MINNEAPOLIS, May 18, 2011 /PRNewswire/ -- Delphax Technologies
Inc. (Pink Sheets: DLPX), a global provider of high-speed digital
printing equipment, reported that it was profitable in all four
quarters of fiscal 2010 following the restructuring and
repositioning carried out in fiscal 2009.
The performance, which gave the company consecutive years of
positive net income for the first time in more than a decade, was
among the subjects of a management presentation at its annual
meeting of shareholders recently held in Bloomington, Minn.
Net income for the fiscal year ended Sept. 30, 2010, was $2.3
million on net sales of $32.3
million. That compares with record net income of
$3.4 million on net sales of
$44.1 million in fiscal 2009, a year
that included a higher-than-usual concentration of supply purchases
by a major customer.
"With the major portion of our restructuring costs behind us,
2010 operating expenses decreased nearly a third to $7.9 million from $11.7
million in fiscal 2009," said Dieter
Schilling, president and chief executive officer. "The ratio
of operating expenses to net sales in fiscal 2010 was the most
favorable ever recorded by the company—and was accomplished without
a reduction in research and development spending.
"Our return to profitability has kept the door open for the
continuing innovation and product development needed to keep
Delphax in the forefront of digital printing technology in the
years ahead."
Revenues from maintenance, spares and supplies were $31.5 million in fiscal 2010, compared with
$42.2 million in 2009.
At $816,000, fiscal 2010 equipment
sales were down from $2.0 million in
2009, in part a reflection of possibly the worst business
environment for the printing industry on record. However, the
company said it is well on the way to an increase in equipment
sales during fiscal 2011 on the strength of first-half sales
bookings alone.
As a result of debt restructuring in fiscal 2008 and the early
repayments made during fiscal 2010, the company's current debt
level of $4.0 million is the smallest
since the acquisition of Delphax Systems 10 years ago. The
company is scheduled to make an additional early repayment of
$1.0 million on or before
June 30, 2011, which will reduce the
debt level to $3.0 million.
Management also discussed during the annual meeting the
company's plan to enter the color printing arena through a
partnership with Memjet, a San
Diego-based developer of high-speed color printing
technologies. The company reported its relationship with
Memjet in an announcement on April 28,
2011.
About Delphax Technologies Inc.
Delphax Technologies Inc. is a global leader in the design,
manufacture and delivery of advanced digital print production
systems based on its patented electron-beam imaging (EBI)
technology. Delphax digital presses deliver industry-leading
throughput for both roll-fed and cut-sheet printing environments.
These products are extremely versatile and handle a wide
range of substrates from ultra lightweight paper to heavy stock.
Delphax provides digital printing solutions to publishers,
direct mailers and other printers that require systems capable of
supporting a wide range of commercial printing applications. The
company also licenses and manufactures EBI technology for OEM
partners that create differentiated product solutions for
additional markets. The company's EBI technology is used in
installations in more than 50 countries worldwide. The
company is headquartered in Minneapolis, with subsidiary offices in
Canada, the United Kingdom and France. The company's common stock is
currently quoted over the counter under the symbol DLPX.PK.
Additional information is available on the company's website
at www.delphax.com.
SOURCE Delphax Technologies Inc.
