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DRI Reports 3Q 2008 Results(Wireless News Via Acquire Media NewsEdge) DRI, a digital communications technology provider of the domestic and international surface transportation and transit security markets, announced that it posted third quarter 2008 net sales of $18.8 million, an increase of 34.9 percent over net sales for the same period last year. David L. Turney, Chairman, President, and Chief Executive Officer, said: "Our third quarter net sales of $18.8 million and earnings of 6 cents per share exceeded the $13.9 million in net sales and 4 cents per share posted for the same period last year. Contributing factors to this improved performance include positive order trends and improved gross margins." For the quarter ended Sept. 30, net sales increased by 34.9 percent to $18.8 million and the net profit to common shareholders was $662 thousand, or 6 cents per diluted common share outstanding. This compares to net sales of $13.9 million and net income of $500 thousand, or 4 cents per diluted common share outstanding for the same period last year. The Company had $11.8 million in working capital and $20.8 million in shareholders' equity as of Sept. 30. This compares to $5.7 million in working capital and $19.5 million in shareholders' equity as of Dec. 31, 2007. Basic and diluted weighted-average shares outstanding for the three-month period were 11.5 million and 13.1 million, respectively. This compares to basic and diluted weighted-average shares outstanding of 11.1 million and 11.7 million, respectively, for the same period a year ago. For the nine months ended Sept. 30, sales of continuing operations increased by 35.3 percent to $55.2 million and the net income to common shareholders was $1.9 million, or 16 cents per diluted common share outstanding. This compares to net sales of continuing operations of $40.8 million and a net loss to common shareholders of $101 thousand, or 1 cent per common share outstanding (basic and diluted) -- which is inclusive of a loss of $219 thousand, or 2 cents per common share outstanding (basic and diluted), from discontinued operations -- for the same period last year. Basic and diluted weighted-average shares outstanding for the nine-month period were 11.3 million and 13.0 million, respectively, as compared to basic and diluted weighted-average shares outstanding of 10.6 million and 11.0 million, respectively, a year ago. "Earlier this year, we announced that we had secured new U.S. loan agreements with PNC Bank, National Association, and BHC Interim Funding III, L.P., and that we had expanded our existing European banking relationship with Svenska Handelsbanken AB. As a result of those agreements, we believe that we have an appropriate level of working capital with which to execute our business plans, as presently known. Despite the dismal global financial market, we believe our ability to manage cash resources also remains a positive factor on performance," Turney said. Regarding the Company's business outlook, Turney said: - "We note the very positive results nationwide from the Nov. 4 ballot initiatives related to transit measures. Approximately 32 such initiatives were on the ballots in states and local communities across the nation; the 74 percent that passed will provide a total of approximately $75 billion in new funding for transit-related projects in 16 states. For the most part, these initiatives were aimed at funding and authorization for transit projects in the local communities involved. This underscores the fact that communities are pressing for more and better transit services even in a period when the price of gasoline has declined in a weak economy. We see this as being a very positive indicator for our business." - "Looking out into 2009, we see revenue and earnings increasing over 2008; more specifics on that will be issued in a few weeks after the DRI Board of Directors reviews and considers management's 2009 Operating Plan later this month. This year-over-year projection of improved operating results is still another positive indicator for our business. Our historical operating results indicate our business will have short-term swings in revenues and earnings, both up and down, as we deal with the lumpy contract nature of our served markets. However, we have not yet detected any material impact on the business related to the present slowdown of the global economy. It would be foolish to assert that any business is totally immune to swings in the economy, but I can say that the underpinnings for our business have positive indications as previously noted." - "While we will report a meaningful profit for third quarter 2008, we continue to remain cautious about the timing of orders in fourth quarter 2008. Therefore, we are adjusting our fiscal year 2008 guidance to be at the lower end of our previously announced expected earnings range of 14 cents to 17 cents. Previously, we expected to be at the upper end of that range. As a reminder, our revenue stream normally has a significant level of larger contract content - the timing of delivery of which can be difficult to predict. Our business will always have a degree of quarterly variability. Regardless, as previously noted, we have completed the Company's three-year strategic planning cycle. Based on our served market and technology plans, we believe we can achieve a three-year run rate exceeding $120 million in fiscal year 2011, augmented by any acquisitions that we might pursue." ((Comments on this story may be sent to [email protected])) ((Distributed on behalf of 10Meters via M2 Communications Ltd - http://www.m2.com)) ((10Meters - http://www.10meters.com)) Copyright ? 2008 Wireless News |