X-Rite's Second Quarter Earnings Continue Growth Track
Press release from the issuing company
GRANDVILLE, Mich.--July 17, 2003-- X-Rite, Incorporated, announced its financial results for the second quarter ended June 28, 2003 reflecting the fourth consecutive quarter of year over year sales growth.
The Company reported a 15.6 percent increase in net sales to $28.2 million for the quarter ended June 28, 2003, compared to $24.4 million last year. Operating income for the quarter was $2.6 million, an increase of 60.1 percent, compared to $1.6 million in the prior year. Net income for the quarter was $2.0 million, or 10 cents per diluted share, compared to a loss of $5.5 million, or 27 cents per diluted share in the same quarter of the prior year. The prior year loss included a $6.6 million write down of technology investments made by XR Ventures.
For the six months ended June 28, 2003, net sales were $51.8 million, a 14.3 percent increase, compared to $45.4 million in the comparable period one year ago. Operating income for the same six month period was $4.1 million, or 222.9 percent over the operating income of $1.3 million one year ago. Net income for the same six month period was $3.0 million, or 15 cents per share, compared with net loss of $13.4 million, or 66 cents per share for the comparable period last year. The prior year loss included a $6.6 million write down of technology investments made by XR Ventures, and a charge for goodwill impairment of $7.6 million in connection with the adoption of new accounting rules.
Commenting on the quarter, Michael C. Ferrara, X-Rite's President, said, "I am delighted to report another quarter of growth to our shareholders. Over the past four quarters, X-Rite sales have increased 20.3 percent over the same prior period. Profitability has also shown dramatic improvement. We are performing well in spite of worldwide weakness in capital spending. However, current economic indicators suggest that the stage is set for an improved economy and capital spending growth -- good news for X-Rite.
Ferrara continued, "The consistent performance of X-Rite's core color businesses clearly indicates that industries value products that assist workflow and offer the potential to improve profitability. We are focusing on the strength of our color businesses and executing strategies that produce results for our stakeholders. In line with this mission, we have launched a new brand strategy to promote our products and services globally in a consistent manner. We are focused, accountable and executing initiatives that deliver results to our customers."
The Company reported the following highlights:
X-Rite recently reported its third acquisition of 2003, acquiring the assets of Monaco Systems, a Massachusetts-based company that develops and distributes color management software to the graphic arts and photo markets. This line of products provides the Company with a best-in-class color management software solution, broadening its ability to serve new and existing customers. Earlier this year, X-Rite acquired the ccDot meter product line of Centurfax Ltd., a London-based company, expanding its computer-to-plate product lines for the pre-press and printing industries to include the printing of flexible plastics and corrugated products. Also, in an agreement with Benjamin Moore & Co., the Company acquired the ColoRx product line and related assets from Thermo Electron Corporation, Benjamin Moore's former supplier. This new relationship enables X-Rite to replace aging equipment over time with its color matching solutions throughout the Benjamin Moore dealer network.
X-Rite launched a new brand strategy to consolidate its identity across many product lines. The Company believes a consistent visual identity will enable it to capitalize on X-Rite name recognition associated with innovative, service-oriented and reliable color solutions.
The Company was awarded the prestigious President's "E" Award for excellence in exporting. This award is given by the office of the President of the United States to companies who have grown their export business over a consecutive four year period and displayed innovation and creativity in product and marketing initiatives. Currently, 44 percent of X-Rite's business is outside of the United States.
The Company was recognized as one of West Michigan's Top 10 "Best and Brightest" places to work by the Michigan Business & Professional Association. X-Rite employees embrace the core culture principles of customer, accountability and performance excellence participating directly to the Company's success.
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