Turbodyne Reports Revenues Up 45 Percent in First Quarter 1999
23 April 1999
Turbodyne Reports Revenues Up 45 Percent in First Quarter 1999
WOODLAND HILLS, Calif.--April 23, 1999-- Turbodyne Technologies Inc. (EASDAQ:TRBD.) Friday reported preliminary results for the quarter ended March 31, 1999.Revenues for the quarter ended March 31, 1999, increased to a record $14,072,000 compared with $9,726,000 for the same period of 1998, an increase of $4,346,000 or 45 percent over the first quarter of 1998.
Gross profit for the first quarter ended March 31, 1999, was $2,393,000, an increase of $968,000 or 68 percent over the first quarter of 1998. The Light Metals Division accounted for $2,372,000 of the gross profit. For the first quarter of 1999, gross profit accounted for 17 percent of sales, compared with 14.7 percent of sales for the first quarter of 1998 and 12.3 percent for the full year 1998.
Net loss for the first quarter was approximately $3,450,000, a decrease of approximately $568,000, or 14.2 percent, compared with the first quarter of 1998. Loss per share for the first quarter of 1999 was 9 cents, compared with a loss of 13 cents per share for the same period in 1998. The fully diluted weighted average shares outstanding for the quarter were 36,960,000 compared with 31,172,000 a year ago.
Walter Ware, president and chief executive officer, stated: "The first-quarter results reflect the significant improvement in profitability, which is the result of the reorganization, modernization and relocation underway within the Light Metals Division, as well as cost reductions at Turbodyne's corporate offices and within the Engine Technology Division, which were implemented in the first quarter 1999.
"We believe that the benefits of these cost reductions will be realized beginning in the second quarter, after severance costs are absorbed by the company. In addition, as a result of the recent joint development agreement with AlliedSignal, ongoing R&D cost associated with the Dynacharger will be shared between Turbodyne and AlliedSignal. Prior to this agreement all of the substantial R&D costs associated with the Dynacharger have been borne by Turbodyne."
Ware further stated: "During the first quarter of this year we have continued to realign our product mix in the Light Metals Division to increase production of automotive parts for the OEMs. In 1998, the margins in this business were lower than the aftermarket wheel business.
"However, with the modernization of the Light Metals Division, we now have the ability to further reduce costs and significantly expand the volume of the precision machined engine components business, which we hope to result in improved margins and profitability.
"The continued advancement of the Engine Technology Division's strategic plan for alliance with leading global turbocharger manufacturers was consummated through Turbodyne's joint development and exclusive licensing agreements with AlliedSignal.
"In addition, the receipt of an Executive Order from the California Air Resources Board (CARB) on Turbodyne's Turbopac(TM) 2500 enables Turbodyne to advertise, market and install the Turbopac(TM) 2500 on heavy-duty vehicles equipped with diesel engines covered by the Order," concluded Ware.
Turbodyne Systems, the Engine and Pollution Technology Division of Turbodyne, designs, develops, manufactures and markets patented pollution-reduction, fuel economy and performance-enhancing products for internal combustion engines in the automotive, transportation, construction, marine, agriculture, mining, military and power-generation industries.
Turbodyne's Light Metals Division is a manufacturer of machined aluminum castings and a leading supplier to the automotive industry.
Offices and/or plants are located in Carpinteria, La Mirada, Encinitas and Woodland Hills, Calif.; New York; Ensenada and Mexico City, Mexico; Vancouver, Canada; Paris; and Frankfurt, Germany.
Turbodyne's World Wide Web address is: www.turbodyne.com.
With the exception of the historical information contained in this news release, the matters discussed above include forward-looking statements that involve risks and uncertainties. Actual results may vary substantially as a result of a variety of factors. Among the important factors that could cause actual results to differ are the level of direct costs and the ability of the company to further reduce these costs; the ability of the company to increase revenues and gross profit margins; the level of selling, general and administrative costs as well as research and development costs; the effects of competition; the effects of the company's recent cost-reduction measures; and the results of pending litigation. The failure of any of these factors could cause actual results to differ materially from the forward-looking statements discussed above.