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Baldwin Reports Q2 Results: Profitable orders in a difficult market

Press release from the issuing company

SHELTON, Conn.--Feb. 5, 2003--Baldwin Technology Company, a leading international manufacturer of accessory and control equipment for the printing industry, today reported financial results for its fiscal quarter ended December 31, 2002. Net income for the quarter was $990,000 or $0.07 per diluted share, versus $159,000 or $0.01 per diluted share for the second quarter of the prior year. Net sales for the quarter were $35,288,000 compared to $34,217,000 for the quarter ended December 31, 2001. Backlog as of the end of December, 2002 was approximately $47,300,000. Gerald A. Nathe, Chairman, President and CEO, commented: "We are pleased to report favorable second quarter results. This performance was driven by the efforts of Baldwin employees around the globe. These employees obtained profitable orders in a difficult market, drove cost out of our operations to make us competitive, and delivered reliable, effective products to our worldwide customer base. They are to be congratulated on doing a remarkable job under trying circumstances." "While we had a favorable quarter, the printing equipment market continues to be challenging. We need to continue to aggressively manage our production costs and operating expenses during the upcoming months. And although the timing of shipments between quarters is difficult to pinpoint in today's economic climate, we expect sales to be at or slightly above the first half level." Vijay C. Tharani, Vice President and CFO, added: "Our operating income from continuing operations for the current quarter was approximately $1,000,000 and reflects the savings associated with our ongoing cost reduction efforts. As previously indicated, we expected to be cash positive at the end of December and in fact recorded a cash inflow from operations of approximately $1,500,000 for the six months ended December 31, 2002. Orders remain stable and we are predicting a modest increase in our backlog over the upcoming months."