Mitron buy, rev gains spur GenRad results

Electronic News, Feb 3, 1997

GenRad Results concord, mass.--Reflecting the acquisition of Mitron Corp. last June, and increased North American electronics manufacturing business, GenRad Inc. reported net income of $27.3 million, or $1.09 per share, on product and service revenues of $183.5 million, for its year ended Dec. 28, 1996. FY95 net income was $12.3 million, or 54 cents per share, on product and service revenues of $158.8 million.

Orders for the year were $180.7 million versus $153.4 million in 1995.

4Q96 net income totaled $9.7 million, or 36 cents per share, on product and service revenues of $48.7 million. For 4Q95, the company reported $3.2 million, or 14 cents per share, on product and service revenues of $41.7 million.

Orders for 4Q96 were $46.2 million versus $42.7 million, for the same period of 1995.

Results were restated to reflect the acquisition of Mitron Corp. in June 1996, which was accounted for as a pooling of interests. All per-share amounts are fully diluted.

Net income for FY96 included a $3.8 million gain from the sale of GenRad's corporate headquarters building realized in 4Q96. Also included in FY96 net income was $2.5 million as a result of a reduction in the valuation allowance for deferred tax assets and $3.6 million in severance expense and debenture conversion fees. For FY95, net income included $4.2 million in non-recurring gains.

President/CEO James F. Lyons said: "Commercial revenues increased 22 percent year over year. This increase is a result of our focus on the commercial end of our printed circuit board manufacturing business and our success in securing several new key accounts in 1996, like British Airways and Seagate Technology.

"Our revenue growth continues, as it did all year, from increased demand in North America in our Electronic Manufacturing Systems business. Further, GenRad's Advanced Diagnostic Systems division combined with our newly organized Integrated Customer Services business (TTA and Testware) also contributed to the revenues growth in 1996."