Newsbits
MicroTouch Reports 12.4% Sales Increase for 1998, 56% Increase in Earnings
Per Share - Both New Records; Announces 1999 Strategy
(Business Wire; 02/02/99)
METHUEN, MASS. (Feb. 2) BUSINESS WIRE -Feb. 1, 1999--MicroTouch Systems, Inc.
(NASDAQ: MTSI) today announced that revenues for its fourth quarter of 1998
increased by 10% to $36.6 million compared to $33.3 million for the fourth
quarter of 1997. MicroTouch recorded net earnings from operations of $2.5
million ($0.33 per share) as compared to net earnings from operations of
$17,000 for the fourth quarter of 1997. During the fourth quarter of 1997, the
Company recorded a $2.3 million (pre-tax) restructuring charge for its Business
Products Division. Excluding this charge in 1997, this year's fourth quarter
earnings of $2.5 million increased 56% as compared to last year's fourth
quarter earnings of $1.6 million or $0.17 per share.
For the year ended December 31, 1998, MicroTouch's revenue increased 12.4% to
$144.4 million, compared to $128.5 million for 1997. Including the 1997
restructuring charge, net income for last year was $6.4 million ($0.77 per
share) as compared to $9.4 million ($1.20) in 1998. Excluding the 1997
restructuring charge, foreign exchange losses in both years and a $600,000 one-
time, non-recurring pre-tax charge for the final settlement of the Nissha
arbitration matter recorded during the second quarter of 1997, net income rose
$0.6 million or 7% to $9.6 million ($1.23 per share) as compared to 1997
operating earnings of $9.0 million ($1.08 per share).
"1998 was a year of transition for MicroTouch", said Geoffrey Clear, vice
president - finance and administration. "Revenues increased by 12.5% as
compared to 1997 and, more importantly, earnings per share increased by 56%.
Our net earnings for the fourth quarter, at $0.33 per share, exceeded our
expectations as we again improved the gross margins in our touchscreen product
line and maintained control over our discretionary expenses in spite of our
drive to increase our engineering investments. During 1998, we also transformed
our whiteboard product line from being a significant financial drain in 1997 to
being essentially breakeven by the end of 1998.
Wes Davis, president and chief executive officer, stated that "MicroTouch is
very excited about its growth prospects for 1999. During 1998 we implemented
multiple engineering and sales/marketing initiatives on a global basis which
will substantially strengthen our number one position in the public access
market for touchscreens. In 1999, we intend to focus on the development of a
next generation capacitive product line which will strengthen its tradition of
leadership and offer signficant value enhancement to our customers. In
addition, we are now positioned to enter the rapidly expanding market for
touchscreens applied to portable consumer devices such as internet phones,
paging devices, personal organizers and notebook computers. We believe that the
touchscreen market will see a paradigm shift to this segment in the next
several years and we intend to be the leading supplier in this growth segment.
We anticipate that 1999 will be a strong year for the touchscreen industry and
we are planning accordingly."
MicroTouch Systems, Inc. is the world's leading provider of complete computer
touch-input solutions. Its touchscreen hardware and software technologies have
consistently led the industry in numerous innovations and standards. Founded in
1982, MicroTouch reported sales of $144.4 million in fiscal 1998. With its
headquarters and ISO 9001-certified manufacturing plant in Methuen, Mass.,
MicroTouch also maintains manufacturing facilities in New York, the United
Kingdom, Japan, Taiwan and Australia, along with sales offices and distributors
in numerous other countries.
MicroTouch Web site: http://www.microtouch.com
Consolidated Sales/Earnings Summary
(in thousands)
Three Months Twelve Months
Ended December 31, Ended December 31,
1998 1997 1998 1997
(unaudited)
Net sales $ 36,570 $ 33,301 $144,370 $128,481
Cost of sales 22,124 23,788 88,950 83,553
Gross profit 14,446 9,513 55,420 44,928
Operating expenses:
Research and development 3,065 2,214 10,904 7,985
Sales and marketing 5,379 5,019 21,235 18,765
General and administrative 2,679 2,039 10,012 7,944
Amortization of
intangible assets 121 120 502 477
Total operating
expenses 11,244 9,392 42,654 35,171
Operating income 3,202 121 12,767 9,757
Other income (expense) 471 (293) 1,009 579
Arbitration costs -- -- -- 595
Income/(loss) before
provision for income
taxes 3,673 (172) 13,776 9,741
Provision/(benefit)
for income taxes 1,175 (189) 4,408 3,330
Net income (1) $ 2,498 $ 17 $ 9,368 $ 6,411
Diluted earnings per
share(1) $ 0.33 -- $ 1.20 $ 0.77
Weighted average common
and common equivalent shares
outstanding 7,524 8,338 7,815 8,349
Basic earnings per share $ 0.34 -- $ 1.22 $ 0.81
Weighted average
common and common equivalent
shares outstanding 7,404 8,005 7,672 7,941
(1)Excluding foreign exchange
losses and special
charges:
Net income $ 2,388 $ 1,996 $ 9,599 $ 8,999
Diluted earnings per share $ 0.32 $ 0.24 $ 1.23 $ 1.08
Consolidated Condensed Balance Sheets
(in thousands)
December 31,
1998 1997
Assets
Cash and marketable securities $ 37,662 $ 34,751
Accounts receivable, net 23,265 17,348
Inventories 15,954 19,075
Other current assets 5,717 7,980
Property and equipment, net 17,452 13,308
Other assets 1,958 2,375
Total Assets $102,008 $ 94,837
Liabilities and Stockholders' Equity
Current liabilities $ 23,790 $ 15,889
Stockholders' equity 78,218 78,948
Total Liabilities and Stockholders' Equity $102,008 $ 94,837
This press release contains forward-looking statements that involve risks and
uncertainties. The Company's actual results and other events may differ
significantly from the results and events discussed in the forward-looking
statements. Readers are cautioned not to place undue reliance on these forward-
looking statements which speak only as of the date hereof. The Company
undertakes no obligation to publicly release the result of any revisions to
these forward-looking statements which may be made to reflect events or
circumstances occurring after the date hereof or to reflect the occurrence of
unanticipated events.
|
| Thanks Kinetic!
© 1998 Kiosks.Org. |
|