Baldwin Reports Profit in Second Quarter, RFQ Activity Picks Up
Press release from the issuing company
SHELTON, CT--February 6, 2002--Baldwin Technology Company, Inc. today announced a return to profitability for the first time in three quarters.
Net income for the Company's second quarter ended December 31, 2001 was $159,000 or $0.01 per diluted share, compared to net income of $1,170,000, or $0.08 per diluted share, for the second quarter of the prior year. Net sales for the second quarter were $36,175,000 versus $45,758,000 for the prior year's comparable quarter. The previously divested operations added $127,000 of net income to the current period, and net sales of $10,871,000 and net income of $819,000 to the comparable period of the prior year. Foreign currency translation impacts decreased net sales by $1,912,000 and net income by $354,000, compared to the prior year. If adjusted for these factors, pro forma net sales and net income for the current second quarter would have been $38,087,000 and $386,000, respectively versus $34,887,000 and $351,000, respectively, for the comparable period last year.
Net sales for the six months ended December 31, 2001 were $74,714,000 versus $90,718,000 for the comparable period in the prior year. Year-to-date, the Company had a net loss of ($957,000) compared to net income for last year's comparable period of $1,807,000. The current and prior year amounts include net sales of $4,791,000 and $22,055,000, respectively, and a net (loss) income of ($596,000) and $1,615,000, respectively, associated with previously divested operations. Foreign currency translation impacts decreased net sales by $4,305,000 and net income by $409,000 compared to the prior year. Backlog as of December 31, 2001 was $50,512,000, essentially unchanged from the June 30, 2001 level.
John T. Heald, Jr., President and CEO, commented: "The marketplace for printing and equipment remains slow, and our orders were off during the second quarter. However, we are beginning to see some very early signs of a pick up in our quote activity, which has historically been a leading indicator of future orders. We are also negotiating several agreements for sales of our products into new market applications. Despite these positive signals, we are cautious and plan to take the steps necessary to achieve our financial targets.''
Vijay C. Tharani, Vice President and CFO, concluded: "At the end of our first quarter, we predicted that we would return toprofitability. We are now pleased to report positive operating income for our second quarter. Our restructuring efforts are on track and starting to show results. We expect to see continued improvement in our results as we refocus on our core accessory and control business.''
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