EX-99.1 2 a5327784ex99_1.htm EXHIBIT 99.1 Exhibit 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 to improve 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
%