Scientific Technologies Inc. Reports Third Quarter and Nine Month 1997 Earnings

Business Wire, Nov 4, 1997

FREMONT, Calif.--(BUSINESS WIRE)--Nov. 4, 1997--Scientific Technologies Inc. (NASDAQ:STIZ) today announced that sales for the three months ended September 30, 1997 increased 18% to $11,491,000 from the $9,713,000 for the third quarter of 1996.

Third quarter net income of $1,534,000, or $.16 per share, was 27% greater than the $1,204,000, or $.13 per share, for the third quarter of 1996.

Sales for the first nine months of 1997 increased 17% to $33,178,000 from $28,319,000 for the same period in 1996. Nine month net income was $4,457,000, or $.46 per share, a 22% increase over the $3,659,000, or $.38 per share, recorded in the first nine months of 1996.

Joseph J. Lazzara, president and chief executive officer, noted that the third quarter of 1997 was the 43rd consecutive profitable quarter for the company.

Lazzara also stated that the company was very pleased to report that during the third quarter STI introduced the Spartan Safety Interlock Switch. The Spartan is a positive mode tongue operated machine guard locking interlock switch. The guard may only be opened when a signal is applied to its internal solenoid, which releases the lock mechanism, making the Spartan particularly effective for use on machines which do not stop immediately or where premature interruption of the machine could cause damage to tooling or components or cause an additional hazard.

Scientific Technologies Inc. manufactures and markets safety light curtains, industrial sensors, optical profiling scanners, microcomputers, power monitoring devices and data communication products for factory automation applications. -0-

            Scientific Technologies Inc. and Subsidiaries

                 Consolidated Statement of Operations
           (Amounts in thousands except earnings per share)


                             Three Months Ended     Nine Months Ended
                                September 30,          September 30,
                               1997       1996        1997       1996

Sales                        $11,491    $ 9,713     $33,178    $28,319
Cost of sales                  5,529      4,816      15,984     13,870
Gross margin                   5,962      4,897      17,194     14,449

Operating expenses
 Selling general &
  administrative               2,844      2,357       8,094      6,888
 Research & development          757        605       2,288      1,886
Total operating expenses       3,601      2,962      10,382      8,774
Operating income               2,361      1,935       6,812      5,675

Non-operating income             113         72         376        423
Income before taxes            2,474      2,007       7,188      6,098

Provision for taxes              940        803       2,731      2,439
Net income                   $ 1,534    $ 1,204     $ 4,457    $ 3,659

Net income per share         $   .16    $   .13     $   .46    $   .38

Common and equivalent shares   9,607      9,607       9,607      9,607



                      Consolidated Balance Sheet
                        (Amounts in Thousands)


                                       September 30,     December 31,
                                           1997              1996
                                       (Unaudited)
Assets
 Current assets:
  Cash and short-term investments        $10,309          $  7,360
  Receivables                              7,374             6,692
  Inventories                              4,687             4,066
  Other current assets                     1,011             1,118
    Total current assets                  23,381            19,236
 Other assets                              2,896             2,477
    Total assets                         $26,277           $21,713


Liabilities and shareholders' equity
 Current liabilities:
  Payables and other liabilities         $ 2,610           $ 2,385
  Accrued expenses                         1,800             1,457
  Current debt                                 -                 -
    Total current liabilities              4,410             3,842
 Long-term debt                                -                 -
    Total liabilities                      4,410             3,842
 Shareholders' equity                     21,867            17,871
    Total liabilities and
     shareholders' equity                $26,277           $21,713