Exhibit 99
Printronix Announces Third Quarter Results for Fiscal Year 2006
IRVINE, Calif. - (BUSINESS WIRE) - January 26, 2006 - Printronix, Inc. (NASDAQ:PTNX), the leading manufacturer of integrated enterprise printing solutions for the supply chain, today announced results for the third quarter of fiscal year 2006, which ended December 23, 2005. Third quarter revenue was $33.9 million, same as the year ago quarter, and up from $29.0 million in the second quarter of fiscal year 2006. The company generated net income for the quarter of $0.9 million, or $0.13 per diluted share compared with $0.14 per diluted share for the year ago quarter. During the second quarter of fiscal year 2006, Printronix reported a net loss of $1.6 million, or $0.26 per diluted share.
Revenue for the first nine months of fiscal year 2006 was $94.6 million, down from $99.0 million a year ago. Year to date net loss was $0.5 million, or $0.08 per diluted share, compared with net income of $1.3 million, or $0.20 per diluted share, a year ago.
“While sales and profit for our third fiscal quarter were about the same as the year ago quarter, we were pleased with the market’s reception to our new line matrix products. During the quarter, our installed customer base began to upgrade to the new product line generating improved sales compared with the second fiscal quarter. Line matrix revenue was up 17.8% from the prior quarter and 2.1% from the year ago quarter,” said Robert Kleist, President and CEO of Printronix.
“RFID revenue was flat compared with the second fiscal quarter and prior year quarter, with Printronix delivering added functionality for evolving EPCGlobal standards,” continued Mr. Kleist. “Printronix continues to upgrade and expand its range of RFID solutions to improve customers’ RFID infrastructure for supply chain management. While industry deployment of RFID is still in the pilot program stage, Printronix continues to invest in and support this evolving need for supply chain printing.”
Gross margin was 38.5% for the third quarter, down from 39.8% in the same period a year ago mostly due to product mix; and up from 37.3% in the second quarter of fiscal year 2006, mostly due to higher production volumes. For the first nine months of fiscal year 2006, gross margin was 38.2%, down from 39.3% for the year ago period, primarily due to lower volume.
Operating expenses in the quarter were $12.2 million, down from $12.4 million in the year ago fiscal period. Engineering and development expenses decreased during the current quarter as a result of cost-reduction initiatives. General and administrative expenses increased during the quarter primarily due to higher expenses for Sarbanes Oxley compliance and legal fees. Year to date operating expenses were $36.9 million compared with $36.8 million a year ago.
The company ended the third fiscal quarter of 2006 with cash and short-term investments of $41.6 million versus $41.9 million at the end of the third quarter of fiscal 2005, and down from $42.6 million at the end of the second quarter of fiscal year 2006. The decrease in cash from the prior quarter is partly due to increased levels of receivables and a cash dividend of $0.4 million paid in December.
There will be an earnings conference call at 1:30 p.m. PT (4:30 p.m. ET) on January 26, 2006. The call will be broadcast live over the Internet and will be hosted by Robert Kleist, President and CEO, and George Harwood, Senior Vice President and CFO. To access the live audio web cast, go to the Printronix web site at www.printronix.com and select the conference call link to register. If you are unable to listen to the live web cast, it will be archived for replay on the web site. To listen to the live conference call via the telephone, you can access the call at 800-967-7187. Shortly after the call, a telephonic replay will be available through February 9, 2006, by dialing 888-203-1112 or 719-457-0820. Passcode I.D. 5774808 is required for both the telephonic live call and the telephonic replay.
Except for historical information, this press release contains “forward-looking statements” about Printronix, within the meaning of the Private Securities Litigation Reform Act of 1995. Terms such as “objectives,” “believes,” “expects,” “plans,” “intends,” “should,” “estimates,” “anticipates,” “forecasts,” “projections,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including: adverse business conditions and a failure to achieve growth in the computer peripheral industry and in the economy in general; the ability of the company to achieve growth in the Asia Pacific market; adverse political and economic events in the company’s markets; a worsening of the global economy due to general conditions; a worsening of the global economy resulting from terrorist attacks or risk of war; a worsening of the global economy resulting from an outbreak of avian flu or other world health epidemic; a resurgence of SARS (Severe Acute Respiratory Syndrome); the ability of the company to maintain its production capability in its Singapore plant or obtain product from its Asia Pacific suppliers should a resurgence of SARS occur; the ability of the company to hold or increase market share with respect to line matrix printers; the ability of the company to successfully compete against entrenched competition in the thermal printer market; the ability of the company to adapt to changes in the requirements for radio frequency identification (“RFID”) products by Wal-Mart and/or the Department of Defense (the “DOD”) and others; the ability of the company to attract and to retain key personnel; the ability of the company’s customers to achieve their sales projections, upon which the company has in part based its sales and marketing plans; the ability of the company to retain its customer base and channel; the ability of the company to compete against alternate technologies for applications in its markets; and the ability of the company to continue to develop and market new and innovative products superior to those of the competition and to keep pace with technological change. The company does not undertake to publicly update or revise any of its forward-looking statements, even if experience or new information shows that the indicated results or events will not be realized.
About Printronix, Inc.
Since 1974, Printronix, Inc. (NASDAQ:PTNX) has created innovative printing solutions for the industrial marketplace and supply chain. The company is the worldwide market leader in enterprise solutions for line matrix printing and has earned an outstanding reputation for its high-performance thermal and fanfold laser printing solutions. Printronix also has become an established leader in pioneering technologies, including radio frequency identification (RFID) printing, bar code compliance and networked printer management. Printronix is headquartered in Irvine, California. For company information, see www.printronix.com.
