HOPKINS, Minn., March 25 /PRNewswire-FirstCall/ --
(Numbers in Thousands, Except Per Share Data)
Total Net Sales $6,230,898 $8,358,149
Cost of sales 5,699,377 9,014,804
Gross profit (loss) 531,521 (656,655)
Total selling, general and
administrative expenses, net 746,621 1,411,426
Operating loss (215,100) (2,068,081)
Total other income (expense), net 760,263 (613,223)
Net income (loss) $545,163 $(2,681,304)
Net income (loss) per share - basic $0.06 $(0.31)
Net income (loss) per share - diluted $0.05 $(0.31)
The Company had an operating loss in 2003 of $215,100, compared to an operating loss of $2,068,081 in 2002, a decrease in operating loss of 90%. The Company recorded a non-recurring gain, as Other Income, of $1,205,000 in the third quarter of 2003 due to the extinguishment of debt with its senior lender. The Company had no non-recurring gains or losses or extraordinary income or loss in 2002. Net income for 2003 was $545,163 or $0.06 per basic share, compared to a net loss of $2,681,304 or $0.31 per basic share for 2002. Net income for 2003 was $545,163 or $0.05 per diluted share, compared to a net loss of $2,681,304 or $0.31 per diluted share for 2002.
2003 sales were down from sales in 2002. However, the Company feels that 2003 showed improvements over 2002 due to better management of variable expenses, including labor, employee benefits, and process and productivity improvements, in addition to broadening the customer base. Productivity improvements, cost control measures, profitability, and growing sales remain the highest priorities for the Company. While the results of 2003 were below management's expectations, the Company feels that it has established a trend in productivity improvement and cost control. There can be no assurance that these achievements, actions, and future actions, if necessary, will be sufficient for the Company to meet its continuing cash flow requirements in the future or return to profitability.
MagStar is a publicly owned company that trades under the symbol "MGST" on the Over The Counter Bulletin Board market. MagStar divides sales into the following core competencies: Medical, Magnets, Industrial, Contract Manufacturing, and Conveyors/Factory Automation. For over 10 years, ISO- certified MagStar Technologies, Inc. has been a trusted medical device supplier, using its expertise in centrifuge and medical device design and manufacturing, by partnering its engineers and salespeople with well-known, national OEMs. MagStar has over 10 years of history designing, engineering, and manufacturing magnet assemblies to meet the exacting requirements of our customers. MagStar's expertise in oil centrifuges, labeled Industrial Sales, includes manufacturing for internationally prominent engine OEMs with 12 years of history designing, engineering, and manufacturing oil centrifuges to meet market and emissions requirements. MagStar's expertise in factory automation and conveyors includes serving national and international based high-tech OEMs. MagStar has 15 years of experience designing and manufacturing conveyance devices for factory automation. Industries served include high tech, medical, automotive, packaging, and testing. MagStar has a standard product line designed for competitive, timely, and simplified integration. All products incorporate low-profile features for a reduced footprint, desirable in highly priced real estate. MagStar has successfully established business with OEMs providing customized products from design to production for integration into standard lines. MagStar has a patented product line that evolves with industry requirements, including the recent introduction of a patented clean room conveyor. MagStar has over 40 years of history as an integral supplier of manufactured assemblies. The Company also contract manufactures biometric identification assemblies, spindles, precision slides and complex magnetic assemblies.
The information in this discussion may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, including statements regarding the Company's capital needs, business strategy and expectations. Any statements that are not of historical fact may be deemed to be forward-looking statements. These forward-looking statements involve substantial risks and uncertainties. In some cases you can identify forward- looking statements by terminology such as "may," "will," "should," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," or "continue", the negative of the terms or other comparable terminology. Forward-looking statements in this Report also include references to anticipated sales volume and product margins, efforts aimed at establishing new or improving existing relationships with customers, other business development activities, anticipated financial performance, business prospects and similar matters. Actual events or results may differ materially from the anticipated results or other expectations expressed in the forward-looking statements. In evaluating these statements, you should consider various factors, including the risks included from time to time in other reports or registration statements filed with the United States Securities and Exchange Commission. These factors may cause the Company's actual results to differ materially from any forward-looking statements. The Company disclaims any obligation to publicly update these statements, or disclose any difference between actual results and those reflected in these statements. Such information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which provides a safe harbor for forward looking statements.
MagStar Technologies, Inc.