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X-Rite Has Rough 2000, Blames World Economy

Thursday, February 01, 2001

Press release from the issuing company

GRANDVILLE, MI, January 31, 2001 -- X-Rite, Incorporated (Nasdaq/NMS:XRIT), a leading global provider of precision measurement devices, systems and processes that measure color, light, and shape, today announced its financial results for the fourth quarter and year-ended December 30, 2000. The Company reported fourth quarter net sales of $28.0 million and net income of $3.4 million, or 15 cents per share, compared with net sales of $28.4 million and net income of $4.2 million, or 19 cents per share for the same period last year. For the year-ended December 30, 2000, the Company reported net sales of $103.4 million and net income of $12.4 million, or 58 cents per share, compared with net sales of $100.2 million and net income of $13.6 million, or 62 cents per share for the year-ended January 1, 2000. The Company’s results were adversely effected by European currency weaknesses. Had the exchange rates remained unchanged from the prior year’s rates, sales for the year would have been approximately $106.0 million compared to $103.4 million as actually reported and pre-tax income would have been approximately $21.3 million compared to $19.2 million as actually reported for the year. Commenting on the year, Rich Cook, X-Rite, Incorporated’s President and Chief Executive Officer, said, “Despite revenue growth in local currencies of approximately 20 percent in Europe and 28 percent in Asia, it was a challenging year for X-Rite in a somewhat difficult world economy. While we maintained our lead position in many of the markets we have traditionally served, we are disappointed that our consolidated growth in 2000 was not more robust. Recognizing this, we have directed our efforts, and investments, to new, potentially high growth niches, many of which are outside our traditionally served markets but within our technology reach.” Cook continued, “Several major steps were taken in 2000 to pursue new, potentially high growth opportunities; we made two acquisitions, invested in internal research, and launched a venture capital group. We believe we will begin to realize benefits from these activities during 2001, and we are confident they will play an important part in our future success.” An outline of these important initiatives follows. X-Rite acquired the assets of the HoloVision™ Products Group during the year. The tunable laser application technology included in this acquisition is being further developed to meet the growing need for precise non-contact shape measurement. The Company believes this leading edge capability will open opportunities in electronic component evaluation, micro-machine development, and the biomedical industry. All of these growing fields are new to the Company and will provide opportunities to enhance its future revenue and profits. New product releases surrounding this capability are planned throughout the coming year. X-Rite also acquired Optronik GmbH, a highly respected Germany developer and manufacturer of non-contact color and light measurements. The Company believes Optronik’s current revenue stream can be significantly enhanced by utilizing X-Rite’s worldwide distribution capability and extending its development expertise into related fields. This acquisition gives X-Rite its first non-contact color measurement capability which could provide market growth in both current and future markets.

 

 

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