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):

February 7, 2007

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
		No.)

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 February 7, 2007, Printronix, Inc. issued a press release announcing its third quarter results for fiscal year 2007. A copy of the Company’s press release announcing these financial results and certain other information is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits
99.1	Press release of Printronix, Inc. dated February 7, 2007.

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: February 7, 2007		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
99.1	Press release of Printronix, Inc. dated February 7, 2007

EX-99.1

Exhibit 99.1

Printronix Announces Third Quarter Results for Fiscal Year 2007

IRVINE, Calif. - (BUSINESS WIRE) February 7, 2007 - Printronix, Inc. (NASDAQ:PTNX), the leading manufacturer of integrated enterprise printing solutions for the supply chain, today announced results for the third quarter and nine month period ended December 29, 2006. Revenue increased 3.0% to $34.9 million for the third quarter of fiscal year 2007 compared with $33.9 million in the same quarter last year. The company reported net income for the quarter of $2.0 million, or $0.30 per diluted share, compared with net income of $0.9 million, or $0.13 per diluted share, for the same quarter of the prior fiscal year.

Revenue for the nine months ended December 29, 2006 was $95.8 million compared with $94.6 million for the same period last year. Net income was $2.7 million, or $0.42 per diluted share, compared with a net loss of $0.5 million, or ($0.08) per diluted share, for the same period last year.

“By growing revenue and continuing our focus on cost reductions, we were able to significantly increase our profitability over the same period last year,” said Robert Kleist, President and CEO of Printronix. “The third quarter results reflected the closing of several large transactions that we had not anticipated when we provided guidance during our second quarter conference call on November 8, 2007. Also during the third quarter, we saw some strengthening of demand in Europe and the U.S., primarily in the automotive industry.”

“The cost reduction and cost containment measures that we began to implement last year have helped toimprove the Company’s profitability. Earnings of $0.42 per share in the first nine months of fiscal year 2007 were $0.50 per share greater than the same period last year. The gross margin increased to 39.5% for the first nine months of fiscal 2007, up from 38.2% in the same period last year, primarily due to an increase in worldwide manufacturing productivity.”

Operating expenses in the third quarter of fiscal 2007 were $12.4 million, up from $12.2 million in the third quarter of fiscal year 2006 reflecting higher general and administrative costs. Operating expenses for the nine months ended December 29, 2006 were $35.7 million, down from $36.9 million for the same period last year, reflecting lower engineering costs resulting from T5000 and P7000 product launches in the prior year period.

The company ended the third fiscal quarter of 2007 with cash and short-term investments of $37.5 million, down from $41.6 million at the end of the third quarter of fiscal 2006, and down from $42.1 million at the end of fiscal year 2006. The decrease in cash and short-term investments from the beginning of the fiscal year is primarily due to payment of taxes of $2.5 million related to the repatriation of $32.0 million of dividends in the fourth quarter of fiscal year 2006, and due to payment of $1.7 million in dividends to stockholders.

Fourth Quarter Outlook

Printronix also announced that its fourth quarter revenue is expected to be within a range of $32 million to $34 million, and that earnings are expected to be within a range of $0.10 per share and $0.20 per share.

Conference Call

There will be an earnings conference call at 1:30 p.m. ET (10:30 a.m. PT) on Thursday, February 8, 2007. 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 800-274-0251. Shortly after the call, a telephonic replay will be available through February 22, 2007, by dialing 888-203-1112 or 719-457-0820. Passcode I.D. 8691014 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; 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; and that InfoPrint Solutions Company, the successor entity to IBM’s Printing System Division, may change its product and marketing focus in a way that reduces its purchase of Printronix products. 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 bar code 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.

CONTACT:	PRINTRONIX, INC., Irvine
	Robert A. Kleist, President, CEO
	714-368-2863
	George L. Harwood, Senior Vice President Finance, CFO
	714-368-2384
	or
	Media Contact:
	WunderMarx, Inc.
	Cara Good
	714-862-1112, ext. 202
	cara.good@wundermarx.com
	or
	Investor Contact:
	EVC Group, Inc.
	Douglas M. Sherk
	415-896-6818
	dsherk@evcgroup.com
	Jenifer Kirtland
	415-896-2005
	jkirtland@evcgroup.com

PRINTRONIX, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except share and per share data)

(unaudited)

	Three Months Ended									Nine Months Ended
	December 29,			September 29,			December 23,			December 29,			December 23,
	2006			2006			2005			2006			2005
Revenue	$	34,883		$	29,263		$	33,851		$	95,796		$	94,597
Cost of sales		20,975			17,761			20,826			57,987			58,475
Gross margin		13,908			11,502			13,025			37,809			36,122
Engineering and development		3,182			3,092			3,274			9,413			10,753
Sales and marketing		6,176			5,493			6,167			17,624			18,398
General and administrative		3,036			2,720			2,782			8,617			7,781
Total operating expenses		12,394			11,305			12,223			35,654			36,932
Income (loss) from operations		1,514			197			802			2,155			(810	)
Interest and other income, net		(295	)		(169	)		(182	)		(713	)		(611	)
Income (loss) before taxes		1,809			366			984			2,868			(199	)
Income tax (benefit) provision		(153	)		155			122			139			327
Net income (loss)	$	1,962		$	211		$	862		$	2,729		$	(526	)
Net income (loss) per share:
Basic	$	0.31		$	0.03		$	0.14		$	0.43		$	(0.08	)
Diluted	$	0.30		$	0.03		$	0.13		$	0.42		$	(0.08	)
Shares used in computing net
income (loss) per share:
Basic		6,301,303			6,299,942			6,249,224			6,294,945			6,231,230
Diluted		6,449,578			6,439,328			6,445,029			6,449,708			6,231,230
Gross margin %		39.9	%		39.3	%		38.5	%		39.5	%		38.2	%
Operating expenses %		35.5	%		38.6	%		36.1	%		37.2	%		39.0	%
Income (loss) from operations %		4.3	%		0.7	%		2.4	%		2.2	%		-0.9	%
Net income (loss) %		5.6	%		0.7	%		2.5	%		2.8	%		-0.6	%

PRINTRONIX, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

($ in thousands)

(unaudited)

	December 29,		September 29,		December 23,
	2006		2006		2005
ASSETS
Cash and cash equivalents	$	24,254	$	32,334	$	31,671
Short-term investments		13,281		3,991		9,908
Accounts receivable, net		22,113		19,402		20,361
Inventories, net		14,574		16,071		13,355
Other current assets		2,306		2,064		4,257
Property, plant and equipment, net		29,900		30,393		32,423
Other long-term assets		667		725		2,055
Total assets	$	107,095	$	104,980	$	114,030
LIABILITIES and STOCKHOLDERS' EQUITY
Current portion of long-term debt	$	12,968	$	13,125	$	700
Accounts payable		9,297		8,502		8,646
Other current liabilities		11,518		11,165		10,944
Other long-term liabilities		1,775		2,008		15,809
Stockholders' equity		71,537		70,180		77,931
Total liabilities and stockholders' equity	$	107,095	$	104,980	$	114,030

PRINTRONIX, INC. AND SUBSIDIARIES

Sales Classification

(unaudited)

	Three Months Ended							Percent of Total Sales
	December 29,		December 23,		Percent			December 29,			December 23,
Sales by Geographic Region	2006		2005		Change			2006			2005
	($ in thousands)
Americas	$	17,116	$	16,385		4.5	%		49.1	%		48.4	%
EMEA		11,345		10,652		6.5	%		32.5	%		31.5	%
Asia Pacific		6,422		6,814		-5.8	%		18.4	%		20.1	%
	$	34,883	$	33,851		3.0	%		100.0	%		100.0	%

	Three Months Ended							Percent of Total Sales
	December 29,		December 23,		Percent			December 29,			December 23,
Sales by Product Technology	2006		2005		Change			2006			2005
	($ in thousands)
Line matrix	$	25,287	$	24,569		2.9	%		72.5	%		72.6	%
Thermal (includes RFID)*		6,529		5,675		15.0	%		18.7	%		16.8	%
Laser		2,669		3,081		-13.4	%		7.7	%		9.1	%
Verification		398		526		-24.3	%		1.1	%		1.5	%
	$	34,883	$	33,851		3.0	%		100.0	%		100.0	%
*RFID	$	707	$	830		-14.8	%		2.0	%		2.5	%

	Three Months Ended							Percent of Total Sales
	December 29,		December 23,		Percent			December 29,			December 23,
Sales by Channel	2006		2005		Change			2006			2005
	($ in thousands)
OEM	$	9,754	$	9,857		-1.0	%		28.0	%		29.1	%
Distribution		23,295		22,382		4.1	%		66.7	%		66.1	%
Direct		1,834		1,612		13.8	%		5.3	%		4.8	%
	$	34,883	$	33,851		3.0	%		100.0	%		100.0	%

	Three Months Ended							Percent of Total Sales
	December 29,		December 23,		Percent			December 29,			December 23,
Sales by Customer	2006		2005		Change			2006			2005
	($ in thousands)
Largest customer – IBM	$	7,788	$	7,294		6.8	%		22.3	%		21.5	%
Second largest customer		1,656		2,154		-23.1	%		4.7	%		6.4	%
Top ten customers		16,725		17,419		-4.0	%		47.9	%		51.5	%

PRINTRONIX, INC. AND SUBSIDIARIES

Sales Classification

(unaudited)

	Nine Months Ended							Percent of Total Sales
	December 29,		December 23,		Percent			December 29,			December 23,
Sales by Geographic Region	2006		2005		Change			2006			2005
	($ in thousands)
Americas	$	47,989	$	46,603		3.0	%		50.1	%		49.3	%
EMEA		30,803		30,445		1.2	%		32.2	%		32.2	%
Asia Pacific		17,004		17,549		-3.1	%		17.7	%		18.5	%
	$	95,796	$	94,597		1.3	%		100.0	%		100.0	%

	Nine Months Ended							Percent of Total Sales
	December 29,		December 23,		Percent			December 29,			December 23,
Sales by Product Technology	2006		2005		Change			2006			2005
	($ in thousands)
Line matrix	$	69,155	$	67,631		2.3	%		72.2	%		71.5	%
Thermal (includes RFID)*		17,289		16,876		2.4	%		18.0	%		17.9	%
Laser		7,921		8,541		-7.3	%		8.3	%		9.0	%
Verification		1,431		1,549		-7.6	%		1.5	%		1.6	%
	$	95,796	$	94,597		1.3	%		100.0	%		100.0	%
*RFID	$	2,103	$	2,565		-18.0	%		2.2	%		2.7	%

	Nine Months Ended							Percent of Total Sales
	December 29,		December 23,		Percent			December 29,			December 23,
Sales by Channel	2006		2005		Change			2006			2005
	($ in thousands)
OEM	$	25,939	$	27,551		-5.9	%		27.1	%		29.2	%
Distribution		64,169		62,568		2.6	%		67.0	%		66.1	%
Direct		5,688		4,478		27.0	%		5.9	%		4.7	%
	$	95,796	$	94,597		1.3	%		100.0	%		100.0	%

	Nine Months Ended							Percent of Total Sales
	December 29,		December 23,		Percent			December 29,			December 23,
Sales by Customer	2006		2005		Change			2006			2005
	($ in thousands)
Largest customer – IBM	$	19,782	$	21,564		-8.3	%		20.7	%		22.8	%
Second largest customer		5,110		7,125		-28.3	%		5.3	%		7.5	%
Top ten customers		44,644		46,573		-4.1	%		46.6	%		49.2	%