Del shows signs of recovery

Del Global Technologies yesterday posted fiscal second-quarter net sales of $24.4 million, up 5% compared with the $23.2 million posted in the same period last year. For the quarter (end-January 26), the Valhalla, NY-based firm had a net loss of $171,000, compared with a net loss of $1.5 million in the fiscal second quarter last year.

Del also reported its fiscal first-quarter results, catching up with its financial reporting. The firm had finally reported its fiscal 2001 results in April, following delays associated with an extensive auditing review.

In its fiscal first quarter, Del had net sales of $19.5 million, down 12% compared with the $22.1 million posted in the 2001 fiscal first quarter. For the period (end-October 27), the firm had a net loss of $1.5 million, compared with a net loss of $376,000 in the same quarter in 2001. The quarterly sales decline was attributed primarily to Del's North American medical imaging business, which was impacted by uncertainty among its distributors over unfavorable press coverage in trade publications, according to the firm.

Looking ahead, Del said it expects to report net sales of $27 million in its fiscal third quarter (end-April 27), up 4% compared with the previous year. The company also reiterated its previous fiscal 2002 revenue guidance of between $97 million and $100 million. A $7 million litigation settlement, which will be recorded in the third quarter, will result in a loss for the third quarter and fiscal year, according to the company.

By staff writers
May 9, 2002

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Copyright © 2002

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