Sonics & Materials Reports Second Quarter Fiscal 1999 Results
11 February 1999
Sonics & Materials Reports Second Quarter Fiscal 1999 Results
NEWTOWN, Conn.--Feb. 11, 1999--Sonics & Materials, Inc. today reported that the Company's net income for the second quarter of Fiscal Year 1999 increased 479% over the second quarter of Fiscal Year 1998. The Company had net income for the second quarter of Fiscal Year 1999 of $45,363 as compared to a net loss of $11,981 for the second quarter of Fiscal Year 1998. For the first six months of Fiscal Year 1999 net income increased 178%, with net income of $120,885 for the six month period ending December 31, 1998, as compared to $43,532 for the six month period ending December 31, 1997. The Company also reported earnings per share of $.01 for the second quarter of Fiscal Year 1999, compared to earnings of $0.00 per share for the second 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 revenues for the second quarter of Fiscal Year 1999 increased 3% over the second quarter of Fiscal Year 1998. Revenues for first quarter Fiscal Year 1999 were $2,903,197 compared to $2,814,963 for the second quarter of Fiscal Year 1999.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 Danbury, 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
December 31, June 30,
1998 1998
(unaudited) (a)
ASSETS
CURRENT ASSETS
Cash and cash
equivalents $ 175,202 $ 503,305
Short-term
investments,
including restricted
funds
of $400,000 at
June 30, 1998 and
December 31, 1998 500,000 750,000
Accounts receivable,
net of allowance for
doubtful accounts
of $112,000 at
June 30, 1998 and
December 31, 1998 2,011,890 2,370,960
Inventories 4,607,854 4,457,841
Other current assets 441,674 129,287
Total current assets 7,736,620 8,211,393
PROPERTY PLANT &
EQUIPMENT - NET 4,293,902 4,409,920
GOODWILL - NET 1,026,797 1,054,547
RESTRICTED CASH FROM
INDUSTRIAL REVENUE BOND 224,371 309,371
OTHER ASSETS 743,176 692,584
$ 14,024,866 $ 14,677,815
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LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 1,465,101 $ 1,465,101
Current maturities of
long-term debt 447,027 354,978
Accounts payable 487,754 1,004,351
Customer Advances 160,078 327,355
Commissions payable 210,845 123,676
Other accrued expenses
and sundry liabilities 560,619 600,270
Total current liabilities 3,331,424 3,875,731
LONG-TERM DEBT, net of
current portion 4,116,174 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 December 31, 1998
and June 30, 1998 105,603 105,603
Additional paid in capital 6,575,010 6,575,010
Accumulated deficit (103,345) (224,229)
Total stockholders' equity 6,577,268 6,456,384
$ 14,024,866 $ 14,677,815
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(a) Taken from the audited financial statements at June 30, 1998.
Sonics & Materials, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
For the Three For the Six
Months Ended Months Ended
December 31, December 31,
--------------------------- ----------------------
1998 1997 1998 1997
------------ -------------- ---------- -----------
Net sales $ 2,903,197 $ 2,814,963 $ 6,361,378 $ 5,931,767
Cost of sales 1,639,243 1,527,219 3,747,186 3,354,877
------------ -------------- ---------- -----------
Gross profit 1,263,954 1,287,744 2,614,192 2,576,890
Operating expenses
Selling
expense 688,967 882,646 1,515,911 1,614,819
General and
administrative 349,574 319,490 592,644 627,237
Research and
development 77,531 148,751 189,672 299,253
----------- ------------ ---------- ---------
Total operating
expenses 1,116,072 1,350,887 2,298,227 2,541,309
Other income
(expense)
Interest income 4,339 51,780 29,917 51,780
Interest expense (107,770) (78,605) (219,630) (116,088)
Other 912 65,991 (5,367) 76,178
----------- ------------ ---------- ---------
(102,519) 39,166 (195,080) 11,870
Income (loss)
before provision
for income taxes 45,363 (23,977) 120,885 47,451
Provision (benefit)
for income taxes - (11,996) 3,919
--------- ------------ ---------- ---------
Net Income (loss) $ 45,363 $ (11,981) $ 120,885 $ 43,532
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INCOME PER SHARE
- BASIC
Net income
per share $.01 $ - $.03 $.01
========= ============= ============ ===========
Weighted average
number of shares
outstanding 3,520,100 3,590,100 3,520,100 3,580,589
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INCOME PER SHARE
- DILUTED
Net income
per share $.01 $ - $.03 $.01
========== ============= ============ ===========
Weighted average
number of shares
outstanding 3,526,945 3,590,100 3,529,931 3,760,964
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