GRANDVILLE, Mich.--April 17, 2003-- X-Rite, Incorporated, a leading global provider of measurement solutions for color and light, today announced its financial results for the first quarter ended March 29, 2003.
The Company reported a 12.7 percent increase in net sales to $23.6 million for the quarter ended March 29, 2003, compared to $21.0 million last year. Operating income for the quarter was $1.6 million, compared to a loss of $0.3 million in the prior year. Net income for the quarter was $1.0 million, or 5 cents per diluted share, compared with a net loss of $7.9 million, or 39 cents per diluted share in the prior year. The prior year included a non-cash impairment charge of $7.6 million, or 38 cents per diluted share, in connection with the adoption of a new accounting standard for goodwill and intangible assets.
Commenting on the quarter, Michael C. Ferrara, X-Rite, Incorporated's President, said, "We are very pleased with these results. The Company is focused on creating opportunities for growth, developing strategic relationships, and capitalizing on our market position and competitive advantage. Our customer base continues to strengthen and expand as we create a business environment that is customer-centric and rooted in fundamental economics. We are aggressively pursuing color-related acquisitions that will have an immediate impact on our ability to improve and expand the markets we serve. Here are few highlights from this quarter that I believe illustrate X-Rite's "play to win" philosophy:
Benjamin Moore & Co. selected X-Rite as its leading color management solutions provider and signed a comprehensive, long-term agreement to install MatchRite products throughout its dealer network. To ensure that we properly support Benjamin Moore's installed base of color measurement instruments, we acquired Thermo Electron's ColoRx product line. Now we can offer uninterrupted service and support to all Benjamin Moore authorized dealers, as they migrate over time to our MatchRite color management solutions.
With our recent acquisition of the ccDot product line from Centurfax Ltd., X-Rite can now offer graphic arts customers a full line of products for the measurement of printing plates, including flexography, a new capability for the Company. This specialty printing category uses rubber plates for flexible plastics, plastic bags and corrugated products. Many of our existing print customers are pleased to know that X-Rite has expanded its measurement solutions, and we also believe this product acquisition will enable us to serve many new customers who specialize in this type of printing.
We are pleased to report that our ShadeVision System was awarded Most Innovative New Product of the Year at this year's prestigious REALITY Awards. The ShadeVision System, an electronic shade-matching device, was singled out based on actual clinical use combined with research findings by REALITY Publishing, a recognized authority in product evaluation and testing for the dental marketplace. With the continued support of our distribution partner Sullivan-Schein, and over 1,000 units in the market, this product is gaining industry-wide acceptance."
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