LoJack Expects Loss in Fourth Quarter as Result of Adopting SEC Revenue Recognition Guidelines; Cost of Management Reorganization and Reduced Revenues Due to Weak New Car Sales Will Also Impact Results

Apr 04, 2001, 01:00 ET from LoJack Corporation

    DEDHAM, Mass., April 4 /PRNewswire/ -- LoJack Corporation, (Nasdaq:   LOJN)
 announced today that it expects to report a loss in the range of $0.18 to
 $0.20 per share for the fourth quarter of fiscal 2001, ended February 28,
 although the company expects to be profitable for the year.  Included in the
 loss is the effect of a one-time charge that will be taken in the quarter as a
 result of the adoption of the SEC's Staff Accounting Bulletin No. 101
 ("SAB 101"), "Revenue Recognition in Financial Statements."  The SAB 101
 adjustment is a cumulative adjustment to defer and amortize revenue previously
 recognized on international license fees. This revenue adjustment will be
 recorded in license fee revenue in future periods.  The effect of this
 cumulative adjustment will be to lower LoJack's earnings for the quarter by
 $0.18 to $0.20 per share.
     Without this required change in accounting, the company would have
 reported break-even results for the quarter.  The break-even results are
 primarily attributable to lower domestic revenues, the result of a downturn in
 new vehicle sales during the quarter, and a one-time pre-tax charge of
 $1.5 million, or approximately $0.06 per share, related to management
 reorganization.
     The company expects full year earnings per share, excluding the
 non-recurring charges and the cumulative effect of SAB 101, will be slightly
 less than the prior year when the company earned $0.52 per share.  The company
 expects to release its earnings during the week of April 23, 2001.
     In making the announcement, Ronald J. Rossi, chairman and chief executive
 officer said, "LoJack has taken a new direction with greater emphasis on sales
 growth.  The recent changes in the company's organizational structure will
 permit a more vigorous and targeted sales effort within the company's
 traditional new car dealer network.  The progress of this new direction should
 be reflected later in the new fiscal year.  At the same time, the company is
 seeking to expand its distribution channels as well as its product lines.  We
 will continue to build the LoJack brand name and our profitable revenue base,"
 Mr. Rossi said.
     From time to time, information provided by the company or statements made
 by its employees may contain "forward-looking" information, which involve risk
 and uncertainties.  Any statements in this news release that are not
 statements of historical fact are forward-looking statements (including, but
 not limited to, statements concerning the characteristics and growth of the
 company's objectives and plans for future operations and products and the
 company's expected liquidity and capital resources).  Such forward-looking
 statements are based on a number of assumptions and involve a number of risks
 and uncertainties, and accordingly, actual results could differ materially.
 Factors that may cause such differences include, but are not limited to: the
 continued and future acceptance of the company's products and services, the
 rate of growth in the industries of the company's customers; the presence of
 competitors with greater technical, marketing, and financial resources; the
 company's ability to promptly and effectively respond to technological change
 to meet evolving customer needs; capacity and supply constraints or
 difficulties; and the company's ability to successfully expand its operations.
 For a further discussion of these and other significant factors to consider in
 connection with forward-looking statements concerning the company, reference
 is made to Exhibit 99 of the company's Annual Report on Form 10-K for the
 fiscal year ended February 29, 2000.
     LoJack Corporation will hold a conference call at 2 p.m. Eastern Daylight
 Time, today, Wednesday, April 4, 2001.  Hosting the call will be Ronald J.
 Rossi, Chairman and CEO and Joseph F. Abely, President.  In order to
 participate in the call dial: 1-800-547-9328.  The call will also be simulcast
 on the Internet at 2 p.m. EDT today.  To log onto the live call via the
 Internet enter the following address:
 http://www.videonewswire.com/LOJACK/040401/
 
 

SOURCE LoJack Corporation
    DEDHAM, Mass., April 4 /PRNewswire/ -- LoJack Corporation, (Nasdaq:   LOJN)
 announced today that it expects to report a loss in the range of $0.18 to
 $0.20 per share for the fourth quarter of fiscal 2001, ended February 28,
 although the company expects to be profitable for the year.  Included in the
 loss is the effect of a one-time charge that will be taken in the quarter as a
 result of the adoption of the SEC's Staff Accounting Bulletin No. 101
 ("SAB 101"), "Revenue Recognition in Financial Statements."  The SAB 101
 adjustment is a cumulative adjustment to defer and amortize revenue previously
 recognized on international license fees. This revenue adjustment will be
 recorded in license fee revenue in future periods.  The effect of this
 cumulative adjustment will be to lower LoJack's earnings for the quarter by
 $0.18 to $0.20 per share.
     Without this required change in accounting, the company would have
 reported break-even results for the quarter.  The break-even results are
 primarily attributable to lower domestic revenues, the result of a downturn in
 new vehicle sales during the quarter, and a one-time pre-tax charge of
 $1.5 million, or approximately $0.06 per share, related to management
 reorganization.
     The company expects full year earnings per share, excluding the
 non-recurring charges and the cumulative effect of SAB 101, will be slightly
 less than the prior year when the company earned $0.52 per share.  The company
 expects to release its earnings during the week of April 23, 2001.
     In making the announcement, Ronald J. Rossi, chairman and chief executive
 officer said, "LoJack has taken a new direction with greater emphasis on sales
 growth.  The recent changes in the company's organizational structure will
 permit a more vigorous and targeted sales effort within the company's
 traditional new car dealer network.  The progress of this new direction should
 be reflected later in the new fiscal year.  At the same time, the company is
 seeking to expand its distribution channels as well as its product lines.  We
 will continue to build the LoJack brand name and our profitable revenue base,"
 Mr. Rossi said.
     From time to time, information provided by the company or statements made
 by its employees may contain "forward-looking" information, which involve risk
 and uncertainties.  Any statements in this news release that are not
 statements of historical fact are forward-looking statements (including, but
 not limited to, statements concerning the characteristics and growth of the
 company's objectives and plans for future operations and products and the
 company's expected liquidity and capital resources).  Such forward-looking
 statements are based on a number of assumptions and involve a number of risks
 and uncertainties, and accordingly, actual results could differ materially.
 Factors that may cause such differences include, but are not limited to: the
 continued and future acceptance of the company's products and services, the
 rate of growth in the industries of the company's customers; the presence of
 competitors with greater technical, marketing, and financial resources; the
 company's ability to promptly and effectively respond to technological change
 to meet evolving customer needs; capacity and supply constraints or
 difficulties; and the company's ability to successfully expand its operations.
 For a further discussion of these and other significant factors to consider in
 connection with forward-looking statements concerning the company, reference
 is made to Exhibit 99 of the company's Annual Report on Form 10-K for the
 fiscal year ended February 29, 2000.
     LoJack Corporation will hold a conference call at 2 p.m. Eastern Daylight
 Time, today, Wednesday, April 4, 2001.  Hosting the call will be Ronald J.
 Rossi, Chairman and CEO and Joseph F. Abely, President.  In order to
 participate in the call dial: 1-800-547-9328.  The call will also be simulcast
 on the Internet at 2 p.m. EDT today.  To log onto the live call via the
 Internet enter the following address:
 http://www.videonewswire.com/LOJACK/040401/
 
 SOURCE  LoJack Corporation