Cognitronics Reports Third Quarter Net Income Equal to 28 Cents Vs. 24 Cents and Record Nine Months Net Income Equal to 87 Cents Vs. 80 Cents
DANBURY, Conn., Oct. 28 /PRNewswire/ -- Cognitronics Corporation (Amex: CGN - news) today reported:
-- Quarterly net income per share on a diluted basis for the third
quarter of 1998 equal to $.28 versus $.24 a year ago.
-- Record nine months net income per share on a diluted basis for the
period ended September 30, 1998 equal to $.87 versus $.80 in 1997.
For the quarter ended September 30, 1998, net income was $1,114,000, up 18% from $941,000 for the same quarter of 1997. Sales for the third quarter were $7 million in 1998 compared to $7.2 million in 1997.
The company said that the decrease in third quarter 1998 sales from the comparable 1997 quarter was attributable to lower sales of distributorship products in the United Kingdom, partially offset by a 5% increase in domestic sales of its McIASJ 16xx series products. Increases in the gross margin in domestic and UK operations, as well as lower expenses in domestic operations, resulted in increased net income.
For the nine months ended September 30, 1998, the Company reported net income of $3,499,000, up 14% from $3,059,000 for the same period in 1997. Sales for the nine-month period were $21.6 million in 1998, compared to $22.4 million in 1997.
''To date, the year 1998 has continued with a strong performance in both the company's domestic operations and its UK distributorship operations,'' said Brian J. Kelley, president and chief executive officer of Cognitronics. ''Trailing earnings per diluted share for the twelve months ended September 30, 1998 were a record $1.01 , which includes a $.14 charge in connection with the settlement of litigation recorded in the fourth quarter of 1997.
''New product development continues and investment in research and development is expected to continue to increase in 1998. We believe that the telecommunications market will require an enhanced intelligent peripheral for use in the Advanced Intelligent Network (AIN). To meet this need, we have substantially completed development of a new, all VME-based platform utilizing the Solaris7 operating system and our new multi-resource line interface technology and, this week, shipped a pre-production unit to a North American telephone company customer for laboratory testing. This new platform, together with new software, provides greater capacity and advanced functionality, including SS7 signalling. ISDN Primary Rate interface capability is scheduled to be added in early 1999. We believe that this new platform will offer to our customers reliable, cost effective solutions for their voice processing requirements in the Advanced Intelligent Network.
''Earlier this month, the company announced that it had received an order from Alcatel Indetel for approximately $2 million for delivery of Cognitronics' flagship McIAS 1623/IP voice information systems in the fourth quarter of this year. The McIAS 1623/IPs will be installed on central office switches at Telmex to provide revenue generating services. This order is part of a Telmex project to install McIAS 1623/IPs on its central office switches throughout Mexico over the next nine months. The overall project is expected to be valued up to $5 million.
''Further, during the third quarter, the company announced that Allegiance Telecom, a competitive local exchange carrier providing a complete package of telecommunications services, including local, long distance, international calling, high speed data transmission and Internet services to businesses, will install the Cognitronics' McIAS 16xx/IP series products on its switching systems to provide voice information services to its customers. Sales under this agreement began in the second quarter,'' Kelley concluded.
Statements contained herein which are not historical facts are forward- looking statements. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks and uncertainties including, but not limited to, variability of sales volume from quarter to quarter, product demand, market acceptance, litigation, risk of dependence on significant customers, third party suppliers and intellectual property rights, risks in product and technology development and other risk factors detailed in the company's Securities and Exchange Commission filings.
Cognitronics is a leading manufacturer and supplier of voice processing equipment, including telephone network and call management products and interactive voice response (IVR) systems, to telephone operating companies, original equipment manufacturers and commercial end-users.
McIAS is a trademark of Cognitronics Corporation.
Solaris is a registered trademark of Sun Microsystems |
