Banta to Take $7 Million Charge on XYAN Investment, Repossesses Transferred Facilities
Press release from the issuing company
MENASHA, WI 4/3/01 Banta Corporation today reconfirmed its earlier guidance that first quarter diluted earnings per share would be in a range of 40 cents to 42 cents, excluding a one-time charge for the write off of its minority investment in XYAN.com, a provider of Internet-enabled digital print solutions. In last year’s first quarter Banta earned 39 cents per share.
"Operating performance of our core businesses continues at levels consistent with our expectations, despite the constraints of current economic conditions," says Donald D. Belcher, chairman and chief executive officer. "We remain confident that our first quarter sales and earnings per share will exceed last year’s levels, excluding the one-time charge for the investment in XYAN.com."
XYAN.com’s plan to create a national network of Internet-enabled digital print facilities has been severely affected by the current economic downturn, coupled with the unavailability of funding sources for new Internet ventures. Banta will write off its investment and take a non-operating, non-cash charge in the first quarter ended March 31, 2001, of approximately $7 million, after tax (29 cents per diluted share). Additionally, Banta has reacquired its two digital facilities that were transferred to XYAN.com as part of the original transaction. Both facilities remain profitable and will continue to serve Banta’s customers.
"Our outlook for 2001 remains positive, as we expect the second half of the year to be stronger than the first half," notes Belcher. "Overall, we should achieve another year of increased financial results, with both sales and earnings expected to reach record levels, excluding the one-time charge."
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