May 23, 2006 > Scientific Technologies Inc. reports First Quarter results
Scientific Technologies Inc. reports First Quarter results
FREMONT (Business Wire), May 12_Scientific Technologies Incorporated (NASDAQ:STIZ), a leading North American provider of automation safeguarding products, announced the results of operations for the three months ended March 31. Sales for the first quarter of 2006 increased 12 percent to $15,962,000, compared to sales of $14,298,000 for the same quarter of 2006.
Net income for the first quarter of 2006 was $494,000 or $.05 per common and diluted share, compared to net income of $20,000 or $.00 per share for the first quarter of 2005. Commenting on the results, Joseph J. Lazzara, President and Chief Executive Officer stated, "We are very pleased to report sales and profit improvements over the first quarter of 2005. The profit improvement was achieved in spite of the recognition of approximately $200,000 in banking and legal expenses associated with our recently announced intent to merge with Omron Corporation."
On April 25, STI announced that it had entered into a definitive agreement with Omron Corporation ("Omron") whereby Omron will acquire the Safety Products Group ("SPG") of STI. STI also separately entered into an agreement to sell its Automation Products Group ("APG") to a new company formed by members of the Lazzara family who currently serve as officers and directors of STI. The estimated value of the transaction is comprised of $94 million for SPG, $6 million for APG, plus an estimate for certain corporate assets, including cash net of certain liabilities and estimated transaction related expenses. In total, STI estimates that the transactions would value the equity of the company at approximately $107 million, or approximately $10.76 per basic share.
Scientific Technologies, Inc. (STI) is a North American leading provider of automation safeguarding products and services through its Safety Products Group. STI's Optical Sensor Division (OSD) provides safety products that are used to protect workers around machinery, automated equipment and industrial robots. For more information, visit www.sti.com.