| Susie Strohm, vice president of finance for Gentner Communications
Corporation today announced results for the second quarter of fiscal year 1999.
Financial Highlights
(unaudited)
Three Months Ending
12/31/98 12/31/97 Change
Sales $5,253,477 $4,000,813 +31%
Net Income $517,081 $287,522 +80%
Basic earnings per share $0.06 $0.04 +50%
Six Months Ending
12/31/98 12/31/97 Change
Sales $10,751,419 $7,725,793 +39%
Net income $1,025,879 $495,701 +107%
Basic earnings per share $0.12 $0.06 +100%
``Based on our pipeline of sales for the upcoming quarters and our capacity to keep our
expenses in check, we are comfortable re-forecasting our yearly earnings per share to
$0.23 - $0.26 for fiscal 1999 from our original projection of $0.18 - $0.23,'' said
Strohm. This re-forecast represents a 28 - 44 percent improvement over fiscal 1998
earnings per share of $0.18. ``With seven quarters of profitability we have come through
our turnaround with the ability to better anticipate our revenue, manage expenses and, as
evidenced by the improved profit margins, continually challenge for improvement,'' Strohm
added.
For the quarter ended December 31, 1998, Gentner reported pre-tax earnings of $825,081,
or $0.10 per share, on revenue of $5.3 million. This represents a 187 percent increase in
pre-tax earnings and a 31 percent increase in revenue over the same period in fiscal 1998,
for which the company reported pre-tax earnings of $287,522 or $0.04 per share, on revenue
of $4.0 million.
Net income after taxes for the most recent quarter was $517,081, or $0.06 per share,
which is an 80 percent growth over the second quarter last year. Important to note is the
company paid no taxes during fiscal year 1998 due to tax loss carryforwards.
For the six months ended December 31, 1998, Gentner reported pre-tax earnings of $1.6
million, or $0.20 per share, on revenue of $10.8 million compared to same period last
fiscal year when the company reported earnings of $495,701, or $0.06 per share, on revenue
of $7.7 million. Net income after taxes for the most recent six-month period is $1.0
million, or $0.12 per share.
``We are happy with our progress to date and ongoing success,'' said Frances M. Flood,
president and chief executive officer for Gentner. ``We remain keenly focused on growing
the organization year over year, both consistently and profitably, and we will continue to
expand our distribution channels and product/service offerings in order to capture our
fair share of the burgeoning markets we serve.''
Gentner will hold its quarterly conference call on Thursday, January 14, 1999, at 2:15
p.m. MDT. To make a reservation to participate in the call, dial 800-538-7633, or
801-974-3700. Gentner will rebroadcast the call through its WebCast service via
broadcast.com®, which can be accessed on the company's 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, which include telephone interface
products, conferencing products, and a nationwide conference calling service.
Condensed Statement of Operations
(unaudited)
Three Months Ending Six Months Ending
12/31/98 12/31/97 12/31/98 12/31/97
Sales 5,253,477 4,000,813 10,751,419 7,725,793
Cost of goods sold 2,362,164 1,799,281 4,879,525 3,626,281
Gross profit 2,891,313 2,201,532 5,871,894 4,099,512
Operating & other
expenses 2,066,232 1,914,010 4,230,015 3,603,811
Income before taxes 825,081 287,522 1,641,879 495,701
Income tax expense 308,000 -- 616,000 --
Net income 517,081 287,522 1,025,879 495,701
Basic earnings per share $0.06 $0.04 $0.12 $0.06
Fully diluted earnings
per share $0.06 $0.04 $0.12 $0.06
Balance Sheet
12/31/98 6/30/98
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents 2,567,405 715,325
Accounts receivable 2,501,735 1,743,390
Inventory 2,222,175 3,154,983
Other current assets 326,755 214,667
Total current assets 7,618,070 5,828,365
Property and equipment, net 2,226,282 2,320,336
Other assets, net 141,846 163,039
Total assets 9,986,198 8,311,740
LIABILITIES AND EQUITY
Current liabilities:
Notes payable -- --
Accounts payable 518,250 537,202
Accrued expenses 1,451,211 859,481
Current portion of long-term debt 284,440 285,630
Current portion of capital leases 244,890 237,109
Total current liabilities 2,498,791 1,919,422
Long-term debt 265,031 402,584
Capital lease obligations 640,378 752,728
Total liabilities 3,404,200 3,074,734
Shareholders' equity:
Common stock 8,123 7,699
Additional paid-in capital 4,773,096 4,454,407
Retained earnings (deficit) 1,800,779 774,900
Total shareholders' equity 6,581,998 5,237,006
Total liabilities and equity 9,986,198 8,311,740
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 1998 10-KSB filed with the SEC.
Source: Gentner Communications
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