Amtech's Second Quarter Revenues Up 20% Over First Quarter; Results Impacted by $6.8 Million in Special Charges
12 August 1997
Amtech's Second Quarter Revenues Up 20% Over First Quarter; Results Impacted by $6.8 Million in Special Charges
DALLAS, Aug. 12 -- Amtech Corporation
announced today operating results for the second quarter and six-month period
ended June 30, 1997. Revenues for the second quarter were up 20% over first
quarter results, returning to historic levels, as anticipated; however,
overall results were impacted by two significant non-recurring special
charges.
The company said that its Transportation Systems Group and Electronic
Security Group each generated marginal pre-tax operating profits for the
quarter excluding corporate holding company expenses, a significant
improvement after incurring operating losses in the first quarter. However,
overall results were significantly affected by two non-recurring special
charges totaling approximately $6.8 million. The second quarter provision for
income taxes includes $4,680,000, representing the effect of establishing a
valuation allowance for U.S. deferred tax assets, in accordance with the
requirements of Statement of Financial Accounting Standards No. 109
"Accounting for Income Taxes." Additionally, as a result of the company's
July 31, 1997, announcement that it will withdraw from the wireless LAN
terminal market and seek buyers for the company's Interactive Data Group
(IDG), operating costs and expenses include a $2,075,000 special charge to
reduce the assets of the IDG to their estimated net realizable values. The
company estimates it may incur additional charges up to $1,000,000 in the last
half of 1997 for related employee severance costs and winding up of operating
activities. The IDG recorded pre-tax losses of approximately $3,000,000 and
$4,000,000 for the quarter and six-month periods ended June 30, 1997,
respectively.
Revenues for the second quarter ended June 30, 1997, were $28,877,000, up
20% over the first quarter 1997 and off 3% from the $29,867,000 reported for
the comparable quarter in 1996. Including the special charges, the net loss
for the second quarter of 1997 was $6,819,000 ($0.46 per share), or $662,000
($0.04 per share) excluding the special charges, compared to a net loss of
$20,000 ($0.00 per share) for the comparable period in 1996.
For the six-month period ended June 30, 1997, revenues totaled
$53,030,000, down 9% from the $58,143,000 during the same period of 1996.
Including the special charges, net loss for the first half of the year was
$10,019,000 ($0.68 per share), compared to net income of $333,000 ($0.02 per
share) for the first six months of 1996.
Amtech president and chief executive officer, G. Russell Mortenson, said,
"The company's decision to exit the IDG business and the special provisions in
the quarter will significantly improve operating results and cash flows,
particularly after the third quarter. The overall tone of the business of the
Transportation Systems and Electronic Security Groups remains positive, with
record quarter-ending order backlog of approximately $53 million. The
challenge is to deliver this business with margins that will return the
company to profitability after the disposition of the IDG," he concluded.
Amtech Corporation is a leading global provider of systems and solutions
using wireless data and security technologies. The Amtech Transportation
Systems Group is the world's leading provider of wireless identification,
tracking and monitoring technologies for the intelligent transportation
industry. The Amtech Electronic Security Group is a global supplier of
electronic access control and security management systems and products
marketed under the Cotag International and Cardkey Systems brand names.
For further investor information, visit Amtech's investor web site:
http://www.stockprofiles.com/amtc.
AMTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
Sales $ 28,877 $ 29,867 $ 53,030 $ 58,143
Operating costs and expenses
(Note 1):
Cost of sales 17,790 16,937 33,148 34,216
Research and development 2,954 2,557 5,772 5,121
Marketing, general and
administrative 11,834 10,466 22,123 20,073
Total 32,578 29,960 61,043 59,410
Operating loss (3,701) (93) (8,013) (1,267)
Investment income 438 288 735 2,366
Interest expense --- (61) (65) (170)
Income (loss) before income
taxes (3,263) 134 (7,343) 929
Provision for income taxes
(Note 2) 3,556 154 2,676 596
Net income (loss) $ (6,819) $ (20) $(10,019) $ 333
Earnings (loss) per share $ (0.46) $ 0.00 $ (0.68) $ 0.02
Shares used in computing
earnings (loss) per share 14,723 14,613 14,723 14,743
Notes:
(1) Includes $2,075 provision in the 1997 periods for writedown of IDG
assets to estimated net realizable values.
(2) Includes $4,680 provision in the 1997 periods representing the effect
of establishing a valuation allowance for U.S. deferred tax assets.
AMTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, June 30,
1997 1996
ASSETS
Cash and marketable securities $ 9,010 $ 22,491
Accounts receivable, net 31,353 26,017
Inventories 12,284 15,193
Other current assets 790 2,917
Property and equipment, net 13,620 14,484
Intangible assets, net 7,156 8,937
Other assets 5,452 4,265
Total Assets $ 79,665 $ 94,304
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 18,226 $ 22,183
Stockholders' equity 61,439 72,121
Total Liabilities and
Stockholders' Equity $ 79,665 $ 94,304
WORKING CAPITAL $ 35,211 $ 44,435
SOURCE Amtech Corporation