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Computer storage device industry

Miltope Group Inc. Reports Improved Earnings for Third Quarter 1994

Strategic Insights

— 1 min read

Miltope Group Inc. has reported improved earnings for the third quarter of 1994, with net income reaching $960,000, or 16 cents per share, compared to $292,000, or 5 cents per share, earned in the similar period a year ago. The company's net sales for the third quarter were $21,085,000, a 7 percent decrease from the $22,627,000 reported in the 1993 third quarter. The decrease in net sales is attributed to the trend by the U.S. Defense Department to move from high value added and specialized products to commercially available products. However, the company's commercial and rugged products business segment showed increased sales volumes, and the recognition of an $800,000 contract claim also contributed to the improved earnings.

Key Takeaways:

  • Miltope Group Inc. reported net income of $960,000, or 16 cents per share, for the 1994 third quarter, a significant improvement from $292,000, or 5 cents per share, earned in the similar period a year ago.
  • The company's net sales for the third quarter were $21,085,000, a 7 percent decrease from the $22,627,000 reported in the 1993 third quarter.
  • The decrease in net sales is primarily due to the trend by the U.S. Defense Department to move from high value added and specialized products to commercially available products.
  • The company's commercial and rugged products business segment showed increased sales volumes, and the recognition of an $800,000 contract claim also contributed to the improved earnings.
  • Miltope's president and CEO, David L. Lengel, stated that the company is making rapid strides in getting the new Alabama facility up to speed and anticipates further operating cost savings.
  • An initial order from American Airlines valued at $5.2 million for the Model 3800 ATB printers was received by Miltope Business Products subsidiary during the quarter.

Statistics:

  • Net income: $960,000 (1994 third quarter) vs. $292,000 (1993 third quarter)
  • Net sales: $21,085,000 (1994 third quarter) vs. $22,627,000 (1993 third quarter)
  • Decrease in net sales: 7% (1994 third quarter) compared to the 1993 third quarter
  • Sales volumes in the commercial and rugged products business segment: increased
  • Contract claim recognition: $800,000

Sources:

  • "Miltope Group Inc. Reports Improved Earnings for Third Quarter 1994" (Business Wire, Nov. 11, 1994)
  • Miltope Group Inc. press release (Nov. 11, 1994)

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