X-Rite Reports Third Quarter Results
19 October 2000
X-Rite Reports Third Quarter Results
GRANDVILLE, Mich.--Oct. 19, 2000--X-Rite, Incorporated a world-leader in manufacturing sophisticated measurement devices, systems, and processes, today reported third quarter net sales of $23.1 million and net income of $1.9 million, or 9 cents per share.For the first nine-month period, net sales increased to $75.5 million, compared to $71.8 million for the same period last year. Net income was reported at $9.0 million, or 43 cents per share, compared with net income of $9.4 million, or 43 cents per share for the same period last year.
"As noted in our earlier release, it is not unusual for X-Rite sales to experience a decline in the third quarter typically followed by a strong fourth quarter," said X-Rite President and Chief Executive Officer Rich Cook. "The expected third quarter seasonal slow down of sales in the retail paint market coupled with the traditional European summer vacation patterns as well as current foreign exchange rates directly impacted our sales and margins for the quarter."
"In continuing to position the company to meet our long-term growth strategy, we are extremely pleased with the strategic initiatives announced over the past few months," said Cook. These announcements include:
| -- | Acquisition of Optronik GmbH: The main product lines of this German-based company are non-contact color measurement systems for on-line production processes including automotive manufacturing applications and a sophisticated automotive lamp measurement device. This acquisition also establishes X-Rite's first manufacturing and development site in Europe. |
| -- | Acquisition of HoloVision(TM): Products Group: This acquisition includes know-how and patents in the field of tunable laser technology. Currently this know-how is applied to non-contact measurement applications requiring a 3D perspective. This capability will be particularly useful for markets of electronic component evaluation, micro-machines, biomedical, and other diverse markets requiring high-resolution non-contact vision. |
| -- | Formation of XR Ventures, LLC: The creation of this captive strategic venture capital fund will enable X-Rite to quickly identify new technologies and partnerships in support of long-term growth strategies. |
| -- | Announced Stock Repurchase Program: The stock repurchase program was established to enhance shareholder value. The program authorizes the company to make purchases in the open market up to one million shares. |
"These initiatives will provide new markets and new technologies to X-Rite," Cook continued. "We will utilize our global distribution network to sell and market Optronik's products to new and existing customers. The Holovision acquisition will move us beyond color and light into measuring shape. This very precise manner of measurement will introduce us to many new customers and high growth potential markets. And finally, the formation of XR Ventures gives us a window into leading edge technology advancements that will open opportunities for us."
Consolidated Earnings Highlights
(Unaudited - $ in thousands except EPS)
Three Months Ended Sept. 30, July 1, April 1, Jan. 1 Oct. 2,
------------------ 2000 2000 2000 2000 1999
-------- -------- -------- -------- --------
Net Sales $ 23,087 $ 26,232 $ 26,134 $ 28,426 $ 23,764
Gross Profit 14,619 16,756 17,123 18,609 15,420
Gross Profit Percent 63.3% 63.9% 65.5% 65.5% 64.9%
Operating Expense 11,683 11,541 11,864 12,301 10,807
Other Income (59) 369 233 234 181
Pre-tax Income 2,877 5,584 5,492 6,542 4,794
Net Income $ 1,863 $ 3,616 $ 3,556 $ 4,236 $ 3,104
Earnings Per Share
Basic $ 0.09 $ 0.17 $ 0.17 $ 0.20 $ 0.15
Diluted $ 0.09 $ 0.17 $ 0.17 $ 0.19 $ 0.14
Avg. No. of Shares
Outstanding (000)
Basic 21,327 21,027 20,997 20,982 20,952
Diluted 21,466 21,100 21,032 22,385 22,111
Nine-Months Ended Sept 30, Oct 2,
----------------------- 2000 1999
---- ----
Net Sales $ 75,453 $ 71,783
Gross Profit $ 48,498 $ 47,382
Gross Profit Percent 64.3% 66.0%
Operating Expense $ 35,088 $ 33,437
Other Income $ 543 $ 593
Pre-tax Income $ 13,953 $ 14,538
Net Income $ 9,035 $ 9,413
Earnings Per Share
Basic $ 0.43 $ 0.45
Diluted $ 0.43 $ 0.43
Avg. No. of Shares
Outstanding (000)
Basic 21,117 20,942
Diluted 21,199 22,023