Zomax Optical Media, Inc. Announces Strong Sales and Earnings for
Second Quarter 1998
MINNEAPOLIS, July 20 /PRNewswire/ -- Zomax Optical Media, Inc. (Nasdaq: ZOMX - news) today reported strong
growth in sales and earnings for the second quarter ended June 26, 1998. For the second quarter, sales increased 26% to
$14,546,000 from $11,541,000 while net income increased 173% to $938,000 for the quarter ended June 26, 1998 as
compared with net income of $343,000 for the same period in 1997. Diluted earnings per share were $0.15 versus $0.07 for
the same quarter in 1997, an increase of 114%.
For the six months ended June 26, 1998, sales increased 48% to $28,779,000 compared to $19,493,000 for the same period
in 1997. Net income for the six months ended June 26, 1998 increased 132% to $1,679,000 or $0.28 per share as compared
to net income of $725,000 or $0.14 per share in 1997.
James T. Anderson, President and CEO, stated, ''We are very pleased with our second quarter financial results with strong
growth in both sales and net income. During the second quarter, we completed a number of important integration steps
regarding our recent acquisitions and West Coast facilities. First, we consolidated the RMA processing activities of Trotter
Technologies (an April 1997 acquisition) with NGS Services (a February 1998 acquisition). This consolidation gives us the
largest independent RMA processing facility on the West Coast and will generate greater operational efficiency for us going
forward. Second, in our West Coast manufacturing and assembly/distribution facilities we completed a computer systems
conversion onto our company-wide ERP computer system. Now our West Coast manufacturing facilities operate under
procedures and controls consistent with our other facilities. Third, we began CD production in our new San Jose
manufacturing facility. We are currently producing CDs 24 hours per day five days a week and will be moving to 7 days a
week as our customer demand continues to grow. Having the San Jose plant online has enabled us to balance production
requirements between facilities thereby reducing the cost of outsourcing.''
Anderson also stated, ''And last week we signed a new lease agreement for space to expand our capabilities in Indianapolis.
This additional space will allow us to serve the growing needs of our customers in that market.''
During the quarter, the Company completed a secondary offering of 1,900,000 shares of common stock including the 300,000
share overallotment. The shares were sold to the public at $17.00 per share, with the Company receiving approximately $30
million in net proceeds. The Company intends to use the proceeds to fund the expansion of its West Coast manufacturing
facility, to make enhancements to the Minneapolis facility and for working capital and other general corporate purposes,
including acquisitions.
Zomax Optical Media, Inc. is a leading outsource service provider to software publishers, computer manufacturers and other
producers of multimedia products. These services include CD and DVD mastering; CD, diskette and cassette replication;
graphic design; print management; CD printing; packaging; warehousing; inventory management; distribution and fulfillment;
and RMA processing. The Company's Common Stock is traded on the Nasdaq National Market under the symbol
''ZOMX.''
Statements contained in this press release regarding the Company's efforts to expand operations and to continue increased
sales volumes are forward-looking, based on current expectations. These forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors that could cause
results to differ materially from those anticipated, including strategies of competitors, market demand, and the Company's
ability to integrate newly acquired operations, general economic factors, such as consumer confidence and inflation. Investors
are cautioned that all forward-looking statements involve risk and uncertainty. |
