Santa Clara, Calif.--Jan. 29, 1998--Electroglas, Inc. reported financialresults for its year and fourth quarter ended December 31, 1997.
For the fourth quarter of 1997, net sales were $44.1 million, an increase of 123 percent over net sales of $19.8 million reported in the like quarter in 1996. During the current quarter, the company acquired Techne Systems, Inc. and recorded the transaction under the purchase accounting method. As part of the acquisition, the company incurred a one-time charge of $3.5 million for in-process research and development.
In advance of a pending move to new facilities in 1999, the company incurred a pretax charge of $1.6 million during the quarter for environmental remediation of its main facilities, which have been occupied by the company for the past 24 years.
Excluding these two charges, net income for the fourth quarter of1997 was $3.9 million, or $0.20 diluted income per share. Including the two charges, net loss for the fourth quarter 1997 was $0.9 million, or $0.05 diluted loss per share. Net income for the same quarter last year was essentially breakeven.
For the full year 1997, net sales were $150.0 million, down slightly from $152.0 recorded last year. During the year, the company incurred a one-time pretax charges of $27.0 million for in-process research and development related to acquisitions and $1.6 million for environmental remediation. When excluding these charges, net income was $12.4 million, or $0.66 diluted income per share. When including the charges, net loss was $15.9 million, or $0.86 diluted loss per share. Net income for the full year 1996 was $24.5 million, or $1.36 diluted income per share.
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