SMS Reports Financial Results for Third Fiscal Quarter 1998
18 June 1998
SMS Reports Financial Results for Third Fiscal Quarter 1998
AUSTIN, Texas, June 17 -- Scientific Measurement Systems
(OTC Bulletin Board: SCMS) (SMS) today announced financial results for their
third fiscal quarter, the three months ended April 30, 1998.
Revenue for third fiscal quarter 1998 was approximately flat compared to
the same period a year ago, $1,127,000 versus $1,145,000. The Company earned
a net income of $5,000, compared to a net income of $70,000 for the third
quarter of fiscal 1997. Correspondingly, there was no net income/loss per
share.
Total operating costs for the quarter as a percentage of revenues
increased to 34% in fiscal 1998, compared to 23% in fiscal 1997. The increase
is primarily due to costs associated with new product development, including
the Company's "close-packed" detector subsystem.
"I consider a break-even quarter encouraging, considering the constraints
that our current balance sheet has placed on operations," stated Howard L.
Burris Jr., President and CEO of SMS. "Our scanning services business
continues to display healthy backlog, and orders received from Rolls-Royce and
Mitsubishi Materials within the quarter show that customers are excited about
our new 'close-packed' detector technology." He added that gross margins as a
percentage of revenues continued to improve, from 30% for the period in fiscal
1997 to 36% in fiscal 1998. The improvement in gross profit was directly
attributable to avoidance of unexpected contract costs due to project
overruns.
Mr. Burris also noted that progress had been made with respect to the
Company's efforts towards obtaining additional financing mechanisms, but did
not elaborate.
SMS designs, manufactures, and sells industrial CT equipment and services
to a world-wide customer base. The company is a recognized leader in the
development and commercialization of CT technology. SMS is a public company
traded on the OTC Bulletin Board under the symbol SCMS. SMS is based in
Austin, Texas, and can be reached at 512-837-4712.
Selected Data from Consolidated Financial Statements (Unaudited)
Q ended 4/30/98 Q ended 4/30/97
1998 1997
Revenue $1,127,000 $1,145,000
Net Income (Loss) $5,000 $70,000
Net Income (Loss) per Share $0 $0
Statements made in this press release, including those related to the
production backlogs, industry attitudes toward "close packed" detector
technology, projections of future revenues, and the Company's ability to
secure future financing are forward-looking and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Among other things, a continued backlog in the scanning services business is
as dependent upon purchasing decisions by present and potential customers as
well as increased competition from new and existing competitors; industry
attitude toward "close packed" detector technology is subject to introduction
of competing products by others in the industry; projections of future
revenues are dependent upon the Company's realization of pending job orders
and research contracts; and the Company's ability to obtain additional
financing mechanisms is subject to the general availability of investor
capital in the marketplace. In addition to the factors set forth in this
release, the environmental, governmental, technological, economic,
competitive, and other factors identified in the Company's filing with the
Security and Exchange Commission could affect the forward-looking statements
contained in the press release.