SMS Reports Financial Results for Second Fiscal Quarter 1999
17 May 1999
SMS Reports Financial Results for Second Fiscal Quarter 1999
AUSTIN, Texas, May 17 -- Scientific Measurement Systems
(OTC Bulletin Board: SCMS) (SMS) today announced financial results for their
second fiscal quarter, the three months ended January 31, 1999.
Revenue for the second fiscal quarter in 1999 was down 60% compared to the
same period a year ago, $540,000 in Q2 of FY 1999 versus $1,353,000 in the
second quarter of 1998. The loss for the quarter was ($162,000) versus
($34,000) for the second quarter of 1998, but the Company suffered a slightly
smaller net loss, ($334,000), versus ($357,000) for the same six-month
reporting period last year. The net loss per share for both six month
reporting periods was ($.02).
Total operating costs for the second quarter were reduced to $218,000 in
fiscal 1999, compared to $385,000 in fiscal 1998. Research and development
costs were slightly increased over the same period in 1998 while General and
Administrative (G&A) expenditures were reduced 38%. Marketing expenditures
were also reduced 62% over the same quarter in FY 1998. Those cost
adjustments were a significant factor in avoiding greater losses.
"The Company's balance sheet continues to constrain operations. I am
pleased, though, that we are able to reduce the size of the loss, however
modestly, over the analogous six month period in FY 1998 -- while experiencing
a 30% drop in revenues," stated Howard L. Burris Jr., President and CEO of
SMS. "The Company does have a great deal of interest in its systems from a
number of new and incumbent customers, and a significant research and
development agreement has recently been concluded with a major international
firm," he added. "This agreement could in time lead to the sale and
production of multiple units with the same design and configuration. Serial
production of common systems would obviously become a tremendous benefit to
the company."
SMS designs, manufactures, and sells industrial CT equipment and services
to a worldwide customer base. The company is a recognized leader in the
development and commercialization of CT technology. CT provides a fully non-
destructive method for creating 2-D and 3-D data sets of an object, allowing
the user to examine both internal and external features. SMS is a public
company traded on the OTC Bulletin Board under the symbol SCMS. SMS is based
in Austin, Texas, and can be reached at 512-837-4712 or at http://www.sms-ct.com.
Selected Data from Consolidated Financial Statements (Unaudited)
Q ended 1/31/99 Q ended 1/31/98
1999 1998
Revenue $540,000 $1,353,000
Net Income (Loss) ($162,000) ($34,000)
Net Income (Loss) per Share ($.01) ($.00)
Statements made in this press release, including those related to the
production backlogs, industry attitudes toward "close packed" detector
technology, projections of future revenues, and the Company's ability to
secure future financing are forward-looking and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Among other things, a continued backlog in the scanning services business is
as dependent upon purchasing decisions by present and potential customers as
well as increased competition from new and existing competitors; industry
attitude toward "close packed" detector technology is subject to introduction
of competing products by others in the industry; projections of future
revenues are dependent upon the Company's realization of pending job orders
and research contracts; and the Company's ability to obtain additional
financing mechanisms is subject to the general availability of investor
capital in the marketplace. In addition to the factors set forth in this
release, the environmental, governmental, technological, economic,
competitive, and other factors identified in the Company's filing with the
Security and Exchange Commission could affect the forward-looking statements
contained in the press release.
For more information, contact Howard Burris, President & CEO of Scientific
Measurement Systems, Inc., 512-837-4712, or email, howard@sms-ct.com.