Gentner Reports Record Sales and Earnings for Q3 Fiscal 2001

Apr 17, 2001, 01:00 ET from Gentner Communications Corporation

    SALT LAKE CITY, April 17 /PRNewswire/ -- Gentner Communications Corp.
 (Nasdaq:   GTNR) today announced record results for the third quarter of fiscal
 year 2001.
 
                              Financial Highlights
                                  (unaudited)
 
                                     Three Months Ended
                                   3/31/01         3/31/00            Change
 
      Sales                      $10,980,398      $7,867,433          +40%
      Net income                  $1,600,721      $1,240,255          +29%
      Diluted earnings per share       $0.18           $0.14          +29%
 
      Nine Months Ended
                                   3/31/01        3/31/00             Change
 
      Sales                      $31,668,855     $22,367,545          +42%
      Net income                  $4,693,153      $3,372,417          +39%
      Diluted earnings per share       $0.52           $0.39          +33%
 
     For the quarter ended March 31, 2001, Gentner reported net income of
 $1.6 million, or $0.18 per share, on sales of $11.0 million.  This represents
 a 29 percent increase in net income and a 40 percent increase in sales over
 the same quarter last year, for which the company reported net income of
 $1.2 million, or $0.14 per share, on sales of $7.9 million.
     For the first nine months of fiscal 2001, Gentner reported net income of
 $4.7 million, or $0.52 per share, on sales of $31.7 million.  Comparatively,
 the company reported net income of $3.4 million, or $0.39 per share, on
 revenue of $22.4 million for the same period last year.
     Conferencing product sales for the quarter were up 37 percent to
 $6.0 million from $4.3 million last year, while sales from conferencing
 services increased 94 percent to $3.2 million from $1.7 million a year ago.
 Remote Facilities Management (RFM) sales were down 4 percent in the third
 quarter to $1.7 million from $1.8 million last year.
     "We are pleased to again report record sales and earnings, especially
 against the backdrop of the current economic environment," said Fran Flood,
 president and chief executive officer of Gentner.  "We worked closely with our
 largest dealers during the quarter to ensure that they are committed to buying
 Gentner products.  As a result, we have a more consistent view of our
 forecasted sales for the next 12 months.
     "Product development continues to be on schedule and we look forward to
 introducing our newest audioconferencing product -- the XAP800 -- in June.  In
 addition, demand for our conferencing services remains strong, and we continue
 to forecast revenue growth in the range of 100 percent per year through the
 end of fiscal 2002," said Flood.
     Flood added that Gentner's balance sheet continues to improve from its
 already strong position, with both cash and working capital at an all time
 high and virtually no debt.  "Our strong balance sheet enables us to continue
 our growth and to take advantage of various market opportunities," said Flood.
     Gentner will hold its quarterly conference call on Tuesday, April 17, 2001
 at 9:15 a.m. Mountain time.  To listen live via the Internet, go to Gentner's
 Web site (www.gentner.com) just prior to the call and click on "Q3 Earnings
 Webcast."  The live audio Webcast will also be available via the following Web
 sites: AOL Finance, Netscape, Compuserve, Wall Street City, StockWalk, Raging
 Bull, Motley Fool, and TD Waterhouse.  A replay will be available on Gentner's
 Web site approximately one hour after the conclusion of the live call.
 
     About Gentner
    Gentner Communications Corp. (www.gentner.com) develops, markets and
 distributes products and services to the professional communications,
 broadcast, business and consumer markets.  Designed to help lower the cost of
 doing business by reducing the need for travel, Gentner's products and
 services include audio and videoconferencing systems, and a full suite of
 teleconferencing services, including full-service conference calling, Instant
 Access Conferencing(TM), and Webconferencing.  Other offerings include sound
 reinforcement products, telephone interface products and assistive listening
 systems.
 
     Forward-Looking Disclaimer
     To the extent any statement presented herein deals with information that
 is not historical, including statements regarding the growth of Gentner's core
 business segments and new product development schedules, such statement is
 necessarily forward-looking.  As such, it is subject to the occurrence of many
 events outside Gentner's control that could cause Gentner's results to differ
 materially from those anticipated.  Please see the risk factors contained in
 Gentner's most recent 10-KSB filed with the SEC.
 
 
                       Condensed Statement of Operations
                                  (unaudited)
 
                               Three Months Ended       Nine Months Ended
                              3/31/01      3/31/00     3/31/01       3/31/00
 
     Sales                 $10,980,398   $7,867,433 $31,668,855  $22,367,545
     Cost of goods sold      4,620,603    2,904,454  12,924,180    8,578,741
     Gross profit            6,359,795    4,962,979  18,744,675   13,788,804
 
     Sales & marketing
      expenses               1,993,941    1,808,549   5,989,273    4,845,321
     General & administrative
      expenses               1,138,330      779,953   3,635,382    2,276,966
     Research & development
      expenses                 743,815      436,582   1,863,459    1,393,170
     Total expenses          3,876,086    3,025,084  11,488,114    8,515,457
 
     Operating income        2,483,709    1,937,895   7,256,561    5,273,347
 
     Other items                69,278       41,090     252,083      104,800
     Income tax expense       (952,266)    (738,730) (2,815,491)  (2,005,730)
     Net income             $1,600,721   $1,240,255  $4,693,153   $3,372,417
 
     Basic earnings per
      share                      $0.18        $0.15       $0.54        $0.41
     Fully diluted earnings
      per share                  $0.18        $0.14       $0.52        $0.39
 
     Basic shares
      outstanding            8,707,121    8,300,841   8,613,173    8,230,546
     Fully diluted shares
      outstanding            9,143,083    8,855,805   9,057,617    8,733,281
 
 
                                 Balance Sheet
 
                                                    3/31/01         6/30/00
                                                   (unaudited)     (audited)
     ASSETS
 
     Current assets:
       Cash and cash equivalents                    6,041,617      5,374,996
       Accounts receivable                          6,065,601      4,153,677
       Inventory                                    5,198,498      3,484,992
       Income tax receivable                               --        987,912
       Deferred taxes                                 136,000        136,000
       Other current assets                           548,368        678,744
         Total current assets                      17,990,084     14,816,321
 
     Property and equipment, net                    3,730,219      3,050,349
     Other assets, net                              2,956,896         53,861
         Total assets                              24,677,199     17,920,531
 
 
     LIABILITIES AND EQUITY
 
     Current liabilities:
       Accounts payable                               701,807        767,095
       Accrued expenses                             1,362,506      1,739,826
       Accrued income taxes                           356,498             --
       Current portion of capital leases              219,931        249,859
         Total current liabilities                  2,640,742      2,756,780
 
     Capital lease obligations                         47,418        205,530
     Deferred tax liability                           205,000        205,000
         Total liabilities                          2,893,160      3,167,310
 
     Shareholders' equity:
       Common stock                                     8,632          8,427
       Additional paid-in capital                   9,034,321      6,697,090
       Retained earnings                           12,740,858      8,047,704
       Equity adjustment from foreign
        currency translation                              228             --
         Total shareholders' equity                21,784,039     14,753,221
         Total liabilities and equity              24,677,199     17,920,531
 
 
     For further information, please contact Susie Strohm, Vice President of
 Finance of Gentner Communications Corporation, 801-975-7200, or 800-945-7730,
 or fax, 801-977-0087, sstrohm@gentner.com.
 
 

SOURCE Gentner Communications Corporation
    SALT LAKE CITY, April 17 /PRNewswire/ -- Gentner Communications Corp.
 (Nasdaq:   GTNR) today announced record results for the third quarter of fiscal
 year 2001.
 
                              Financial Highlights
                                  (unaudited)
 
                                     Three Months Ended
                                   3/31/01         3/31/00            Change
 
      Sales                      $10,980,398      $7,867,433          +40%
      Net income                  $1,600,721      $1,240,255          +29%
      Diluted earnings per share       $0.18           $0.14          +29%
 
      Nine Months Ended
                                   3/31/01        3/31/00             Change
 
      Sales                      $31,668,855     $22,367,545          +42%
      Net income                  $4,693,153      $3,372,417          +39%
      Diluted earnings per share       $0.52           $0.39          +33%
 
     For the quarter ended March 31, 2001, Gentner reported net income of
 $1.6 million, or $0.18 per share, on sales of $11.0 million.  This represents
 a 29 percent increase in net income and a 40 percent increase in sales over
 the same quarter last year, for which the company reported net income of
 $1.2 million, or $0.14 per share, on sales of $7.9 million.
     For the first nine months of fiscal 2001, Gentner reported net income of
 $4.7 million, or $0.52 per share, on sales of $31.7 million.  Comparatively,
 the company reported net income of $3.4 million, or $0.39 per share, on
 revenue of $22.4 million for the same period last year.
     Conferencing product sales for the quarter were up 37 percent to
 $6.0 million from $4.3 million last year, while sales from conferencing
 services increased 94 percent to $3.2 million from $1.7 million a year ago.
 Remote Facilities Management (RFM) sales were down 4 percent in the third
 quarter to $1.7 million from $1.8 million last year.
     "We are pleased to again report record sales and earnings, especially
 against the backdrop of the current economic environment," said Fran Flood,
 president and chief executive officer of Gentner.  "We worked closely with our
 largest dealers during the quarter to ensure that they are committed to buying
 Gentner products.  As a result, we have a more consistent view of our
 forecasted sales for the next 12 months.
     "Product development continues to be on schedule and we look forward to
 introducing our newest audioconferencing product -- the XAP800 -- in June.  In
 addition, demand for our conferencing services remains strong, and we continue
 to forecast revenue growth in the range of 100 percent per year through the
 end of fiscal 2002," said Flood.
     Flood added that Gentner's balance sheet continues to improve from its
 already strong position, with both cash and working capital at an all time
 high and virtually no debt.  "Our strong balance sheet enables us to continue
 our growth and to take advantage of various market opportunities," said Flood.
     Gentner will hold its quarterly conference call on Tuesday, April 17, 2001
 at 9:15 a.m. Mountain time.  To listen live via the Internet, go to Gentner's
 Web site (www.gentner.com) just prior to the call and click on "Q3 Earnings
 Webcast."  The live audio Webcast will also be available via the following Web
 sites: AOL Finance, Netscape, Compuserve, Wall Street City, StockWalk, Raging
 Bull, Motley Fool, and TD Waterhouse.  A replay will be available on Gentner's
 Web site approximately one hour after the conclusion of the live call.
 
     About Gentner
    Gentner Communications Corp. (www.gentner.com) develops, markets and
 distributes products and services to the professional communications,
 broadcast, business and consumer markets.  Designed to help lower the cost of
 doing business by reducing the need for travel, Gentner's products and
 services include audio and videoconferencing systems, and a full suite of
 teleconferencing services, including full-service conference calling, Instant
 Access Conferencing(TM), and Webconferencing.  Other offerings include sound
 reinforcement products, telephone interface products and assistive listening
 systems.
 
     Forward-Looking Disclaimer
     To the extent any statement presented herein deals with information that
 is not historical, including statements regarding the growth of Gentner's core
 business segments and new product development schedules, such statement is
 necessarily forward-looking.  As such, it is subject to the occurrence of many
 events outside Gentner's control that could cause Gentner's results to differ
 materially from those anticipated.  Please see the risk factors contained in
 Gentner's most recent 10-KSB filed with the SEC.
 
 
                       Condensed Statement of Operations
                                  (unaudited)
 
                               Three Months Ended       Nine Months Ended
                              3/31/01      3/31/00     3/31/01       3/31/00
 
     Sales                 $10,980,398   $7,867,433 $31,668,855  $22,367,545
     Cost of goods sold      4,620,603    2,904,454  12,924,180    8,578,741
     Gross profit            6,359,795    4,962,979  18,744,675   13,788,804
 
     Sales & marketing
      expenses               1,993,941    1,808,549   5,989,273    4,845,321
     General & administrative
      expenses               1,138,330      779,953   3,635,382    2,276,966
     Research & development
      expenses                 743,815      436,582   1,863,459    1,393,170
     Total expenses          3,876,086    3,025,084  11,488,114    8,515,457
 
     Operating income        2,483,709    1,937,895   7,256,561    5,273,347
 
     Other items                69,278       41,090     252,083      104,800
     Income tax expense       (952,266)    (738,730) (2,815,491)  (2,005,730)
     Net income             $1,600,721   $1,240,255  $4,693,153   $3,372,417
 
     Basic earnings per
      share                      $0.18        $0.15       $0.54        $0.41
     Fully diluted earnings
      per share                  $0.18        $0.14       $0.52        $0.39
 
     Basic shares
      outstanding            8,707,121    8,300,841   8,613,173    8,230,546
     Fully diluted shares
      outstanding            9,143,083    8,855,805   9,057,617    8,733,281
 
 
                                 Balance Sheet
 
                                                    3/31/01         6/30/00
                                                   (unaudited)     (audited)
     ASSETS
 
     Current assets:
       Cash and cash equivalents                    6,041,617      5,374,996
       Accounts receivable                          6,065,601      4,153,677
       Inventory                                    5,198,498      3,484,992
       Income tax receivable                               --        987,912
       Deferred taxes                                 136,000        136,000
       Other current assets                           548,368        678,744
         Total current assets                      17,990,084     14,816,321
 
     Property and equipment, net                    3,730,219      3,050,349
     Other assets, net                              2,956,896         53,861
         Total assets                              24,677,199     17,920,531
 
 
     LIABILITIES AND EQUITY
 
     Current liabilities:
       Accounts payable                               701,807        767,095
       Accrued expenses                             1,362,506      1,739,826
       Accrued income taxes                           356,498             --
       Current portion of capital leases              219,931        249,859
         Total current liabilities                  2,640,742      2,756,780
 
     Capital lease obligations                         47,418        205,530
     Deferred tax liability                           205,000        205,000
         Total liabilities                          2,893,160      3,167,310
 
     Shareholders' equity:
       Common stock                                     8,632          8,427
       Additional paid-in capital                   9,034,321      6,697,090
       Retained earnings                           12,740,858      8,047,704
       Equity adjustment from foreign
        currency translation                              228             --
         Total shareholders' equity                21,784,039     14,753,221
         Total liabilities and equity              24,677,199     17,920,531
 
 
     For further information, please contact Susie Strohm, Vice President of
 Finance of Gentner Communications Corporation, 801-975-7200, or 800-945-7730,
 or fax, 801-977-0087, sstrohm@gentner.com.
 
 SOURCE  Gentner Communications Corporation

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http://www.gentner.com