Genrad Reports Fourth Quarter and Year-end Results

26 January 2000

Genrad Reports Fourth Quarter and Year-end Results

    WESTFORD, Mass.--Jan. 25, 2000--GenRad, Inc. today reported for the fourth quarter ended January 1, 2000, diluted earnings per share of $0.39 versus $0.19 per share, excluding unusual charges, for the fourth quarter of 1998. Net income for the fourth quarter of 1999, was $11.4 million versus $5.5 million, excluding unusual charges, for the fourth quarter of 1998. Revenues for the fourth quarter of 1999 were $ 76.0 million compared to $56.2 million for the fourth quarter of 1998. Orders for the fourth quarter of 1999 were $78.9 versus $54.8 million in the fourth quarter of 1998.
    Year-to-date net income, before a reversal of a portion of deferred tax valuation allowance, was $43.0 million or $1.45 per share as compared to year-to-date 1998 net income of $19.8 million or $0.67 per share on a diluted basis, before a reversal of a portion of the deferred tax valuation allowance and unusual charges. Revenues for 1999 were $302.0 million as compared to revenues of $224.8 million for 1998. Orders for 1999 were $311.2 million compared to $221.5 million for 1998.
    The Company also stated that as of the end of the fiscal year, it had repurchased a total of 1,032,200 shares of its common stock in 1999, bringing the total number of shares repurchased to 2,044,600 versus the 2.5 million shares authorized by the Board of Directors in June 1998.

    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 Systems (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 previous or future quarterly or fiscal earnings, 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 From 10K for the fiscal year ending January 2, 1999 and form 10-Q for the quarter ended October 2, 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
                                 January 1,  January 2,       %
                                    2000       1999         Change

Orders                           $ 78,902   $ 54,758          44%
Total Revenue                    $ 75,974   $ 56,227          35%
Net Income (Loss)                $ 11,444   $ (2,118)         NM
Weighted Average
 Shares Outstanding:
 Basic                             28,637     27,977
 Diluted                           29,463     27,977
Net Income (Loss)
 Per Share:
 Basic                           $   0.40   $  (0.08)         NM
 Diluted                         $   0.39   $  (0.08)         NM
Net Income (Loss)
 Per Share Data (Diluted):
Net income (loss)
 as reported                     $ 11,444   $ (2,118)         NM
Unusual charges                      --        7,650
Net income excluding
 unusual charges                 $ 11,444   $  5,532         107%
Net income per share excluding
 unusual charges(a)              $   0.39   $   0.19         105%

 

                                       Twelve Months Ended
                                      January 1,   January 2,    %
                                         2000         1999     Change

Orders                               $ 311,168    $ 221,521       40%
Total Revenue                        $ 301,948    $ 224,789       34%
Net Income (Loss)                    $  47,494    $  (9,068)      NM
Weighted Average
 Shares Outstanding:
 Basic                                  28,669       28,003
 Diluted                                29,683       28,003
Net Income (Loss) Per Share:
 Basic                               $    1.66    $   (0.32)      NM
 Diluted                             $    1.60    $   (0.32)      NM
Net Income (Loss) Per
 Share Data (Diluted):
Net income (loss) as reported        $  47,494    $  (9,068)      NM
Reversal of deferred tax
 valuation allowance                    (4,500)      (7,500)      40%
Unusual charges, net of tax               --         36,341
Net income before reversal
 of deferred tax
 valuation allowance and excluding
 unusual charges                     $  42,994    $  19,773      117%
Net income per share before
 reversal of deferred
 tax valuation allowance
 and excluding unusual
 charges(a)                          $    1.45    $    0.67      116%


(a)Including common stock equivalents of 1,042 and 1,447 for the three 
and twelve months ended January 2, 1999, respectively.