Baldwin Reports Q4: Increased Sales and Cash Flow, Reduced Losses
Monday, September 29, 2003
SHELTON, Conn.--Sept. 26, 2003-- Baldwin Technology Company, Inc. announced today that net sales for the fourth quarter ended June 30, 2003 were $35,055,000 compared to $30,532,000 for the fourth quarter in the prior year, representing a 14.8% increase. Orders for the quarter ended June 30, 2003 were $34,900,000 compared to $34,600,000 for the quarter ended June 30, 2002. Backlog at June 30, 2003 was $49,700,000, up from $48,700,000 at June 30, 2002. For comparison purposes, all order and backlog amounts have been adjusted to reflect the disposition of the inserter business in October of 2002. The Company attained a positive operating cash flow for the fourth quarter ended June 30, 2003 of approximately $1,400,000. The net loss for Baldwin's fiscal fourth quarter ended June 30, 2003 narrowed to $4,506,000 or $0.30 per diluted share, compared to a loss of $16,065,000 or $1.07 per diluted share for the same quarter in the prior fiscal year. Results for the fourth quarter ended June 30, 2003 were negatively impacted by certain one-time charges, including the establishment of a $1,300,000 reserve for the settlement of a customer dispute related to a business unit that was divested in fiscal 2000, and additional expenses of $1,400,000 associated with the Company's pursuit of various financing and other strategic alternatives. The customer settlement requires Baldwin to provide product in lieu of cash over two years, and the amount of the charge principally represents the estimated market value of these products. Vijay Tharani, Vice President and CFO commented: "While we are disappointed with our results for the fiscal year, we are pleased with the progress we have made on our restructuring initiatives and our refinancing efforts. Our fourth quarter results have started to reflect the benefits of our actions, with improved gross margins and lower operating expenses. Based on our current backlog of about $54,500,000, plus our ongoing order rates, we anticipate that sales for the first half of Fiscal 2004 will be in the $68,000,000 to $69,000,000 range, and we expect the Company to be profitable on an operating basis." Gerald Nathe, Chairman, President and CEO added: "As previously reported, throughout Fiscal 2003, Baldwin focused its attention on supporting its customers, on consolidating its operations, on reducing its operating expenses, and on seeking alternative financing to its existing lenders. Now, as we start Fiscal 2004, Baldwin is in the process of concluding multi-year agreements with several major OEM press manufacturers, which provide for the Company to deliver product to the OEMs either on an exclusive basis or as a preferred supplier. Simultaneously, we are aggressively pursuing direct sales with printers and publishers, while further upgrading the level of our service and parts support. As a result of these activities, we expect an improved Company performance in Fiscal 2004."