| [September 15, 2005] |
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Printronix Provides Outlook for Second Quarter of Fiscal Year 2006
IRVINE, Calif. --(Business Wire)-- Sept. 15, 2005 -- Printronix, Inc. (NASDAQ:PTNX), the leading manufacturer of integrated enterprise printing solutions for the supply chain, announced today the softness in orders experienced in the latter part of the first fiscal quarter is continuing into the second fiscal quarter, which ends September 23, 2005. Typically, revenue for the second fiscal quarter is seasonally lower than the first fiscal quarter, particularly in Europe. As a result of the softness, revenue for the current second fiscal quarter is expected to be five to ten percent lower than the $31.8 million recorded for the year ago period ended September 24, 2004.
The company attributes the lower revenue forecast to continuing weakness in the European market, particularly in sales to the automotive industry. The company expects sales to improve in the third and fourth fiscal quarters of fiscal year 2006 from its current second quarter run rate due to several factors. During the second quarter, the company reorganized its EMEA sales organization to more closely align with company growth initiatives. In addition, increased revenue is expected from the recently launched P7000 line matrix product line, the continuing growth of RFID sales as Gen2 products become available, increased momentum from teaming with IBM worldwide and the results of channel expansion. Revenue for the third and fourth fiscal quarters is expected to be flat with the comparable fiscal year 2005 periods, after adjusting for fiscal year differences. Fiscal year 2006 is a fifty-three week year while the prior fiscal year was a fifty-two week year, with the additional week occurring in the fourth quarter.
The company continues to invest to maintain its leadership position in RFID printing and line matrix solutions while closely managing costs. Based on the current revenue outlook for the second quarter of fiscal year 2006, the company will most likely experience a net loss for the quarter, despite the cost reduction efforts.
Except for historical information, this press release contains "forward-looking statements" about Printronix, within the meaning of the Private Securities Litigation Reform Act of 1995. Terms such as "objectives," "believes," "expects," "plans," "intends," "should," "estimates," "anticipates," "forecasts," "projections," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including: adverse business conditions and a failure to achieve growth in the computer peripheral industry and in the economy in general; the ability of the company to achieve growth in the Asia Pacific market; adverse political and economic events in the company's markets; a worsening of the global economy due to general conditions; a worsening of the global economy resulting from terrorist attacks or risk of war; a worsening of the global economy resulting from a resurgence of SARS (Severe Acute Respiratory Syndrome); the ability of the company to maintain its production capability in its Singapore plant or obtain product from its Asia Pacific suppliers should a resurgence of SARS occur; the ability of the company to hold or increase market share with respect to line matrix printers; the ability of the company to successfully compete against entrenched competition in the thermal printer market; the ability of the company to adapt to changes in requirements for radio frequency identification ("RFID") products by Wal-Mart and/or the Department of Defense and others; the ability of the company to attract and to retain key personnel; the ability of the company's customers to achieve their sales projections, upon which the company has in part based its sales and marketing plans; the ability of the company to retain its customer base and channel; the ability of the company to compete against alternate technologies for applications in its markets; and the ability of the company to continue to develop and market new and innovative products superior to those of the competition and to keep pace with technological change. The company does not undertake to publicly update or revise any of its forward-looking statements, even if experience or new information shows that the indicated results or events will not be realized.
About Printronix, Inc.
Since 1974, Printronix, Inc. (NASDAQ:PTNX) has created innovative printing solutions for the industrial marketplace and supply chain. The company is the worldwide market leader in enterprise solutions for line matrix printing and has earned an outstanding reputation for its high-performance thermal and fanfold laser printing solutions. Printronix also has become an established leader in pioneering technologies, including radio frequency identification (RFID) printing, bar code compliance and networked printer management. Printronix is headquartered in Irvine, California. For company information, see www.printronix.com.
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