Paragon Technologies Reports First Quarter Results
EASTON, PA -- May 11, 2001 - Paragon
Technologies, Inc. [AMEX: PTG], a leading deliverer of "smart"
materials handling systems, including systems, technologies,
products and services, today announced results for the first
quarter ended March 31, 2001.
Sales for the first quarter of 2001 decreased
by 24.1% to $13.9 million from $18.3 million in the first
quarter of 2000. Net earnings for the first quarter of 2001
dropped to $126,000, or $0.03 basic earnings per share,
compared with net earnings of $772,000, or $0.18 basic earnings
per share in the first quarter of 2000. Gross profit margin
improved to 25.8% from the prior year first quarter margin
of 24.2%.
The Company noted that results for the first
quarter of 2001 were impacted by non-recurring severance
costs of approximately $175,000. Backlog of orders is standing
at $17.8 million at the end of the first quarter, versus
$22.9 million at the end of the fourth quarter of 2000.
Bill Johnson, president and chief executive
officer, commented, "We are disappointed in our first quarter
results following a year of strong growth and success across
the Company. While the sluggish economy has caused a number
of our customers to push back or delay projects, there have
been no significant contract cancellations. Importantly,
our sales force is seeing positive customer interest in
new projects. We expect to be back on track once economic
conditions improve."
"In the interim, we will continue working
hard to position Paragon for the future. During the past
year, we took steps to improve the Company's cost structure
by eliminating non-value added costs. We continue to invest
in marketing and product development to find new applications
and innovations for our industry-leading technologies. We
are confident that by investing in Paragon's future and
improving its cost structure, Paragon will be well-positioned
to enhance both near and long term value for all its shareholders,"
added Mr. Johnson.
About Paragon Technologies
Paragon Technologies is a leader in integrating materials handling systems and
creating automated solutions for material flow applications. Ermanco's branded
conveyor technologies and material handling solutions address the needs of the
distribution, assembly, and manufacturing marketplace. SI Systems' branded technologies
and material handling solutions address unit assembly handling and order fulfillment
applications. Paragon Technologies' Quality Management System at its Easton,
Pennsylvania location is certified to the ISO 9001 standard. The scope of the
Quality Management System governs the design, manufacture, assembly, installation,
and servicing of automated materials handling and distribution systems. One
of the top materials handling systems suppliers worldwide, Paragon's leading
clients include the United States Postal Service, General Motors, IBM, BMG,
Daimler Chrysler, Johnson & Johnson, Ford, Peterbilt, Harley-Davidson, Walgreens,
and Clark Equipment.
Certain statements contained
herein are not based on historical fact and are to be viewed as "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Words or phrases used in this News Release denoting the anticipated
results of future events, such as " believe," "affords us,"
"grow," "will be," "will spur additional opportunities,"
and similar expressions that denote optimism and uncertainty, are intended to
identify such forward-looking statements. SI Handling's actual results, performance,
or achievements could differ materially from the results expressed in, or implied
by, such "forward-looking statements" if the factors on which their
conclusions are based do not conform to their expectations.
