Printronix (PTNX) 8-K Printronix Announces Second Quarter Results for Fiscal Year 2008

Exhibit 99.1

Printronix Announces Second Quarter Results for Fiscal Year 2008

IRVINE, Calif.  – (BUSINESS WIRE) November 1, 2007 – 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 28, 2007.  Revenue for the second quarter of fiscal year 2008 was $29.4 million, compared with $29.3 million in the same quarter last year.  The company reported higher net income for the quarter of $1.2 million, or $0.18 per diluted share, compared with a net income of $0.2 million, or $0.03 per diluted share, for the same quarter of the prior fiscal year.

Revenue for the six months ended September 28, 2007 was $60.0 million compared with $60.9 million for the same period last year.  Net income was $2.2 million, or $0.34 per diluted share, compared with a net income of $0.8 million, or $0.12 per diluted share, for the same period last year.

The gross margin increased to 39.6% for the second quarter of fiscal 2008, up from 39.3% in the second quarter of fiscal 2007 primarily due to price increases on certain products and favorable foreign exchange rate changes, partially offset by an adverse shift in product mix.

Operating expenses in the second quarter of fiscal 2008 were $10.8 million, down from $11.3 million in the second quarter of fiscal year 2007.  Included in the overall reduction was a $0.3 million return of excess unused workers compensation premiums from our captive insurance program related to policy years 2003 to 2005.

The company ended the second fiscal quarter of 2008 with cash and short-term investments of $29.0 million, down from $36.3 million at the end of the second quarter of fiscal 2007, and up from $26.2 million at the end of the first quarter of fiscal year 2008.  The decrease in cash and short-term investments from the beginning of the fiscal year is primarily due to a $12.8 million scheduled repayment on a note and a payment of $1.3 million in dividends to stockholders, offset by positive cash flow from operations.

“Our continued focus on cost reduction and containment measures was the primary factor in the significant improvement in our profitability over the comparable period last year,” said Robert Kleist, President and CEO of Printronix.

Transaction Update

On October 1, we signed a definitive agreement to be acquired by an affiliate of Vector Capital, a private equity firm specializing in buyouts and recapitalizations of established technology businesses, for $16.00 per share in cash and a total price of approximately $109 million.  We believe this transaction will deliver fair value to our shareholders and allow the company to more effectively compete in the global printing market.  The Federal Trade Commission has granted early termination to the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the transaction.  The closing of the transaction was also conditioned on the delivery of satisfactory Phase I environmental reports on certain of the company’s manufacturing sites and Vector Capital has confirmed that this condition has been satisfied.  The transaction remains subject to additional closing conditions, including adoption of the merger agreement by Printronix shareholders.

Third Quarter Outlook

Printronix also announced that its third quarter revenue is expected to be within a range of $33.5 million to $35.0 million, and that earnings are expected to be within a range of $0.30 per share and $0.38 per share from operations, excluding committed transaction costs which are estimated to be $0.09 per share arising from legal, fairness opinion and other fees.   Earnings per share including those transaction costs are expected to be within a range of $0.21 per share and $0.29 per share for the quarter.

Additional Information and Where to Find It

Printronix filed a preliminary proxy statement on October 19, 2007 and continues to file other documents regarding the proposed acquisition transaction described in this press release with the Securities and Exchange Commission (SEC).  Investors and security holders are advised to read the proxy statement and such other materials when they become available because they will contain important information about the acquisition and Printronix. Investors and security holders will be able to obtain a free copy of the proxy statement and any other documents filed by the company from the SEC Web site at www.sec.gov.  Printronix’s directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Printronix in connection with the proposed transaction. Information about the directors and executive officers of Printronix is set forth in the proxy statement for Printronix’s 2007 Annual Meeting of Stockholders, which was filed with the SEC on July 20, 2007. Investors and security holders may obtain additional information regarding the interest of such participants by reading the proxy statement regarding the proposed transaction when it becomes available.

Conference Call

There will be an earnings conference call at 4:30 p.m. ET (1:30 p.m. PT) on Thursday, November 1, 2007.  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 800-909-7113.  Shortly after the call, a telephonic replay will be available through November 15, 2007, by dialing 888-203-1112 or 719-457-0820.  Passcode I.D. 3194168 is required for both the telephonic live call and the telephonic replay.

Forward-Looking Statements

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; the ability of the company to maintain its production capability in its Singapore plant or obtain product from its Asia Pacific suppliers should a world health epidemic 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 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; 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; and that InfoPrint Solutions Company (“InfoPrint Solutions” or “JV of IBM/Ricoh”), the successor entity to IBM’s Printing Systems Division, may change its product and marketing focus in a way that reduces its purchase of Printronix products; the uncertainties associated with effecting the acquisition of Printronix by an affiliate of Vector Capital, including the necessity of receiving Printronix shareholder approval and satisfaction of other closing conditions.  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 28,			June 29,			September 29,			September 28,			September 29,
	2007			2007			2006			2007			2006
Revenue	$	29,373		$	30,641		$	29,263		$	60,014		$	60,913
Cost of sales		17,741			18,286			17,761			36,027			37,012
Gross margin		11,632			12,355			11,502			23,987			23,901
Engineering and development		2,623			2,876			3,092			5,499			6,231
Sales and marketing		5,214			5,749			5,493			10,963			11,448
General and administrative		2,993			2,986			2,720			5,979			5,581
Total operating expenses		10,830			11,611			11,305			22,441			23,260
Income from operations		802			744			197			1,546			641
Interest and other income, net		(441	)		(422	)		(169	)		(863	)		(418	)
Income before taxes		1,243			1,166			366			2,409			1,059
Provision for income taxes		58			139			155			197			292
Net income	$	1,185		$	1,027		$	211		$	2,212		$	767
Net income per share:
Basic	$	0.19		$	0.16		$	0.03		$	0.35		$	0.12
Diluted	$	0.18		$	0.16		$	0.03		$	0.34		$	0.12
Shares used in computing net
income per share:
Basic		6,388,412			6,385,451			6,299,942			6,386,931			6,291,767
Diluted		6,510,633			6,508,411			6,439,328			6,509,522			6,449,775
Gross margin %		39.6	%		40.3	%		39.3	%		40.0	%		39.2	%
Operating expenses %		36.9	%		37.9	%		38.6	%		37.4	%		38.2	%
Income from operations %		2.7	%		2.4	%		0.7	%		2.6	%		1.1	%
Net  income %		4.0	%		3.4	%		0.7	%		3.7	%		1.3	%

PRINTRONIX, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ in thousands)
(unaudited)
	September 28,		June 29,		September 29,
	2007		2007		2006
ASSETS
Cash and cash equivalents	$	23,205	$	17,976	$	32,334
Short-term investments		5,817		8,200		3,991
Accounts receivable, net		17,906		19,379		19,402
Inventories, net		15,762		16,275		16,071
Other current assets		1,645		1,935		2,064
Property, plant and equipment, net		27,646		28,320		30,393
Other long-term assets		1,085		991		725
Total assets	$	93,066	$	93,076	$	104,980
LIABILITIES and STOCKHOLDERS' EQUITY
Accounts payable	$	7,831	$	7,748	$	8,502
Other current liabilities		10,245		10,830		11,165
Current portion of long-term debt		-		-		13,125
Other long-term liabilities		2,145		2,230		2,008
Stockholders' equity		72,845		72,268		70,180
Total liabilities and stockholders' equity	$	93,066	$	93,076	$	104,980

PRINTRONIX, INC. AND SUBSIDIARIES
Sales Classification
(unaudited)
	Three Months Ended									Percent of Total Sales
	September 28,		September 29,		Change					September 28,			September 29,
Sales by Geographic Region	2007		2006		$			%		2007			2006
	($ in thousands)
Americas	$	12,742	$	14,684		(1,942	)	-13.2	%		43.4	%		50.2	%
EMEA		10,178		9,279		899		9.7	%		34.6	%		31.7	%
Asia Pacific		6,453		5,300		1,153		21.8	%		22.0	%		18.1	%
	$	29,373	$	29,263	$	110		0.4	%		100.0	%		100.0	%
	Three Months Ended									Percent of Total Sales
	September 28,		September 29,		Change					September 28,			September 29,
Sales by Product Technology	2007		2006			$		%		2007			2006
	($ in thousands)
Line matrix	$	19,570	$	21,119		(1,549	)	-7.3	%		66.6	%		72.2	%
Thermal		7,628		5,548		2,080		37.5	%		26.0	%		19.0	%
Laser		2,175		2,596		(421	)	-16.2	%		7.4	%		8.8	%
	$	29,373	$	29,263	$	110		0.4	%		100.0	%		100.0	%
	Three Months Ended									Percent of Total Sales
	September 28,		September 29,		Change					September 28,			September 29,
Sales by Channel	2007		2006			$		%		2007			2006
	($ in thousands)
OEM	$	6,873	$	8,334		(1,461	)	-17.5	%		23.4	%		28.5	%
Distribution		21,190		19,753		1,437		7.3	%		72.1	%		67.5	%
Direct		1,310		1,176		134		11.4	%		4.5	%		4.0	%
	$	29,373	$	29,263	$	110		0.4	%		100.0	%		100.0	%

PRINTRONIX, INC. AND SUBSIDIARIES
Sales Classification
(unaudited)
	Six Months Ended									Percent of Total Sales
	September 28,		September 29,		Change					September 28,			September 29,
Sales by Geographic Region	2007		2006		$			%		2007			2006
	($ in thousands)
Americas	$	27,311	$	30,872		(3,561	)	-11.5	%		45.5	%		50.7	%
EMEA		20,652		19,458		1,194		6.1	%		34.4	%		31.9	%
Asia Pacific		12,051		10,583		1,468		13.9	%		20.1	%		17.4	%
	$	60,014	$	60,913	$	(899	)	-1.5	%		100.0	%		100.0	%
	Six Months Ended									Percent of Total Sales
	September 28,		September 29,		Change					September 28,			September 29,
Sales by Product Technology	2007		2006			$		%		2007			2006
	($ in thousands)
Line matrix	$	40,679	$	43,867		(3,188	)	-7.3	%		67.8	%		72.0	%
Thermal		14,710		11,792		2,918		24.7	%		24.5	%		19.4	%
Laser		4,625		5,254		(629	)	-12.0	%		7.7	%		8.6	%
	$	60,014	$	60,913	$	(899	)	-1.5	%		100.0	%		100.0	%
	Six Months Ended									Percent of Total Sales
	September 28,		September 29,		Change					September 28,			September 29,
Sales by Channel	2007		2006			$		%		2007			2006
	($ in thousands)
OEM	$	14,273	$	16,186		(1,913	)	-11.8	%		23.8	%		26.6	%
Distribution		43,014		40,873		2,141		5.2	%		71.7	%		67.1	%
Direct		2,727		3,854		(1,127	)	-29.2	%		4.5	%		6.3	%
	$	60,014	$	60,913	$	(899	)	-1.5	%		100.0	%		100.0	%