ENGLEWOOD, Colo., May 16 /PRNewswire-FirstCall/ -- Laser Technology, Inc. (Amex: LSR - News), a leading designer, manufacturer and marketer of pulse laser measuring systems, today reported operating results for the second quarter and first six months of its 2002 fiscal year.
Net sales during the second quarter of fiscal 2002, which ended March 31, 2002, declined 27% from the same period a year earlier, to $2,234,728 from $3,060,393.
Traffic Safety revenues during the second quarter fell 22% to $1,442,330 from $1,838,619 a year ago. North America accounted for 67% of sales while International sales totaled 33%. Traffic Safety product sales in North American markets rose 2% to $966,409 from $947,043, while International sales of Traffic Safety products declined 47% to $475,921 from $891,576. This decrease reflected continued competitive pricing in overseas markets, and cautionary spending for capital items by various government agencies.
Sales of our Survey and Mapping products decreased 32% to $661,697 in 2002 as compared to $966,794 in 2001. North American sales and International sales comprised 70% and 30%, respectively of the total during the quarter ended March 31, 2002. North American sales declined 31% to $465,484 from $674,108. Continued uncertainty about the economy slowed private spending while purchases by government agencies were hindered by reallocated budgets. International sales decreased by 33%, to $196,212 from $292,686 as customers postponed discretionary purchases of capital items.
"Domestic Survey and Mapping sales continue to be affected by cautious spending in both the private and government sectors. Traffic Safety sales remained solid and we look to strengthen our domestic presence with the recent addition of MPH Industries' radar speed detection products which will be sold through Laser Technology's direct distribution channels," commented Eric Miller, President and CEO of Laser Technology, Inc. "International revenues have been hindered by pricing pressures created by the strong US dollar in certain countries and purchasing delays caused by the cyclic demand of traffic safety products. Management anticipates a moderate recovery of international sales in the 3rd quarter of the current fiscal year," concluded Mr. Miller.
Gross margins narrowed to 46% of sales in the second quarter versus 51% in the second quarter a year ago. Although average selling prices for the majority of products held at or above last year's levels, higher labor content in cost of goods sold reduced gross margins. Management is currently evaluating our manufacturing processes to identify areas for potential efficiency improvements.
Royalty and licensing income which is based on a percentage of net sales from our licensee was $124,178, in the second quarter of 2002 as compared to $137,144 in 2001. This 9.5% decrease represents a greater proportion of licensee sales of lower priced units.
Total operating expenses remained virtually unchanged at $1,684,477 from $1,677,199 for the comparable 2001 period. After other income of $21,938, the company posted a pretax loss of $513,582 for the March 31, 2002 quarter, as against a profit of $53,496 a year earlier. The net loss after tax benefit amounted to $328,692, or $0.06 per share, versus a profit of $45,207 or $0.01 per share a year ago.
Laser Technology, Inc. manufactures and markets laser-based speed and distance measuring instruments, which utilize proprietary technology developed by the Company. Its products are sold worldwide and are used in a wide variety of applications, including traffic speed enforcement, natural resource management, GIS mapping, surveying, sporting/recreational activities, and industrial process control. The Company's headquarters and primary manufacturing facilities are located in Englewood, Colorado, and its common stock is traded on the American Stock Exchange under the ticker symbol "LSR".
This press release includes statements which may constitute "forward-
looking" statements, usually containing the words "believe," "project,"
"expect" or similar expressions. Any forward-looking statements in this
release are made pursuant to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned forward-
looking statement inherently involve risks and uncertainties that could cause
actual results to differ materially from such forward-looking statements.
Factors that could cause or contribute to such differences include, but are
not limited to, continued acceptance of the Company's products and services in
the marketplace, competitive factors, new products and technological
developments, dependence upon third-party vendors, and other risks detailed in
the Company's periodic report filings with the Securities and Exchange
Commission. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or changes
after the date of this release.
For further information, please contact:
Maggie Urban-Phillips, Investor Relations
Or
Elizabeth Hearty, Controller and Corporate Secretary
At (303) 649-1000
LASER TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
March 31, March 31,
2002 2001
Net Sales $2,234,728 $3,060,393
Less Cost of Goods Sold 1,209,949 1,488,591
Gross Margin 1,024,779 1,571,802
Royalty & Licensing Income 124,178 137,144
Total Operating Income 1,148,957 1,708,946
Operating Expenses 1,684,477 1,677,199
Income (Loss) From Operations (535,520) 31,747
Other Income (Expense), Net 21,938 21,749
Income (Loss) Before Changes In
Accounting Estimate (513,582) 53,496
Changes In Accounting Estimate Income
(Expense) -- --
Income (Loss) Before Taxes On Income (513,582) 53,496
Taxes On Income (Benefit) (184,890) 8,289
Net Income (Loss) $(328,692) $45,207
Basic Earnings (Loss) Per Common Share $(0.06) $0.01
Weighted Avg. Shares Outstanding 5,710,867 5,486,220
Diluted Earnings (Loss) Per Common Share $(0.05) $0.01
Diluted Avg. Shares Outstanding 6,664,067 6,291,220
LASER TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Six Months Ended
March 31, March 31,
2002 2001
Net Sales $4,700,807 $5,470,035
Less Cost of Goods Sold 2,398,303 2,609,022
Gross Margin 2,302,504 2,861,013
Royalty & Licensing Income 345,888 389,876
Total Operating Income 2,648,392 3,250,889
Operating Expenses 3,370,272 3,401,845
Income (Loss) From Operations (721,880) (150,956)
Other Income (Expense), Net 50,426 66,483
Income (Loss) Before Changes in
Accounting Estimate $(671,454) $(84,473)
Changes In Accounting Estimate Income
(Expense) $(14,945) --
Income (Loss) Before Taxes On Income (686,399) (84,473)
Taxes On Income (Benefit) (247,104) (41,380)
Net Income (Loss) $(439,295) $(43,093)
Basic Earnings (Loss) Per Common Share $(0.08) $(0.01)
Weighted Avg. Shares Outstanding 5,710,867 5,486,220
Diluted Earnings (Loss) Per Common Share $(0.07) $(0.01)
Diluted Avg. Shares Outstanding 6,664,067 6,291,220
LASER TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, September 30,
2002 2001
Current Assets:
Cash and cash equivalents $2,848,437 $1,641,586
Trade Accounts receivable,
less allowance for doubtful
accounts of $66,235 and $55,228
at March 31, 2002 and
September 30,2001, respectively 1,607,179 2,363,225
Royalties receivable 123,220 443,713
Inventories 3,620,603 4,493,440
Prepaids and other current assets 113,591 186,017
Income tax prepayment 284,666 8,406
Total current assets $8,597,696 $9,136,387
Property and equipment,
net of accumulated depreciation 599,877 788,983
Other assets 1,042,760 1,068,559
TOTAL CURRENT ASSETS $10,240,333 $10,993,929
Current Liabilities:
Accounts payable $377,652 $593,271
Accrued expenses 240,624 327,094
Current maturities of long-term debt 2,400 14,611
Total current liabilities $620,676 $934,976
Stockholders' equity:
Preferred Stock, $.01 par value
-- shares authorized 2,000,000:
shares issued -- none -- --
Common stock, $.01 par value
-- shares authorized 25,000,000;
shares issued 5,710,867 57,109 57,109
Additional paid-in capital 10,314,226 10,314,226
Treasury stock at cost
(224,650 shares) (194,259) (194,259)
Retained earnings (Deficit) (557,419) (118,123)
Total stockholders' equity 9,619,657 10,058,953
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $10,240,333 $10,993,929