SHELTON, Conn.--April 28, 2005-- Baldwin Technology Company, Inc. reported today that net income for its third quarter ended March 31, 2005 was $1,509,000 or $0.10 per diluted share, representing a growth of approximately 100% over net income of $705,000 or $0.05 per diluted share for the comparable period of the prior year. Net sales for the quarter were $43,673,000 compared to net sales of $42,770,000 for the quarter ended March 31, 2004. Currency translation contributed approximately $1,120,000 to the gain in net sales and $130,000 to the net income improvement.
Vijay C. Tharani, Vice President and Chief Financial Officer, noted: "Our significant growth in earnings was primarily attributable to two factors -- an improvement in gross margins from a more favorable product mix, and reduced interest expense as a result of the refinancing of our bank loan earlier this fiscal year."
Net sales for the nine months ended March 31, 2005 were $124,902,000 compared to $116,724,000 net sales for the nine months ended March 31, 2004. Excluding the effects of currency translation, net sales grew by about 2% for the nine-month period. Year to date net income was $3,016,000 or $0.20 per diluted share, up 15.6% from net income of $2,608,000 or $0.17 per diluted share for the nine months ended March 31, 2004. The prior year's nine months income before taxes of $4,557,000 included approximately $1,600,000 of favorable foreign exchange gain associated with the Company's then outstanding debt.
Backlog at March 31, 2005 was up substantially at $57,500,000 from $50,500,000 at December 31, 2004. Orders for the third quarter were $50,700,000 compared to $43,711,000 for the previous quarter, representing an increase of 16%.
"Overall, we are very pleased with the results for the third quarter", Mr. Tharani added. "During the quarter, the Company generated $3,900,000 in operating cash flow, primarily due to decreased inventory and accounts receivable. This enabled the Company to repay approximately $4,700,000 of its outstanding debt. We continue to see improvement in both our order rates and our backlog levels, which have strengthened even further since the end of the third quarter. Looking ahead, we expect sales for the fiscal fourth quarter to exceed levels achieved in the third quarter."
Gerald A. Nathe, Chairman, President and Chief Executive Officer, further commented: "The third quarter contained other good news for the Company. In March, Baldwin entered into an alliance with Hildebrand Systeme, a German company that manufactures high performance web cleaning products. Earlier in the quarter, we released news of substantial newspaper orders received from Star Publications in Malaysia, Shimotsuke Newspaper in Japan, and the News Limited Group in Australia. Orders like these have helped to increase our backlog to some of the highest levels seen in a number of years."
In other news, the Company announced that, effective March 18, 2005, it had relocated its corporate offices to 2 Trap Falls Road, Suite 402, Shelton, CT 06484.
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