HAUPPAUGE, N.Y., May 9 -- Disc Graphics announced its financial results for the first quarter ended March 31, 2002.
Disc Graphics' first quarter 2002 net income was $26,000 or $.00 per share based on 5,527,147 diluted shares compared to a net loss of $744,000 or $.13 per share based on 5,518,242 diluted shares in 2001. Revenues decreased in the first quarter by 18.8% to $11,002,000 compared with revenues of $13,544,000 in the first quarter of 2001. The revenue decline is due, in part, to the continued economic downturn, the closure of the Company's Indiana facility, and abandoning the acquisition of Contemporary Color Graphics, Inc. which took place on July 1, 1999.
Commenting on the first quarter results, Donald Sinkin, Chairman and Chief Executive Officer, said: "The quarter's results are very encouraging given the fact that the first quarter has traditionally been our slowest in both revenue and profit. Our effort to focus on cost reduction and operational efficiency has had a very positive result on our bottom line." This also represents the third consecutive quarter of profit (i.e., before unusual item in the fourth quarter of 2001, the nonrecurring write off of intangibles). Also, the reduction of debt through operating cash flow has reduced the debt service and increased the bank line availability. The Company believes this has added to the stabilization of the Company financially.
Mr. Sinkin added, "Given these factors, I feel very positive about how the employees of Disc Graphics have successfully responded to difficult economic times. We have so much to be proud of, especially the loyalty of our employees, customers, and suppliers."
Disc Graphics, headquartered in Hauppauge, NY, is a diversified manufacturer and printer of specialty packaging focused on the home video, pharmaceutical, music, publishing and cosmetic markets. Disc Graphics products include prerecorded video, CD-ROM and audiocassette packaging, folding cartons for pharmaceuticals and cosmetics, book jackets, posters, pressure-sensitive labels and general commercial printing.
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