Exhibit 99
Printronix Announces Second Quarter Results for Fiscal Year 2005
IRVINE, Calif.--(BUSINESS WIRE)--Oct. 7, 2004--Printronix, Inc.
(NASDAQ:PTNX), the leading manufacturer of integrated enterprise printing
solutions for the supply chain, today announced results for the second quarter
of fiscal year 2005, which ended September 24, 2004. Second quarter revenue was
$31.8 million, up 9.5% from $29.1 million in the year ago quarter. The company
reported operating income of $0.1 million and a net loss of $0.1 million for the
quarter, compared with the year ago net loss of $0.9 million. The net loss for
the quarter was $0.02 per diluted share, improved from the year ago net loss of
$0.17 per diluted share.
Revenue for the first six months of fiscal year 2005 was $65.1 million, up
9.2% from $59.6 million a year ago. Year to date net income was $0.3 million, or
$0.05 per diluted share, compared with a net loss of $0.9 million, or a loss of
$0.16 per diluted share, a year ago.
Gross margin was 37.8% for the second quarter, up from 36.6% in the same
period one year ago due primarily to higher sales volumes and a stronger Euro.
For the first six months of fiscal year 2005, gross margin was 38.9%, up from
36.4% for the year ago period, primarily for the same reasons.
Operating expenses in the quarter were $11.9 million, up from $11.2 million
in the year ago fiscal period. Sales and marketing increased due to continuing
investment in geographic expansion, marketing efforts related to RFID and demand
generation programs. G&A expenses increased over the prior year primarily as a
result of higher legal costs and higher consulting costs associated with
satisfying Sarbanes-Oxley requirements. Year to date operating expenses
increased to $24.4 million, up from $22.1 million a year ago, for the reasons
stated above.
During the quarter, Printronix incurred costs of $0.4 million as actions to
restructure operations and reduce costs were completed.
"Printronix's investment in the RFID market is paying off in industry
confidence and brand equity. RFID sales for the quarter were $0.9 million, or
2.7% of sales," said Bob Kleist, President and CEO of Printronix. "Since
launching our first RFID solution in September 2003, Printronix has worked
directly with Wal-Mart and Department of Defense suppliers engaged in RFID pilot
programs. Our commitment has been to collaboratively support the entire RFID
community -- from integration partners, to end-user customers, to policy makers,
such as EPCglobal, Inc. This is the reason Printronix is being consistently
recognized as a top performer by end users, integrators and the media."
Printronix saw growth in line matrix printers (its core business), and in
thermal printers. On a year over year basis, line matrix sales are up $0.9
million, or 4.3%, for the quarter and up $2.7 million, or 6.2%, for the year to
date. Thermal printer sales for the quarter grew $1.9 million, or 47.5%, and
grew $2.9 million, or 35.2%, for the year to date.
The company ended the first quarter with cash of $39.6 million, up $8.3
million from the year ago quarter. The company did not repurchase any shares of
its common stock during the first or second quarters of fiscal year 2005.
On October 7, 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 Six Months Ended
9/24/04 6/25/04 9/26/03 9/24/04 9/26/03
Revenue $31,808 $33,278 $29,059 $65,086 $59,597
Cost of sales 19,770 19,968 18,417 39,738 37,912
Gross margin 12,038 13,310 10,642 25,348 21,685
Engineering and
development 3,916 3,998 3,980 7,914 7,794
Sales and marketing 5,903 6,280 5,373 12,183 10,457
General and
administrative 2,104 2,183 1,818 4,287 3,874
Total operating
expenses 11,923 12,461 11,171 24,384 22,125
Income (loss) from
operations 115 849 (529) 964 (440)
Other expense, net 7 62 74 69 114
Income (loss) before
taxes 108 787 (603) 895 (554)
Provision for taxes 218 338 331 556 333
Net (loss) income $(110) $449 $(934) $339 $(887)
(Loss) Earnings Per
Share:
Basic $(0.02) $0.07 $(0.17) $0.05 $(0.16)
Diluted $(0.02) $0.07 $(0.17) $0.05 $(0.16)
Shares Used in (Loss) Earnings
Per Share Computation:
Basic 6,341,593 6,280,643 5,643,335 6,311,117 5,593,707
Diluted 6,341,593 6,446,960 5,643,335 6,488,725 5,593,707
Gross margin % 37.8% 40.0% 36.6% 38.9% 36.4%
Operating expenses % 37.5% 37.4% 38.4% 37.5% 37.1%
Income (loss) from
operations % 0.4% 2.6% (1.8)% 1.5% (0.7)%
Net (loss) income % (0.3)% 1.3% (3.2)% 0.5% (1.5)%
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
9/24/04 6/25/04 9/26/03
Assets
Cash and equivalents $39,623 $38,974 $31,364
Accounts receivable, net 17,352 17,354 15,191
Inventory, net 14,158 13,312 13,566
Other current assets 6,494 6,762 5,679
Plant and equipment, net 33,946 34,651 36,991
Other assets 1,226 1,216 621
Total assets $112,799 $112,269 $103,412
Liabilities and Stockholders' Equity
Short-term debt $700 $700 $700
Accounts payable 7,689 7,623 4,986
Other current liabilities 11,863 11,595 11,645
Other long-term liabilities 15,957 15,828 14,888
Stockholders' equity 76,590 76,523 71,193
Total liabilities and stockholders'
equity $112,799 $112,269 $103,412
Printronix, Inc., and Subsidiaries
Sales Classification (Unaudited)
Sales by Geographic
Region
Three Months Ended Percent of Total
Sales
Sept. 24, Sept. 26, Percent Sept. 24, Sept. 26,
2004 2003 Change 2004 2003
($ in thousands)
Americas $15,606 $15,155 3.0% 49.0% 52.2%
EMEA 10,806 9,534 13.3% 34.0% 32.8%
Asia Pacific 5,396 4,370 23.5% 17.0% 15.0%
$31,808 $29,059 9.5% 100.0% 100.0%
Sales by Product
Technology
Three Months Ended Percent of Total
Sales
Sept. 24, Sept. 26, Percent Sept. 24, Sept. 26,
2004 2003 Change 2004 2003
($ in thousands)
Line matrix $22,140 $21,230 4.3% 69.6% 73.1%
Thermal 5,917 4,012 47.5% 18.6% 13.8%
Laser 3,212 3,195 0.6% 10.1% 11.0%
Verification products 539 622 (13.3)% 1.7% 2.1%
$31,808 $29,059 9.5% 100.0% 100.0%
Sales by Channel
Three Months Ended Percent of Total
Sales
Sept. 24, Sept. 26, Percent Sept. 24, Sept. 26,
2004 2003 Change 2004 2003
($ in thousands)
OEM $8,880 $8,855 0.3% 27.9% 30.5%
Distribution 21,226 18,410 15.3% 66.7% 63.3%
Direct 1,702 1,794 (5.1)% 5.4% 6.2%
$31,808 $29,059 9.5% 100.0% 100.0%
Sales by Customer
Three Months Ended Percent of Total
Sales
Sept. 24, Sept. 26, Percent Sept. 24, Sept. 26,
2004 2003 Change 2004 2003
($ in thousands)
Largest customer -
IBM $6,916 $6,297 9.8% 21.7% 21.7%
Second largest
customer 2,619 2,730 (4.1)% 8.2% 9.4%
Top ten customers 16,159 14,941 8.2% 50.8% 51.4%
Printronix, Inc., and Subsidiaries
Sales Classification (Unaudited)
Sales by Geographic
Region
Six Months Ended Percent of Total
Sales
Sept. 24, Sept. 26, Percent Sept. 24, Sept. 26,
2004 2003 Change 2004 2003
($ in thousands)
Americas $30,523 $31,777 (4.0)% 46.9% 53.4%
EMEA 23,520 19,926 18.0% 36.1% 33.4%
Asia Pacific 11,043 7,894 39.9% 17.0% 13.2%
$65,086 $59,597 9.2% 100.0% 100.0%
Sales by Product
Technology
Six Months Ended Percent of Total
Sales
Sept. 24, Sept. 26, Percent Sept. 24, Sept. 26,
2004 2003 Change 2004 2003
($ in thousands)
Line matrix $46,144 $43,434 6.2% 70.9% 72.9%
Thermal 11,255 8,322 35.2% 17.3% 14.0%
Laser 6,549 6,625 (1.2)% 10.1% 11.1%
Verification products 1,138 1,216 (6.4)% 1.7% 2.0%
$65,086 $59,597 9.2% 100.0% 100.0%
Sales by Channel
Six Months Ended Percent of Total
Sales
Sept. 24, Sept. 26, Percent Sept. 24, Sept. 26,
2004 2003 Change 2004 2003
($ in thousands)
OEM $19,396 $20,913 (7.3)% 29.8% 35.1%
Distribution 41,485 35,877 15.6% 63.7% 60.2%
Direct 4,205 2,807 49.8% 6.5% 4.7%
$65,086 $59,597 9.2% 100.0% 100.0%
Sales by Customer
Six Months Ended Percent of Total
Sales
Sept. 24, Sept. 26, Percent Sept. 24, Sept. 26,
2004 2003 Change 2004 2003
($ in thousands)
Largest customer -
IBM $14,139 $15,269 (7.4)% 21.7% 25.6%
Second largest
customer 5,203 5,010 3.9% 8.0% 8.4%
Top ten customers 33,454 31,007 7.9% 51.4% 52.0%
CONTACT: Printronix, Inc., Irvine
Robert A. Kleist, 714-368-2863
or
George L. Harwood, 714-368-2384
or
EVC Group, LLC (Investors)
Douglas M. Sherk or Jennifer Beugelmans, 415-896-6820
dsherk@evcgroup.com or jbeugelmans@evcgroup.com
or
WunderMarx, Inc. (Media)
Cara Good, 949-860-2434, ext. 312
cgood@wundermarx.com