Baldwin Reports Q1 Loss, Wins Patent Judgement Against technotrans
Friday, November 15, 2002
- Dusseldorf Higher Regional Court announced its judgment today in favor of Baldwin in the patent infringement dispute against technotrans. SHELTON, Conn.--Nov. 14, 2002-- Baldwin Technology Company reported today that its net sales for the quarter ended September 30, 2002 were $32,804,000 versus $37,475,000 for the quarter ended September 30, 2001. The Company had a net loss for the quarter of $6,493,000 or $0.43 per diluted share, compared to a net loss of $1,116,000 or $.08 per diluted share for the first quarter of the prior year. The prior year's first quarter net sales included $4,791,000 associated with divested operations, while the first quarter of fiscal 2003 was positively impacted by $1,517,000 due to favorable currency exchange rates. When adjusted to exclude divested operations and currency translations, net sales decreased by $1,397,000 during this year's first quarter, compared to the same period in the prior year. Backlog, adjusted for divested operations, was $52,126,000 as of September 30, 2002, reflecting an increase over the comparable backlog of $48,708,000 at June 30, 2002. Orders, similarly adjusted, were $36,732,000 for this year's first quarter, 20% above orders for the quarter ended June 30, 2002. This year's first quarter results included a pre-tax charge of $3,287,000 related to restructuring. In addition, effective July 1, 2002, the Company adopted the provisions of FAS 144, "Accounting for the Impairment or Disposal of Long Lived Assets" which requires the results for the Baldwin Kansa Corporation divested on October 10, 2002, to be separately reported in both the current and prior year quarters. Vijay C. Tharani, Vice President and CFO, stated, "As previously indicated, we embarked on a second round of restructuring in early July to lower our cost base by reducing worldwide staffing levels and by further consolidating our manufacturing operations to reflect the overall weak market. As a result of this, the Company took an additional $3,287,000 restructuring charge in the first quarter. This restructuring is proceeding as planned, and we will start to see the benefits of these actions in the coming quarters." Gerald A. Nathe, Chairman and recently re-appointed President and CEO, commented, "After the first quarter was completed, John T. Heald resigned as President and Chief Executive Officer of the Company to take a position with another company. We are sorry to see him leave, thank him for his contributions, and wish him well in his new position. I have already stepped back into the roles filled by John and am confident that our executive team continues to be highly motivated and well directed." "With respect to our first quarter, sales were weak, as anticipated; however, orders were up from the prior quarter. Our backlog is holding steady, and we expect to return to profitability in our second fiscal quarter and through the balance of our fiscal year. While the marketplace continues to be difficult, we have completed the repositioning of our company as an accessories and controls company. We believe we now have the products and the people to successfully compete as a leading supplier of accessories and controls in these challenging times." Nathe also noted, "We received news from Germany that the Dusseldorf Higher Regional Court announced its judgment today in favor of Baldwin in the patent infringement dispute against its competitor, technotrans. The Company is considering the impact of the Court's ruling and will release further news as it becomes available." Baldwin Technology Company, Inc. is the leading international manufacturer of accessory and control equipment for the printing industry.