Virco Announces Second Quarter Results

TORRANCE, Calif., Sept. 14, 2012 (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:

While our second quarter revenues continue to reflect an uneven recovery in state and municipal funding for public schools, last year's restructuring led to significantly improved financial results for the second quarter and first half of fiscal 2012 compared to the same periods in fiscal 2011.

Revenues for the second quarter declined 3.9% from $62,817,000 in the three months ended July 31, 2011 to $60,392,000 in the three months ended July 31, 2012. Revenues for the first half of the year declined 3.5% from $87,073,000 in the first six months ended July 31, 2011 to $84,060,000 for the first six months ended July 31, 2012. Despite these modest revenue declines, net operating efficiencies resulted in significantly improved financial results. Gross profit for the second quarter was up 15.0% from $19,882,000 in the three months ended July 31, 2011 to $22,867,000 in the three months ended July 31, 2012, while expenses were down 9%, from $17,107,000 in the three months ended July 31, 2011 to $15,608,000 in the three months ended July 31, 2012. For the first six months, gross profit was up 11.9% from $26,660,000 in the first six months ended July 31, 2011 to $29,834,000 in the first six months ended July 31, 2012. Expenses were down 6.4% from $29,257,000 in the first six months ended July 31, 2011 to $27,392,000 in the first six months ended July 31, 2012.

As a result of the improvement in net operating efficiencies, net income more than doubled (up 257%) from $2,732,000 in the three months ended July 31, 2011 to $7,053,000 in the three months ended July 31, 2012. Through six months ended July 31, 2012, we've earned net income of $2,220,000 compared to last year's net loss of $2,668,000 for the six months ended July 31, 2011.

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