Thursday October 22, 7:31 am Eastern Time
Company Press Release
Microfield Graphics Inc. Announces Third Quarter
Operating Results
PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 22, 1998--Microfield Graphics Inc. (Nasdaq:MICG - news) which develops,
manufactures and markets interactive computer conferencing and group communication products, today announced operating
results for the third quarter and first nine months of its 1998 fiscal year.
For the three months ended Oct. 3, 1998, the company reported sales of $1,245,000, compared with sales of $1,556,000 in the third
quarter of FY1997. A net loss of $593,000 ($0.16 per share) was recorded in the most recent quarter, versus a net loss of
$430,000 ($0.13 per share) in the prior year period. Gross margin decreased to 42% of sales in the third quarter of FY1998, down
from 52% in the year earlier period. The company's operating expenses of $1,111,000 were approximately 10% lower than the
$1,228,000 in comparable expenses recorded in the third quarter of FY1997.
For the nine-month period ended Oct. 3, 1998, sales totaled $5,642,000, which represented a gain of 44% when compared with
sales of $3,924,000 in the corresponding period of the previous year. The company reported a net loss of $1,139,000 ($0.32 per
share) for the first nine months of FY1998, versus a net loss of $1,681,000 ($0.53 per share) in the first nine months of FY1997.
Gross margin for the most recent nine-month period approximated 42% of sales, compared with a 48% gross margin in the prior
year period. Operating expenses of $3,466,000 for the nine months ended Oct. 3, 1998, approximated 61% of sales, compared with
operating expenses of $3,541,000 (90% of sales) in the comparable period during FY1997.
''OEM sales to 3M during the quarter were substantially lower than first and second quarter levels,'' commented Jack Conroy,
President and Chief Executive Officer of Microfield Graphics Inc. ''However, we are pleased to report that non-OEM sales
improved significantly during the most recent quarter. Our international distribution and reseller channels posted record and
near-record sales, respectively, and our direct sales channel recorded a dramatic improvement in volume during the third quarter.''
''We are also very excited by initial customer interest in our new interactive plasma display product line, the SoftBoard(R) System
500,'' continued Conroy. ''We sold our first System 500 units in September, approximately two months ahead of schedule, and the
System 500 generated considerable interest at last month's Photokina International Trade Fair for Imaging, Sound and Professional
Media in Cologne, Germany. Two models of the SoftBoard System 500 were on display in the Pioneer Electronic Corporation
booth at the Photokina exhibition. These new wall-mountable interactive computer displays provide an elegant, intuitively functional
way to display and manipulate the information utilized in on-site and remote group meetings, and they complement our
SoftBoard(R) System 300 and System 400 Interactive Group Desktop(TM) products.''
''We are currently in discussions with a number of OEMs regarding the prospect of incorporating Microfield Graphics' proprietary
interactive technology into their display product lines. At the present time, we anticipate that fourth quarter operating results will
improve relative to third quarter levels,'' concluded Conroy.
Source: biz.yahoo.com |
