Exhibit 99
Printronix Announces Third Quarter Results for Fiscal Year 2005
IRVINE, Calif.--(BUSINESS WIRE)--Jan. 19, 2005--Printronix, Inc.
(NASDAQ:PTNX), the leading manufacturer of integrated enterprise
printing solutions for the supply chain, today announced results for
the third quarter of fiscal year 2005, which ended December 24, 2004.
Third quarter revenue was $33.9 million, flat with the year ago
quarter, and up 6.7% from $31.8 million in the prior quarter. The
company reported net income for the quarter of $0.9 million, or $0.14
per diluted share, compared with net income of $1.5 million, or $0.24
per diluted share, in the year ago quarter.
Revenue for the first nine months of fiscal year 2005 was $99.0
million, up 5.9% from $93.5 million a year ago. Year to date net
income was $1.3 million, or $0.20 per diluted share, up from net
income of $0.6 million, or $0.10 per diluted share, a year ago.
Gross margin was 39.8% for the third quarter, down from 40.5% in
the same period one year ago due primarily to product mix. Gross
margin increased from 37.8% in the prior quarter mainly as a result of
higher sales volumes, partially offset by product mix changes. For the
first nine months of fiscal year 2005, gross margin was 39.3%, up from
37.9% for the year ago period, primarily due to higher sales volumes
and a stronger Euro, somewhat offset by product mix changes.
Operating expenses in the quarter were $12.4 million, up from
$11.9 million in the year ago fiscal period due primarily to a
one-time engineering charge to write-off tooling, expansion of sales
and marketing efforts, marketing efforts related to launching RFID in
Europe and demand generation programs. Year to date operating expenses
increased to $36.8 million, up from $34.1 million a year ago, for the
reasons stated above, and also due to higher legal costs and higher
consulting costs associated with satisfying Sarbanes-Oxley
requirements.
The company ended the third fiscal quarter with cash of $41.9
million, up $6.7 million from the year ago quarter. The company did
not repurchase any shares of its common stock during the first nine
months of fiscal year 2005.
There will be an earnings conference call at 1:30 p.m. PT (4:30
p.m. ET) on January 19, 2005. 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 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 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 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 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 Nine Months Ended
12/24/04 9/24/04 12/26/03 12/24/04 12/26/03
Revenue $33,928 $31,808 $33,909 $99,014 $93,506
Cost of sales 20,410 19,770 20,181 60,148 58,093
Gross margin 13,518 12,038 13,728 38,866 35,413
Engineering and
development 4,137 3,916 4,014 12,051 11,808
Sales and
marketing 6,041 5,903 5,726 18,224 16,183
General and
administrative 2,208 2,104 2,195 6,495 6,069
Total operating
expenses 12,386 11,923 11,935 36,770 34,060
Income from
operations 1,132 115 1,793 2,096 1,353
Other (income)
expense, net (113) 7 110 (44) 224
Income before
taxes 1,245 108 1,683 2,140 1,129
Provision for
taxes 309 218 209 865 542
Net income
(loss) $936 $(110) $1,474 $1,275 $587
Earnings (Loss)
Per Share:
Basic $0.15 $(0.02) $0.25 $0.20 $0.10
Diluted $0.14 $(0.02) $0.24 $0.20 $0.10
Shares Used in Earnings
(Loss) Per Share
Computation:
Basic 6,373,220 6,341,593 5,794,137 6,331,818 5,660,517
Diluted 6,575,396 6,341,593 6,044,303 6,524,264 5,863,057
Gross margin % 39.8% 37.8% 40.5% 39.3% 37.9%
Operating
expenses % 36.5% 37.5% 35.2% 37.1% 36.4%
Income from
operations % 3.3% 0.4% 5.3% 2.1% 1.4%
Net income
(loss) % 2.8% (0.3)% 4.3% 1.3% 0.6%
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
12/24/04 9/24/04 12/26/03
Assets
Cash and equivalents $41,892 $39,623 $35,154
Accounts receivable, net 17,730 17,352 16,719
Inventory, net 14,888 14,158 13,593
Other current assets 4,923 6,494 5,666
Plant and equipment, net 33,420 33,946 35,941
Other assets 1,262 1,226 682
Total assets $114,115 $112,799 $107,755
Liabilities and Stockholders' Equity
Short-term debt $700 $700 $700
Accounts payable 8,164 7,689 6,620
Other current liabilities 11,331 11,863 11,950
Other long-term liabilities 15,953 15,957 14,778
Stockholders' equity 77,967 76,590 73,707
Total liabilities and stockholders'
equity $114,115 $112,799 $107,755
Sales Classification (Unaudited)
Sales by Geographic Region
Three Months Percent of
Ended Total Sales
Dec. 24, Dec. 26, Percent Dec. Dec.
2004 2003 Change 24, 26,
2004 2003
($ in thousands)
Americas $15,625 $16,835 (7.2)% 46.0% 49.6%
EMEA 12,000 11,209 7.1% 35.4% 33.1%
Asia Pacific 6,303 5,865 7.5% 18.6% 17.3%
$33,928 $33,909 0.1% 100.0% 100.0%
Sales by Product Technology
Three Months Percent of
Ended Total Sales
Dec. 24, Dec. 26, Percent Dec. Dec.
2004 2003 Change 24, 26,
2004 2003
($ in thousands)
Line matrix $24,076 $24,477 (1.6)% 70.9% 72.2%
Thermal 6,331 4,649 36.2% 18.7% 13.7%
Laser 3,016 4,119 (26.8)% 8.9% 12.1%
Verification products 505 664 (23.9)% 1.5% 2.0%
$33,928 $33,909 0.1% 100.0% 100.0%
RFID $875 $75 1,066.7% 2.6% 0.2%
Sales by Channel
Three Months Percent of
Ended Total Sales
Dec. 24, Dec. 26, Percent Dec. Dec.
2004 2003 Change 24, 26,
2004 2003
($ in thousands)
OEM $9,917 $9,862 0.6% 29.2% 29.1%
Distribution 22,343 21,967 1.7% 65.9% 64.8%
Direct 1,668 2,080 (19.8)% 4.9% 6.1%
$33,928 $33,909 0.1% 100.0% 100.0%
Sales by Customer
Three Months Percent of
Ended Total Sales
Dec. 24, Dec. 26, Percent Dec. Dec.
2004 2003 Change 24, 26,
2004 2003
($ in thousands)
Largest customer - IBM $7,706 $6,671 15.5% 22.7% 19.7%
Second largest customer 2,663 3,098 (14.0)% 7.9% 9.1%
Top 10 customers 17,829 17,976 (0.8)% 52.5% 53.0%
Sales by Geographic Region
Nine Months Ended Percent of
Total Sales
Dec. 24, Dec. 26, Percent Dec. Dec.
2004 2003 Change 24, 26,
2004 2003
($ in thousands)
Americas $46,147 $48,612 (5.1)% 46.6% 52.0%
EMEA 35,520 31,135 14.1% 35.9% 33.3%
Asia Pacific 17,347 13,759 26.1% 17.5% 14.7%
$99,014 $93,506 5.9% 100.0% 100.0%
Sales by Product Technology
Nine Months Ended Percent of
Total Sales
Dec. 24, Dec. 26, Percent Dec. Dec.
2004 2003 Change 24, 26,
2004 2003
($ in thousands)
Line matrix $70,220 $67,909 3.4% 70.9% 72.6%
Thermal 17,586 12,971 35.6% 17.7% 13.9%
Laser 9,565 10,745 (11.0)% 9.7% 11.5%
Verification products 1,643 1,881 (12.6)% 1.7% 2.0%
$99,014 $93,506 5.9% 100.0% 100.0%
RFID $1,882 $75 2,409.3% 1.9% 0.1%
Sales by Channel
Nine Months Ended Percent of
Total Sales
Dec. 24, Dec. 26, Percent Dec. Dec.
2004 2003 Change 24, 26,
2004 2003
($ in thousands)
OEM $29,313 $30,775 (4.7)% 29.6% 32.9%
Distribution 63,827 57,845 10.3% 64.5% 61.9%
Direct 5,874 4,886 20.2% 5.9% 5.2%
$99,014 $93,506 5.9% 100.0% 100.0%
Sales by Customer
Nine Months Ended Percent of
Total Sales
Dec. 24, Dec. 26, Percent Dec. Dec.
2004 2003 Change 24, 26,
2004 2003
($ in thousands)
Largest customer - IBM $21,845 $21,939 (0.4)% 22.1% 23.5%
Second largest customer 7,867 8,108 (3.0)% 7.9% 8.7%
Top 10 customers 50,955 48,327 5.4% 51.5% 51.7%
CONTACT: Printronix, Inc., Irvine
Robert A. Kleist, 714-368-2863
George L. Harwood, 714-368-2384
or
WunderMarx, Inc.
Cara Good (Media), 949-860-2434, ext. 312
cara.good@wundermarx.com
or
EVC Group, Inc.
Douglas M. Sherk (Investors), 415-896-6818
dsherk@evcgroup.com
or
Jennifer Beugelmans, 415-896-6817
jbeugelmans@evcgroup.com