Exhibit 99.1
Printronix Announces Second Quarter Results for Fiscal Year 2007
IRVINE, Calif. - (BUSINESS WIRE) November 8, 2006 - Printronix, Inc. (NASDAQ:PTNX), the leading manufacturer of integrated enterprise printing solutions for the supply chain, today announced results for the second quarter and six month period ended September 29, 2006. Revenue increased to $29.3 million for the second quarter of fiscal year 2007 compared with $29.0 million in the same quarter last year. The company reported net income for the quarter of $0.2 million, or $0.03 per diluted share, compared with a net loss of $1.6 million, or $0.26 per diluted share, for the same quarter of the prior fiscal year.
Revenue for the six months ended September 29, 2006 was $60.9 million compared with $60.7 million for the same period last year. Net income was $0.8 million, or $0.12 per diluted share, compared with a net loss of $1.4 million, or $0.22 per diluted share, for the same period last year.
“Through increased productivity and continued focus on cost reductions, we were able to increase our profitability over the same period last year,” said Robert Kleist, President and CEO of Printronix. “Earnings of $0.12 per share in the first six months of fiscal year 2007 were $0.34 per share greater than the prior year on the same level of sales. The gross margin increased to 39.2% for the first six months of fiscal 2007, up from 38.0% in the same period last year, primarily due to lower worldwide manufacturing costs as a result of cost reduction and containment measures.”
Operating expenses in the second quarter of fiscal 2007 were $11.3 million, down from $12.5 million in the second quarter of fiscal year 2006. Operating expenses for the six months ended September 29, 2006 were $23.3 million, down from $24.7 million for the same period last year. Operating expenses were lower in the current period due to lower engineering costs, focus on cost containment, and efficiencies in sales and marketing. The prior year quarter included costs for the launch of the P7000 and T5000 product lines.
The company ended the second fiscal quarter of 2007 with cash and short-term investments of $36.3 million, down from $42.6 million at the end of the second quarter of fiscal 2006, and down from $42.1 million at the end of fiscal year 2006. The decrease in cash and short-term investments from the beginning of the fiscal year is primarily due to payment of taxes of $2.5 million related to the repatriation of $32.0 million of dividends in the fourth quarter of fiscal year 2006, an increase in inventory of $1.7 million, and payment of $1.1 million in dividends to stockholders during the period.
Third Quarter Outlook
Printronix also announced that its third quarter revenue is expected to be within a range of $32 million to $34 million, and that earnings are expected to be within a range of $0.07 per share and $0.14 per share.
Conference Call
There will be an earnings conference call at 4:30 p.m. ET (1:30 p.m. PT) on Wednesday, November 8, 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 866-550-6338. Shortly after the call, a telephonic replay will be available through November 22, 2006, by dialing 888-203-1112 or 719-457-0820. Passcode I.D. 8797496 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 bar code 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.
CONTACT: PRINTRONIX, INC., Irvine
Robert A. Kleist, President, CEO
714-368-2863
George L. Harwood, Senior Vice President Finance, CFO
714-368-2384
or
Media Contact:
WunderMarx, Inc.
Cara Good
714-862-1112, ext. 202
cara.good@wundermarx.com
or
Investor Contact:
EVC Group, Inc.
Douglas M. Sherk
415-896-6818
dsherk@evcgroup.com
Jenifer Kirtland
415-896-2005
jkirtland@evcgroup.com
PRINTRONIX, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
($ in thousands, except share and per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
September 29, | June 30, | September 23, | September 29, | September 23, | ||||||||||||
2006 | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Revenue | $ | 29,263 | $ | 31,650 | $ | 28,958 | $ | 60,913 | $ | 60,745 | ||||||
Cost of sales | 17,761 | 19,251 | 18,171 | 37,012 | 37,649 | |||||||||||
Gross margin | 11,502 | 12,399 | 10,787 | 23,901 | 23,096 | |||||||||||
Engineering and development | 3,092 | 3,139 | 3,608 | 6,231 | 7,476 | |||||||||||
Sales and marketing | 5,493 | 5,955 | 6,115 | 11,448 | 12,231 | |||||||||||
General and administrative | 2,720 | 2,861 | 2,751 | 5,581 | 5,001 | |||||||||||
Total operating expenses | 11,305 | 11,955 | 12,474 | 23,260 | 24,708 | |||||||||||
Income (loss) from operations | 197 | 444 | (1,687 | ) | 641 | (1,612 | ) | |||||||||
Interest and other income, net | (169 | ) | (249 | ) | (224 | ) | (418 | ) | (429 | ) | ||||||
Income (loss) before taxes | 366 | 693 | (1,463 | ) | 1,059 | (1,183 | ) | |||||||||
Provision for income taxes | 155 | 137 | 135 | 292 | 205 | |||||||||||
Net income (loss) | $ | 211 | $ | 556 | $ | (1,598 | ) | $ | 767 | $ | (1,388 | ) | ||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.03 | $ | 0.09 | $ | (0.26 | ) | $ | 0.12 | $ | (0.22 | ) | ||||
Diluted | $ | 0.03 | $ | 0.09 | $ | (0.26 | ) | $ | 0.12 | $ | (0.22 | ) | ||||
Shares used in computing net | ||||||||||||||||
income (loss) per share: | ||||||||||||||||
Basic | 6,299,942 | 6,283,591 | 6,241,949 | 6,291,767 | 6,222,233 | |||||||||||
Diluted | 6,439,328 | 6,460,220 | 6,241,949 | 6,449,775 | 6,222,233 | |||||||||||
Gross margin % | 39.3 | % | 39.2 | % | 37.3 | % | 39.2 | % | 38.0 | % | ||||||
Operating expenses % | 38.6 | % | 37.8 | % | 43.1 | % | 38.2 | % | 40.7 | % | ||||||
Income (loss) from operations % | 0.7 | % | 1.4 | % | -5.8 | % | 1.1 | % | -2.7 | % | ||||||
Net income (loss) % | 0.7 | % | 1.8 | % | -5.5 | % | 1.3 | % | -2.3 | % |
PRINTRONIX, INC. AND SUBSIDIARIES | ||||||||||
Consolidated Balance Sheets | ||||||||||
($ in thousands) | ||||||||||
(unaudited) | ||||||||||
September 29, | June 30, | September 23, | ||||||||
2006 | 2006 | 2005 | ||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ | 32,334 | $ | 36,585 | $ | 29,228 | ||||
Short-term investments | 3,991 | 2,019 | 13,384 | |||||||
Accounts receivable, net | 19,402 | 20,433 | 15,649 | |||||||
Inventories, net | 16,071 | 15,332 | 14,290 | |||||||
Other current assets | 2,064 | 2,238 | 4,692 | |||||||
Property, plant and equipment, net | 30,393 | 30,942 | 32,971 | |||||||
Other long-term assets | 725 | 660 | 2,246 | |||||||
Total assets | $ | 104,980 | $ | 108,209 | $ | 112,460 | ||||
LIABILITIES and STOCKHOLDERS' EQUITY | ||||||||||
Current portion of long-term debt | $ | 13,125 | $ | 13,300 | $ | 700 | ||||
Accounts payable | 8,502 | 9,137 | 6,789 | |||||||
Other current liabilities | 11,165 | 13,133 | 11,491 | |||||||
Other long-term liabilities | 2,008 | 2,049 | 16,013 | |||||||
Stockholders' equity | 70,180 | 70,590 | 77,467 | |||||||
Total liabilities and stockholders' equity | $ | 104,980 | $ | 108,209 | $ | 112,460 |
PRINTRONIX, INC. AND SUBSIDIARIES | ||||||||||||||||
Sales Classification | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Percent of Total Sales | |||||||||||||||
September 29, | September 23, | Percent | September 29, | September 23, | ||||||||||||
Sales by Geographic Region | 2006 | 2005 | Change | 2006 | 2005 | |||||||||||
($ in thousands) | ||||||||||||||||
Americas | $ | 14,684 | $ | 14,032 | 4.6 | % | 50.2 | % | 48.5 | % | ||||||
EMEA | 9,279 | 9,375 | -1.0 | % | 31.7 | % | 32.4 | % | ||||||||
Asia Pacific | 5,300 | 5,551 | -4.5 | % | 18.1 | % | 19.1 | % | ||||||||
$ | 29,263 | $ | 28,958 | 1.1 | % | 100.0 | % | 100.0 | % |
Three Months Ended | Percent of Total Sales | |||||||||||||||
September 29, | September 23, | Percent | September 29, | September 23, | ||||||||||||
Sales by Product Technology | 2006 | 2005 | Change | 2006 | 2005 | |||||||||||
($ in thousands) | ||||||||||||||||
Line matrix | $ | 21,119 | $ | 20,857 | 1.3 | % | 72.2 | % | 72.0 | % | ||||||
Thermal (includes RFID)* | 5,038 | 5,054 | -0.3 | % | 17.2 | % | 17.5 | % | ||||||||
Laser | 2,596 | 2,661 | -2.4 | % | 8.9 | % | 9.2 | % | ||||||||
Verification products | 510 | 386 | 32.1 | % | 1.7 | % | 1.3 | % | ||||||||
$ | 29,263 | $ | 28,958 | 1.1 | % | 100.0 | % | 100.0 | % | |||||||
*RFID | $ | 683 | $ | 792 | -13.8 | % | 2.3 | % | 2.7 | % |
Three Months Ended | Percent of Total Sales | |||||||||||||||
September 29, | September 23, | Percent | September 29, | September 23, | ||||||||||||
Sales by Channel | 2006 | 2005 | Change | 2006 | 2005 | |||||||||||
($ in thousands) | ||||||||||||||||
OEM | $ | 8,334 | $ | 8,201 | 1.6 | % | 28.5 | % | 28.3 | % | ||||||
Distribution | 19,753 | 19,362 | 2.0 | % | 67.5 | % | 66.9 | % | ||||||||
Direct | 1,176 | 1,395 | -15.7 | % | 4.0 | % | 4.8 | % | ||||||||
$ | 29,263 | $ | 28,958 | 1.1 | % | 100.0 | % | 100.0 | % |
Three Months Ended | Percent of Total Sales | |||||||||||||||
September 29, | September 23, | Percent | September 29, | September 23, | ||||||||||||
Sales by Customer | 2006 | 2005 | Change | 2006 | 2005 | |||||||||||
($ in thousands) | ||||||||||||||||
Largest customer – IBM | $ | 6,385 | $ | 6,630 | -3.7 | % | 21.8 | % | 22.9 | % | ||||||
Second largest customer | 1,339 | 2,375 | -43.6 | % | 4.6 | % | 8.2 | % | ||||||||
Top ten customers | 13,799 | 14,443 | -4.5 | % | 47.2 | % | 49.9 | % |
PRINTRONIX, INC. AND SUBSIDIARIES | ||||||||||||||||
Sales Classification | ||||||||||||||||
(unaudited) | ||||||||||||||||
Six Months Ended | Percent of Total Sales | |||||||||||||||
September 29, | September 23, | Percent | September 29, | September 23, | ||||||||||||
Sales by Geographic Region | 2006 | 2005 | Change | 2006 | 2005 | |||||||||||
($ in thousands) | ||||||||||||||||
Americas | $ | 30,872 | $ | 30,218 | 2.2 | % | 50.7 | % | 49.7 | % | ||||||
EMEA | 19,458 | 19,792 | -1.7 | % | 31.9 | % | 32.6 | % | ||||||||
Asia Pacific | 10,583 | 10,735 | -1.4 | % | 17.4 | % | 17.7 | % | ||||||||
$ | 60,913 | $ | 60,745 | 0.3 | % | 100.0 | % | 100.0 | % |
Six Months Ended | Percent of Total Sales | |||||||||||||||
September 29, | September 23, | Percent | September 29, | September 23, | ||||||||||||
2006 | 2005 | Change | 2006 | 2005 | ||||||||||||
Sales by Product Technology | ($ in thousands) | |||||||||||||||
Line matrix | $ | 43,867 | $ | 43,062 | 1.9 | % | 72.0 | % | 70.9 | % | ||||||
Thermal (includes RFID)* | 10,760 | 11,200 | -3.9 | % | 17.7 | % | 18.4 | % | ||||||||
Laser | 5,254 | 5,460 | -3.8 | % | 8.6 | % | 9.0 | % | ||||||||
Verification products | 1,032 | 1,023 | 0.9 | % | 1.7 | % | 1.7 | % | ||||||||
$ | 60,913 | $ | 60,745 | 0.3 | % | 100.0 | % | 100.0 | % | |||||||
*RFID | $ | 1,397 | $ | 1,735 | -19.5 | % | 2.3 | % | 2.9 | % |
Six Months Ended | Percent of Total Sales | |||||||||||||||
September 29, | September 23, | Percent | September 29, | September 23, | ||||||||||||
2006 | 2005 | Change | 2006 | 2005 | ||||||||||||
($ in thousands) | ||||||||||||||||
OEM | $ | 16,186 | $ | 17,693 | -8.5 | % | 26.6 | % | 29.1 | % | ||||||
Distribution | 40,873 | 40,186 | 1.7 | % | 67.1 | % | 66.2 | % | ||||||||
Direct | 3,854 | 2,866 | 34.5 | % | 6.3 | % | 4.7 | % | ||||||||
$ | 60,913 | $ | 60,745 | 0.3 | % | 100.0 | % | 100.0 | % |