Sonics & Materials Reports First Quarter Fiscal 1999 Results
5 November 1998
Sonics & Materials Reports First Quarter Fiscal 1999 Results
NEWTOWN, Conn.--Nov. 5, 1998--Net Income Increases 36% over First Quarter Fiscal 1998
Sonics & Materials, Inc. today reported that revenues for the first quarter of Fiscal Year 1999 increased 11% over the first quarter of Fiscal Year 1998. Revenues for first quarter Fiscal Year 1999 were $3,458,181 compared to $3,116,804 for the first quarter of Fiscal Year 1998. The Company also reported earnings per share of $.02 for the first quarter of Fiscal Year 1999, compared to earnings of $.01 per share (diluted) for the first quarter of Fiscal Year 1998. The earnings per share calculation is based on the weighted average number of common and common equivalent shares (warrants and options) outstanding during the period. The Company also reported that net income for the first quarter of Fiscal Year 1999 increased 36% over the first quarter of Fiscal Year 1998. The Company had net income for the first quarter of Fiscal Year 1999 of $75,522 as compared to net income of $55,513 for the first quarter of Fiscal Year 1998.
Mr. Robert Soloff, Sonics & Materials' President and Chief Executive Officer stated, "The Company's increased net income is primarily attributable to a decrease in operating expenses, as well as improved sales performance by both Sonics and its subsidiary, Tooltex, Inc." Mr. Soloff added, "Our sales growth continues to be driven by increases in both the domestic and European market place, offsetting the decrease in Asian sales."
Commenting on Sonics' recent cost cutting measures, Mr. Soloff stated, "The streamlining of our organization, which took place at the end of the first quarter, was done in conjunction with a program of cross training both technical and sales personnel. By doing this, Sonics has now positioned itself to operate in an increasingly efficient and effective manner."
Sonics & Materials manufactures ultrasonic welding equipment, spin welding equipment, and vibration welding equipment, all of which are used in the bonding of plastics. The Company also manufactures ultrasonic liquid processors. The Company's equipment is installed at locations around the world, serving such diverse industries as automotive, electronics, textiles, medical device, packaging, and a wide range of other manufacturing and research applications. Its headquarters are in Newtown, Connecticut. The Company also has a division in Pennsylvania, a Mid-Western Regional Technical Office in Naperville, Illinois, a branch office in Gland, Switzerland, and a subsidiary in Grove City, Ohio.
Sonics maintains that any statements that are not of historical fact are forward-looking statements that are subject to a number of important risks and uncertainties that could cause actual results to differ materially. Specifically, any forward-looking statements related to Sonics' objectives of future growth, profitability and financial returns are subject to a number of risks and uncertainties, including, but no limited to, risks related to a growing market demand for Sonics' existing and new products, continued growth in sales and market share of Sonics products, pricing, market acceptance of existing new products, fluctuation in the sales product mix, general economic conditions, competitive products, and product and technology development.
Sonics & Materials, Inc.
CONSOLIDATED CONDENSED BALANCE SHEETS
As of
September 30, June 30,
1998 1998
(unaudited) (a)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 276,238 $ 503,305
Short-term investments, including
restricted funds of $400,000
at June 30, 1998 and September 30, 1998 500,000 750,000
Accounts receivable, net of allowance
for doubtful accounts of $112,000
at June 30, 1998 and September 30, 1998 2,415,599 2,370,960
Inventories 4,565,200 4,457,841
Prepaid income taxes 91,684 96,171
Deferred taxes
Other current assets 28,683 33,116
Total current assets 7,877,403 8,211,393
PROPERTY PLANT & EQUIPMENT - NET 4,358,082 4,409,920
GOODWILL - NET 1,040,672 1,054,547
RESTRICTED CASH FROM INDUSTRIAL 309,371 309,371
REVENUE BOND
OTHER ASSETS 713,769 692,584
$14,299,297 $14,677,815
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 1,465,101 $ 1,465,101
Current maturaties of long-term debt 394,812 354,978
Accounts payable 813,063 1,004,351
Customer Advances 192,627 327,355
Commissions payable 167,735 123,676
Other accrued expenses and sundry
liabilities 512,191 600,270
Total current liabilities 3,545,529 3,875,731
LONG-TERM DEBT, net of current portion 4,221,863 4,345,700
COMMITMENTS
STOCKHOLDERS' EQUITY
Common stock - par value $.03 per share;
authorized, 10,000,000 shares; issued
and outstanding, 3,520,100
shares at September 30, 1998
and June 30, 1997 105,603 105,603
Additional paid in capital 6,575,010 6,575,010
Accumulated deficit (148,708) (224,229)
Total stockholders' equity 6,531,905 6,456,384
$14,299,297 $14,677,815
(a)Taken from the audited financial statements at June 30, 1997.
Sonics & Materials, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited)
For the Three Months Ended
September 30,
1998 1997
Net sales $3,458,181 $3,116,804
Cost of sales 2,107,943 1,827,659
Gross profit 1,350,238 1,289,145
Operating expenses
Selling expense 826,944 732,173
General and administrative 243,070 307,746
Research and development 112,141 150,502
Total operating expenses 1,182,155 1,190,421
Other income (expense)
Interest expense (111,860) (34,578)
Interest income 25,578 --
Other (6,279) 7,282
(92,561) (27,296)
Income before provision for income taxes 75,522 71,428
Provision for income taxes -- 15,915
Net Income $ 75,522 $55,513
Basic income per share
Net income per share $ .02 $ .02
Weighted average number of common and
common equivalent shares outstanding 3,520,100 3,571,078
Diluted income per share
Net income per share $ .02 $ .01
Weighted average number of common and
common equivalent shares outstanding 3,532,916 3,770,147