X-Rite Reports Third Quarter Results, Revenue Down Slightly
Press release from the issuing company
GRANDVILLE, Mich.--Oct. 18, 2001--X-Rite, Incorporated a leading global provider of technology enhancing solutions that measure color, light and shape, today announced its financial results for the third quarter ended September 29, 2001.
The Company reported third quarter net sales of $21.7 million, compared to last year's net sales of $23.1 million. Net income for the quarter was $0.4 million, or 2 cents per share, compared with net income of $1.9 million, or 9 cents per share for the same period last year. Earlier, the company announced a reduction in its workforce and an associated restructuring charge. Exclusive of that charge, net income would have been $1.3 million, or 6 cents per share for the quarter.
For the first nine months ended September 29, 2001, net sales were $71.5 million, compared to $75.5 million in the comparable period one year ago. Net income for the same nine month period was $4.6 million, or 21 cents per share, compared with net income of $9.0 million, or 43 cents per share for the same nine month period last year. Exclusive of the restructuring charge, net income for the nine month period ended September 29, 2001 would have been $ 5.5 million, or 25 cents per share.
The company recently reported that the restructuring charge taken during the third quarter of approximately $800,000 was in connection to the elimination of 60 jobs. Citing the continuing economic downturn in North America as the primary motivator for this action, the company noted that the workforce reduction would save $3.5 million annually.
"Despite economic uncertainty, we strongly believe in our future,'' said Rich Cook, chief executive officer of X-Rite, Incorporated. While we are disappointed with third quarter results, we continue to focus on new initiatives and partnerships with customers and distribution channels renown for excellence and leadership in their respective markets. In particular, this quarter we announced two very important alliances."
* We have signed an exclusive U.S. distribution agreement with Sullivan-Schein Dental to market our new dental product, ShadeVision(TM). This proprietary biosensor vision system is available to dental practitioners and laboratories around the world, and represents the largest market we have entered over the past three years. Sullivan-Schein is the largest distributor of healthcare products and services to office-based healthcare practitioners in the combined North American and European markets.
* We recently partnered with Karl Suss America, an international manufacturer of precision micro-electronics equipment, improving optical testing of VCSEL (vertical cavity surface emitting laser) components at the wafer level for semiconductor manufacturers. Our VCSEL Prober System launched in Europe last week. This product allows manufacturers of telecom transmission devices to rapidly and inexpensively characterize electro-optic parameters of lasers at the wafer level removing significant costs and improving output.
Cook added, "Looking for ways to grow our business with product development, industry alliances and customer relationships is a priority at X-Rite. To all of our customers and shareholders, we commit to work through whatever economic conditions are laid before us by raising efficiency levels to produce an improved bottom line.''
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