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Intermagnetics Reports
Increased Q3 Sales, Net Income
Latham, NY, Apr. 3: Intermagnetics General
Corporation (NASDAQ:
IMGC) today reported that third-quarter normalized net income from
operations increased 14 percent to $8.2 million, or $0.19 per diluted share,
from $7.3 million, or $0.17 per diluted share, a year earlier. Reported income
from continuing operations increased to $5.5 million, or $0.13 per diluted
share, from $4.8 million or $0.11 per diluted share. Revenues for the quarter
ended February 26, 2006, climbed 12 percent to nearly $77 million from $69
million. Per-share amounts have been adjusted to reflect the 3-2 stock split
effective February 21, 2006.
For the first nine months of fiscal 2006,
normalized net income rose to $22.8 million, or $0.53 per diluted share, from
$18.4 million, or $0.44 per diluted share, a year earlier. Reported nine-month
income from continuing operations was $17.5 million, or $0.41 per diluted share,
compared with $10.6 million, or $0.25 per diluted share. Revenue increased to
$226 million from $186.7 million.
"Our overall performance during the third quarter
was very much in line with our expectations," said Glenn H. Epstein, chairman
and chief executive officer. "Revenue was solid, and we remain on target with
our full-year objective of delivering sales growth greater than 15 percent over
the prior year, now expected to reach about $308 million."
Epstein noted that the company expects to achieve
its growth target while at the same time selectively discontinuing some
lower-margin products in its non-MR-based patient monitoring lines.
"We believe that this limited rationalization to
our product portfolio will contribute to continued margin improvements
throughout FY2007 and enable our technology and product commercialization teams
to focus on higher-growth opportunities," Epstein said. "With these actions
taken during the current fiscal year, we believe we are well positioned to meet
our ongoing objective of achieving greater than 15 percent growth in both
revenues and normalized operating income in fiscal 2007, with a continued
outlook for attractive growth in following years. This forecast excludes the
effect of any liquidity event pertaining to the various alternatives being
explored with our SuperPower subsidiary during FY2007."
Epstein said the company expects to incur some
nonrecurring charges during the fourth quarter in order to rapidly implement
certain product rationalizations.
"We expect those charges to total $0.04 to $0.05
per share," Epstein said. "Excluding these specific items and remaining
consistent with our representation of stock-based compensation, we now forecast
our normalized operating income to be in the range of $0.22 to $0.24 for Q4 and
$0.75 to $0.77 for FY2006."
Operating EPS Reconciliation Information
Operating EPS excludes non-cash performance-based
stock compensation and other charges or benefits. The net benefit of a gain on
litigation and favorable adjustment to gain on prior period sale of division
totaled nearly $0.02 for the six months, recognized about evenly in the first
and second quarters.
The total of cash and non-cash charges related to
certain product line discontinuations within the Medical Devices segment are
expected to total $0.04 to $0.05 for FY2006 and anticipated to be recognized
during Q4.
The estimated non-cash charge during Q4 for
Intermagnetics' performance-based restricted stock plan is expected to be about
$0.7 million or $0.02 per fully diluted share based on the closing stock price
on April 3, 2006 ($6.1 million or $0.14 per fully diluted share for all of
FY2006).
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