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Microcap & Penny Stocks : ITEC classic turnaround with Internet twist -- Ignore unavailable to you. Want to Upgrade?

To: Joe Cervini who wrote (181)	2/19/1999 9:44:00 AM
From: paul t	Read Replies (1) \| Respond to of 431

biz.yahoo.com Friday February 19, 9:00 am Eastern Time Company Press Release Imaging Technologies Corp. Reports Second Quarter Fiscal 1999 Financial Results Digital Imaging Products Manufacturer Sells PC Card and Storage Products Distributor and Discontinues Memory Products Operation to Concentrate on Core Business As Part of Ongoing Corporate Streamlining SAN DIEGO--(BUSINESS WIRE)--Feb. 19, 1999-- (Nasdaq:ITEC - news) Imaging Technologies Corp. today reported financial results for the second quarter of fiscal 1999, which ended Dec. 31, 1998. Sales revenues for the second fiscal quarter were $4.2 million, a decrease over revenues of $9.8 million in the second fiscal quarter of 1998. Operating income for the quarter fell to a loss of ($3.0 million) compared with operating income of $1.1 million for the second quarter of fiscal 1998. Earnings per share (diluted) decreased to a loss of ($.26) per share, compared to earnings of $.08 per share for the second quarter of fiscal 1998. The company posted a six-month fiscal 1999 operating loss of ($4.6 million) compared with earnings of $1.8 million for the comparable period in fiscal 1998. The company reported a loss of ($.36) per share compared with income of $.14 per share for the first two quarters of fiscal 1998. Revenues for the six-month period were $11.5 million compared with $17.5 million reported in the first six months of fiscal 1998. ''ITEC failed to achieve the objectives of our business plan in the second fiscal quarter in part due to insufficient working capital limiting our ability to manufacture and deliver products,'' said Brian Bonar, chief executive officer of Imaging Technologies. ''However, the recently announced infusion of capital and ongoing negotiations to establish realistic and workable banking relationships are designed to put the company back on plan in the coming quarters.'' Subsequent to the close of the second quarter, the company completed a private placement of its capital stock valued at approximately $5.4 million. The company obtained approximately $2.3 million in cash through the issuance of Series D and E Preferred Stock with certain accredited and institutional investors and converted approximately $1.2 million of debt into Series E Preferred Stock. The company expects to obtain the remaining $1.9 million in cash upon filing and effectiveness of the registration statement registering the shares of ITEC common stock issuable upon conversion of the Series D and E Preferred Stock. ITEC intends to use the funds raised to expand product shipments to meet demand for the company's printers, image management print controllers, and color management software. In addition to posting financial results for the second fiscal quarter, ITEC today announced the sale of its Prima International subsidiary, a PC Card and storage products distributor, and the consolidation and closure of its McMican memory products manufacturing subsidiary. These moves are part of an ongoing realignment of the company's operations around its core imaging businesses. ''These efforts are geared toward focusing on markets and products that produce a higher return on our investment,'' added Bonar. ''The PC Card and data storage accessories market was not in line with our present market strategy. We are working to solidify our position in the industry by concentrating on our areas of greatest strength.'' A one-hour audio teleconference to review financial results is scheduled for 1 p.m. Pacific Time on Friday Feb. 19, 1999. Bonar and Chris McKee, vice president and chief accounting officer will discuss the results of the second quarter and answer questions. Those interested in listening to the conference and ask questions can dial in on the East Coast 212/676-5363 and on the West Coast 415/908-6250.