Source Scientific Reports Narrowed Loss and Improved Financial Condition

Strategic Insights -

Source Scientific Inc. reported a narrowed loss of $279,000, or $0.03 per share, for the third quarter ended March 31, 1995, compared to a net loss of $617,000, or $0.08 per share, for the same period in 1994. The company's net sales increased for the nine-month period, and overall operating expenses and selling, general, and administrative expenses declined as a percentage of sales. The company's working capital improved from a deficiency of $375,000 at June 30, 1994, to a positive balance of $241,000 at March 31, 1995. Source Scientific's President and CEO, Richard A. Sullivan, attributed the company's improvement to the elimination of substantial annualized costs associated with non-economical products. Management expects the company's financial condition to continue improving in the coming year.

Key Takeaways:

  • Source Scientific's net loss narrowed to $279,000, or $0.03 per share, in the third quarter ended March 31, 1995, compared to a net loss of $617,000, or $0.08 per share, in the same period of 1994.
  • The company's net sales increased for the nine-month period ending March 31, 1995, compared to the same period in 1994.
  • Overall operating expenses and selling, general, and administrative expenses declined as a percentage of sales from 75.6% in the nine-month period ended March 31, 1994, to 49.7% in the nine-month period ended March 31, 1995.
  • Cost of goods sold as a percentage of sales in the quarter ended March 31, 1995, was 2.9% higher than in the same quarter ended March 31, 1994, due to lower sales volume and unabsorbed factory overhead.
  • The company's working capital improved from a deficiency of $375,000 at June 30, 1994, to a positive balance of $241,000 at March 31, 1995.
  • Source Scientific's management expects the company's financial condition to continue improving in the coming year.
  • The company attributed the improvement to the elimination of substantial annualized costs associated with non-economical products.

Statistics:

  • Net loss: $279,000 (1995) vs. $617,000 (1994)
  • Net sales increase: (no specific percentage given)
  • Operating expenses as a percentage of sales: 75.6% (1994) vs. 49.7% (1995)
  • Cost of goods sold as a percentage of sales: 2.9% higher in the quarter ended March 31, 1995, compared to the same quarter in 1994
  • Working capital: $241,000 (positive) at March 31, 1995, vs. -$375,000 (deficiency) at June 30, 1994

Sources:

  • Source Scientific Inc. (BSE/OTC:SSF)
  • Business Wire
  • "Source Scientific Reports Narrowed Loss and Improved Financial Condition" (press release), May 31, 1995