Isco Reports First Quarter Fiscal 2004 Results
05 December 2003 - 3:30AM
PR Newswire (US)
Isco Reports First Quarter Fiscal 2004 Results LINCOLN, Neb., Dec.
4 /PRNewswire-FirstCall/ -- Isco, Inc. reported net income for the
first quarter ended October 24, 2003, of $611,000, or $0.10 per
diluted share, on sales of $17.1 million, compared with net income
of $431,000, or $0.07 per diluted share, on sales of $15.5 million
for the same period last year. "Our first quarter sales were
extremely strong and hit an all-time high," said Doug Grant,
president and COO. "The increase in sales of $1.6 million over the
prior year was due primarily to shipments from our year-end backlog
as well as an increased order level on a quarter-over-quarter
basis. Sales of $13.8 million from our largest product lines of
samplers, flow meters, and chromatography increased by $1.8 million
and drove the overall sales increase. The combined sales of our
other products and services were down slightly due to lower sales
of syringe pumps offsetting the increases in other products and
services. Domestic sales of $11.3 million were down 3.9% over the
prior year and international sales of $5.8 million were up 55.6%."
Income from operations for the first quarter was $652,000 or 3.8%
of net sales compared with $481,000 or 3.1% of net sales for the
same period a year ago. Quarter-over-quarter, the gross margin, as
a percentage of sales, decreased from 55.2% to 49.4% while
operating expenses of $7.8 million decreased by $266,000 due to
decreased selling, general, and administrative (SG&A) expenses.
The first quarter results included non-cash charges of $714,000 to
cost of goods sold and $153,000 to selling, general, and
administrative (SG&A) associated with impairments in inventory
and property associated with the planned divestiture of the
supercritical fluid extraction (SFE) product line. Excluding the
impact of the SFE charges, the decline in the gross margin, as a
percentage of sales, from the prior year was due to shifts in sales
mix in both products and geographic areas while the decrease in
operating expenses resulted from the reduction in force and
associated expenses that occurred in the latter half of fiscal
2003. Cash and investments increased by $2.0 million to $16.7
million at October 24, 2003 from the beginning of the year. The
increase in cash was driven by cash flows from operations of $2.6
million offset primarily by cash dividend payments. Cash flows
generated by operations of $2.6 million in the current year
compares to a use of cash of $0.2 million in the prior year. First
quarter fiscal 2004 reductions in accounts receivable and inventory
were the primary factors in the operating cash flow improvement
over the same period of last year. Doug Grant further commented,
"While we are very pleased with our strong quarterly results,
excluding the charge associated with the SFE divestiture, we remain
cautious about our ability to sustain this performance level.
Looking to the remaining quarters of our fiscal year, our
performance will be somewhat dependent on the pace of recovery of
the global economy and in the short term will be influenced by the
cyclical nature of our environmental business. Relative to the SFE
divestiture, while we are still evaluating exit alternatives, we
believe the write-down of assets, primarily inventory, is
appropriate based on the current options under consideration. We
intend to make a final decision within the next several months.
Comments included in this News Release may include "forward-looking
statements" within the meaning of the federal securities laws.
These statements as to anticipated future results are based on
current expectations and are subject to a number of risks and
uncertainties that could cause actual results to differ markedly
from those projected or discussed here. Such risks and
uncertainties are detailed in Isco, Inc.'s Annual Report on Form
10-K filed with the SEC in November 2003 and are incorporated
herein by reference. Isco, Inc. cautions readers not to place undue
reliance upon any such forward- looking statements, which speak
only as of the date hereof. News releases and other information
regarding Isco, Inc. may be found at http://www.isco.com/ on the
Internet. ISCO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (unaudited) Three months ended Oct 24 Oct
25 (Amounts in thousands, except per share data) 2003 2002 Net
sales $17,114 $15,494 Cost of sales 8,660 6,945 8,454 8,549
Operating expenses: Selling, general, and administrative 6,187
6,403 Research and engineering 1,615 1,665 7,802 8,068 Income from
operations 652 481 Other income (expense): Investment income 177
169 Interest expense (43) (59) Other, net 65 53 199 163 Income
before income taxes 851 644 Provision for income taxes 240 213 Net
income $611 $431 Basic earnings per share $0.11 $0.08 Diluted
earnings per share $0.10 $0.07 Cash dividends declared per share
$0.06 $0.06 Weighted average number of shares outstanding (basic)
5,728 5,673 Additional shares assuming exercise of common stock
equivalents & dilutive stock options 171 253 Weighted average
number of shares outstanding (diluted) 5,899 5,926 ISCO, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
ASSETS Oct 24 July 25 (Amounts in thousands) 2003 2003 Current
assets: Cash and cash equivalents $1,823 $5,383 Short-term
investments 3,621 4,629 Accounts receivable (net) 9,669 10,590
Inventories 8,770 9,489 Refundable income taxes -- 303 Deferred
income taxes 994 812 Other current assets 601 417 Total current
assets 25,478 31,623 Property and equipment (net) 13,291 13,768
Long-term investments 11,287 4,717 Other assets 4,310 4,327 Total
assets $54,366 $54,435 LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities: Accounts payable $1,443 $1,222 Accrued expenses 3,021
3,698 Income taxes payable 181 -- Short-term borrowing 2,277 2,113
Current portion of long-term debt 217 503 Total current liabilities
7,139 7,536 Deferred income taxes 522 532 Long-term debt, less
current portion 587 584 Shareholders' equity 46,118 45,783 Total
liabilities and shareholders' equity $54,366 $54,435 DATASOURCE:
Isco, Inc. CONTACT: Vicki L. Benne, Chief Financial Officer of
Isco, Inc., +1-402-465-2097 Web site: http://www.isco.com/
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