EXHIBIT 99.1
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[PARAGON TECHNOLOGIES, INC. LOGO] NEWS
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FOR: IMMEDIATE RELEASE
CONTACTS: Len Yurkovic, Acting CEO
610-252-3205
610-252-3102 (Fax)
www.ptgamex.com
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PARAGON TECHNOLOGIES REPORTS 2008 FIRST QUARTER RESULTS
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EASTON, PA -- May 13, 2008 -- Paragon Technologies, Inc. (Amex:PTG), a leading
supplier of "smart" material handling systems and "software-driven" warehouse
and distribution center solutions, announced today results for the first quarter
ended March 31, 2008.
During the first quarter ended March 31, 2008, the Company had net income of
$106,000 or $0.04 earnings per share on sales of $5.0 million, compared to a net
loss of $268,000 or $0.09 loss per share on sales of $3.6 million during the
first quarter ended March 31, 2007.
Net income for the first quarter ended March 31, 2008 was favorably impacted by
an increase in sales and gross profit of $1,438,000 and $596,000, respectively.
The increase was associated with a larger backlog of orders entering fiscal 2008
when compared to the backlog of orders entering fiscal 2007.
Len Yurkovic, Acting CEO of Paragon Technologies, commented, "The results for
the first quarter of 2008 are a welcome profit improvement over the prior year
comparable period and represent a team effort across the Company. We are pleased
with our strong balance sheet. We continue to invest in product development to
find new applications for our innovative technologies and build upon our
strategic competitive advantages. The Company's quoting activity continues to be
strong as we maintain an aggressive selling focus and target active sectors of
the marketplace, led by health and beauty aids, entertainment, and recreational
products."
[MORE]
We Build Productivity [SI SYSTEMS LOGO]
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PARAGON TECHNOLOGIES, INC. o 600 Kuebler Road o Easton, PA 18040-9201
o 610.252.3205 o Fax 610.252.3102
www.ptgamex.com
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[PARAGON TECHNOLOGIES, INC. LOGO] Page 2
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The Company will host a conference call to discuss these results on Tuesday, May
13, 2008 at 11:00 a.m. ET. To participate in the call, please dial
1-866-752-7147 and ask for the Paragon Technologies teleconference. Simultaneous
with the conference call, an audio webcast of the call will be available via a
link on the Paragon website, www.ptgamex.com.
Paragon's SI Systems' branded technologies drive productivity at Fortune 1000
companies and the United States Government.
About Paragon Technologies
Paragon Technologies is a leader in integrating material handling systems and
creating automated solutions for material flow applications. SI Systems' branded
technologies and material handling solutions address unit assembly in
manufacturing operations and order fulfillment applications. One of the top
material handling systems suppliers worldwide, SI Systems leading clients have
included the United States Postal Service, BMG, Peterbilt, Honda, and
Maybelline.
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Cautionary Statement. Certain statements contained herein are not based on
historical fact and are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and the Securities and Exchange
Commission rules, regulations and releases. Paragon intends that such
forward-looking statements be subject to the safe harbors created hereby. Among
other things, the forward-looking statements regard Paragon's earnings,
liquidity, financial condition, review of strategic alternatives, and other
matters. Words or phrases denoting the anticipated results of future events,
such as "anticipate," "does not anticipate," "should help to," "believe,"
"estimate," "is positioned," "expects," "may," "will," "is expected," "should,"
"continue," and similar expressions that denote uncertainty, are intended to
identify such forward-looking statements. Paragon's actual results, performance,
or achievements could differ materially from the results expressed in, or
implied by, such "forward-looking statements:" (1) as a result of factors over
which Paragon has no control, including the strength of domestic and foreign
economies, sales growth, competition, and certain cost increases; and (2) if the
factors on which Paragon's conclusions are based do not conform to its
expectations. The forward-looking statements contained in this press release may
become outdated over time. Paragon does not assume any responsibility for
updating any forward-looking statements. Furthermore, achievement of the
objectives of the Company is subject to certain risks, including, but not
limited to, those risks outlined in Paragon's filings with the Securities and
Exchange Commission, including its annual report on Form 10-K for the year ended
December 31, 2007.
This press release and prior releases are available at www.ptgamex.com.
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[PARAGON TECHNOLOGIES, INC. LOGO] Page 3
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Paragon Technologies, Inc.
Summary Financial Information
Selected Financial Data -- Balance Sheets (UNAUDITED)
(In Thousands, Except Ratio Information)
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March 31, 2008 December 31, 2007
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Cash and cash equivalents.................. $ 12,017 12,104
Short-term investments..................... 180 200
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Total cash and cash equivalents
and short-term investments............ $ 12,197 12,304
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Trade receivables.......................... $ 1,539 2,640
Inventories................................ $ 765 859
Current assets............................. $ 16,475 17,842
Current liabilities........................ 4,521 5,802
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Working capital......................... $ 11,954 12,040
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Current ratio.............................. 3.64 3.08
Total assets............................... $ 16,903 18,316
Total stockholders' equity................. $ 12,118 12,253
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Paragon Technologies, Inc.
Summary Financial Information
Selected Financial Data -- Statements of Operations (UNAUDITED)
(In Thousands, Except Per Share Information)
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First Quarter Ended
March 31,
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2008 2007
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Net sales........................................................... $ 5,045 3,607
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Income (loss) before income taxes................................... $ 183 (396)
Income tax expense (benefit)........................................ 77 (128)
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Net income (loss)................................................... $ 106 (268)
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Basic earnings (loss) per share..................................... $ .04 (.09)
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Diluted earnings (loss) per share................................... $ .04 (.09)
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Paragon Technologies, Inc.
Supplemental Financial Information
Reconciliation of Net Income (Loss) to EBITDA (UNAUDITED)
(In Thousands)
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First Quarter Ended
March 31,
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2008 2007
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Net income (loss)................................................... $ 106 (268)
Add: Income tax expense (benefit)................................. 77 (128)
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Income (loss) before income taxes................................... 183 (396)
Add: Interest expense............................................. - -
Add: Depreciation and amortization expense........................ 31 27
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EBITDA ............................................................. $ 214 (369)
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