Exhibit 99
Printronix Returns to Profitability and Improves Sales in the Third Quarter
of Fiscal Year 2004
IRVINE, Calif.--(BUSINESS WIRE)--Jan. 8, 2004--Printronix, Inc.,
(Nasdaq:PTNX), the leading manufacturer of integrated enterprise
printing solutions for the supply chain, today announced third quarter
revenue of $33.9 million, up by 16.7% from the prior quarter and
approximately flat with revenue in the year ago quarter. Revenue for
the nine-month period ending Dec. 26, 2003 was $93.5 million, down
9.6% from $103.4 million for the same period a year ago.
The company returned to profitability and reported net income for
the quarter of $1.5 million, or $0.24 per diluted share, compared with
net income of $0.8 million, or $0.14 per diluted share, in the year
ago quarter. Net income for the nine-month period ending Dec. 26, 2003
was $0.6 million, or $0.10 per diluted share, compared with net income
of $1.8 million, or $0.31 per diluted share, for same period in fiscal
year 2003.
"During the past two years, Printronix has taken several strategic
steps to improve profitability when technology spending picks up,"
said Bob Kleist, president and CEO of Printronix. "While we've
maintained our ability to immediately respond to customer demand, and
have continually brought improved solutions to our customers, we've
also improved margins to be profitable at a lower level of sales. It
is important to note that we achieved strong profit growth over the
comparable year ago period despite flat sales. As we look ahead, the
market environment has improved to about the same level as a year ago.
We believe there are opportunities to improve the longer-term sales
prospects of the company, especially as our customer base seeks
solutions to the RFID initiatives set into place by both Wal-Mart and
the Department of Defense," Mr. Kleist concluded.
For the third quarter of fiscal year 2004, gross margin was 40.5%,
up from 35.2% reported in the same period one year ago due to a
stronger Euro, lower warranty expenses, lower provision for excess
inventory, and favorable product mix. For the nine-month period, the
same factors drove a 300 basis point improvement in year to date gross
margin to 37.9% from 34.9% reported for the prior year to date period.
Operating expenses in the third quarter were $11.9 million, up
from $11.1 million in the year ago fiscal period as a result of higher
selling and product development costs. Operating expenses for the year
to date were $34.1 million, approximately unchanged from $34.3 million
in the prior year period.
The company did not record a tax benefit for U.S. losses incurred
during the quarter, which resulted in income taxes remaining constant,
compared with the prior year period, on a higher taxable income. On a
year to date basis, the company recorded higher income taxes on lower
pretax income than the prior year to date period because the company
did not record a tax benefit for U.S. losses incurred.
The company ended the third quarter with cash of $35.2 million, up
$9.9 million from the same period a year ago and up $3.8 million from
the prior quarter. The company did not repurchase any shares of its
common stock during the third quarter of fiscal year 2004. Inventory
decreased $1.4 million from the same period last year as the prior
year period contained extra inventory in anticipation of a dock strike
on the U.S. West Coast ports. Inventory was essentially unchanged from
the prior quarter.
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 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 a
resurgence of SARS (Severe Acute Respiratory Syndrome); the ability of
the company to maintain our production capability in our Singapore
plant or obtain product from our 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 requirements for RFID products by Wal-Mart
and/or the Department of Defense or 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
our 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 future changes show
that the indicated results or events will not be realized.
About Printronix, Inc.
Printronix Inc., (Nasdaq:PTNX) is a global leader enabling
printing technologies for the industrial marketplace and distribution
supply chain. It is the world's best-selling line matrix printer
manufacturer and has earned an outstanding reputation for its
high-performance thermal and fanfold laser printers. In addition,
Printronix adapts new technologies to create innovative programs,
including RFID "smart label" and wireless mobile printers.
Printronix's integrated network programs, such as Online Data
Validation (ODV(TM)) and PrintNet(R) Enterprise, improve the printing
of bar codes, labels and forms while verifying accuracy and offering
unparalleled diagnostic technology. Based in Irvine, Calif.,
Printronix has operations worldwide. For more information:
www.printronix.com.
Printronix Inc., and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(Dollars in Thousands, Except Share and Per Share Data)
Three Months Ended Nine Months Ended
12/26/03 9/26/03 12/27/02 12/26/03 12/27/02
Revenue $33,909 $29,059 $34,132 $93,506 $103,441
Cost of sales 20,181 18,417 22,121 58,093 67,309
Gross margin 13,728 10,642 12,011 35,413 36,132
Engineering and
development 4,014 3,980 3,754 11,808 11,893
Sales and
marketing 5,726 5,373 5,178 16,183 15,777
General and
administrative 2,195 1,818 2,132 6,069 6,617
Total operating
expenses 11,935 11,171 11,064 34,060 34,287
Income (loss)
from operations 1,793 (529) 947 1,353 1,845
Other expense
(income), net 110 74 (77) 224 (458)
Income (loss)
before taxes 1,683 (603) 1,024 1,129 2,303
Provision for
taxes 209 331 205 542 461
Net income
(loss) $1,474 $(934) $819 $587 $1,842
Earnings (Loss) Per Share:
Basic $0.25 $(0.17) $0.14 $0.10 $0.31
Diluted $0.24 $(0.17) $0.14 $0.10 $0.31
Shares Used in Earnings (Loss) Per Share Computation:
Basic 5,794,137 5,643,335 5,814,230 5,660,517 5,851,855
Diluted 6,044,303 5,643,335 5,966,407 5,863,057 6,027,064
Gross margin % 40.5% 36.6% 35.2% 37.9% 34.9%
Operating
expenses % 35.2% 38.4% 32.4% 36.4% 33.1%
Income (loss)
from operations
% 5.3% -1.8% 2.8% 1.4% 1.8%
Net income
(loss) % 4.3% -3.2% 2.4% 0.6% 1.8%
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
12/26/03 9/26/03 12/27/02
Assets
Cash and
equivalents $35,154 $31,364 $25,272
Accounts
receivable, net 16,719 15,191 18,883
Inventory, net 13,593 13,566 15,028
Other current
assets 5,666 5,679 5,783
Plant and
equipment, net 35,941 36,991 40,198
Other assets 682 621 631
Total assets $107,755 $103,412 $105,795
Liabilities and
Stockholders'
Equity
Short-term debt $700 $700 $700
Accounts payable 6,620 4,986 8,159
Other current
liabilities 11,950 11,645 12,287
Other long-term
liabilities 14,778 14,888 15,063
Stockholders'
equity 73,707 71,193 69,586
Total
liabilities
and
stockholders'
equity $107,755 $103,412 $105,795
CONTACT: Printronix, Inc., Irvine
Robert A. Kleist, 714-368-2863
George L. Harwood, 714-368-2384
or
EVC Group, LLC (Investors)
Douglas M. Sherk, 415-896-6818
dsherk@evcgroup.com
or
Jennifer Beugelmans, 415-896-6817
jcohn@evcgroup.com
or
WunderMarx, Inc. (Media)
Cara Good, 949-860-2434, ext. 312
cgood@wundermarx.com