Sales for the quarter ended June 30, 2001 were $48.2 million, representing a decrease of 20% compared to the third quarter of the previous year. The reduction in sales compared to 2000 results from a continuation of the economic weakness and uncertainty being experienced globally, which has led to delayed capital expenditure decisions by the Company’s customers for the past two quarters. Adjusted net income was $4.6 million for the third quarter compared to $9.3 million for the quarter ended June 30, 2000. Adjusted net income for both quarters excludes the amortization of intangibles, net of the tax effect thereon, and in the current quarter excludes the effect of a tax reduction resulting from recognizing the impact of income tax rate changes on the Company’s deferred tax balances.
Adjusted diluted earnings per share (based on adjusted net income) were $0.25 for the quarter ended June 30, 2001, compared to $0.49 for the quarter ended June 30, 2000. The current period earnings per share is based on a diluted weighted average number of shares of 18.5 million, compared to 19.0 million last year.
Expenses for the quarter were $36.7 million, compared to $38.9 million for the third quarter of last year, excluding amortization of the intangibles. The reduction principally relates to a decrease in sales and marketing costs as the Company rationalizes expenses as a result of the slowdown in sales.
After amortization of intangibles, net of the tax effects thereon, and the tax reduction noted above, the Company reported net income of $6.5 million and diluted earnings per share of $0.35 for the quarter ended June 30, 2001, compared to net income of $3.9 million and diluted earnings per share of $0.20 for the comparable quarter of 2000.
Sales for the nine months ended June 30, 2001 were $159.1 million, representing a 7% decrease compared to the nine months ended June 30, 2000. Adjusted net income for the nine months was $15.8 million compared to $24.2 million for the comparable nine months of last year. Adjusted diluted earnings per share, based on adjusted net income, was $0.84 compared to $1.37 for the nine months ended June 30, 2000. After amortization of intangibles, net of tax effects, and the tax reduction noted above, net income and diluted earnings per share for the nine months was $6.7 million and $0.36, respectively, compared to $4.0 million and $0.23 in the comparable nine months a year ago.
Total assets were $362 million as at June 30, 2001, compared to $374 million a year ago. The Company’s cash position continued to strengthen in the third quarter and stands at $106 million as at June 30, 2001, up from $99 million as at March 31, 2001 and $75 million last year.
