GTNR REPORTS RECORD EARNINGS!!!!!!!!
Gentner Communications Corporation Reports Record Earnings for Fourth
Quarter and Fiscal Year 1998
SALT LAKE CITY, Aug. 6 /PRNewswire/ -- Susie Strohm, vice president of finance for Gentner Communications
Corporation (Nasdaq: GTNR - news) today announced record results for the fourth quarter and fiscal year ended June 30,
1998.
For the most recent three-month period, the company reported net earnings of $548,289, or $0.07 per share, on revenue of
$5.3 million. This represents a 51 percent increase in revenue over the same period in fiscal 1997, for which the company
reported net earnings of $119,971 or $0.02 per share, on revenue of $3.5 million.
For the year ended June 30, 1998, Gentner reported net earnings of $1.4 million, or $0.18 per share, on revenue of $17.3
million. In comparison, the company reported a net loss of $372,898, or $0.05 per share, on revenue of $13.4 million for fiscal
year 1997.
Strohm attributed Gentner's impressive fourth-quarter results primarily to the sale of its Audio Perfect(TM) 800, which yielded
$826,000 over the company's initial net revenue projections for the product. ''We are pleased with the AP800's acceptance in
the market,'' she said. ''Strong fourth-quarter sales can be attributed to several sizeable orders as well as a healthy backlog of
orders in anticipation of the product launch. We expect AP800 sales to move back in line with our initial projections for the first
quarter of fiscal 1999.''
In addition to the AP800, a number of factors contributed to Gentner's successful year. The company increased its sales
resources and capacity for Gentner Conference Call(SM) (1-800-LETS-MEET(SM)), placed greater emphasis in the Remote
Facilities Management area (GSC3000), and enhanced focus on international sales efforts. As a result, the company has
generated enough cash flow from operations to pay off its line of credit.
''The driving force behind this past year's success has been the re-focusing of our energy on the most productive areas of our
business, recruiting additional talent, and inculcating a profit-minded culture,'' said Frances Flood, president and chief executive
officer of Gentner. ''We have accomplished much during the past year, however, we recognize there is much yet to do.''
''As the company moves ahead, we have created three distinct business divisions: Remote Facilities Management (RFM),
Gentner Products and Services, and International,'' said Flood. ''These divisions have conducted extensive research to ensure
that each market respectively offers a growth opportunity congruent with the company's overall objectives.''
''Looking forward to fiscal 1999, we are projecting earnings of $0.18 - $0.23 per share,'' said Strohm. ''These numbers are
based on net income after taxes. We will exhaust the tax-loss carryforward and begin paying taxes in the coming year.''
Gentner will hold its quarterly conference call on Tuesday, August 11, at 2:00 p.m. MDT. To make a reservation to participate
in the call, dial 800-289-1879, or 801-974-3700. Gentner will rebroadcast the call through our WebCast service via
broadcast.com(R), which can be accessed at our web site, 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 remote facilities management systems, audio conferencing
products, and a nationwide conference calling service.
Condensed Statement of Operations
Three Months Ending Year Ending
6/30/98 6/30/97 6/30/98 6/30/97
(audited)
Sales 5,333,186 3,533,693 17,267,886 13,371,851
Cost of goods sold 2,675,048 1,652,289 8,347,300 6,874,590
Gross profit 2,658,138 1,881,404 8,920,586 6,497,261
Operating & other
expenses 2,070,849 1,724,533 7,477,137 6,833,259
Income (loss) before
taxes 587,289 156,871 1,443,449 (335,998)
Income tax expense 39,000 36,900 39,000 36,900
Net income (loss) 548,289 119,971 1,404,449 (372,898)
Basic earnings (loss)
per share $0.07 $0.02 $0.18 $(0.05)
Balance Sheet
(audited)
6/30/98 6/30/97
ASSETS
Current assets:
Cash and cash equivalents 715,325 63,992
Accounts receivable 1,743,390 1,682,254
Inventory 3,154,983 2,668,761
Other current assets 174,667 136,176
Total current assets 5,788,365 4,551,183
Property and equipment, net 2,320,336 2,493,287
Other assets, net 163,039 291,384
Total assets 8,271,740 7,335,854
LIABILITIES AND EQUITY
Current liabilities:
Notes payable -- 722,997
Accounts payable 537,200 471,072
Accrued expenses 823,468 356,446
Current portion of
long-term debt 285,630 257,164
Current portion of
capital leases 237,109 254,951
Total current
liabilities 1,883,407 2,062,630
Long-term debt 402,584 687,274
Capital lease obligations 752,728 784,354
Total liabilities 3,038,719 3,534,258
Shareholders' equity:
Common stock 7,699 7,663
Additional paid-in capital4,450,422 4,423,482
Retained earnings (deficit) 774,900 (629,549)
Total shareholders'
equity 5,233,020 3,801,596
Total liabilities and
equity 8,271,740 7,335,854
Note: 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.
SOURCE: Gentner Communications Corporation
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