Productivity Technologies Corp. Announces Q4 And Fiscal Year Results
16 August 1999
Productivity Technologies Corp. Announces Fourth Quarter And Fiscal Year Results
4Q Earnings Per Share at 29 Cents
NEW YORK, Aug. 16 -- Productivity Technologies Corp.
announces today unaudited consolidated operating results for
its fourth fiscal quarter and for the fiscal year ended June 30, 1999. These
results are subject to completion of the audit.
The Company reported sales of $9.8 million for the fourth quarter of 1999,
compared to $6.3 million for the quarter one year ago, an increase of 57%.
The increase reflects higher order closings during the second half of the
fiscal year. Backlog at June 30, 1999 approximated $16 million versus $17
million a year ago.
Gross profit increased to $2.8 million in the quarter from $1.9 million in
the quarter a year ago as a result of the Company's higher sales and lower
operating costs derived from the cost containment program begun in early
calendar year 1999. Earnings per share in the fourth quarter were $0.29
compared to a loss after bonus restructuring and other charges of ($1.13) in
the fourth quarter a year ago. Fiscal 1999 earnings include higher allowable
research and engineering (R&E) tax credits available in part as a result of
the Company's settlement in fiscal 1999 with the Internal Revenue Service of
its audits of the Company's claimed R&E credits for the years 1991-1996.
The nature of the Company's business is such that substantial differences
in earnings from quarter to quarter are usual. Fourth quarter earnings of
$0.29 per share were unusually high compared to historic levels and the
Company does not anticipate near-term future quarterly performance will
approach this level. The Company's annual earnings of $0.40 per share,
however, approximate a net income per share base on which the Company seeks to
improve in the coming year.
The Company reported $34 million in revenue for the year ended June 30,
1999, a decrease of 6% versus a year ago. Sales declined due to low bookings
in the first half of the fiscal year. Gross profits for fiscal 1999
increased by 11% over that for fiscal 1998 to $9.4 million. Earnings per
share for fiscal 1999 was $0.40 compared to a loss of ($0.95) for the year
ended June 30, 1998. The loss in fiscal 1998 was due in part to certain costs
associated with the Company's restructuring of bonus agreements with two
principal officers of Atlas Technologies, Inc., the Company's operating
subsidiary.
The following table summarizes the Company fourth quarter and fiscal year
ended June 30, 1999 unaudited results:
Year Ended Quarter Ended Year Ended Quarter Ended
June 1999 June 1999 June 1998 June 1998
Net Sales $34,001,248 $9,807,108 $36,040,278 $6,254,235
Gross Profit $9,380,551 $2,797,905 $8,477,670 $1,880,430
Operating Inc. (loss) $1,853,704 $949,460 ($2,192,399) ($3,399,551)
Pre-Tax Inc. (loss) $1,077,470 $726,295 ($2,962,350) ($3,552,811)
Net Income (loss) $971,130 $712,455 ($2,012,350) ($2,401,811)
Basic EPS* (undiluted) $0.40 $0.29 ($0.95) ($1.13)
* Fiscal year June 30, 1998 weighted average number of shares outstanding
-- 2,125,000
Fiscal year June 30, 1999 weighted average number of shares outstanding
-- 2,432,000
Cautionary Statement Under the Private Litigation Reform Act of 1995:
Statements of this Press Release may constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995
that are based on the beliefs of the company and its management. Any
statements contained herein which are not historical facts or which contain
the words expect, believe, project, estimate, seek, anticipate, could and
similar statements shall be deemed forward-looking statements.