-----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, PNd0fGY9/XaikJDtD2GMM+kVJIjCtuckpsJUd/jwwu2h8e5HbYXlljDDByZM/MJN jd+DUxwQsZFWAqpkJUFZFg== 0000815910-04-000068.txt : 20040726 0000815910-04-000068.hdr.sgml : 20040726 20040726110350 ACCESSION NUMBER: 0000815910-04-000068 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040722 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METROLOGIC INSTRUMENTS INC CENTRAL INDEX KEY: 0000815910 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 221866172 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24712 FILM NUMBER: 04930205 BUSINESS ADDRESS: STREET 1: COLES ROAD AT RTE 42 CITY: BLACKWOOD STATE: NJ ZIP: 08012 BUSINESS PHONE: 609-228-8100 MAIL ADDRESS: STREET 1: COLES ROAD ROUTE 42 CITY: BLACKWOOD STATE: NJ ZIP: 08012 8-K 1 q204earn.txt FORM 8-K DATED JULY 22, 2004 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 - July 22, 2004 (Date of earliest event reported) METROLOGIC INSTRUMENTS, INC. (Exact name of Registrant as specified in its charter) New Jersey 0-24172 22-1866172 (State of incorporation) (Commission file number) (IRS employer identification number) 90 Coles Road, Blackwood, New Jersey, 08012 (Address of principal executive offices, zip code) Area Code (856) 228-8100 (Telephone number) Item 12. Results of Operation and Financial Condition Metrologic Instruments, Inc. (the "Company") is furnishing herewith as Exhibit 99.1 its Press Release dated July 22, 2004 announcing the Company's earnings for the second quarter ended June 30, 2004. Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Metrologic Instruments, Inc. press release dated July 22, 2004 announcing the Company's earnings for the second quarter ended June 30, 2004 SIGNATURES Pursuant to requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: July 22, 2004 Metrologic Instruments, Inc. By: /s/ Kevin J. Bratton Kevin J. Bratton Chief Financial Officer METROLOGIC INSTRUMENTS, INC. CURRENT REPORT ON FORM 8-K EXHIBIT INDEX Exhibit No. Page 99.1 Metrologic Instruments, Inc. press release dated 3 July 22, 2004 announcing the Company's earnings for the second quarter ended June 30, 2004. EXHIBIT 99.1 Corporate Headquarters Metrologic Instruments, Inc. 90 Coles Road Blackwood, NJ 08012-4638 [COMPANY LOGO] Tel 856.228.8100 Fax 856.228.6673 (sales) Fax 856.228-0653 (finance/legal) www.metrologic.com Metrologic Announces Financial Results for the Second Quarter; Sales Exceed High End of Guidance Estimates Blackwood, New Jersey - July 22, 2004 -- Metrologic Instruments, Inc. (NASDAQ-NMS:MTLG), experts in optical image capture and processing solutions that design, manufacture and market sophisticated imaging and scanning solutions for a variety of applications, today announced financial results for the second quarter ended June 30, 2004. Sales increased 28.7% to approximately $41.0 million for the second quarter of 2004 compared with $31.9 million for the same period last year. Net income was approximately $4.2 million, or $0.18 diluted earnings per share, compared with net income of $2.2 million, or $0.12 diluted earnings per share, for the same period last year. The sales for the second quarter of 2004 exceeded the top end of the company's previously announced guidance range of $39.0 to $40.0 million. Net income for the second quarter 2004 was within the range of the company's previously announced guidance of $3.9 million to $4.4 million or $0.17 to $0.19 diluted earnings per share. The sales for the second quarter benefited from a significant increase in sales throughout Asia, growing 57.4% year over year and nearly 50% over the first quarter. Additionally, during the second quarter of 2004, Metrologic's sales of products introduced during 2003 more than doubled to $2.3 million compared with $1.1 million in sales during the first quarter of 2004. Furthermore, the company was able to secure additional new business and significant follow-on business in its advanced optical systems business segment. Net income for the three months ended June 30, 2004 benefited by approximately $0.4 million or $0.02 diluted earnings per share due to the difference in the value of the U.S. dollar relative to other foreign currencies, primarily the euro, as compared with the second quarter of 2003. Net income for the three months ended June 30, 2004 also benefited by approximately $0.3 million or $0.02 diluted earnings per share due to the difference in the value of the euro included in the company's previously issued guidance and the actual euro rate for the quarter. This positive effect on earnings from the euro was offset by an increase in the company's expenses primarily due to a substantial rise in costs related to certain expenses in connection with the procurement of a contract from a large industrial customer, as well as some increased costs associated with legal expenses and tax expenses associated with stock options. Sales for the six months ended June 30, 2004 increased 26.6% to approximately $80.7 million compared with approximately $63.7 million for the same period in 2003. Net income for the six months ended June 30, 2004 was approximately $9.3 million, or $0.40 diluted earnings per share compared with approximately $4.1 million, or $0.23 diluted earnings per share for the same period last year, excluding the one-time gain of $2.2 million resulting from a discount earned on the early repayment of certain subordinated debt and the write-off of certain costs associated with the company's former credit agreements. Including these items, net income for the first half of 2003 was $6.0 million, or $0.34 diluted earnings per share. C. Harry Knowles, Metrologic's Chairman, said, "I congratulate our team on another successful quarter. Our continued double-digit year over year growth in both revenue and net income is gratifying. Along with the Board's decision to appoint Benny as Chief Executive Officer, we are also implementing other changes. One of which is that we have decided to suspend the practice of providing quarterly guidance and hosting conference calls in connection with our release of earnings during this period of leadership transition. This decision is reflective of our belief that providing short-term guidance prevents a more meaningful focus on building our business to succeed over the long-run through expanding our product lines, expanding our sales and expanding our markets." Commenting on the second quarter results, Metrologic's Chief Executive Officer and President, Benny Noens, stated, "I am pleased with our strong year over year revenue growth for the second quarter. This increase in revenue for the first half of 2004 has established a robust tempo for the second half of the year. One of the key factors in this growth has been our ability to continue to expand our sales throughout Asia. We expect the completion of the new addition to our manufacturing facility in Suzhou, China during the third quarter to further feed that growth. Another area of significant growth for the company has come from our new products introduced in 2003, which contributed $2.3 million of sales during the second quarter. These products have continued to gain in sales momentum each quarter since their introduction. And while we did experience an increase in some of our expenses for the second quarter, this was mostly the result of our efforts in connection with a large industrial contract. We believe that investment will play a strategic role in the continued growth of our industrial business. Overall, we are continuing our focus on executing our core strategy of leveraging our engineering expertise to produce new products and cost improvements across the board. We believe this emphasis on technical excellence and superior product design coupled with a strong customer-centric approach continues to differentiate us from the competition." 2004 Guidance: As the company transitions its leadership, it has decided not to provide quarterly guidance or have a conference call in connection with its release of earnings. Therefore this release contains no guidance for sales or net income for the third or fourth quarter of 2004. However, the company does confirm its previously issued guidance for the full year of 2004 and expects sales to be approximately $163 million to $168 million, and net income to be in the range of $18.1 million to $19.5 million, or $0.78 to $0.84 diluted earnings per share. About Metrologic Metrologic designs, manufactures and markets bar code scanning and high-speed automated data capture systems solutions using laser, holographic and vision-based technologies. Metrologic offers expertise in 1D and 2D bar code reading, portable data collection, optical character recognition, image lift, and parcel dimensioning and singulation detection for customers in retail, commercial, manufacturing, transportation and logistics, and postal and parcel delivery industries. In addition to its extensive line of bar code scanning and vision system equipment, the company also provides laser beam delivery and control systems to semi-conductor and fiber optic manufacturers, as well as a variety of highly sophisticated optical systems. Metrologic products are sold in more than 110 countries worldwide through Metrologic's sales, service and distribution offices located in North and South America, Europe and Asia. Forward-Looking Statement Forward-looking statements contained in this release are highly dependent upon a variety of important factors which would cause actual results to differ materially from those reflected in such forward looking statements. Specifically, the factors that could cause actual results to differ from expectations include: The timing, introduction and market acceptance of Metrologic's new products including, but not limited to the Stratos; foreign currency fluctuations with the U.S. dollar; pricing pressures; competitive factors; sales cycles of Metrologic's products; Metrologic's ability to control manufacturing and operating costs which affect future profitability; technological changes in the scanner industry, specifically vision-based technologies; availability of patent protection for Metrologic's camera, vision-based technologies, and other products; the resolution of litigation; general economic conditions; and the potential impact of terrorism and international hostilities. When used in this release and documents referenced, the words "believes", "expects", "may", "should", "seeks", or "anticipates", and similar expressions as they relate to Metrologic or its management are intended to identify such forward-looking statements. For additional factors, please see Metrologic's reports filed with the Securities and Exchange Commission. Metrologic's Contact for Investor Relations: Dale Fischer - Vice President Phone: (856) 228-8100 Email: d.fischer@metrologic.com Metrologic Instruments, Inc. Condensed Consolidated Statements of Operations (amounts in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 ---- ---- ---- ---- (Unaudited) Sales $ 40,990 $ 31,851 $ 80,690 $ 63,722 Cost of sales 22,749 18,444 42,798 37,549 --------- --------- --------- --------- Gross profit 18,241 13,407 37,892 26,173 Selling, general and administrative expenses 9,099 7,845 18,473 15,252 Research and development expenses 2,124 1,763 3,847 3,524 --------- --------- --------- --------- Operating income 7,018 3,799 15,572 7,397 Net interest income (expense) 24 (272) 35 (731) Other expense (299) 1 (625) (554) Gain on extinguishment of debt - - - 2,200 --------- -------- -------- --------- Income before income taxes 6,743 3,528 14,982 8,312 Provision for income taxes 2,562 1,341 5,693 2,323 --------- -------- --------- --------- Net income $ 4,181 $ 2,187 $ 9,289 $ 5,989 ========= ======== ======== ========= Earnings per share: Basic $ 0.19 $ 0.13 $ 0.44 $ 0.36 Diluted $ 0.18 $ 0.12 $ 0.40 $ 0.34 Weighted average number of common shares outstanding Basic 21,504 16,580 21,327 16,499 Diluted 22,954 18,555 22,961 17,809 Metrologic Instruments, Inc. Condensed Consolidated Balance Sheets (all amounts in thousands) June 30, December 31, 2004 2003 ---- ---- (Unaudited) Cash and cash equivalents $ 52,390 $ 48,817 Accounts receivable, net 28,873 27,369 Inventories, net 22,484 16,972 Other current assets 4,973 5,450 Property, plant and equipment, net 17,134 16,940 Goodwill and other intangibles, net 29,408 24,148 Other assets 135 204 -------- -------- Total assets $155,397 $139,900 ======== ======== Accounts payable and accrued expenses $ 24,070 $ 19,000 Debt 4,147 5,527 Other liabilities 8,019 7,765 Total shareholders' equity 119,161 107,608 -------- -------- Total liabilities and shareholders' equity $155,397 $139,900 ======== ======== Supplemental Sales Data Three Months Ended June 30, % % 2004 2003 total growth ---- ---- ----- ------ By Geography North America: POS/OEM $ 8,371 $ 8,043 20.4% 4.1% AOA 8,633 5,321 21.1% 62.2% EMEA 16,385 13,602 40.0% 20.5% Asia/ROW 5,181 3,292 12.6% 57.4% South America 2,420 1,593 5.9% 51.9% ----------------------- $ 40,990 $ 31,851 100% 28.7% By Business Segment POS/OEM 32,084 26,337 78.3% 21.8% Industrial Scanning 3,620 2,923 8.8% 23.8% Advanced Optical Systems 5,286 2,591 12.9% 104.0% ----------------------- $ 40,990 $ 31,851 100.0% 28.7% POS/OEM: New Products Introduced in 2003 $ 2,260 $ 104 7.1% N/A Introduced 2000 - 2002 20,250 16,873 63.1% 20.0% Introduced prior to 2000 9,574 9,360 29.8% 2.3% ----------------------- $ 32,084 $ 26,337 100.0% 21.8% Six Months Ended June 30, % % 2004 2003 total growth ---- ---- ----- ------ By Geography North America: POS/OEM $ 17,308 $ 17,204 21.5% 0.6% AOA 16,958 10,379 21.0% 63.4% EMEA 33,314 27,359 41.3% 21.8% Asia/ROW 8,652 5,663 10.7% 52.8% South America 4,458 3,117 5.5% 43.0% ----------------------- $ 80,690 $ 63,722 100.% 26.6% By Business Segment POS/OEM 63,189 53,003 78.4% 19.2% Industrial Scanning 8,829 6,007 10.9% 47.0% Advanced Optical Systems 8,672 4,712 10.7% 84.0% ----------------------- $ 80,690 $ 63,722 100.0% 26.6% POS/OEM: New Products Introduced in 2003 $ 3,329 $ 114 5.3% N/A Introduced 2000 - 2002 40,006 33,530 63.3% 19.3% Introduced prior to 2000 19,854 19,359 31.4% 2.6% ----------------------- $ 63,189 $ 53,003 100.0% 19.2% -----END PRIVACY-ENHANCED MESSAGE-----