GenRad Reports Record Third Quarter Results
19 October 1999
GenRad Reports Record Third Quarter Results
WESTFORD, Mass.--Oct. 19, 1999--Revenue Growth
GenRad, Inc. today reported for its third quarter ended October 2, 1999 diluted earnings per share of $0.60, compared to $.22, excluding unusual charges, for the third quarter of 1998. Net income for the third quarter of 1999, was $17.8 million versus $6.5 million, excluding unusual charges, for the third quarter of 1998. Revenues were $109.2 million as compared to $60.6 million for the third quarter of 1998. Orders for the third quarter of 1999 were $76.9 million versus $59.9 million in the third quarter of 1998.
Year-to-date net income, before a reversal of a portion of deferred tax valuation allowance, was $31.6 million or $1.07 per share as compared to year-to-date 1998 net income of $14.2 million or $0.48 per share on a diluted basis, before a reversal of a portion of the deferred tax valuation allowance and excluding unusual charges. Revenues for the first nine months of 1999 were $226.0 million as compared to revenues of $168.6 million for the same period last year. Orders for the first nine months of 1999 were $232.3 million compared to $166.8 million for the first nine months of 1998.
James F. Lyons, GenRad's President and Chief Executive Officer, commented, "In this quarter we recorded the highest revenues and profits in the company's 85-year history. Our strong revenue growth was led by shipments of our automotive diagnostic units to the U.S. dealerships of a major OEM. We met our planned shipment goal this quarter and fully expect to meet the customer's requirements in the upcoming quarter. We also experienced strong TestStation(TM) product shipments for our board test business. We are confidently poised to meet our $1.50 goal for the year."
GenRad Background
GenRad, Inc. provides electronics OEMs and their customers with the hardware, software and services to increase productivity by optimizing product design, manufacturing and after-market service. GenRad, headquartered in Westford, MA, offers products and services through three business units: Advanced Diagnostic Solutions (ADS), Electronic Manufacturing Solutions (EMS), and GR Software (GRS). GenRad's web site address is http://www.genrad.com.
GenRad's most current shareholder information is available by visiting our Website at http://www.genrad.com or calling our Fax on Demand Service at (800) 469-1261.
Statements made in this press release which are not historical, including statements regarding future performance, product capabilities and markets and statements such as "expect to" are forward looking statements and as such are subject to a number of risks. Factors that may cause results to differ materially from those projected are discussed in GenRad's 1998 Annual Report on Form 10-K for the fiscal year ending January 2, 1999 and form 10-Q for the quarter ended July 3, 1999 under the section "Management's Discussion and Analysis of Financial Conditions and Results of Operations - Factors That May Affect Future Results."
GenRad, Inc. and Subsidiaries
Supplemental Information
(in thousands, except per share amounts)
Three Months Ended
October 2, October 3, %
1999 1998 Change
----------------------------------
Orders $ 76,944 $ 59,947 28%
Total Revenue $ 109,246 $ 60,550 80%
Net Income (Loss) $ 17,768 $ (3,919) NM
Weighted Average Shares Outstanding:
Basic 28,748 28,289
Diluted 29,773 28,289
Net Income (Loss) Per Share:
Basic $ 0.62 $ (0.14) NM
Diluted $ 0.60 $ (0.14) NM
Net Income (Loss) Per Share
Data (Diluted):
Net income (loss) as reported $ 17,768 $ (3,919) NM
Unusual charges, net of tax - 10,425
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Net income excluding unusual charges $ 17,768 $ 6,506 173%
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Net income per share excluding
unusual charges(a) $ 0.60 $ 0.22 173%
Nine Months Ended
October 2, October 3, %
1999 1998 Change
---------------------------------
Orders $ 232,266 $ 166,763 39%
Total Revenue $ 225,974 $ 168,562 34%
Net Income (Loss) $ 36,050 $ (6,948) NM
Weighted Average Shares Outstanding:
Basic 28,511 28,028
Diluted 29,537 28,028
Net Income (Loss) Per Share:
Basic $ 1.26 $ (0.25) NM
Diluted $ 1.22 $ (0.25) NM
Net Income (Loss) Per Share Data (Diluted):
Net income (loss) as reported $ 36,050 $ (6,948) NM
Reversal of deferred tax
valuation allowance (4,500) (7,500) 40%
Unusual charges, net of tax - 28,691
Net income before reversal of deferred tax
valuation allowance and excluding
unusual charges $ 31,550 $ 14,243 122%
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Net income per share before reversal
of deferred tax valuation allowance
and excluding unusual charges(a) $ 1.07 $ 0.48 123%
(a) Including common stock equivalents of 931 and 1,581 for the three
and nine months ended October 3, 1998, respectively.