Schick Technologies Announces Fiscal 2004 Third Quarter Results
LONG ISLAND CITY, N.Y., Feb. 11 /PRNewswire-FirstCall/ --
Highlights of the Quarter: * Net income increased 73% * Revenue
increased 38% * Balance Sheet shows $15.6 million in cash and no
debt Schick Technologies, Inc. (OTC:SCHK) (BULLETIN BOARD: SCHK)
today reported its financial results for the third quarter of
fiscal year 2004, ended December 31, 2003. Revenues for the quarter
were $12.1 million, an increase of $3.3 million, or 38%, compared
to $8.8 million for the same period last year. Net income for the
quarter was $4.9 million, an increase of 73% as compared with the
Company's net income of $2.8 million for the same period last year.
On a per- share basis, net income for the quarter was $0.47 per
basic and $0.29 per diluted share as compared with net income of
$0.28 per basic and $0.19 per diluted share for the same period
last year. Revenues for the nine months ended December 31, 2003
were $29.3 million, an increase of $6.8 million, or 30%, compared
to $22.5 million in the same period last year. Net income for the
nine months was $9.1 million, an increase of 77% as compared with
the Company's net income of $5.1 million for the same period last
year. On aper-share basis, net income for the nine months was $0.88
per basic and $0.54 per diluted share as compared with net income
of $0.51 per basic and $0.35 per diluted share for the same period
last year. At December 31, 2003, the Company had $15.6 million in
cash, cash equivalents and short-term investments and $19.4 million
in working capital, as compared to $7.8 million in cash, cash
equivalents and short-term investments and $9.2 million in working
capital at March 31, 2003. "We are extremely pleased with the
Company's strong top and bottom line results this quarter. Revenues
were driven by strong digital radiology sales both in the U.S. and
worldwide, with international sales increasing 63% over last year,"
said David Schick, Chief Executive Officer. "Our strong margins
continued to improve, reflecting in part the operating efficiency
which we have achieved in our business, with gross margins reaching
74.7% and operating margins reaching 40% for the quarter." Jeffrey
Slovin, President and Chief Operating Officer, remarked: "This
quarter was very rewarding to all of us at Schick. Our revenues
continued to grow rapidly, both domestically and abroad, gross
margins continued to be exceptional, and net income was the highest
ever achieved by the Company. Our balance sheet is strong and the
Company is well poised to meet the demands and opportunities of
this growing and dynamic market." Schick Technologies, Inc.
Conference Call Information: Schick Technologies, Inc. will hold
its quarterlyconference call on Wednesday, February 11, 2004 at
4:30 p.m. EST. To access the call, please dial 800-901-5217,
passcode #47173629 (domestic), or 617-786-4511 (international).
This conference call will be broadcast live on the Internet at
http://www.schicktech.com/. If you are unable to participate, an
audio digital replay of the call will be available from February
11, 2004, at 6:30 p.m. EST until Midnight EST on February 18, 2004
by dialing 1-888-286-8010 (domestic) or 617- 801-6888
(international) using confirmation code #94549829. A web archive
will be available for 30 days at http://www.corporate-/
ir.net/ireye/ir_site.zhtml?ticker=SCHK.OB&script=1020&item_id=ew,
847240 , 1,88793,335637,383159,1&layout=-6. This earnings
release, and any other financial and statistical information
disclosed by the Company during the conference call will be
available in the "Investors" section of Registrant's web site at
http://www.schicktech.com/. Schick Technologies, Inc., an ISO 9001
certified company, designs, develops, and manufactures innovative
digital radiographic imaging systems and devices for the dental and
medical markets. The Company's products, which are based on
proprietary digital imaging technologies, create instant high-
resolution radiographs and offer significant advantages over
conventional x- ray devices. The Company's beliefs as to its
operating efficiency, that the market for digital radiographic
imaging systems is growing and dynamic, that the Company is well
poised to meet the demands and opportunities of this market, and
other information in this announcement which is not historical,
constitute forward- looking statements as defined in the Private
Securities Litigation Reform Act of 1995. The matters discussed in
this newsrelease are subject to various factors which could cause
actual events and results to differ materially from such
statements. Such factors include uncertainties as to the future
sales volume of Schick Technologies' products, the pending SEC
civil action and U.S. Attorney investigation, the possibility of
changing economic, market and competitive conditions, dependence on
products, technological developments, competition, market
uncertainties, dependence on distributors, ability to manage
growth, fluctuation in results, seasonality and other risks and
uncertainties including those detailed in the Company's filings
with the Securities and Exchange Commission. Schick Technologies,
Inc. and Subsidiary Consolidated Statements of Operations
(unaudited) (In thousands, except share and per share amounts)
Three months ended Nine months ended December 31, December 31, 2003
2002 2003 2002 Revenue, net $12,124 $8,816 $29,301 $22,470 Cost of
sales 3,063 2,503 8,316 7,160 Excess and obsolete inventory - 150 -
259 Total cost of sales 3,063 2,653 8,316 7,419 Gross profit 9,061
6,163 20,985 15,051 Operating expenses: Selling and marketing 1,655
1,482 4,505 4,257 General and administrative 1,725 1,179 4,921
3,549 Research and development 827 663 2,508 1,909 Total operating
costs 4,207 3,324 11,934 9,715 Income from operations 4,854 2,839
9,051 5,336 Other income (expense) Interest income 39 12 88 39
Interest expense (9) (75) (180) (241) Other income 4 84 141 100
Total other income (expense) 34 21 49 (102) Income before income
taxes 4,888 2,860 9,100 5,234 Provision for income taxes 34 55 - 85
Net income $ 4,854 $ 2,805 $ 9,100 $ 5,149 Basic earnings per share
$ 0.47 $ 0.28 $ 0.88 $ 0.51 Diluted earnings per share $ 0.29 $
0.19 $ 0.54 $ 0.35 Weighted average common shares (basic)
10,407,356 10,154,059 10,334,431 10,146,069 Weighted average common
shares (diluted) 16,879,982 14,957,659 16,776,152 14,885,888
Consolidated Balance Sheets (In thousands, except share amounts)
December 31, March 31, 2003 (unaudited) Assets Current assets Cash
and cash equivalents $ 15,541 $ 7,100 Short-term investments 9 712
Accounts receivable, net of allowance for doubtful accounts of $138
and $42, respectively 5,161 3,032 Inventories 3,382 3,039 Income
taxes receivable 5 10 Prepayments and other current assets 533 421
Deferred income taxes 2,861 2,590 Total current assets 27,492
16,904 Equipment, net 1,621 2,151 Goodwill, net 266 266 Deferred
income taxes 3,139 2,940 Other assets 259 349 Total assets $ 32,777
$ 22,610 Liabilities and Stockholders' Equity Current liabilities
Current maturity of long term debt $- $1,503 Accounts payable and
accrued expenses 1,832 1,468 Accrued salaries and commissions 1,628
1,080 Income taxes payable 106 4 Deposits from customers 33 31
Warranty obligations 185 56 Deferred revenue 4,348 3,605 Total
current liabilities 8,132 7,747 Commitments and contingencies - -
Stockholders' equity Preferred stock ($0.01 par value; 2,500,000
shares authorized; none issued and outstanding) - - Common stock
($0.01 par value; 50,000,000 shares authorized: 10,441,980 and
10,206,425 shares issued and outstanding, respectively) 104 102
Additional paid-in capital 43,298 42,618 Accumulated deficit
(18,757) (27,857) Total stockholders' equity 24,645 14,863 Total
liabilities and stockholders' equity $ 32,777 $ 22,610 DATASOURCE:
Schick Technologies, Inc. CONTACT: Investor Relations of Schick
Technologies, +1-718-937-5765; or Cameron Associates,
+1-212-245-8800, for Schick Technologies Web site:
http://www.schicktech.com/
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