Unitech Industries Reports 585% Increase in Net Income on 344% Increase in Net Sales

Strategic Insights -

Unitech Industries, Inc. has announced a significant increase in net income and net sales for the third quarter ended July 31, 1995. The company's net income soared 585% to $584,349, or $.09 per share, while net sales jumped 344% to $9.9 million. The increase in net income was primarily driven by higher sales of accessory products and the company's acquisitions of a computer, cellular, and video manufacturing company and a retail brand distribution company.

Key Takeaways:

  • Unitech Industries reported a 585% increase in net income to $584,349 for the third quarter ended July 31, 1995.
  • The company's net sales increased by 344% to $9.9 million for the same period.
  • The increase in net income was primarily driven by higher sales of accessory products and the company's acquisitions.
  • Unitech's gross margin for the third quarter was 34%, and for the nine months ended July 31, 1995, it was 33%.
  • The company has working capital of $14.6 million and long-term debt of $3.8 million as of July 31, 1995.
  • Unitech has acquired several manufacturing agreements, including one with Ericsson, Inc., to design and manufacture approximately 235,000 battery eliminators.
  • The company has brought on a new chief financial officer, Anthony 'Tony' J. Collura, with over 25 years of financial experience.

Statistics:

  • Net income: $584,349 (585% increase)
  • Net sales: $9.9 million (344% increase)
  • Gross margin: 34% (third quarter) and 33% (nine months)
  • Working capital: $14.6 million
  • Long-term debt: $3.8 million
  • Number of shares outstanding: 2,530,000 (added in November 1994)

Sources:

  • PRNewswire, "Unitech Industries, Inc. Announces Record Third Quarter Sales and Earnings Increase", September 19, 1995.
  • PRNewswire, "Unitech Industries, Inc. Completes Initial Public Offering", November 1994.