CONCORD, Mass. Feb. 23 /PRNewswire/ -- Starmet Corporation (Nasdaq: STMT),
the Concord, Massachusetts based manufacturer of specialized metal products,
today announced financial results for the first quarter ended December 31,
1997.
Net sales increased by $808,000 or 11% to $8,079,000 in the first quarter
of fiscal 1998, as compared to the first quarter of the prior year. Sales in
the Depleted Uranium Penetrator segment increased by $1,303,000, or 38%.
Sales in the Specialty Metal Products segment increased by $440,000 or 18%.
Sales in the Uranium Services and Recycle segment decreased by $935,000 or
27%.
The sales increase in the Depleted Uranium Penetrator segment was due to
$2,025,000 in revenue recognized on the remediation of the holding basin at
the Company's Concord facility pursuant to a government contract, with minimal
gross margin, partially offset by a reduction in foreign penetrator blanks
sales. The sales increase in the Specialty Metal Products segment was due
primarily to increased customer demand for medical powders. The sales
decrease in the Uranium Services and Recycle segment was due primarily to
feedstock production orders which were received in the first quarter of fiscal
1998 but will not result in revenue until the second quarter of fiscal 1998
with most of the revenue expected to be in the third fiscal quarter. To be
prepared for this production the workforce at Starmet CMI was increased
significantly during the first quarter.
The Company sustained a net loss of $(1,561,000) for the first quarter or
$(0.33) per share on average shares outstanding of 4,784,000. This compares
with net income of $509,000, or $0.10 per share on average shares and dilutive
potential common shares outstanding of 4,883,000 for the same quarter a year
earlier.
Backlog as of December 31, 1997, was $24.6 million as compared to
$27.7 million as of September 30, 1997. Subsequent to December 31, 1997,
approximately $4 million of contract options for Starmet CMI have been
exercized.
First Quarter Ended
Dec. 31, 1997 Dec. 31, 1996
Sales $8,079,000 $7,271,000
Net Income $(1,561,000) $509,000
Basic Income per share $(0.33) $0.11
Weighted Average Shares
Outstanding 4,784,000 4,782,000
Dilutive Income Per Share N/A $0.10
Weighted Average
Shares Outstanding & Dilutive
Potential Common Shares N/A 4,883,000
Backlog $24,645,000 $27,582,000
Special Note Regarding Forward-Looking Statements
Certain statements above, including, without limitation, those concerning
(i) the Company's backlog and the expected timing of orders and income
recognition, (ii) the Company's plans for additional capital expenditures,
(iii) the Company's Beralcast business and expansion plans, (iv) the Company's
expectations concerning required additional financings to permit expansion,
contain certain forward-looking statements concerning the Company's
operations, economic performance and financial condition. Such forward-
looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Factors
that could cause such differences include, but are not limited to, those
discussed in Exhibit 99 to the Company's Quarterly Report on Form 10-Q for the
fiscal quarter ended March 31, 1997. The words "believe," "expect,"
"anticipate," "intend" and "plan" and similar expressions identify forward-
looking statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date the
statement was made.
SOURCE Starmet Corporation
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Related links:
http://www.starmet.com
CONTACT:
James M. Spiezio, Vice President, Finance and
Administration of Starmet Corporation, 978-369-5410
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
632850
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