Exhibit 99
Printronix Announces First Quarter Results for Fiscal Year 2005
IRVINE, Calif.--(BUSINESS WIRE)--July 8, 2004--Printronix, Inc.,
(NASDAQ:PTNX), the leading manufacturer of integrated enterprise
printing solutions for the supply chain, today announced results for
the first quarter of fiscal year 2005, which ended June 25, 2004.
First quarter revenue was $33.3 million, up 9.0% from $30.5 million in
the year ago quarter. The company reported net income for the quarter
of $449 thousand or $0.07 per diluted share, compared with net income
of $47 thousand, or $0.01 per diluted share, in the year ago quarter.
For the first quarter of fiscal year 2005, gross margin was 40.0%,
up from 36.2% in the same period one year ago due primarily to a
stronger Euro, higher sales volume and lower warranty and inventory
provisions.
Operating expenses in the first quarter were $12.5 million, up
from $11.0 million in the year ago fiscal period as a result of higher
sales and marketing costs primarily for expansion in the Asia Pacific
region, higher marketing and engineering expenses primarily related to
RFID product development and market introduction and higher consulting
costs associated with satisfying Sarbanes-Oxley requirements. The
effective tax rate for the first quarter of fiscal year 2005 was 43%
due to foreign taxes paid and the expiration of a tax holiday in
Singapore.
"During the quarter, we began to see results from our efforts to
build line matrix printer revenue. We believe we continued to gain
market share in the thermal printer segment as well as positioning
Printronix in the emerging RFID market with expanded alliances and
partnerships. Significantly, our solutions approach to the RFID
opportunity generated tremendous amount of interest at a recent
Wal-Mart vendors conference," said Bob Kleist, President and CEO of
Printronix.
The company ended the first quarter with cash of $39.0 million, up
$9.6 million from the year ago quarter. The company did not repurchase
any shares of its common stock during the first quarter of fiscal year
2005.
On July 8, 2004, there will be an earnings conference call at 1:30
p.m. PT (4:30 p.m. ET). 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 webcast, go to the Printronix Web site at www.printronix.com and
select the conference call link to register.
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.
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, Calif. For more information,
please visit www.printronix.com.
Printronix, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(Dollars in Thousands, Except
Share and Per Share Data)
Three Months Ended
6/25/04 3/26/04 6/27/03
Revenue $33,278 $31,564 $30,538
Cost of sales 19,968 19,577 19,495
Gross margin 13,310 11,987 11,043
Engineering and development 3,998 4,077 3,814
Sales and marketing 6,280 6,086 5,084
General and administrative 2,183 2,180 2,056
Total operating expenses 12,461 12,343 10,954
Income (loss) from operations 849 (356) 89
Interest and other expenses, net 62 89 40
Income (loss) before taxes 787 (445) 49
Provision (benefit) for income taxes 338 (490) 2
Net income $449 $45 $47
Net Income Per Share:
Basic $0.07 $0.01 $0.01
Diluted $0.07 $0.01 $0.01
Shares Used in Computing Net Income
Per Share:
Basic 6,280,643 5,956,981 5,544,078
Diluted 6,446,960 6,199,913 5,671,206
Gross margin % 40.0% 38.0% 36.2%
Operating expenses % 37.4% 39.1% 35.9%
Income (loss) from operations % 2.6% -1.1% 0.3%
Net income % 1.3% 0.1% 0.2%
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
6/25/04 3/26/04 6/27/03
Assets
Cash and cash equivalents $38,974 $36,671 $29,398
Accounts receivable, net 17,354 18,408 15,325
Inventory, net 13,312 13,506 13,102
Other current assets 6,762 6,932 6,419
Property, plant and equipment, net 34,651 35,071 38,160
Other long-term assets 1,216 1,221 533
Total assets $112,269 $111,809 $102,937
Liabilities and Stockholders' Equity
Short-term debt $700 $700 $700
Accounts payable 7,623 6,965 5,393
Other current liabilities 11,595 11,962 11,925
Other long-term liabilities 15,828 15,989 14,723
Stockholders' equity 76,523 76,193 70,196
Total liabilities and
stockholders' equity $112,269 $111,809 $102,937
Printronix, Inc. and Subsidiaries
Sales Classification (Unaudited)
Sales by Geographic Region
Three Months Percent of
Ended Total Sales
June June Percent June June
25, 27, Change 25, 27,
2004 2003 2004 2003
($ in millions)
Americas $14.9 $16.6 (10.2%) 44.8% 54.4%
EMEA 12.7 10.4 22.1 38.1 34.1
Asia Pacific 5.7 3.5 62.9 17.1 11.5
$33.3 $30.5 9.0% 100.0% 100.0%
Sales by Product Technology
Three Months Percent of
Ended Total Sales
June June Percent June June
25, 27, Change 25, 27,
2004 2003 2004 2003
($ in millions)
Line matrix $24.0 $22.2 8.1% 72.1% 72.7%
Thermal 5.4 4.3 25.6 16.2 14.1
Laser 3.3 3.4 (2.9) 9.9 11.2
Verification products 0.6 0.6 0.0 1.8 2.0
$33.3 $30.5 9.0% 100.0% 100.0%
Sales by Channel
Three Months Percent of
Ended Total Sales
June June Percent June June
25, 27, Change 25, 27,
2004 2003 2004 2003
($ in millions)
OEM $10.5 $12.0 (12.5%) 31.5% 39.5%
Distribution 20.3 17.5 16.0 61.0 57.2
Direct 2.5 1.0 150.0 7.5 3.3
$33.3 $30.5 9.0% 100.0% 100.0%
Sales by Customer
Three Months Percent of
Ended Total Sales
June June Percent June June
25, 27, Change 25, 27,
2004 2003 2004 2003
($ in millions)
Largest customer - IBM $7.2 $9.0 (20.0%) 21.6% 29.4%
Second largest customer 2.6 2.3 13.0 7.8 7.5
Top ten customers 17.5 16.2 8.0 52.6 53.1
CONTACT: Printronix, Inc., Irvine
Robert A. Kleist, 714-368-2863
or
George L. Harwood, 714-368-2384
or
EVC Group, LLC
Douglas M. Sherk (Investors), 415-896-6820
dsherk@evcgroup.com
or
Jennifer Beugelmans (Investors), 415-896-6820
jbeugelmans@evcgroup.com
or
WunderMarx, Inc.
Cara Good (Media), 949-860-2434, ext. 312
cgood@wundermarx.com