For the nine months ended
"Our results for the third quarter were in line with the actions we
announced in May to clear the way for a return to profitability in our fiscal
fourth quarter," said
During the third quarter, Delphax restructured its approach to marketing its CR Series roll-fed presses, reducing overall investment in the product and initiating a related workforce reduction.
"It was essential for us to reestablish a balance between the cost of developing a new and potentially profitable growth strategy on one hand and an ongoing opportunity to pursue the full potential of our established and fundamentally profitable core business on the other," Schilling said. "We believe we made that adjustment in the third quarter, intensifying our focus on the security printing industry, without sacrificing the long-term potential of our newer CR Series product line.
"The CR Series remains an important part of our product set, offering
industry-leading speed and productivity advantages in a number of commercial
printing applications. We were pleased with the response to a month-long
series of individual performance demonstrations conducted at our headquarters
in
Fiscal 2008 third-quarter sales of maintenance, spares and supplies were
Gross margin for the third quarter of fiscal 2008 was
Fiscal 2008 third-quarter operating expenses were
The company said it continues to project a return to profitability in the
fourth quarter on the strength of improved equipment sales and reduced
operating expenses. It expects to recognize revenue from the previously
reported sale of a CR Series press in
Finally, the company noted that on
Delphax Technologies Inc. will discuss its fiscal 2008 third quarter
results in a conference call for investors and analysts next
About Delphax Technologies Inc.
Delphax Technologies Inc. is a global leader in the design, manufacture
and delivery of advanced digital print production systems based on its
patented electron-beam imaging (EBI) technology. Delphax digital presses
deliver industry-leading throughput for both roll-fed and cut-sheet printing
environments. These products are extremely versatile and handle a wide range
of substrates from ultra lightweight paper to heavy stock. Delphax provides
digital printing solutions to publishers, direct mailers and other printers
that require systems capable of supporting a wide range of commercial printing
applications. The company also licenses and manufactures EBI technology for
OEM partners that create differentiated product solutions for additional
markets. There are currently installations using Delphax EBI technology in
more than 50 countries worldwide. The company is headquartered in
Statements made in this news release concerning the company's or management's expectations about future results or events are "forward-looking statements." Such statements are necessarily subject to risks and uncertainties that could cause actual results to vary materially from stated expectations. Additional information concerning the factors that could cause actual results to differ materially from the company's current expectations is contained in the company's periodic filings with the Securities and Exchange Commission.
More - Financials Follow DELPHAX TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2008 2007 2008 2007 Sales: Maintenance, spares and supplies $9,468 $10,293 $29,080 $32,020 Printing equipment 171 366 402 1,635 NET SALES 9,639 10,659 29,482 33,655 Cost of sales 9,308 7,256 23,867 23,723 GROSS PROFIT 331 3,403 5,615 9,932 Operating expenses: Selling, general and administrative 2,083 2,347 6,608 6,728 Research and development 809 905 2,739 2,597 Restructuring costs 1,883 - 2,065 - OPERATING EXPENSES 4,775 3,252 11,412 9,325 (LOSS) INCOME FROM OPERATIONS (4,444) 151 (5,797) 607 Net interest expense 494 418 1,365 1,068 Foreign currency exchange (gain) loss (20) 97 (68) (88) LOSS BEFORE INCOME TAXES (4,918) (364) (7,094) (373) Income tax expense - 8 - 14 NET LOSS $(4,918) $(372) $(7,094) $(387) Loss per common share Loss per common share, basic and diluted $(0.75) $(0.06) $(1.09) $(0.06) Weighted average number of shares outstanding during the period, basic and diluted 6,530 6,461 6,530 6,452 DELPHAX TECHNOLOGIES INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) June 30, September 30, 2008 2007 ASSETS Cash and cash equivalents $689 $549 Accounts receivable, net 6,338 7,177 Inventory 12,204 13,725 Other current assets 1,483 1,281 Total current assets 20,714 22,732 Fixed assets, net 1,680 1,351 Other non-current assets 1,592 1,513 Total assets $23,986 $25,596 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued expenses $8,443 $6,478 Current portion of debt 335 235 Total current liabilities 8,778 6,713 Long-term portion of debt 12,598 9,223 Total liabilities 21,376 15,936 Shareholders' equity 2,610 9,660 Total liabilities and shareholders' equity $23,986 $25,596 DELPHAX TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) Nine Months Ended June 30, 2008 2007 OPERATING ACTIVITIES Net loss $(7,094) $(387) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 325 460 Loss on disposal of equipment and fixtures - 7 Non-cash interest on subordinated debt 254 373 Stock-based compensation 115 111 Other 115 (34) Changes in operating assets and liabilities: Accounts receivable 839 (1,084) Inventory 1,521 1,687 Other current assets (202) (621) Current liabilities 1,924 (1,780) NET CASH USED IN OPERATING ACTIVITIES (2,203) (1,268) INVESTING ACTIVITIES Purchase of equipment and fixtures (85) (54) NET CASH USED IN INVESTING ACTIVITIES (85) (54) FINANCING ACTIVITIES Issuance of subordinated debt - 900 Borrowing (payment) on bank credit facilities, net 2,800 (200) Debt financing costs (196) - Checks written in excess of cash balances - 513 Principal payments on capital lease obligations (93) (97) NET CASH PROVIDED BY FINANCING ACTIVITIES 2,511 1,116 EFFECT OF EXCHANGE RATE CHANGES ON CASH (83) 157 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 140 (49) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 549 582 CASH AND CASH EQUIVALENTS, END OF PERIOD $689 $533
SOURCE Delphax Technologies