Virco Announces Second Quarter Results
TORRANCE, Calif., Sept. 10, 2010 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (Nasdaq:VIRC) today announced second quarter results in the following letter to stockholders from Robert A. Virtue, President and CEO:
Despite the worst recession in our 60-year corporate history, we made solid progress this summer in building market share among our core K-12 educational customers both nationally and internationally. Against an overall backdrop of double-digit declines in school construction starts and renovations, our revenue in the second quarter slipped only 3% from the second quarter of 2009 and 4.4% in the six months ended July 31, 2010, compared to the corresponding period in 2009. We have, however, experienced intense price competition as suppliers to our market struggle to generate sufficient revenue to cover operating expenses. In response, we aggressively lowered our own prices, resulting in lower gross and net margins for the second quarter and first half of the year. We expect prices to remain low for the balance of the year and perhaps well into next year.
As we warned in our first quarter report, until the private sector recovers fully and begins pumping tax receipts into state and local coffers, we believe spending for new schools and new school furniture will remain below the levels of a few years ago. The continuing slow recovery of the private sector and consequent slow recovery of tax receipts is what causes us to remain cautious about the near term. As we also previously communicated, we view this as an opportune time to provide excellent quality products and support to our educational customers and thus distance ourselves from competitors who may be less willing or able to commit to the intense seasonality and related logistical and financial challenges of this market.Here are our results for the second quarter and the first six months ended July 31, 2010, and the comparable period last year:
|Three Months Ended||Six Months Ended|
|(In thousands, except share data)||(In thousands, except share data)|
|Net sales||$ 72,363||$ 74,623||$ 97,223||$ 101,672|
|Cost of sales||49,391||48,847||67,980||67,596|
|Selling, general administrative & other expense||17,994||18,683||30,759||31,870|
|Income (loss) before income taxes||4,978||7,093||(1,516)||2,206|
|Income tax expense (benefits)||941||3,047||(472)||1,147|
|Net income (loss)||$ 4,037||$ 4,046||$ (1,044)||$ 1,059|
|Cash dividend declared||$ 0.05||$ 0.05||$ 0.05||$ 0.05|
|Net income (loss) per share - basic (a)||$ 0.28||$ 0.29||$ (0.07)||$ 0.07|
|Net income (loss) per share - diluted||0.28||0.29||(0.07)||0.07|
|Weighted average shares outstanding - basic (a)||14,168||14,151||14,162||14,170|
|Weighted average shares outstanding - diluted||14,174||14,154||14,162||14,170|
|(a) Net loss per share was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares.|
|Current assets||$ 90,013||$ 56,906||$ 89,559|
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