Log In | Become a Member | Contact Us


Leading printing executives into the future

Connect on Twitter | Facebook | LinkedIn

Featured:     European Coverage     Production Inkjet Analysis

Delphax Reports Fiscal 2002 Year End Results, Amends Credit Facility

Sunday, December 29, 2002

Press release from the issuing company

MINNEAPOLIS, Dec. 20 -- Delphax Technologies Inc. today reported record sales of $14.0 million for the fourth quarter ended September 30, 2002, a 37 percent increase from the $10.3 million for the same period a year ago. Along with the revenue growth, the company also reported taking inventory and accounts receivable charges totaling $650,000 and recorded a deferred tax asset charge resulting in an income tax expense for the quarter of $1.2 million. The net loss for the quarter was $2.4 million, or $0.40 per share, compared with net income of $1.0 million, or $0.16 per share, a year earlier. The fourth quarter charges of $650,000 consist of a charge to cost of sales of $500,000 to reduce the overhead capitalized in inventory and a $150,000 increase in the company's allowance for doubtful accounts. The income tax expense for the quarter was a result of the company recording a full valuation allowance against its net deferred tax assets in accordance with the Financial Accounting Standards Board Statement No. 109, "Accounting for Income Taxes." Revenues from maintenance, spares and supplies increased 202 percent to $12.1 million from $4.0 million in the fourth quarter a year ago, reflecting the company's December 2001 acquisition of its Canadian subsidiary, increased usage of the Imaggia® installed base, and the initial on-going revenue generated by the company's new CR1300 systems placed in service in June. Fourth quarter sales of printing equipment were $1.9 million, a significant decline from the $6.2 million for the same period a year ago, reflecting the continued softness in purchasing activity for capital goods during the current period of economic uncertainty. "The underlying strength of our business is masked by the unusual combination of charges," said Jay Herman, chairman and chief executive officer. "Despite the limited market for equipment sales, the fourth quarter provided a number of positive developments, including continued progress toward our strategic objective of increasing our service business to sustain future growth for the company, the previously announced shipment of two additional Imaggia systems to Davis+Henderson, the leading supplier of personalized checks in Canada, and the first full quarter of CR systems utilization." For the fiscal year ended September 30, 2002, Delphax's sales increased 22 percent to $52.4 million from $43.1 million a year earlier. The operating loss for the year was $814,000 compared with operating income of $3.4 million for fiscal 2001. For fiscal 2002 the company reported a net loss of $2.4 million or $0.39 per share, compared with net income of $2.1 million, or $0.35 per share, in fiscal 2001. The company said it has completed an amendment to its credit facility with Harris Trust and Savings Bank. Under the terms of the amended agreement, which expires December 31, 2003, the credit facility has been modified into a $3.5 million term loan and a $12.5 million revolving credit facility, of which the company is currently using $10.6 million. "We are pleased with the agreement to amend our credit facility with Harris Bank," Herman said, "It is a reaffirmation of the inherent strength of our expanding business model and represents Harris Bank's belief in our long-term growth strategy."

 

 

SHARE

Email Icon Email

Print Icon Print

Become a Member

Join the thousands of printing executives who are already part of the WhatTheyThink Community.

Copyright © 2016 WhatTheyThink. All Rights Reserved