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Metrologic Announces Record Financial Results for First Quarter; $2.2 Million One-Time Gain from Repayment of Debt Adds to Net Income; Total Debt Reduced to $15.3 Million
BLACKWOOD, N.J., Apr 29, 2003 (BUSINESS WIRE) -- Metrologic Instruments, Inc.
(Nasdaq: MTLG), a leading manufacturer of sophisticated imaging systems using
laser, holographic, camera and vision-based technologies, high-speed automated
data capture solutions and bar code scanners, today announced its financial
results for the first quarter ended March 31, 2003 and updated financial
guidance for 2003.
Sales increased 17.3% to $32.3 million for the first quarter of 2003 compared
with $27.5 million for the same period last year. Net income was $1.9 million,
or $0.33 per diluted earnings per share excluding the one-time gain of $2.2
million resulting from a discount earned on the early repayment of certain
subordinated debt and the write-off of certain costs associated with the
Company's new credit agreements. This compares with net income of $0.02 million,
or $0.00 per diluted earnings per share, for the same period last year.
The 2003 first quarter sales and net income represent the largest amount of
sales and net income for any quarter in the 35-year history of the Company.
In connection with a previously reported early repayment agreement of
subordinated debt relating to the acquisition of Adaptive Optics Associates,
Inc. ("AOA"), the Company earned a $2.2 million discount when this debt was
repaid in full in the first quarter. For tax purposes, the $2.2 million will be
treated as a reduction of the purchase price of AOA, and as such will not be
subject to federal or state income taxes. In connection with this early
repayment and the previously reported refinancing of the Company's bank debt in
the first quarter, the Company incurred related costs of approximately $0.3
million, net of income taxes, that were charged to first quarter earnings.
Accordingly, the total net income for the first quarter of 2003 was $3.8 million
or $0.67 per diluted earnings per share.
At March 31, 2003, the Company's total debt was $15.3 million, reduced from
approximately $50 million in January 2001. The $15.3 million of total debt
includes $1.0 million in debt resulting from a non-recourse accounts receivable
factoring agreement, which is classified as a reduction of accounts receivable
on the balance sheet.
Commenting on the first quarter results, Metrologic's CEO, C. Harry Knowles,
stated, "Metrologic's current profitability and reduced bank debt represents the
successful execution of a plan that we put into place in 2001. Our plan was and
is to expand sales by increasing market share through the introduction of new
products for new markets, reduce debt and interest costs, and reduce the
Company's production and other operating costs through strong cost and cash
controls."
Knowles added, "I am gratified with the 17.3% increase in sales in the first
quarter, which resulted primarily from increased sales of the Company's
point-of-sale and OEM scanners. Sales increased in most geographic territories,
particularly in Europe and North America. Looking forward, I am optimistic about
the sales opportunities that should result from shipments of Metrologic's new
bi-optic supermarket scanner, Stratos(TM), which is currently being tested at
several locations. Shipments of Stratos should begin during this second quarter
and will represent further execution on our plan of expanding sales through the
introduction of new products to markets new to Metrologic."
2003 Outlook
Metrologic increased its financial projections for 2003. The Company expects
second quarter sales of approximately $30 million to $32 million and net income
of $0.26 to $0.28 per diluted earnings per share, assuming that the Severe Acute
Respiratory Syndrome ("SARS") related production delays remain at the present
minor level, and that the value of the euro compared to the U.S. dollar
maintains a range no worse than $1.02 to $1.07 U.S. dollars to the euro.
For the full year 2003, Metrologic expects sales of $127 million to $132 million
and net income of $1.10 to $1.15 per diluted earnings per share, excluding the
one-time gain of $2.2 million and the write-off of certain costs associated with
the Company's new credit agreements in the first quarter as noted above.
About Metrologic
Metrologic designs, manufactures and markets bar code scanning and high-speed
automated data capture systems solutions using laser, holographic, camera and
vision-based technologies. Metrologic offers expertise in 1D and 2D bar code
reading, portable data collection, optical character recognition, image lift,
and parcel dimensioning and singulation detection for customers in retail,
commercial, manufacturing, transportation and logistics, and postal and parcel
delivery industries. In addition to its extensive line of bar code scanning and
vision system equipment, the company also provides laser beam delivery and
control systems to semi-conductor and fiber optic manufacturers, as well as a
variety of highly sophisticated optical systems. Metrologic products are sold in
more than 100 countries worldwide through Metrologic's sales, service and
distribution offices located in North and South America, Europe and Asia.
Forward-Looking Statements
Forward-looking statements contained in this release are highly dependent upon a
variety of important factors which would cause actual results to differ
materially from those reflected in such forward looking statements.
Specifically, the factors that could cause actual results to differ from
expectations include: The timing, introduction and market acceptance of
Metrologic's new products including, but not limited to the Stratos; foreign
currency fluctuations with the US dollar; the potential impact on production and
sales resulting from the outbreak of Severe Acute Respiratory Syndrome ("SARS")
in Asian and other markets, pricing pressures; competitive factors; sales cycles
of Metrologic's products; Metrologic's ability to control manufacturing and
operating costs which affect future profitability; technological changes in the
scanner industry, specifically vision-based technologies; availability of patent
protection for Metrologic's camera, vision-based technologies and other
products; the resolution of litigation; general economic conditions; and the
potential impact of terrorism and international hostilities. When used in this
release and documents referenced, the words "believes," "expects," "may,"
"should," "seeks," or "anticipates," and similar expressions as they relate to
Metrologic or its management are intended to identify such forward-looking
statements. For additional factors, please see Metrologic's reports filed with
the Securities and Exchange Commission.