-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AT3Yumff14Pv+ArFC46RgtXEnoxO+4YJci9gb6RzeYHTuFwcZvi9HQJES/804jxS R6kLR0P5hFwCR31t/UZTDA== 0001157523-05-009322.txt : 20051027 0001157523-05-009322.hdr.sgml : 20051027 20051027160523 ACCESSION NUMBER: 0001157523-05-009322 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051027 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051027 DATE AS OF CHANGE: 20051027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRINTRONIX INC CENTRAL INDEX KEY: 0000311505 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 952903992 STATE OF INCORPORATION: DE FISCAL YEAR END: 0330 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-09321 FILM NUMBER: 051160177 BUSINESS ADDRESS: STREET 1: 14600 MYFORD ROAD STREET 2: P O BOX 19559 CITY: IRVINE STATE: CA ZIP: 92606 BUSINESS PHONE: 7143682300 MAIL ADDRESS: STREET 1: 14600 MYFORD ROAD STREET 2: PO BOX 19559 CITY: IRVINE STATE: CA ZIP: 92606 8-K 1 a5006183.txt PRINTRONIX, INC., 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 27, 2005 PRINTRONIX, INC. (Exact name of issuer as specified in its charter) DELAWARE 0-9321 95-2903992 (State or other juris- (Commission (IRS Employer diction of incorporation) File Number) Identification Number) 14600 Myford Road, P.O. Box 19559, Irvine, California 92623 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (714) 368-2300 Former name or former address, if changed since last report: Not Applicable Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition. ---------------------------------------------- On October 27, 2005, Printronix, Inc. issued a press release announcing its second quarter for fiscal year 2006 results. A copy of the Company's release announcing these financial results and certain other information is attached as Exhibit 99 to this Current Report on Form 8-K. Item 9.01. Financial Statements and Exhibits. ---------------------------------- (c) Exhibits 99. Press release of Printronix, Inc. dated October 27, 2005. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: October 27, 2005 Printronix, Inc. By: /s/ George L. Harwood ----------------------- George L. Harwood, Senior Vice President, Finance & IT, Chief Financial Officer and Secretary EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 99 Press release of Printronix, Inc. dated October 27, 2005 EX-99 2 a5006183ex99_1.txt EXHIBIT 99 Exhibit 99 Printronix Announces Second Quarter Results for Fiscal Year 2006 IRVINE, Calif.--(BUSINESS WIRE)--Oct. 27, 2005--Printronix, Inc. (NASDAQ:PTNX), the leading manufacturer of integrated enterprise printing solutions for the supply chain, today announced results for the second quarter of fiscal year 2006, which ended September 23, 2005. Second quarter revenue was $29.0 million, down approximately 9.0% from $31.8 million in both the year ago quarter and the first quarter of fiscal 2006. The company reported a net loss for the quarter of $1.6 million, or $0.26 per diluted share, compared with a net loss of $0.1 million, or $0.02 per diluted share, in the year ago quarter and net income of $0.2 million, or $0.03 per diluted share, in the first quarter of fiscal 2006. Revenue for the first six months of fiscal year 2006 was $60.7 million, down from $65.1 million a year ago. Year to date net loss was $1.4 million, or $0.22 per diluted share, compared with net income of $0.3 million, or $0.05 per diluted share, a year ago. "While we were disappointed by our sales results this quarter, we anticipate improved results beginning in the fiscal third and fourth quarters as we start to upgrade our existing installed base of line matrix printers to our new product lines," said Robert Kleist, President and CEO of Printronix. "During the fiscal second quarter, our sales were impacted by the continued softness in the Western European automotive and general manufacturing industries, and a lengthening of the sales cycle that resulted in sales not closing as expected in the U.S. market. However, the launch of the new P7000 line matrix printer is expected to provide new sales opportunities to upgrade our current installed base since we have received positive customer feedback on the new P7000, branded under both the Printronix and IBM brands." "In the RFID market, the launch of Gen2 products created some uncertainty as end users were either considering implementing or migrating to Gen2 technology," continued Mr. Kleist. "In September, Printronix advanced its position in RFID leadership and became the first company to deliver RFID printing solutions that are interoperable with the new EPC Gen2 protocol. We believe that the introduction of Gen2 technology will become a driver of market adoption as it provides a standard infrastructure for advanced features and process improvements." Gross margin was 37.3% for the second quarter, down slightly from 37.8% in the same period a year ago and down from 38.7% in the first quarter of fiscal 2006, mostly due to lower production volumes partly offset by favorable product mix. For the first six months of fiscal year 2006, gross margin was 38.0%, down from 38.9% for the year ago period, primarily for the same reasons. Operating expenses in the quarter were $12.5 million, up from $11.9 million in the year ago fiscal period. General and administrative expenses increased primarily as a result of higher consulting and audit costs associated with satisfying Sarbanes-Oxley requirements and increased legal costs. Launch of the company's new P7000 line matrix printer increased sales and marketing expenses during the current quarter. Engineering and development expenses decreased during the current quarter as a result of savings from cost cutting initiatives partly offset by increased expenses for product certification. Year to date operating expenses increased to $24.7 million, up from $24.4 million a year ago, mostly for the reasons stated above, and were partly offset by a reduction of $0.4 million in the company's provision for doubtful accounts during the first six months of fiscal year 2006. The company ended the second fiscal quarter of 2006 with cash and short-term investments of $42.6 million, up from $39.6 million compared with the second quarter of fiscal 2005, but down from $44.3 million at the end of the first quarter of 2006. The decrease in cash from the prior quarter is partly due to a temporary increase in inventories from product transitioning and partly due to a cash dividend of $0.4 million paid in September. Interest income increased $0.3 million compared with the year ago quarter due to higher cash and short-term investment balances and higher interest rates; year-to-date interest income increased $0.5 million compared to the year ago period for the same reasons. There will be an earnings conference call at 1:30 p.m. PT (4:30 p.m. ET) on October 27, 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 web cast, go to the Printronix web site at www.printronix.com and select the conference call link to register. If you are unable to listen to the live web cast, it will be archived for replay on the web site. To listen to the live conference call via the telephone, you can access the call at 800-395-0708. Shortly after the call, a telephonic replay will be available through November 10, 2005, by dialing 888-203-1112 or 719-457-0820. Passcode I.D. 4537920 is required for both the telephonic live call and the telephonic replay. 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 an outbreak of avian flu or other world health epidemic; a resurgence of SARS (Severe Acute Respiratory Syndrome); the ability of the company to maintain its production capability in its Singapore plant or obtain product from its 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 the requirements for radio frequency identification ("RFID") products by Wal-Mart and/or the Department of Defense (the "DOD") 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 its 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 new information shows 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, California. For company information, see www.printronix.com. PRINTRONIX, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (dollar amounts in thousands, except share and per share data) (unaudited) Three Months Ended Six Months Ended -------------------------------- --------------------- Sept. 23, June 24, Sept. 24, Sept. 23, Sept. 24, 2005 2005 2004 2005 2004 ---------- ---------- ---------- ---------- ---------- Revenue $28,958 $31,787 $31,808 $60,745 $65,086 Cost of sales 18,171 19,478 19,770 37,649 39,738 ---------- ---------- ---------- ---------- ---------- Gross margin 10,787 12,309 12,038 23,096 25,348 Engineering and development 3,608 3,868 3,916 7,476 7,914 Sales and marketing 6,115 6,116 5,903 12,231 12,183 General and administrative 2,751 2,250 2,104 5,001 4,287 ---------- ---------- ---------- ---------- ---------- Total operating expenses 12,474 12,234 11,923 24,708 24,384 (Loss) income from operations (1,687) 75 115 (1,612) 964 Interest and other (income) expense, net (224) (205) 7 (429) 69 (Loss) income before taxes (1,463) 280 108 (1,183) 895 Provision for income taxes 135 70 218 205 556 ---------- ---------- ---------- ---------- ---------- Net (loss) income $(1,598) $210 $(110) $(1,388) $339 ========== ========== ========== ========== ========== Net (loss) income per share: - --------------- Basic $(0.26) $0.03 $(0.02) $(0.22) $0.05 Diluted $(0.26) $0.03 $(0.02) $(0.22) $0.05 Shares used in computing net (loss) income per share: - --------------- Basic 6,241,949 6,492,516 6,341,593 6,222,233 6,311,117 Diluted 6,241,949 6,636,244 6,341,593 6,222,233 6,496,798 Gross margin % 37.3% 38.7% 37.8% 38.0% 38.9% Operating expenses % 43.1% 38.5% 37.5% 40.7% 37.5% (Loss) income from operations % -5.8% 0.2% 0.4% -2.7% 1.5% Net (loss) income % -5.5% 0.7% -0.3% -2.3% 0.5% PRINTRONIX, INC. AND SUBSIDIARIES Consolidated Balance Sheets (dollars in thousands) (unaudited) Sept. 23, June 24, Sept. 24, 2005 2005 2004 --------- --------- --------- ASSETS Cash and cash equivalents $29,228 $27,656 $39,623 Short-term investments 13,384 16,600 - Accounts receivable, net 15,649 17,104 17,352 Inventories, net 14,290 13,991 14,158 Other current assets 4,690 5,044 6,494 Property, plant and equipment, net 32,971 33,108 33,946 Other long-term assets 2,246 2,061 1,226 --------- --------- --------- Total assets $112,460 $115,564 $112,799 ========= ========= ========= LIABILITIES and STOCKHOLDERS' EQUITY Current portion of long-term debt $700 $700 $700 Accounts payable 6,789 7,623 7,689 Other current liabilities 11,490 11,603 11,863 Other long-term liabilities 16,014 16,051 15,957 Stockholders' equity 77,467 79,587 76,590 --------- --------- --------- Total liabilities and stockholders' equity $112,460 $115,564 $112,799 ========= ========= ========= PRINTRONIX, INC. AND SUBSIDIARIES Sales Classification (unaudited) Three Months Ended Percent of Total Sales ------------------- ------------------- Sales by Geographic Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24, Region 2005 2004 Change 2005 2004 - ---------------------- --------- --------- ------- --------- --------- (dollar amounts in thousands) Americas $14,032 $15,606 -10.1% 48.5% 49.0% EMEA 9,375 10,806 -13.2% 32.4% 34.0% Asia Pacific 5,551 5,396 2.9% 19.1% 17.0% --------- --------- --------- --------- $28,958 $31,808 100.0% 100.0% ========= ========= ========= ========= Three Months Ended Percent of Total Sales ------------------- ------------------- Sales by Product Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24, Technology 2005 2004 Change 2005 2004 - ---------------------- --------- --------- ----------------- --------- (dollar amounts in thousands) Line matrix $20,857 $22,140 -5.8% 72.0% 69.6% Thermal(a) 5,054 5,917 -14.6% 17.5% 18.6% Laser 2,661 3,212 -17.2% 9.2% 10.1% Verification products 386 539 -28.4% 1.3% 1.7% --------- --------- --------- --------- $28,958 $31,808 100.0% 100.0% ========= ========= ========= ========= (a)RFID $792 $848 -6.6% 2.7% 2.7% ========= ========= ========= ========= Three Months Ended Percent of Total Sales ------------------- ------------------- Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24, Sales by Channel 2005 2004 Change 2005 2004 - ---------------------- --------- --------- ------- --------- --------- (dollar amounts in thousands) OEM $8,201 $8,880 -7.6% 28.3% 27.9% Distribution 19,362 21,226 -8.8% 66.9% 66.7% Direct 1,395 1,702 -18.0% 4.8% 5.4% --------- --------- --------- --------- $28,958 $31,808 100.0% 100.0% ========= ========= ========= ========= Three Months Ended Percent of Total Sales ------------------- ------------------- Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24, Sales by Customer 2005 2004 Change 2005 2004 - ---------------------- --------- --------- ----------------- --------- (dollar amounts in thousands) Largest customer - IBM $6,630 $6,916 -4.1% 22.9% 21.7% Second largest customer 2,375 2,619 -9.3% 8.2% 8.2% Top ten customers 14,443 16,159 -10.6% 49.9% 50.8% PRINTRONIX, INC. AND SUBSIDIARIES Sales Classification (unaudited) Six Months Ended Percent of Total Sales ------------------- ------------------- Sales by Geographic Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24, Region 2005 2004 Change 2005 2004 - ---------------------- --------- --------- ------- --------- --------- (dollar amounts in thousands) Americas $30,218 $30,523 -1.0% 49.7% 46.9% EMEA 19,792 23,520 -15.9% 32.6% 36.1% Asia Pacific 10,735 11,043 -2.8% 17.7% 17.0% --------- --------- --------- --------- $60,745 $65,086 100.0% 100.0% ========= ========= ========= ========= Six Months Ended Percent of Total Sales --------- --------- ------------------- Sales by Product Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24, Technology 2005 2004 Change 2005 2004 - ---------------------- --------- --------- ------- --------- --------- (dollar amounts in thousands) Line matrix $43,062 $46,144 -6.7% 70.9% 70.9% Thermal(a) 11,200 11,255 -0.5% 18.4% 17.3% Laser 5,460 6,549 -16.6% 9.0% 10.1% Verification products 1,023 1,138 -10.1% 1.7% 1.7% --------- --------- --------- --------- $60,745 $65,086 100.0% 100.0% ========= ========= ========= ========= (a)RFID $1,735 $1,007 72.3% 2.9% 1.5% ========= ========= ========= ========= Six Months Ended Percent of Total Sales ------------------- ------------------- Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24, Sales by Channel 2005 2004 Change 2005 2004 - ---------------------- --------- --------- ------- --------- --------- (dollar amounts in thousands) OEM $17,693 $19,396 -8.8% 29.1% 29.8% Distribution 40,186 41,485 -3.1% 66.2% 63.7% Direct 2,866 4,205 -31.8% 4.7% 6.5% --------- --------- --------- --------- $60,745 $65,086 100.0% 100.0% ========= ========= ========= ========= Six Months Ended Percent of Total Sales ------------------- ------------------- Sept. 23, Sept. 24, Percent Sept. 23, Sept. 24, Sales by Customer 2005 2004 Change 2005 2004 - ---------------------- --------- --------- ------- --------- --------- (dollar amounts in thousands) Largest customer - IBM $14,270 $14,139 0.9% 23.5% 21.7% Second largest customer 4,971 5,203 -4.5% 8.2% 8.0% Top ten customers 30,442 33,454 -9.0% 50.1% 51.4% CONTACT: Printronix, Inc., Irvine Robert A. Kleist, 714-368-2863 George L. Harwood, 714-368-2384 or INVESTOR CONTACT: EVC Group, LLC Douglas M. Sherk, 415-896-6818 dsherk@evcgroup.com Jennifer Beugelmans, 415-896-6817 jbeugelmans@evcgroup.com or MEDIA CONTACT: WunderMarx, Inc. Cara Good, 949-860-2434, ext. 312 cara.good@wundermarx.com -----END PRIVACY-ENHANCED MESSAGE-----