| Danka Reports First Quarter Results
Danka Business Systems PLC Tuesday announced results for the first quarter of fiscal year 2004 ended June 30, 2003.
First Quarter Results: Danka reported operating earnings of $5.0 million in the first quarter of fiscal year 2004 compared to operating arnings of $15.0 million in the comparable year-ago quarter. The company’s net loss for the first quarter was $0.8 million, compared to net earnings of $5.8 million in the year-ago quarter.
“We saw continued progress in mitigating the decline in our revenues in certain key aspects of our business; however, we experienced a decline in our gross margins, almost exclusively in the U.S. equipment and related sales area,” said Lang Lowrey, Danka’s Chairman and Chief Executive Officer. “Some of this decline can be attributed to a larger than expected shift in the mix of our sales toward lower margin, large enterprise accounts. Additionally, toward the end of the quarter, we were affected by changing market conditions in our industry, which appear to now be dictating lower average sales prices in certain segments of our equipment portfolio. On the positive side, we did see stabilizing trends in the performance in our retail equipment and related business, continued positive trends in our service annuity business and a turnaround in our International business, which contributed measurable, positive results for the first time in several quarters.”
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