News
Trans-Lux reports Q2 2010 financials
August 18, 2010
Trans-Lux Corp., a supplier of programmable electronic information displays, has reported financial results for the second quarter ended June 30, 2010. Trans-Lux president and CEO J.M. Allain made the announcement.
Second Quarter 2010
Revenues totaled $6.3 million for Q2 2010, compared with $7.4 million during the same period last year. Trans-Lux recorded a loss for the quarter of $2.6 million (-$1.07 per share), compared with a loss of $3.8 million (-$1.65 per share) in the second quarter of the prior year. This year's second quarter loss includes a $1.0 million restructuring charge and a $0.5 million charge to write-off engineering software. The prior year's second quarter loss includes the write-off of a $2.7 million note receivable related to the former Norwalk, Conn., facility that the company sold in 2004. The company incurred negative EBITDA of $0.9 million, compared with negative EBITDA of $1.8 million in 2009.
Without the restructuring charge and write-offs, EBITDA would have been a positive $594,000 for the three months ended June 30, 2010, compared with a positive $882,000 for the same period in 2009. The Company took several actions during the quarter to reduce operating costs, including the elimination of approximately 50 positions from operations and the closing of the Stratford, Conn., manufacturing facility. The one-time restructuring costs consist of employee severance pay, facility-closing costs, representing primarily lease termination and asset write-off costs, and other fees directly related to the restructuring plan.
Allain said the company has implemented significant changes in the way it goes about nearly every facet of its business to reflect its ‘new' business model.
"Streamlining operating costs and enhancing operational efficiencies remain priorities, while simultaneously improving manufacturing efficiencies and greatly expanding our product line to cultivate new business opportunities. And we are already seeing results from these efforts," he said. "We are making strategic investments to deliver the next generation of digital signage and display solutions, and to establish new partnerships in various segments of the digital display industry that will further cultivate long-term growth."
Six Months Ended June 30, 2010
Trans-Lux reported revenues for the six-month period ended June 30, 2010, of $11.7 million, down from $15.2 million last year. Trans-Lux incurred a loss of $4 million (-$1.66 per share) during the first six months, versus the $5 million loss (-2.15 per share) reported for the same period in 2009. This year's loss includes the $1 million restructuring charge and the $500,000 charge to write-off engineering software. The prior year's loss includes the write-off of a $2.7 million note receivable related to the former Norwalk, Conn., facility sold in 2004. The company incurred negative EBITDA of $515,000, compared with negative EBITDA of $997,000 during the same six-month period in 2009. Without the restructuring charge and write-offs, EBITDA would have been a positive $983,000 for the six months ended June 30, 2010, compared with a positive $1.7 million for the same period in 2009.
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