Laser Technology Reports Second Quarter Operating Results
22 May 2000
Laser Technology, Inc. Reports Second Quarter Operating Results; Court Sets Timeframe For Final Settlement of Class Action Lawsuits
ENGLEWOOD, Colo., May 18 Laser Technology, Inc.
(Amex: LSR), a leading designer, manufacturer and marketer of pulse laser
measuring systems, today reported operating results for the second quarter and
first six months of its 2000 fiscal year.
Gross profits in the three months ended March 31, 2000, rose 14% from a
year ago, despite a 5% decline in sales. For the six-month period, gross
profits rose 10% on a 5% gain in sales from the previous year. These results
reflect increased sales of second generation products that carry higher
margins, including the UltraLyte laser speed detection instrument. Operations
for the three- and six-month periods ended March 31, 2000, remained profitable
before legal and severance costs associated with restructuring of management
and personnel. Including all operating expenses, the loss from operations was
limited to $74,339 for the six months, down significantly from the $1,052,268
posted a year earlier. For the three months ended March 31, 2000, and March
31, 1999, operating losses totaled $164,138 and $930,231 respectively. The
second quarter of 2000 ended with a backlog of orders approximating
$1.7 million, which will contribute to future revenues.
On May 11, 2000, the United States District Court approved the form and
manner of notice to shareholders to advise of the proposed settlement. The
Court also defined the timeframe for the final settlement hearing, which
should occur within the next ninety days. The Company is pleased with the
current progression of the settlement. As previously reported, costs
associated with the anticipated settlement were charged against operations in
FY1999, so there will be no financial impact on FY2000 results.
"The past eighteen months have not been easy for Laser Technology,"
observed Eric Miller, President and Chief Executive Officer. "Non-operating
matters which required inordinate attention on the part of management have
been substantially resolved. More recently, significant management changes
have been accompanied by the replacement and addition of new directors. We
are encouraged by Laser Technology's ability to sustain so many changes and
unusual demands upon its resources during this period, without losing its
focus on growth and profitability. During this same period of time, the
Company implemented two downsizings which were aimed at improving
profitability without sacrificing product quality, capacity to produce, or
ability to introduce new products. This is perhaps most graphically reflected
in our recent receipt of an ISO9001 certification. ISO 9001 certification
recognizes that a company's operating facilities and manufacturing procedures
provide an optimal environment for the design, manufacture, and service of
quality products. Implementation of ISO processes will assist us in
streamlining our internal operations and increase efficiencies, while opening
new markets for the Company's products. Laser Technology will now be able to
meet the requirements of more potential new customers, including many foreign
government agencies."
"All of this was accomplished while maintaining employee morale and, with
the exception of planned downsizing, employee turnover has been minimal. Many
long-term employees who joined the company in its early stages are still here
-- including all of the Engineering staff. Moreover, all of the vacancies at
the top management level have been filled from within the Company. Members of
the Board of Directors consider this to be critical to the future of the
Company and have made a special effort to meet with all employees to apprise
them of strategic objectives."
"I know that all employees join me in welcoming our new board members,"
continued Miller. "These directors bring a wealth of experience with regard
to analyzing the strengths and weakness of business organizations, the ability
to raise capital for potential growth opportunities, and a familiarity with
good business conduct, with particular emphasis upon its relevance to
regulatory authorities. They have a degree of professionalism which should
enhance the internal efforts of our Company and I look forward to working with
them as a newly elected board member."
"As we resolve the external issues that have faced our Company in the
recent past, we are directing more effort towards improving sales and profits.
The focus of our management team is upon improving operations by simplifying
internal processes and continuing to leverage our core technology in new
product innovations. We are working to increase our presence in traditional
markets, while strategically positioning the Company to address new market
opportunities. Laser Technology is moving forward with a unification of
management and the board of directors and a common goal of increasing
shareholder values," concluded Miller.
LASER TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
March 31, March 31,
2000 1999
Net Sales $2,553,090 $2,684,738
Less Cost of Goods Sold 1,126,437 1,430,318
Gross Profit 1,426,653 1,254,420
Royalty & Licensing Income 130,290 122,928
Total Operating Income 1,556,943 1,377,348
Legal & Severance Cost Associated 176,955 --
With Restructuring of Management
& Employees
Operating Expenses 1,544,126 2,307,579
Total Operating Expenses 1,721,081 2,307,579
Income (Loss) From Operations (164,138) (930,231)
Interest Income (Expense), Net (6,736) 5,941
Income (Loss) Before Income Taxes (170,874) (924,290)
Taxes on Income (Benefit) (28,498) (323,300)
Net Income (Loss) $(142,376) $(600,990)
Basic and Diluted
Earnings (Loss) Per Common Share $(0.03) $(0.12)
Weighted Avg. Basic Shares Outstanding 5,019,551 4,994,551
Weighted Avg. Diluted Shares Outstanding 5,586,883 4,994,551
LASER TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Six Months Ended
March 31, March 31,
2000 1999
Net Sales $5,641,577 $5,341,438
Less Cost of Goods Sold 2,681,700 2,656,254
Gross Profit 2,959,877 2,685,184
Royalty & Licensing Income 395,797 365,867
Total Operating Income 3,355,674 3,051,051
Legal & Severance Cost Associated 176,955 --
With Restructuring of Management
& Employees
Operating Expenses 3,253,058 4,103,319
Total Operating Expenses 3,430,013 4,103,319
Income (Loss) From Operations (74,339) (1,052,268)
Interest Income (Expense), Net (4,833) 14,641
Income (Loss) Before Income Taxes $(79,172) $(1,037,627)
Taxes on Income (Benefit) (28,498) (364,100)
Net Income (Loss) $(50,674) $(673,527)
Net Income Per Share (Basic & Diluted) $(0.01) $(0.13)
Weighted Avg. Basic Shares Outstanding 5,019,551 4,994,551
Weighted Avg. Diluted Shares Outstanding 5,586,883 4,994,551
LASER TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, September 30,
2000 1999
Current Assets:
Cash and cash equivalents $951,488 $757,076
Investments 10,460 10,460
Accounts receivable, net 1,962,335 2,826,460
Income tax refund receivable 714,498 686,000
Royalties receivable 130,526 396,290
Inventories 2,937,504 2,847,735
Deferred income tax benefits 348,000 348,000
Prepaids and other current assets 151,688 133,354
Income tax prepayment 166,919 166,919
Total current assets $7,373,418 $8,172,294
Property and equipment, net 1,312,764 1,504,449
Long-term investments 679,503 689,801
Other assets 924,047 845,164
$10,289,732 $11,211,708
Current Liabilities:
Accounts payable $497,980 $578,015
Accrued expenses 1,009,295 1,749,429
Current maturities of long-term debt 109,213 91,621
Total current liabilities $1,616,488 $2,419,065
Long-term debt 41,340 114,400
Shareholders' equity:
Common stock ($0.01 par value)
25,000,000 shares authorized, 5,244,201
shares issued and outstanding) 52,442 52,442
Additional paid-in capital 9,708,245 9,708,245
Stock subscription receivable (15,196) (19,537)
Treasury stock at cost (224,650 shares) (194,259) (194,259)
Retained earnings (919,328) (868,648)
Total stockholders' equity 8,631,904 8,678,243
$10,289,732 $11,211,708