Ramtek
1525 Atteberry Lane
San Jose, CA 95131
4081954-2700
Company contact FAX: 408/954-0118
James A. Swanson
President and CEO
Ramtek Corporation
(408) 954-2700
Agency contacts:
William Orrange
Janis Ulevich
Ulevich & Orrange, Inc.
(415) 329-1590
FOR IMMEDIATE RELEASE
RAMTEK ANNOUNCES ITS EMERGENCE FROM CHAPTER 11 AND
PROFITS FOR SECOND QUARTER ENDED DECEMBER 31, 1989
SAN JOSE, Calif., Feb. 7, 1990 -- Ramtek Corporation today
announced that its net revenues for the second quarter ended
December 31, 1989, were $4,287,000 as compared to $3,630,000 for
the comparable period in fiscal year 1989. The Company reported
income (before other income (expense) and extraordinary items) of
$41,000, or $0.01 per share, for the second quarter as compared
to a loss of $(856,000), or $(0.21) per share, for the comparable
period in fiscal year 1989. The second quarter net income was
$11,795,000, or $2.84 per share, which included an extraordinary
gain on pre-petition settlements of $12,091,000, or $2.91 per
share, associated with the Company's emergence from Chapter 11.
The Company had a net loss of $(37,000), or $(0.01) per share,
for the comparable period in fiscal year 1989.
For the six months ended December 31, 1989, net revenues
were $8,899,000 as compared to $8,540,000 for the comparable
period in fiscal year 1989. The Company reported income (before
other income (expense) and extraordinary items) of $419,000, or
$0.10 per share, for the first six months of fiscal year 1990 as
compared to a loss of $(774,000), or $(0.19) per share, for the
comparable period in fiscal year 1989. Net income for the first
six months of fiscal year 1990 was $12,186,000 as compared to a
loss of $(1,404,000) for the comparable period in fiscal year
1989.
Jim Swanson, President, said the second quarter was a
significant milestone for Ramtek Corporation. While the Company
experienced 18 percent growth in product sales and service
revenue over the prior year's comparable quarter, the Company's
objective continues to be profitability and positive cash flow.
Equally important, the Company devoted approximately 32 percent
of its product sales revenue to development of a new product
which it believes will significantly strengthen Ramtek's future
sales base. Finally, the Company's Plan of Reorganization was
confirmed on November 30, and the Company officially emerged from
Chapter 11 on December 18, 1989.
Ramtek Corporation, headquartered in San Jose, California,
designs and manufactures high-performance imaging and graphics
display systems and peripherals.
RAMTEK CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
1989 1988 1989 1988
Revenue:
Product sales........................$ 3,498 $ 2,977 $ 7,181 $ 5,462
Service and other revenue............ 789 653 1,718 1,578
Sale of Technology................... 1,500
Net revenue.......................... 4,287 3,630 8,899 8,540
Costs and expenses:
Cost of sales...................... 2,037 2,152 4,444 4,658
Product development................ 1,123 971 1,934 1,977
Selling, general and administrative 1,086 1,363 2,102 2,679
Total costs and expenses........... 4,246 4,486 8,480 9,314
41 (856) 419 (774
Other income (expense):
Interest, net...................... 58 (56) 81 (432)
Gain on write-off of building lease obligation. 875 875
Write-off of deferred issuance costs. (1,073)
Other............................... (405) (405)
Total other income (expense)........ (347) 819 (324) (630)
Income (loss) before income tax expense
and extraordinary credits........... (306) (37) 95 (1,404)
(Provision) credit for income taxes 55 (85)
Income (loss) before extraordinary credits(251) (37) 10 (1,404)
Extraordinary credits:
Gain on pre-petition settlements..... 12,091 12,091
Impact of net operating loss carryforwards (45) 85
Net income (loss).......................$ 11,795 $ (37) 12,186 $ (1,404)
Net income (loss) per share:
Income (loss) before extraordinary credits $ (0.06)$ (O.Ol) $ 0.00 $ (0.34)
Extraordinary credits................ 2.90 2.95
Net income (1088) per share .............$ 2.84 $ (0.01) $ 2.95 $ (0.34)
Weighted average common
shares outstanding........ 4,160 4,099 4,129 4,099