[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
FY91 Third Quarter Results
CONTACT: Ronald R. Benanto (617) 221-1045
Richard E. Waltz (617) 221-1049
SYMBOLICS ANNOUNCES THIRD QUARTER RESULTS
BURLINGTON, MASS., May 10, 1991 - - Symbolics, Inc. (NASDAQ:SMBX)
today reported that its net loss, excluding unusual charges, had narrowed
to $623,000 for its fiscal third quarter. The Company also reported a
one-time restructuring charge of $6,700,000 resulting in a reported net
loss for the third quarter of its fiscal year ending March 31, 1991 of
$7,323,000, or $2.64 per share, compared with a loss of $4,119,000 or
$1.49 per share for the same quarter of its past fiscal year. More than
one-half of the net loss, excluding unusual charges, is due to the adverse
effect of $325,000 in foreign exchange transaction losses which occurred
late in March resulting from the rapid strengthening of the dollar. Revenues
for the third quarter were $10,418,000, compared with revenues of $11,333,000
for the comparable quarter a year earlier.
The restructuring charge largely reflects the write-off of certain
excess assets, including inventories, fixed assets and capitalized software.
These charges are associated with the Company's decision to outsource its
board manufacturing, its discontinuance of older products, and its corporate
downsizing. These represent largely non-cash charges and do not represent
significant cash obligations. Quarterly savings in depreciation, amortization
and inventory reserve costs resulting from the excess asset write-offs, exceed
$1 million per quarter, beginning with the third quarter's reported results.
During the third quarter, Symbolics also concluded the renewal of its
secured line of credit for a total of $3 million with the CIT Group/Credit
Finance, Inc. for a two-year period ended April 30, 1993.
Jay Wurts, Symbolics' chairman, chief executive officer and president,
stated: "We continue to make progress on our goal of achieving profitability
as a smaller company. Product revenue for the third quarter increased by 12%
from the comparable quarter last year and reflects the impact of new products
in both our graphics animation and software engineering markets. However,
declines in our customer service revenue offset these product gains. We continue
to experience erosion in our installed base of older machines due to competitive
and economic factors as well as the impact of replacing older, high maintenance
cost machines with our newer products. Continued progress toward our goal of
profitability will require the continued success of new product sales, slowing
the rate of decline in customer service revenue and effective cost control.
Therefore, we continue to explore a full range of financing alternatives to
ensure we have sufficient working capital to complete our transition."
Symbolics, Inc., headquartered in Burlington, Mass., is the leading
provider of symbolic processing hardware, software and consulting for
sophisticated applications which include expert scheduling and planning.
Symbolics also provides advanced graphics systems for the professional
video, film and corporate animation markets.