Baldwin Reports Q3 Results: Sales and Earnings Down
Press release from the issuing company
Shelton, CT, May 7, 2003 – Baldwin Technology Company, Inc., a leading international manufacturer of accessory and control equipment for the printing industry, today reported financial results for its fiscal quarter ended March 31, 2003.
Net sales for the quarter were $31,061,000 compared to $37,867,000 for the quarter ended March 31, 2002. The Company reported a net loss for the quarter of $1,117,000 or $0.07 per diluted share, versus net income of $1,038,000 or $0.07 per diluted share for the third quarter of the prior year. Cash flow from operations for the three months ended March 31, 2003 was $316,000 including $1.1 million of cash payments for restructuring. Backlog at March 31, 2003 was approximately $49,868,000 up from $47,348,000 at December 31, 2002.
Gerald A. Nathe, Chairman, President and CEO, commented: “We had noted during our second quarter comments that it was difficult to forecast the timing of shipments on a month to month basis, and that shipments could be delayed from one quarter to the next, depending upon customer requirements. Regrettably, some delays did occur, and our third quarter shipments were lower than expected. However, as previously indicated, we continue to expect our fourth quarter sales to be approximately at the same level as sales were during the quarter ended December 31, 2002. In the months ahead, we believe that the demand for print will continue to improve, but that the printing equipment market will remain challenging. As a result, we continue to be aggressive in our pursuit of both new and retrofit business opportunities, and in our efforts to actively reduce our manufacturing costs and operating expenses. During the last quarter, we continued to adjust our employee base, decreasing it to 544, down a further 5% from December 31, 2002.”
Vijay C. Tharani, Vice President and CFO, added: “We are pleased to report that the Company has received a waiver from its banks in connection with certain financial covenants related to the third quarter that are contained in the Company’s credit agreements. The Company has also discussed the possibility of an extension of the July 1, 2003 maturity of its loans with the banks, though there can be no assurance that such discussions will lead to an extension being granted. Furthermore, we are in active discussions with several parties regarding possible transactions, any of which, if successfully executed, would provide longer-term solutions to the Company’s current short-term financing needs.”
Mr. Nathe concluded: “The Company and its Board are working diligently and aggressively in the best interests of its shareholders, customers, vendors and employees to address Baldwin’s needs.”
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