equity:
5% convertible preferred stock, $1,000
par value, 7,500 shares authorized,
420.5 issued and outstanding 420 420
5% series C convertible preferred stock,
$10,000 par value, 1,200 shares
authorized, 335 shares issued
and outstanding 3,350 --
Common Stock, $.005 par value, 100,000,000
shares authorized, 11,804,770 and 10,584,612
shares, respectively, issued and
outstanding 54 49
Paid-in capital 35,043 31,300
Shareholder loans (135) (140)
Accumulated deficit (20,854) (23,826)
Total shareholders' equity 17,878 7,803
------- -------
$29,109 $13,623
IMAGING TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Dollars in thousands except per share data)
(Unaudited)
Three months ended
March 31,
1998 1997
Revenues:
Sales of products $9,275 $6,790
Engineering fees 1,497 1,531
------ ------
10,772 8,321
Costs and expenses:
Cost of products sold 6,864 4,441
Selling, general and administrative 2,500 2,006
Cost of engineering fees and research
and development 566 999
----- -----
9,930 7,446
Income from operations 842 875
Other income (expense): (71) (22)
Income before income tax benefit (expense) 771 853
Income tax benefit (expense) 350 (5)
Net income $1,121 $848
Income per share data:
Basic income per share $0.10 $0.09
Diluted income per share $0.08 $0.07
Common shares outstanding 11,447 9,086
Common shares outstanding assuming dilution 13,685 11,627
IMAGING TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Dollars in thousands except per share data)
(Unaudited)
Nine Months ended
March 31,
1998 1997
Revenues:
Sales of products $23,776 $19,187
Engineering fees 4,544 4,245
License fees and royalties -- 285
------ ------
28,320 23,717
Costs and expenses:
Cost of products sold 17,053 12,312
Selling, general and administrative 6,807 8,143
Cost of engineering fees and research
and development 1,720 2,452
Purchased research and development -- 780
------ ------
25,580 23,687
Income from operations 2,740 30
Other income (expense): (115) 25
Income before income tax benefit (expense) 2,625 55
Income tax benefit (expense) 346 (16)
Net income $2,971 $39
Income per share data:
Basic income per share $0.27 $0.00
Diluted income per share $0.22 $0.00
Common shares outstanding 11,048 8,157
Common shares outstanding assuming dilution 13,276 11,102
Imaging Technologies Corp. and its future sales-related
activities. Actual results could differ materially from those
described or implied in this press release as a result of a number of
factors. These include, but are not limited to, the future growth of
these markets, any adverse actions by the company's partners,
competitive products, other economic factors affecting the company's
markets, the degree of acceptance that new products achieve, and
seasonal changes. Readers are referred to public documents filed by
Imaging Technologies Corp. with the Securities and Exchange
Commission which identify important risk factors that could cause
actual results to differ from those contained in any forward-looking
statements.
CONTACT:
Imaging Technologies Corp.
Gerry Berg, 619/613-1300
Fax: 619/613-1311
gberg@imagetechcorp.com
KEYWORD: CALIFORNIA
BW1156 MAY 13,1998 |
