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Author: dmeredit Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 836  
Subject: The truth about Earnings Date: 4/14/1997 10:58 AM
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I guess the last comment about earnings being routinely low was correct. What I can't believe is that the stock has dropped $1 on the news. Is there something I am missing here? Doesn't beating earnings by 50% normally relate to an increase? Oh well, the fickle market I suppose.

HOPKINS, Minn., April 14 /PRNewswire/ -- Innovex, Inc. (Nasdaq: INVX) today announced record earnings for its second quarter ended March 31, 1997. Net income was $10,056,000 on revenues of $38,389,000. Net income increased $7,100,000 (240%) from $2,956,000 for the second quarter of last year. Net income per share was $.66 for the second quarter of fiscal 1997, compared with $.21 per share (split adjusted) for the same period one year ago. Second quarter revenues of $38,389,000 represented an increase of $23,715,000 (162%) over the $14,674,000 realized in the second quarter of fiscal 1996.

Revenues for the first two quarters of fiscal 1997 totaled $67,701,000 as compared with $27,786,000 for the first half of fiscal 1996. "This substantial increase in year to date revenues was the result of two principal factors," explained Thomas Haley, Innovex's Chairman and Chief Executive Officer. "Litchfield Precision Components, which had not yet been acquired by Innovex as of second quarter 1996, contributed $8,200,000 in revenues for the first half of fiscal 1997. In addition, continued high demand within the disk drive industry, and in particular the shift to the multiple wire magneto- resistive (MR) recording heads, resulted in the need to significantly increase capacity within our Precision Products division. We expect this demand and the consequent capacity increases to continue to the point where Innovex will deliver 18 million wire sets per week by December of 1997, as opposed to the 11 million sets we are delivering now."

The second quarter of 1997 was also the first profitable quarter in the history of InnoMedica, Innovex's medical products division. "Although we do not expect InnoMedica to demonstrate overall profitability in fiscal 1997," observed Haley, "operations have progressed to the extent that we expect considerable improvement over the $1.5 million loss experienced in fiscal 1996."

Innovex is a diversified manufacturer of electrical components for the computer electronics and medical instruments markets, as well as a developer of computer software. Innovex is known world-wide for its excellence in advanced engineering and low cost manufacturing. The company's common stock is traded on the National Over-the-Counter market under the Nasdaq symbol INVX.

Except for historical information contained herein, the matters discussed in this press release are forward looking statements that involve risks and uncertainties, including the timely availability and acceptance of new products, the impact of competitive products and pricing, and other risks detailed from time to time in the Company's SEC reports, including the report on Form 1O-Q for the quarter ended March 31, 1997.

INNOVEX, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Six Months Ended
March 31, March 31,
1997 1996 1997 1996

Net sales $38,388,938 $14,674,457 $67,700,825 $27,786,164
Costs and expenses:
Cost of sales 20,807,085 8,660,391 38,011,325 16,255,866
Selling, general and
administrative 2,624,004 1,352,365 5,027,129 2,556,160
Engineering 858,894 628,932 1,732,822 1,215,723
Net interest &
other income (267,414) (191,495) (492,166) (396,040)
Income before income
taxes 14,366,369 4,224,264 23,421,715 8,154,455

Provision for income
taxes 4,310,000 1,268,000 7,027,000 2,447,000

Net income $10,056,369 $2,956,264 $16,394,715 $5,707,455

Primary & fully
dilutive net income
per share: $0.66 $0.21 $1.08 $0.39

Common and common
equivalent shares
outstanding:
Primary shares 15,222,364 14,414,070 15,125,297 14,457,730

Fully diluted shares 15,222,364 14,414,070 15,193,385 14,457,730


INNOVEX, INC.
CONSOLIDATED BALANCE SHEETS

March 31, September 30,
Assets 1997 1996
Cash and short-term investments $28,666,665 $21,775,534
Accounts receivable, net 21,836,555 12,034,349
Inventory 6,930,947 5,570,582
Other current assets 2,590,697 2,648,112
Total current assets 60,024,864 42,028,577
Property, plant and equipment, net 15,674,335 12,731,980
Intangible & other assets, net 2,396,920 3,483,789
Total assets $78,096,119 $58,244,346

Liabilities and Stockholders' Equity
Current liabilities $12,048,496 $8,486,650
Long-term debt 1,010,945 1,063,253
Other long-term liabilities 304,181 294,327
Stockholders' equity 64,732,497 48,400,116

Total liabilities and stockholders' equity $78,096,119 $58,244,346 SOURCE Innovex, Inc.

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