EX-99 2 a4882251ex99.txt EXHIBIT 99 - PRESS RELEASE Exhibit 99 Printronix Announces Fourth Quarter and Fiscal Year 2005 Results; Increased Revenue and Profits IRVINE, Calif.--(BUSINESS WIRE)--May 5, 2005--Printronix, Inc., (NASDAQ:PTNX), the leading manufacturer of integrated enterprise printing solutions for the supply chain, today announced fiscal fourth quarter revenue of $32.7 million, up 3.6% from $31.6 million in the same period of fiscal 2004. The company reported net income for the quarter of $0.8 million, or $0.12 per diluted share, compared with net income of $45,000, or $0.01 per diluted share, in the same period of fiscal 2004. Revenue for the fiscal year 2005, which ended March 25, 2005, was $131.7 million, up 5.3% from $125.1 million a year ago. Net income for fiscal 2005 was $2.1 million, or $0.32 per diluted share, up from net income of $0.6 million, or $0.11 per diluted share, a year ago. Gross margin was 38.7% for the fourth quarter, up from 38.0% in the same period one year ago, primarily as a result of a stronger Euro. For fiscal 2005, gross margin was 39.1%, up from 37.9% for the prior fiscal year, primarily due to higher sales volumes and a stronger Euro, and was somewhat offset by product mix changes. Operating expenses in the fourth quarter were $11.9 million, down from $12.3 million in the same period of the previous fiscal year due primarily to higher engineering costs related to the initial development of RFID products last year. Operating expenses for fiscal year 2005 were $48.6 million, up from $46.4 million in the prior fiscal year due primarily to the expansion of sales and marketing efforts, primarily in the EMEA and Asia Pacific regions, marketing efforts related to launching RFID and demand generation programs. In addition, legal expenses and costs to comply with Sarbanes-Oxley requirements were higher in fiscal year 2005 than in the prior fiscal year. During the quarter, the company obtained an extension of its tax holiday in Singapore and reduced income tax expense accordingly, resulting in a tax benefit of $34 thousand. In the fourth quarter of fiscal 2004, the company booked net income tax benefits related to available research and development credits, resulting in a benefit of $0.5 million. Income tax expense for the fiscal year 2004 was lower than fiscal 2005 due to the research and development credits. The company ended the fiscal fourth quarter with cash of $44.9 million, up $8.2 million compared with the same period of fiscal 2004. The company did not repurchase any shares of its common stock during fiscal year 2005. "During fiscal 2005, we experienced a positive turnaround in sales for Printronix's worldwide core printer business, which was augmented by early success in the deployment of RFID printing solutions in the U.S. for Wal-Mart/DOD requirements," said Robert Kleist, President and CEO of Printronix. "With a strong balance sheet, Printronix is positioned to capitalize on a variety of opportunities to continue to grow in our core business as well as RFID, as that new technology continues to be deployed by a variety of industries." There will be an earnings conference call at 1:30 p.m. PT (4:30 p.m. ET) on May 5, 2005. The call will be broadcast live over the Internet and will be hosted by Robert Kleist, President and CEO and George Harwood, Senior Vice President and CFO. To access the live audio webcast, go to the Printronix Web site at www.printronix.com and select the conference call link to register. Except for historical information, this press release contains "forward-looking statements" about Printronix, within the meaning of the Private Securities Litigation Reform Act of 1995. Terms such as "objectives," "believes," "expects," "plans," "intends," "should," "estimates," "anticipates," "forecasts," "projections," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including: adverse business conditions and a failure to achieve growth in the computer peripheral industry and in the economy in general; the ability of the company to achieve growth in the Asia Pacific market; adverse political and economic events in the company's markets; a worsening of the global economy due to general conditions; a worsening of the global economy resulting from terrorist attacks or risk of war; a worsening of the global economy resulting from a resurgence of SARS (Severe Acute Respiratory Syndrome); the ability of the company to maintain our production capability in our Singapore plant or obtain product from our Asia Pacific suppliers should a resurgence of SARS occur; the ability of the company to hold or increase market share with respect to line matrix printers; the ability of the company to successfully compete against entrenched competition in the thermal printer market; the ability of the company to adapt to changes in requirements for RFID products by Wal-Mart and/or the Department of Defense and others; the ability of the company to attract and to retain key personnel; the ability of the company's customers to achieve their sales projections, upon which the company has in part based its sales and marketing plans; the ability of the company to retain its customer base and channel; the ability of the company to compete against alternate technologies for applications in our markets; and the ability of the company to continue to develop and market new and innovative products superior to those of the competition and to keep pace with technological change. The company does not undertake to publicly update or revise any of its forward-looking statements, even if experience or future changes show that the indicated results or events will not be realized. About Printronix, Inc. Since 1974, Printronix, Inc. (NASDAQ:PTNX) has created innovative printing solutions for the industrial marketplace and supply chain. The company is the worldwide market leader in enterprise solutions for line matrix printing and has earned an outstanding reputation for its high-performance thermal and fanfold laser printing solutions. Printronix also has become an established leader in pioneering technologies, including radio frequency identification (RFID) printing, bar code compliance and networked printer management. Printronix is headquartered in Irvine, Calif. For more information, please visit www.printronix.com. Printronix, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) (Dollars in Thousands, Except Share and Per Share Data) Three Months Ended Twelve Months Ended 3/25/05 12/24/04 3/26/04 3/25/05 3/26/04 Revenue $32,697 $33,928 $31,564 $131,711 $125,070 Cost of sales 20,041 20,410 19,577 80,189 77,670 Gross margin 12,656 13,518 11,987 51,522 47,400 Engineering and development 3,711 4,137 4,077 15,762 15,885 Sales and marketing 6,190 6,041 6,086 24,414 22,269 General and administrative 1,967 2,208 2,180 8,462 8,249 Total operating expenses 11,868 12,386 12,343 48,638 46,403 Income (loss) from operations 788 1,132 (356) 2,884 997 Other (income) expense, net (2) (113) 89 (46) 313 Income (loss) before taxes 790 1,245 (445) 2,930 684 (Benefit) provision for taxes (34) 309 (490) 831 52 Net income $824 $936 $45 $2,099 $632 Earnings Per Share: Basic $0.13 $0.15 $0.01 $0.33 $0.11 Diluted $0.12 $0.14 $0.01 $0.32 $0.11 Shares Used in Earnings Per Share Computation: Basic 6,429,487 6,373,220 5,956,981 6,356,236 5,734,633 Diluted 6,613,757 6,575,396 6,199,913 6,538,321 5,961,035 Gross margin % 38.7% 39.8% 38.0% 39.1% 37.9% Operating expenses % 36.3% 36.5% 39.1% 36.9% 37.1% Income (loss) from operations % 2.4% 3.3% (1.1%) 2.2% 0.8% Net income % 2.5% 2.8% 0.1% 1.6% 0.5% Consolidated Balance Sheets (Unaudited) (Dollars in Thousands) 3/25/05 12/24/04 3/26/04 Assets Cash and equivalents $44,905 $41,892 $36,671 Accounts receivable, net 18,207 17,730 18,408 Inventory, net 13,093 15,054 13,617 Other current assets 4,318 4,923 6,932 Property, plant and equipment, net 32,926 33,254 34,960 Other assets 2,017 1,262 1,221 Total assets $115,466 $114,115 $111,809 Liabilities and Stockholders' Equity Short-term debt $700 $700 $700 Accounts payable 7,162 8,164 6,965 Other current liabilities 12,244 11,331 11,962 Other long-term liabilities 16,044 15,953 15,989 Stockholders' equity 79,316 77,967 76,193 Total liabilities and stockholders' equity $115,466 $114,115 $111,809 Printronix, Inc. and Subsidiaries Revenue Classification (Unaudited) Revenue by Geographic Region Three Months Ended Percent of Total Revenue March 25, March 26, Percent March 25, March 26, 2005 2004 Change 2005 2004 ($ in thousands) Americas $16,272 $14,967 8.7% 49.8% 47.4% EMEA 11,131 11,049 0.7% 34.0% 35.0% Asia Pacific 5,294 5,548 (4.6%) 16.2% 17.6% $32,697 $31,564 3.6% 100.0% 100.0% Revenue by Product Technology Three Months Ended Percent of Total Revenue March 25, March 26, Percent March 25, March 26, 2005 2004 Change 2005 2004 ($ in thousands) Line matrix $22,242 $21,710 2.5% 68.0% 68.8% Thermal 6,664 5,374 24.0% 20.4% 17.0% Laser 3,309 3,971 (16.7%) 10.1% 12.6% Verification products 482 509 (5.3%) 1.5% 1.6% $32,697 $31,564 3.6% 100.0% 100.0% RFID $765 $219 249.3% 2.3% 0.7% Revenue by Channel Three Months Ended Percent of Total Revenue March 25, March 26, Percent March 25, March 26, 2005 2004 Change 2005 2004 ($ in thousands) OEM $9,780 $8,319 17.6% 29.9% 26.4% Distribution 20,702 21,117 (2.0%) 63.3% 66.9% Direct 2,215 2,128 4.1% 6.8% 6.7% $32,697 $31,564 3.6% 100.0% 100.0% Revenue by Customer Three Months Ended Percent of Total Revenue March 25, March 26, Percent March 25, March 26, 2005 2004 Change 2005 2004 ($ in thousands) Largest customer - IBM $6,522 $5,989 8.9% 19.9% 19.0% Second largest customer 2,560 2,982 (14.2%) 7.8% 9.4% Top ten customers 16,444 16,166 1.7% 50.3% 51.2% Printronix, Inc. and Subsidiaries Revenue Classification (Unaudited) Revenue by Geographic Region Twelve Months Ended Percent of Total Revenue March 25, March 26, Percent March 25, March 26, 2005 2004 Change 2005 2004 ($ in thousands) Americas $62,419 $63,579 (1.8%) 47.4% 50.9% EMEA 46,651 42,183 10.6% 35.4% 33.7% Asia Pacific 22,641 19,308 17.3% 17.2% 15.4% $131,711 $125,070 5.3% 100.0% 100.0% Revenue by Product Technology Twelve Months Ended Percent of Total Revenue March 25, March 26, Percent March 25, March 26, 2005 2004 Change 2005 2004 ($ in thousands) Line matrix $92,463 $89,620 3.2% 70.2% 71.6% Thermal 24,249 18,345 32.2% 18.4% 14.7% Laser 12,874 14,715 (12.5%) 9.8% 11.8% Verification products 2,125 2,390 (11.1%) 1.6% 1.9% $131,711 $125,070 5.3% 100.0% 100.0% RFID $2,647 $294 800.3% 2.0% 0.2% Revenue by Channel Twelve Months Ended Percent of Total Revenue March 25, March 26, Percent March 25, March 26, 2005 2004 Change 2005 2004 ($ in thousands) OEM $39,093 $39,093 (0.0%) 29.7% 31.3% Distribution 84,530 78,962 7.1% 64.2% 63.1% Direct 8,088 7,015 15.3% 6.1% 5.6% $131,711 $125,070 5.3% 100.0% 100.0% Revenue by Customer Twelve Months Ended Percent of Total Revenue March 25, March 26, Percent March 25, March 26, 2005 2004 Change 2005 2004 ($ in thousands) Largest customer - IBM $28,367 $27,929 1.6% 21.5% 22.3% Second largest customer 10,426 11,090 (6.0%) 7.9% 8.9% Top ten customers 66,479 64,234 3.5% 50.5% 51.3% CONTACT: Printronix, Inc., Irvine Robert A. Kleist, 714-368-2863 George L. Harwood, 714-368-2384 or EVC Group, Inc. Douglas M. Sherk (Investors), 415-896-6818 dsherk@evcgroup.com or Jennifer Beugelmans (Investors), 415-896-6817 jbeugelmans@evcgroup.com or WunderMarx, Inc. Cara Good (Media), 949-860-2434, Ext. 312 cara.good@wundermarx.com