Sonics & Materials Reports Third Quarter Fiscal 1999 Results
14 May 1999
Sonics & Materials Reports Third Quarter Fiscal 1999 Results
NEWTOWN, Conn.--May 13, 1999--Sonics & Materials, Inc. (OTCBB:SIMA) today reported that the Company's net income for the third quarter of Fiscal Year 1999 increased $183,874 over the third quarter of Fiscal Year 1998. The Company had net income for the third quarter of Fiscal Year 1999 of $109,573 as compared to a net loss of $74,301 for the third quarter of Fiscal Year 1998. For the first nine months of Fiscal Year 1999 net income increased $261,225, with net income of $230,457 for the nine month period ending March 31, 1999, as compared to a net loss of $30,768 for the nine month period ending March 31, 1998. The Company also reported an increase in earnings per share of $0.05. Earnings per share for the third quarter of Fiscal Year 1999 was $0.03 compared to a loss of $0.02 per share for the third 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 reported that revenues for the third quarter of Fiscal Year 1999 increased 11% over the third quarter of Fiscal Year 1998. Revenues for third quarter of Fiscal Year 1999 were $3,323,453 compared to $2,990,272 for the third quarter of Fiscal Year 1998.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
March 31, June 30,
1999 1998
(unaudited) (a)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 154,296 $ 503,305
Short-term investments,
including restricted funds
of $400,000 at June 30, 1998
and March 31, 1999 500,000 750,000
Accounts receivable, net of
allowance for doubtful
accounts of $112,000 at
June 30, 1998 and
March 31, 1999 2,164,488 2,370,960
Inventories 4,568,643 4,457,841
Other current assets 470,857 129,287
Total current assets 7,858,284 8,211,393
PROPERTY PLANT &
EQUIPMENT - NET 4,213,528 4,409,920
GOODWILL - NET 1,012,921 1,054,547
RESTRICTED CASH FROM
INDUSTRIAL REVENUE BOND 184,891 309,371
OTHER ASSETS 774,751 692,584
$ 14,044,375 $ 14,677,815
============ ============
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 691,351 1,004,351
Customer Advances 160,078 327,355
Commissions payable 162,702 123,676
Other accrued expenses
and sundry liabilities 433,178 600,270
Total current liabilities 3,359,437 3,875,731
LONG-TERM DEBT, net of
current portion 3,998,097 4,345,700
COMMITMENTS
STOCKHOLDERS' EQUITY
Common stock - par value
$.07 per share; authorized,
10,000,000 shares; issued
and outstanding, 3,520,100
shares at March 31, 1999
and June 30, 1998 105,603 105,603
Additional paid in capital 6,575,010 6,575,010
Accumulated deficit 6,228 (224,229)
Total stockholders' equity 6,686,841 6,456,384
$ 14,044,375 $ 14,677,815
============ ============
(a) Taken from the audited financial statements at June 30, 1998.
Sonics & Materials, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months Ended For the Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
Net sales $ 3,323,453 $ 2,990,272 $ 9,684,831 $ 8,922,039
Cost of sales 2,020,665 1,784,302 5,767,851 5,139,179
Gross profit 1,302,788 1,205,970 3,916,980 3,782,860
Operating
expenses
Selling
expense 686,812 806,612 2,202,724 2,421,431
General and
administrative 337,547 382,346 930,191 1,009,583
Research and
development 87,005 141,347 276,677 440,600
Total
operating
expenses 1,111,364 1,330,305 3,409,592 3,871,614
Other income
(expense)
Interest
income 18,639 48,556 70,959 124,089
Interest
expense (95,448) (23,872) (315,078) (138,609)
Other (5,042) (971) (10,409) 72,506
(81,851) 46,116 (276,931) 57,986
Income
(loss)
before
provision
for income
taxes 109,573 (78,219) 230,457 (30,768)
Provision
(benefit)
for income
taxes -- (3,918)
Net Income
(loss) $ 109,573 $ (74,301) $ 230,457 $ (30,768)
INCOME
(LOSS) PER
SHARE - BASIC
Net income
(Loss)
per share $ .03 $ (.02) $ .07 $.(01)
Weighted
average
number
of shares
outstanding 3,525,631 3,590,100 3,529,163 3,583,759
INCOME
(LOSS)PER
SHARE -
DILUTED
Net income
(loss)
per share $ .03 $ (.02) $ .07 $ (.01)
Weighted
average
number of
shares
outstanding 3,525,631 3,590,100 3,529,163 3,583,759