*NEWS*MEDIA SCIENCES SUPPLY SALES UP 33%/2004-10-04

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*NEWS*MEDIA SCIENCES SUPPLY SALES UP 33%/2004-10-04

 user 2013-06-23 at 9:52:28 pm Views: 64
  • #2188

    Media Sciences(R) Announces Annual Results
    Media Sciences Supply Sales Increased 33%.

    11 New Products Announced in Last Fiscal Year

    ALLENDALE, N.J–Media Sciences International, Inc., ,The leading independent manufacturer of generic supplies for office color printers, today announced its financial results for the year ended June 30, 2004.

    Consolidated sales for the year ended June 30, 2004 increased 17% to $17.1 million from $14.6 million in the prior year. Media Sciences sales increased 33% to $12.8 million from $9.6 million in the prior year, while Cadapult sales decreased by approximately 17% to $4.7 million from $5.7 million. For the year ended June 30, 2004, the Company incurred a net loss applicable to common shareholders of $1.6 million or $0.26 per share basic and diluted. The loss included a $2.1 million non-cash charge for the induced conversion of the preferred stock.

    Consolidated sales for the quarter ended June 30, 2004 increased by 22% to $4.2 million from $3.4 million in the prior year. Media Sciences sales increased 27% to $3.2 million from $2.5 million in the prior year. Cadapult sales for the quarters ended June 30, 2004 and 2003 were approximately $1 million. For the quarter ended June 30, 2004, the Company broke even as it incurred significant expenses associated with the development and commercialization of its new products.

    Fiscal 2004 highlights and achievements include:

    * A 33% increase in Media Sciences sales.

    * Announced 11 new products, including solid ink for the Xerox(R)

    Phaser(R) 8400. Media Sciences solid ink for the 8400 started shipping

    in September 2004.

    * Introductions of supplies for Epson(R), Minolta-QMS(R) and Ricoh(R)

    color printers.

    * An elimination of the outstanding shares of preferred stock and the

    related dividends.

    "Our execution during fiscal 2004 resulted in strong sales growth, a much stronger balance sheet, and most significantly, important new products that will help drive our growth over the coming years," commented Michael W. Levin, President and Chairman of Media Sciences International, Inc. "Our growth strategy calls for incremental revenues driven by new product introductions and increased market penetration with our existing product lines. To that end, during fiscal 2005, we intend to announce several new and significant product lines which should substantially increase our market opportunity. In addition, our stepped up sales and marketing efforts should increase awareness of Media Sciences' products in the market."

    About Media Sciences International, Inc. , Media Sciences is the leading independent manufacturer of office color printer supplies. Media Sciences products, which include color toner cartridges and solid ink sticks, are the generic alternative to the printer manufacturer's brand. Media Sciences products offer customers the ability to save up to 30% on their office color printer supplies. Media Sciences products are sold through an international network of dealers, national office supply resellers and distributors under the Media Sciences brand, as well as, several private brands. All Media Sciences products are backed with a 100% satisfaction warranty.Media Sciences is a registered trademark of Media Sciences, Inc. Xerox and Phaser are registered trademarks of Xerox Corporation. Epson is a registered trademark of Seiko Epson Corporation. Minolta-QMS is a trademark of Minolta-QMS Corporation

    This news release contains forward-looking statements and information that are based on management's beliefs, as well as assumptions made by, and information currently available to, management. These forward-looking statements are based on many assumptions and factors, and are subject to many conditions, including Media Sciences International's continuing ability to obtain additional financing, dependence on contracts with suppliers, competitive pricing for Media Sciences' products, demand for the Media Sciences' products which depends upon the condition of the computer industry, and the effects of increased indebtedness as a result of Media Sciences business acquisitions. Except for the historical information contained in this news release, all forward-looking statements and information are estimates by Media Sciences' management and are subject to various risks, uncertainties and other factors that may be beyond Media Sciences' control and may cause results to differ from management's current expectations, which may cause actual results, performance or achievements of Media Sciences to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

    MEDIA SCIENCES INTERNATIONAL, INC.

    AND SUBSIDIARIES

    CONSOLIDATED BALANCE SHEETS

    ASSETS June 30,

    2004 2003

    CURRENT ASSETS :

    Cash $666,116 $66,467

    Accounts receivable, less allowance for

    doubtful accounts of $35,000 1,626,287 1,841,060

    Insurance claim receivable 500,000 -

    Inventories 2,274,088 1,089,809

    Deferred tax assets 1,126,434 1,000,000

    Prepaid expenses and other current assets 280,530 173,050

    Total Current Assets 6,473,455 4,170,386

    PROPERTY AND EQUIPMENT, NET 1,072,186 1,362,734

    OTHER ASSETS:

    Goodwill and other intangible assets, net 4,468,973 4,478,190

    Deferred tax assets – 47,315

    Other assets 48,100 58,102

    4,517,073 4,583,607

    TOTAL ASSETS $12,062,714 $10,116,727

    LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:

    Bank debt $2,189,054 $1,779,862

    Other short-term debt and current maturities

    of long-term debt 39,081 405,256

    Accounts payable 2,511,117 1,340,257

    Accrued expenses and other current liabilities 248,580 258,512

    Income taxes payable 92,651 131,425

    Accrued product warranty 340,592 250,000

    Accrued expense – supplier – 448,952

    Dividends payable – 699,919

    Loans from investors – 200,000

    Loans from officer – 280,000

    Deferred revenue 153,273 196,234

    Total Current Liabilities 5,574,348 5,990,417

    OTHER LIABILITIES :

    Long-term debt, less current maturities – 39,081

    Loan from investors – 400,000

    Loan from officer – 195,000

    Deferred tax liabilities 543,880 -

    Total Other Liabilities 543,880 634,081

    TOTAL LIABILITIES 6,118,228 6,624,498

    COMMITMENTS AND CONTINGENCIES

    SHAREHOLDERS' EQUITY :

    Series A Convertible Preferred stock,

    $.001 par value

    Authorized 1,000,000 shares;

    issued none in 2004, – 547

    547,500 in 2003

    Common Stock, .001 par value

    Authorized 20,000,000 shares; issued 9,857,210

    shares in 2004, 3,577,210 shares in 2003 9,858 3,578

    Additional paid-in capital 7,425,540 5,109,343

    Cost of 10,564 shares of common stock

    in treasury (20,832) (20,832)

    Accumulated deficit (1,470,080) (1,600,407)

    Total Shareholders' Equity 5,944,486 3,492,229

    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $12,062,714 $10,116,727

    MEDIA SCIENCES INTERNATIONAL, INC.

    AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF OPERATIONS

    Year Ended June 30,

    2004 2003

    NET SALES $17,073,751 $14,597,862

    COST OF GOODS SOLD:

    Cost of goods sold, excluding depreciation 8,427,102 6,642,710

    Depreciation 504,435 532,403

    Total cost of goods sold 8,931,537 7,175,113

    GROSS PROFIT 8,142,214 7,422,749

    OTHER COSTS AND EXPENSES:

    Selling, general and administrative 6,416,797 5,255,743

    Depreciation and amortization 253,706 258,109

    Total other costs and expenses 6,670,503 5,513,852

    INCOME FROM OPERATIONS 1,471,711 1,908,897

    INTEREST EXPENSE 373,442 448,623

    INCOME BEFORE INCOME TAXES 1,098,269 1,460,274

    PROVISION FOR INCOME TAXES 439,307 585,258

    NET INCOME 658,962 875,016

    PREFERRED STOCK DIVIDENDS, INCLUDING CHARGE

    FOR INDUCED CONVERSION 2,269,440 629,625

    NET (LOSS) INCOME APPLICABLE TO COMMON

    SHAREHOLDERS $(1,610,478) $245,391

    BASIC WEIGHTED AVERAGE COMMON SHARES

    OUTSTANDING 6,214,835 3,565,748

    DILUTED WEIGHTED AVERAGE COMMON SHARES

    OUTSTANDING 6,214,835 3,571,374

    BASIC AND DILUTED NET INCOME (LOSS) PER SHARE

    APPLICABLE TO COMMON SHAREHOLDERS $(0.26) $0.07

    SOURCE Media Sciences International, Inc.







    * Post was edited: 2004-10-04 10:55:00