Ultrak Inc. reports sales of $44.4 million for the first quarter ended March 31, compared to $52.1 million in the first quarter of 2000. The revenue decline was due to the sale of Intervision in July 2000, the phasing-out of the French CCTV distribution business and a stronger dollar, which also adversely impacted the gross profit margin.
Gross profit margins were 30 percent, compared to 31 percent in the first quarter of 2000, while operating losses were $6 million, compared to operating profits of $2 million in the prior year. Diluted income per share was 54 cents, compared with 4 cents per share during the same period in 2000. Operating expenses were down 12 percent in the first quarter of 2001 vs. the first quarter of 2000. This was primarily due to the headcount reduction in the United States and Europe and the winding down of the centralized European distribution center in Belgium.
Results for the first quarter included a $7.8 million capital gain from the sale of Ultrak’s investment in Detection Systems Inc. (DS). In January, Ultrak received $24 million in cash proceeds related to this sale, a portion of which was used to lower the company’s borrowings under its credit facility. Borrowings for operations net of cash were $18.8 million, 46 percent lower than the comparable figure from 2000. The restructuring of Ultrak’s worldwide operations is largely complete.
Ultrak designs, manufactures, markets and services electronic products for the security and surveillance markets as well as other markets.