Exhibit 99.1
Baldwin Reports Increased Q1 FY'07 Net Income
SHELTON, Conn.--(BUSINESS WIRE)--Oct. 26, 2006--Baldwin Technology
Company, Inc. (AMEX: BLD), a leading global manufacturer of printing
press accessories and control equipment, announced today that net
income for the first fiscal quarter ended September 30, 2006 increased
11% to $1,326,000, or $0.09 per basic and $0.08 per fully diluted
share. This compares to $1,193,000, or $0.08 per basic and fully
diluted share, for the same quarter in the prior fiscal year.
Net sales for the quarter increased approximately $562,000 to
$43,207,000, compared to $42,645,000 for the first quarter in the
prior year. Excluding the effects of currency translation, net sales
were comparable to those reported in last year's first quarter.
Orders for the quarter totaled $45,922,000, compared to
$46,467,000 reported for the quarter a year earlier. Backlog was
$51,882,000 on September 30, 2006, up from $49,167,000 at June 30,
2006.
Vice President and Chief Financial Officer Vijay Tharani said,
"Our results for the quarter were even with last year's performance
and generally in line with internal expectations. Sales strengthened
in most of Europe, offset by a softening of shipments, primarily
newspaper products, in Japan."
President and Chief Operating Officer Karl Puehringer said,
"Fiscal 2007 appears to be off to a solid start. Given the weakness in
sales in Japan, we are particularly pleased by the receipt of several
large orders at Baldwin Japan during the quarter, which will lead to
improved shipments in that market. During October, we participated in
two printing industry trade shows, IFRA in Amsterdam and Graph Expo in
Chicago. Both were well attended and were successful exhibitions for
Baldwin.
"We are very excited about the proposed acquisition of Oxy-Dry
Corporation," Puehringer continued. "The addition of its brush
cleaning to our existing cloth technology will further strengthen our
cleaning product capabilities in the marketplace. We are working
diligently to close this transaction in November. In addition, we have
recently signed an exclusive distribution alliance with Robatech, a
leading gluing system manufacturer based in Switzerland. This alliance
complements and supplements our existing web products in this market
niche."
Baldwin will host a conference call today, October 26 at 11 a.m.
Eastern Time to review the financial results, discuss the company's
business outlook and conduct a question-and-answer session. To
participate, call (888) 655-9181 any time after 10:55 a.m. Eastern
Time. The toll dial-in number is (210) 839-8504. The pass code for
this call is "Baldwin Q1." Participating in the call will be Baldwin
Chairman and Chief Executive Officer Gerald A. Nathe, Baldwin
President and Chief Operating Officer Karl S. Puehringer and Vice
President and Chief Financial Officer Vijay C. Tharani.
A replay audiotape of the conference call, in its entirety, will
be available one hour after the end of the call until Thursday,
November 2. To hear that replay call toll free (800) 728-5839 in the
U.S. or (203) 369-3326 from outside the U.S.
A live and archived webcast will be available for 90 days through
the Investor Relations section of the Baldwin website at
www.baldwintech.com. Callers will need Windows Media Player to listen
to the broadcast.
In other news, the company noted that it will hold its annual
stockholders meeting in the boardroom on the 14th floor at the
American Stock Exchange in New York on Tuesday, November 14 at 10 a.m.
About Baldwin
Baldwin Technology Company, Inc. is a leading international
manufacturer of press accessories and controls for the commercial
printing and newspaper publishing industries. Baldwin offers a broad
range of products focused on improving the quality, safety,
environmental compliance and productivity of the printing process.
Headquartered in Shelton, Ct., the company has sales and service
centers, product development and manufacturing operations
strategically located in major graphic arts markets worldwide.
Baldwin's products include cleaning systems, fluid management and ink
control systems, web press protection systems and drying systems. For
more information, visit http://www.baldwintech.com.
Investors may contact Frank Hawkins or Julie Marshall, Hawk
Associates, at (305) 451-1888 or e-mail info@hawkassociates.com. For
an online investment kit, visit http://www.hawkassociates.com. For an
investment profile about Baldwin, visit
http://www.hawkassociates.com/bldprofile.aspx.
CAUTIONARY STATEMENT--This release may contain statements
regarding expected future order, backlog and sales rates, operating
margins and profitability or other statements, which may constitute
"forward-looking" information as defined in the Private Securities
Litigation Reform Act of 1995 or by the Securities and Exchange
Commission. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance and actual results
may differ. See Item 1A "Risk Factors" and Exhibit 99 to the company's
Annual Report on Form 10-K for the fiscal year ended June 30, 2006.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter ended September 30,
---------------------------
2006 2005
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Net sales $ 43,207 $ 42,645
Cost of goods sold 28,945 28,589
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Gross profit 14,262 14,056
Operating expenses 12,147 11,902
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Operating income 2,115 2,154
Interest expense 224 298
Interest income (31) (28)
Other expense (income), net (226) (133)
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Income from operations before income taxes 2,148 2,017
Provision for income taxes 822 824
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Net Income $ 1,326* $ 1,193
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Net Income per share - basic $ 0.09 $ 0.08
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Net Income per share - diluted $ 0.08 $ 0.08
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Weighted average shares outstanding:
Basic 15,003 14,923
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Diluted 15,726 15,474
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Condensed Consolidated Balance Sheets
(In thousands, Unaudited)
September 30, June 30,
Current assets: 2006 2006
------------- ------------
Cash and equivalents $ 14,696 $ 14,986
Trade receivables 41,439 39,862
Inventory 23,120 22,657
Prepaid expenses and other 4,435 5,274
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Total current assets 83,690 82,779
Property, plant and equipment, net 3,553 3,617
Intangible assets 13,544 13,749
Other assets 11,002 12,618
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Total assets 111,789 112,763
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Current liabilities:
Loans payable $ 3,386 $ 2,622
Current portion of long-term debt 828 853
Other current liabilities 47,015 49,539
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Total current liabilities 51,229 53,014
Long-term debt 6,912 7,080
Other long-term liabilities 6,708 6,736
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Total liabilities 64,849 66,830
Shareholders' equity 46,940 45,933
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Total liabilities and shareholders' equity $ 111,789 $ 112,763
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* includes $91K of other income in Japan, subject to final resolution
CONTACT: For Baldwin Technology Company, Inc.
Hawk Associates, Inc.
Frank N. Hawkins, Jr. or Julie Marshall
305-451-1888
info@hawkassociates.com
http://www.hawkassociates.com