Montreal, August 2, 2002 -- Coreco Inc. reported revenue for the second quarter ended June 30, 2002 of $4,912,528, an increase of 2% on a sequential basis from $4,837,358 in the first quarter of 2002 and a decrease of 36% from $7,625,606 reported in the second quarter of 2001. (All dollar and cent amounts are expressed in US currency.)
Net earnings amounted to $275,728, or $0.04 per share, compared with net earnings of $163,573, or $0.02 per share, in the first quarter of 2002 and a net loss of $608,495, or $0.08 per share, in the second quarter of 2001. In accordance with new CICA accounting recommendations, goodwill was not amortized in the second quarter. Goodwill amortization represented $1,458,004 in the comparable quarter of last year. Excluding the effect of the new accounting recommendations, net earnings from operations amounted to $275,728, or $0.04 per share, compared with $832,972, or $0.12 per share, in the second quarter of 2001.
For the six months ended June 30, 2002, revenue was $9,749,886 versus $15,209,204 in the same period last year and net earnings were $439,301, or $0.06 per share, compared with a net loss of $1,333,569, or $0.18 per share, a year earlier. Excluding goodwill amortization, net earnings from operations represented $439,301, or $0.06 per share, versus $1,548,859, or $0.21 per share, in the first half of 2001.
At June 30, 2002, the Company held's $3,920,367 in cash offset by total long-term debt of $2,468,750, resulting in a net cash position of $1,451,617. This is an improvement of $642,515, or 80%, over the end of the first quarter this year. Inventory levels continued to drop for the second quarter in a row, representing a 15% reduction from levels at the end of fiscal 2001.Working capital amounted to $8,810,298, for a ratio of 3:1 at the end of the second quarter.
The Company was awarded 12 design-wins in the second quarter, including 11 for new applications. This compares with a total of 9 design-wins in the first quarter of 2002. This quarter was highlighted by the successful design of the Company's new digital product into an OEM application that will generate major volume orders over the next two years.
Sales of new products continued to accelerate in the second quarter, reaching 67% of sales compared with 58% in the first quarter of 2002 and 50% in the second quarter a year ago. On a geographic basis, Asia, Europe and the U.S. accounted for 14%, 31% and 50% of total sales, respectively.
The Company's Intelligent Products Division (IPD) is currently introducing its smart camera on a selective basis to strategic customers. This product, which targets end-user factory floor applications, will be released in the second half of fiscal 2002.
"Our results this quarter are better than we expected", commented CEO Keith Reuben. "On a sequential basis, revenues show a small increase for the second quarter in a row and our profitability has doubled despite our significant investment in IPD. We are also beginning to see the fruit of our efforts to find new markets for our OEM products following the downturn in the semiconductor industry : 11 of our 12 design-wins this quarter came from new applications."
"Despite this improvement in our results, we continue to maintain a cautious stance during this period of limited visibility. Our goal is to stay profitable and to secure our Company's long-term success by continuing to invest in the research and development of new products for both our OEM and end-user markets," concluded Reuben.
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