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IMPCO Technologies Announces Strong Q1 Results

26 August 1998

IMPCO Technologies Announces Strong First-Quarter Results; Record Revenues and Operating Income

    CERRITOS, Calif.--Aug. 26, 1998--IMPCO Technologies Inc. Wednesday announced results for its first fiscal quarter ended July 31, 1998.
    Net income for the quarter increased 114 percent to $1,484,000, or $0.18 per diluted share, from $692,000 in the corresponding prior-year period. Operating income rose 97 percent to $2,587,000 from $1,315,000 a year earlier. Revenues for the first fiscal quarter climbed to a record $19,873,000, a 22 percent increase compared with $16,289,000 a year ago.
    Robert M. Stemmler, president and chief executive officer, stated: "Results for the first fiscal quarter reflect steady growth in the materials handling sector of our business and increased General Motors revenues in jointly developing clean-burning gaseous fueled vehicles for future commercialization. Sales from our OEM motor vehicle upfitting business rose sharply to $2,300,000 compared with $197,000 for the same period last year."
    Stemmler continued: "We were pleased with our strong financial performance in the first fiscal quarter. We are only just beginning to reap the benefits from our teaming agreement with General Motors. Looking forward, we believe we are well positioned to take advantage of additional opportunities that will develop from the rapid worldwide growth in the alternative fuels industry."
    IMPCO Technologies sells alternative fuel products and services worldwide. With headquarters in Cerritos, the company has additional facilities in Irvine, Calif.; Detroit; Seattle; Mt. Pleasant, Iowa; Mexico; Australia; The Netherlands; France; Germany; and the United Kingdom.
    IMPCO is a market leader in the Original Equipment Manufacturer (OEM) marketplace and aftermarket for gaseous fuel management systems and components that allow internal combustion engines to operate on clean gaseous fuels such as propane and natural gas. IMPCO provides conversion systems for motor vehicles, forklifts, other material handling equipment, and small portable to large stationary engines.


    Certain matters discussed in this news release contain forward- looking information that involves risks and uncertainties that could cause actual results to differ materially from current trends. These include growth of the alternative fuels market, competition, the company's ability to design and market new fuel management products, the company's ability to meet Original Equipment Manufacturer (OEM) specifications, and other such risks as cited in the company's 1997 annual report on Form 10-K and other documents filed with the Securities and Exchange Commission.

  
                        IMPCO Technologies Inc.
                    Consolidated Financial Summary
             (In thousands, except for per share amounts)

                                              Three Months Ended
                                                    July 30,   
                                             1998             1997   

Net revenue                             $   19,873       $   16,289

Operating income                             2,587            1,315

Net income before dividends                  1,633              840

Net income applicable to
   common stock                         $    1,484       $      692

Net income per share:

   Basic                                $     0.21       $     0.12

   Diluted                              $     0.18       $     0.11

Number of shares used in 
 per share computation:

   Basic                                 7,141,248        5,814,587

   Diluted                               9,067,626        6,263,230