InterNet Bankruptcy Library - News for  February 3, 1997 (page 2)

Bankruptcy News For
February 3, 1997 (page 2)

  1. PSC Reports Fourth Quarter Results; Record Revenues and
    Increased Earnings

PSC Reports Fourth Quarter Results; Record Revenues and
Increased Earnings

ROCHESTER, N.Y., Feb. 3, 1997 - PSC Inc. (Nasdaq: PSCX),
a leading manufacturer of laser based bar code scanners, today
reported results for the fourth quarter and year ended December
31, 1996. Results of 1996 operations include the results of the
Data Capture Group of Spectra-Physics AB of Sweden, acquired
on July 12, 1996. The Data Capture Group consisted of Spectra-
Physics Scanning Systems, Inc. located in Eugene, Oregon;
TxCOM, S.A., located in Paris, France; and various other assets
and offices ("Spectra") located throughout the world.

Net sales for the quarter ended December 31, 1996 were a record
$56.0 million compared with sales of $21.5 million for the year ago
period and include the first full quarter of Spectra results. Income
from operations increased to $5.3 million from $0.3 million in the
comparable period a year ago. Net income of $1.1 million or
$0.10 per share in the fourth quarter was up from $0.3 million or
$0.03 per share in the fourth quarter of 1995. The weighted
average number of common shares outstanding for the fourth
quarter of 1996 was 11.3 million compared with 10.4 million in the
same period a year ago.

For the year ended December 31, 1996, sales were up 67% to a
record $146.1 million compared with sales of $87.5 million in the
prior year. Due to previously reported third quarter acquisition
related restructuring charges, PSC recorded a loss of $47.0 million
or $4.48 per share for 1996 compared to a profit of $5.4 million
or $0.54 per share for the previous year. Excluding the acquisition
related charges, net income for 1996 would have been $2.6 million
or $0.25 per share. The weighted average number of common
shares was 10.5 million for 1996 and 10.0 million for 1995.

Commenting on these results, L. Michael Hone, Chairman and
CEO said, "The first full quarter of the combined PSC and Spectra
operations reflects the improved earning power of the new PSC.
The combination of record sales and operating efficiencies
demonstrated in this quarter positions PSC to deliver stronger
financial performance in the future."

In describing the quarter's sales results, Hone stated, "On a pro
forma basis, fourth quarter sales of $56 million in 1996 increased
19% versus 1995 fourth quarter sales of $47 million. In addition,
initial shipments of our U- Scan Express(TM) self-check out
system, our industrial tunnel scanning system, and the new PS 1500
presentation scanners began."

Hone commented on plans for 1997 noting, "We see PSC as a
new company with a diversified product mix and significant market
opportunities as a result of the strategic acquisition completed this
year. We added expertise in the retail market sector, particularly
with fixed position scanning products, which is an excellent
complement to PSC's historic strength in manufacturing handheld
laser scanners for commercial and industrial users. Our 1997 plan
capitalizes on these combined resources to build upon our solid
fourth quarter earnings record."

The forward-looking statements contained in this release are made
pursuant to the safe harbor created by the Private Securities
Litigation Reform Act of 1995. Management cautions that these
statements are estimates of future performance and are highly
dependent upon a variety of important factors which could cause
actual results to differ materially from the estimate. These factors
include the acceptance of the Company's new products by the
market and product offerings made by its competitors, the
integration of the Spectra acquisition with existing PSC businesses
and the disposition of litigation matters. Profits will also be affected
by the Company's ability to control manufacturing and operating
costs. Readers of this press release are referred to filings with the
Securities and Exchange Commission, and specifically PSC's Form
10-K of December 31, 1995, and PSC's Registration Statement
on Form S-3 of October 25, 1996 for further discussions of
factors that could affect PSC's future results.

PSC manufactures the world's most comprehensive line of laser
based handheld and fixed position bar code scanners, bar code
engines and verifiers and automated carton dimensioning systems.
These products are used in automatic data collection solutions in
the retail, manufacturing, transportation, distribution and health care
industries, and government. Headquartered in Rochester, New
York, PSC has manufacturing facilities in Rochester, New York;
Eugene, Oregon; Orlando, Florida; and Paris, France. PSC has
sales and service offices throughout the Americas, Europe, Asia
and Australia.

For additional information, the PSC web site is located at

                                 PSC INC. & SUBSIDIARIES

                                  THREE MONTHS ENDED         YEAR ENDED
                                      DECEMBER 31           DECEMBER 31
                                     1996       1995        1996       1995
        Net Sales                  $56,014    $21,456    $146,051    $87,516
        Cost of Sales               31,641     13,279      83,675     50,634
         Gross Profit               24,373      8,177      62,376     36,882
        Operating Expenses:
         Engineering, Research
          & Development              4,023      1,507      11,069     4,962
         Selling, General &
          Administrative            13,399      6,150      37,855    23,024
         Amortization of Intangibles
          Resulting from Business
          Acquisitions               1,671        219       3,564       877
          Acquisition Related
           Restructuring and
           Other Costs                   0          0      70,068         0
        Income (Loss) from
         Operations                  5,280        301     (60,180)    8,019
        Interest and Other Income/
         (Expense), Net             (3,274)       120      (5,747)      676
        Income (Loss) from Continuing
         Operations before Income Tax
         Provision/(Benefit)         2,006        421     (65,927)    8,695
        Income Tax Provision/(Benefit) 742        153     (24,393)    3,246
        Income (Loss) from Continuing
         Operations                  1,264        268     (41,534)    5,449
        Discontinued Operations:
         Loss from Discontinued
          Operations, Net of Tax       115          0         229         0
         Loss on Disposal of
          Discontinued Operations,
          Net of Tax Benefit             0          0       5,217         0
        Total Loss from Discontinued
         Operations                    115          0       5,446         0
        Net Income (Loss)           $1,149       $268    ($46,980)   $5,449

        Net Income (Loss) Per Common &
         Common Equivalent Shares:
         Continuing Operations       $0.11      $0.03      ($3.96)    $0.54
         Discontinued Operations     (0.01)      0.00       (0.52)     0.00
        Net Income (Loss)            $0.10      $0.03      ($4.48)    $0.54

        Weighted Average Number of Common
         & Common Equivalent Shares
         Outstanding                11,297     10,417      10,490    10,013

                                 PSC INC. & SUBSIDIARIES
                               CONSOLIDATED BALANCE SHEETS
                                (ALL AMOUNTS IN THOUSANDS)

                                                      DECEMBER 31   DECEMBER 31
                                                          1996        1995
        Current Assets:
          Cash and Short-Term Investments               $10,838      $5,538
          Marketable Securities                               0       4,204
          Accounts Receivable, Net                       29,501      15,897
          Inventories                                    18,306      10,440
          Prepaid Expenses and Other                      1,244         623
            Total Current Assets                         59,889      36,702

        Property, Plant and Equipment, Net               35,612      22,157
        Deferred Tax Assets                              24,773       1,506
        Intangible and Other Assets, Net                 63,087      10,872
            Total Assets                               $183,361     $71,237

        Current Liabilities:
          Current Portion of Long-Term Debt              $9,459        $131
          Accounts Payable                               15,681       8,397
          Accrued Expenses                               11,448       6,202
          Accrued Payroll and Commissions                 7,509       1,237
          Accrued Acquisition Related Restructuring
           Costs                                          4,009         338
             Total Current Liabilities                   48,106      16,305

        Long-Term Debt, Less Current Maturities         117,994         492
        Other Long-Term Liabilities                       1,960       1,113

        Shareholders' Equity:
          Common Shares                                     112         100
          Additional Paid-in Capital                     54,891      45,881
          Retained Earnings                             (39,432)      7,548
          Cumulative Translation Adjustment                 (33)         35
          Less Treasury Shares                             (237)       (237)
            Total Shareholders' Equity                   15,301      53,327
            Total Liabilities and Shareholders' Equity $183,361     $71,237

SOURCE PSC Inc./CONTACT: William J. Woodard, Vice
President and Chief Financial Officer, or Charis W. Copin,
Director, Investor Relations, of PSC, 716-265-1600/