EX-99.1 2 a5418778ex991.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
 

Printronix Announces Fourth Quarter and Fiscal Year 2007 Results

IRVINE, Calif. - (BUSINESS WIRE) June 5, 2007 - Printronix, Inc. (NASDAQ:PTNX), the leading manufacturer of integrated enterprise printing solutions for the supply chain, today announced results for the fourth quarter and fiscal year ended March 30, 2007. The fourth quarter and fiscal year ended March 30, 2007 consisted of 13 and 52 weeks, respectively, compared with the fourth quarter and fiscal year ended March 31, 2006 which consisted of 14 and 53 weeks, respectively. Fourth quarter revenue was $32.6 million, down from $33.2 million in the same quarter last year. The company reported net income for the quarter of $0.2 million, or $0.02 per diluted share, compared with a net loss of $7.4 million, or $1.19 per diluted share, for the same quarter of the prior fiscal year.

Revenue for fiscal year 2007 was $128.4 million, up from $127.8 million for last year even though the prior year period consisted of 53 weeks. Net income was $2.9 million, or $0.45 per diluted share, compared with a net loss of $8.0 million, or $1.28 per diluted share, for the prior fiscal year.

As indicated in our guidance of April 17, 2007, both fourth quarter and fiscal 2007 revenue were impacted by a drop in Printronix revenue to IBM due to a delay in transitioning their printer business to InfoPrint Solutions Company (a joint venture between Ricoh and IBM).

Income from operations for fiscal 2007 was a profit of $1.9 million versus a loss of $3.4 million in the prior year. The year on year improvement was due to higher margins and lower expenses. Net income after tax was $2.9 million in fiscal year 2007 versus a prior year loss of $8.0 million. The turnaround arose from a better operating performance in year 2007 and lower tax charges compared to fiscal year 2006 when the company incurred tax charges of $4.7 million comprising a valuation tax allowance reserve and tax on an intercompany American Jobs Creation Act (AJCA) dividend.

“Fiscal 2007 was a solid turnaround in profitability from the prior year loss due to renewed focus on cost containment and product cost reductions,” said Robert Kleist, President and CEO of Printronix. “At the same time, we were able to complete several key product development programs that provide a broader range of thermal/RFID printing solutions, and we are enthusiastic about working closely with InfoPrint Solutions to restore sales to the large base of IBM users.”

Gross margin was 37.5% for the fourth quarter of fiscal year 2007, up from 36.4% in the fourth quarter of fiscal year 2006. For fiscal year 2007, gross margin was 39.0%, up from 37.7% for the prior year. The increase in gross margin was a result of lower worldwide manufacturing costs.


Operating expenses in the fourth quarter of fiscal year 2007 were $12.5 million, down from $14.7 million in the same quarter last year. Operating expenses for the year ended March 30, 2007 were $48.1 million, down from $51.6 million for last fiscal year. The decrease in operating expenses from the prior fiscal year was a result of cost reduction measures, particularly through reduced labor costs and one less week in the current fiscal year.
 
The company ended the fourth quarter of fiscal year 2007 with cash and short-term investments of $38.9 million, down from $42.1 million at the end of fiscal year 2006, and up from $37.5 million at the end of the third quarter of fiscal year 2007. The decrease in cash and short-term investments from the beginning of the fiscal year was primarily due to $2.3 million of dividends paid to stockholders during fiscal year 2007 and $2.5 million in taxes related to the funds repatriated under the American Jobs Creation Act at the end of fiscal year 2006.

Fiscal 2008 First Quarter Outlook

Printronix also announced that it does not expect sales to InfoPrint Solutions to improve until later in the fiscal year and accordingly its first quarter revenue is expected to be within a range of $30.5 million and $32 million, and earnings are expected to be within a range from breakeven to $0.10 per share.

Conference Call

There will be an earnings conference call at 1:30 p.m. ET (10:30 a.m. PT) on Wednesday, June 6, 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 866-575-6534. Shortly after the call, a telephonic replay will be available through June 20, 2007, by dialing 888-203-1112 or 719-457-0820. Passcode I.D. 8414516 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; the ability of the company to maintain its production capability in its Singapore plant or obtain product from its Asia Pacific suppliers should a world health epidemic 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 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 Systems 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
 
Year Ended
 
   
March 30,
 
December 29,
 
March 31,
 
March 30,
 
March 31,
 
   
2007
 
2006
 
2006
 
2007
 
2006
 
                       
Revenue
 
$
32,620
 
$
34,883
 
$
33,225
 
$
128,416
 
$
127,821
 
Cost of sales
   
20,373
   
20,975
   
21,146
   
78,360
   
79,621
 
Gross margin
   
12,247
   
13,908
   
12,079
   
50,056
   
48,200
 
                                 
Engineering and development
   
3,002
   
3,182
   
3,594
   
12,415
   
14,344
 
Sales and marketing
   
6,150
   
6,176
   
6,972
   
23,774
   
25,370
 
General and administrative
   
3,333
   
3,036
   
4,148
   
11,950
   
11,931
 
Total operating expenses
   
12,485
   
12,394
   
14,714
   
48,139
   
51,645
 
                                 
Income (loss) from operations
   
(238
)
 
1,514
   
(2,635
)
 
1,917
   
(3,445
)
Interest and other income, net
   
(341
)
 
(295
)
 
(81
)
 
(1,054
)
 
(692
)
Income (loss) before taxes
   
103
   
1,809
   
(2,554
)
 
2,971
   
(2,753
)
Income tax (benefit) provision
   
(48
)
 
(153
)
 
4,879
   
91
   
5,206
 
Net income (loss)
 
$
151
 
$
1,962
 
$
(7,433
)
$
2,880
 
$
(7,959
)
                                 
Net income (loss) per share:
                               
Basic
 
$
0.02
 
$
0.31
 
$
(1.19
)
$
0.46
 
$
(1.28
)
Diluted
 
$
0.02
 
$
0.30
 
$
(1.19
)
$
0.45
 
$
(1.28
)
                                 
Shares used in computing net income (loss) per share:
                               
Basic
   
6,328,531
   
6,301,303
   
6,264,588
   
6,303,342
   
6,240,041
 
Diluted
   
6,459,718
   
6,449,578
   
6,264,588
   
6,452,211
   
6,240,041
 
                                 
Gross margin %
   
37.5
%
 
39.9
%
 
36.4
%
 
39.0
%
 
37.7
%
Operating expenses %
   
38.3
%
 
35.5
%
 
44.3
%
 
37.5
%
 
40.4
%
Income (loss) from operations %
   
-0.7
%
 
4.3
%
 
-7.9
%
 
1.5
%
 
-2.7
%
Net income (loss) %
   
0.5
%
 
5.6
%
 
-22.4
%
 
2.2
%
 
-6.2
%
 


PRINTRONIX, INC. AND SUBSIDIARIES
 
Consolidated Balance Sheets
 
($ in thousands)
 
(unaudited)
 
               
   
March 30,
 
December 29,
 
March 31,
 
   
2007
 
2006
 
2006
 
ASSETS
             
Cash and cash equivalents
 
$
26,847
 
$
24,254
 
$
41,546
 
Short-term investments
   
12,015
   
13,281
   
547
 
Accounts receivable, net
   
20,776
   
22,113
   
19,292
 
Inventories, net
   
15,281
   
14,574
   
14,382
 
Other current assets
   
2,047
   
2,306
   
1,976
 
Property, plant and equipment, net
   
29,113
   
29,900
   
31,618
 
Other long-term assets
   
948
   
667
   
623
 
                     
Total assets
 
$
107,027
 
$
107,095
 
$
109,984
 
                     
                     
LIABILITIES and STOCKHOLDERS' EQUITY
                   
Current portion of long-term debt
 
$
12,775
 
$
12,968
 
$
700
 
Accounts payable
   
9,452
   
9,297
   
8,427
 
Other current liabilities
   
11,158
   
11,518
   
16,101
 
Other long-term liabilities
   
1,688
   
1,775
   
14,516
 
Stockholders' equity
   
71,954
   
71,537
   
70,240
 
                     
Total liabilities and stockholders' equity
 
$
107,027
 
$
107,095
 
$
109,984
 
 

 
PRINTRONIX, INC. AND SUBSIDIARIES
 
Sales Classification
 
(unaudited)
 
                       
   
Three Months Ended
     
Percent of Total Sales
 
   
March 30,
 
March 31,
 
Percent
 
March 30,
 
March 31,
 
Sales by Geographic Region
 
2007
 
2006
 
Change
 
2007
 
2006
 
   
($ in thousands)
             
Americas
 
$
15,377
 
$
16,409
   
-6.3%
 
 
47.1
%
 
49.4
%
EMEA
   
11,017
   
10,768
   
2.3%
 
 
33.8
%
 
32.4
%
Asia Pacific
   
6,226
   
6,048
   
2.9%
 
 
19.1
%
 
18.2
%
   
$
32,620
 
$
33,225
   
-1.8%
 
 
100.0
%
 
100.0
%
                                 
 
   
Three Months Ended 
         
Percent of Total Sales
 
 
   
March 30,
   
March 31,
   
Percent
   
March 30,
   
March 31,
 
Sales by Product Technology
   
2007
   
2006
   
Change
   
2007
   
2006
 
 
   
($ in thousands)
                   
Line matrix
 
$
22,211
 
$
23,545
   
-5.7%
 
 
68.1
%
 
70.9
%
Thermal
   
7,205
   
6,325
   
13.9%
 
 
22.1
%
 
19.0
%
Laser
   
2,768
   
2,866
   
-3.4%
 
 
8.5
%
 
8.6
%
Verification
   
436
   
489
   
-10.8%
 
 
1.3
%
 
1.5
%
   
$
32,620
 
$
33,225
   
-1.8%
 
 
100.0
%
 
100.0
%
                                 
 
   
Three Months Ended
         
Percent of Total Sales
 
 
   
March 30,
   
March 31,
   
Percent
   
March 30,
   
March 31,
 
Sales by Channel 
   
2007
   
2006
   
Change
   
2007
   
2006
 
 
   
($ in thousands)
                   
OEM
 
$
7,290
 
$
9,855
   
-26.0%
 
 
22.3
%
 
29.7
%
Distribution
   
23,703
   
21,228
   
11.7%
 
 
72.7
%
 
63.9
%
Direct
   
1,627
   
2,142
   
-24.0%
 
 
5.0
%
 
6.4
%
   
$
32,620
 
$
33,225
   
-1.8%
 
 
100.0
%
 
100.0
%
                                 
 
   
Three Months Ended
         
Percent of Total Sales
 
 
   
March 30,
   
March 31,
   
Percent
   
March 30,
   
March 31,
 
Sales by Customer 
   
2007
   
2006
   
Change
   
2007
   
2006
 
 
   
($ in thousands)
                   
Largest customer – IBM
 
$
5,853
 
$
7,243
   
-19.2%
 
 
17.9
%
 
21.8
%
Second largest customer
   
1,381
   
2,192
   
-37.0%
 
 
4.2
%
 
6.6
%
Top ten customers
   
14,697
   
17,101
   
-14.1%
 
 
45.1
%
 
51.5
%
 
 

 
 PRINTRONIX, INC. AND SUBSIDIARIES
 
Sales Classification
 
  (unaudited)
 
                       
   
Year Ended
     
Percent of Total Sales
 
   
March 30,
 
March 31,
 
Percent
 
March 30,
 
March 31,
 
Sales by Geographic Region 
 
2007
 
2006
 
Change
 
2007
 
2006
 
   
($ in thousands)
             
Americas
 
$
63,366
 
$
63,011
   
0.6%
 
 
49.3
%
 
49.3
%
EMEA
   
41,820
   
41,213
   
1.5%
 
 
32.6
%
 
32.2
%
Asia Pacific
   
23,230
   
23,597
   
-1.6%
 
 
18.1
%
 
18.5
%
   
$
128,416
 
$
127,821
   
0.5%
 
 
100.0
%
 
100.0
%
                                 
 
   
Year Ended
         
Percent of Total Sales
 
 
   
March 30,
   
March 31,
   
Percent
   
March 30,
   
March 31,
 
Sales by Product Technology 
   
2007
   
2006
   
Change
   
2007
   
2006
 
 
   
($ in thousands)
         
($ in thousands)
 
Line matrix
 
$
91,366
 
$
91,176
   
0.2%
 
 
71.1
%
 
71.3
%
Thermal
   
24,494
   
23,201
   
5.6%
 
 
19.1
%
 
18.2
%
Laser
   
10,689
   
11,406
   
-6.3%
 
 
8.3
%
 
8.9
%
Verification
   
1,867
   
2,038
   
-8.4%
 
 
1.5
%
 
1.6
%
   
$
128,416
 
$
127,821
   
0.5%
 
 
100.0
%
 
100.0
%
                                 
 
   
Year Ended
         
Percent of Total Sales
 
 
   
March 30,
   
March 31,
   
Percent
   
March 30,
   
March 31,
 
Sales by Channel 
   
2007
   
2006
   
Change
   
2007
   
2006
 
 
   
($ in thousands)
                   
OEM
 
$
33,229
 
$
37,405
   
-11.2%
 
 
25.9
%
 
29.3
%
Distribution
   
87,872
   
83,796
   
4.9%
 
 
68.4
%
 
65.5
%
Direct
   
7,315
   
6,620
   
10.5%
 
 
5.7
%
 
5.2
%
   
$
128,416
 
$
127,821
   
0.5%
 
 
100.0
%
 
100.0
%
                                 
 
   
Year Ended
         
Percent of Total Sales
 
 
   
March 30,
   
March 31,
   
Percent
   
March 30,
   
March 31,
 
Sales by Customer 
   
2007
   
2006
   
Change
   
2007
   
2006
 
 
   
($ in thousands) 
                   
Largest customer – IBM
 
$
25,636
 
$
28,807
   
-11.0%
 
 
20.0
%
 
22.5
%
Second largest customer
   
6,491
   
9,335
   
-30.5%
 
 
5.1
%
 
7.3
%
Top ten customers
   
58,713
   
63,473
   
-7.5%
 
 
45.7
%
 
49.7
%