<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended February 27, 1994
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________________ to _________________
Commission File Number 1-8770
M E A S U R E X C O R P O R A T I O N
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-1658697
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Results Way, Cupertino, California 95014
---------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (408) 255-1500
Not Applicable
- --------------------------------------------------------------------------------
(Former name, former address & former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common stock outstanding at April 3, 1994 17,912,981 (1)
---------------
(1) Excludes common stock held in treasury.
1
<PAGE>
MEASUREX CORPORATION
Index
Part I. Financial Information
- ------------------------------
<TABLE>
<CAPTION>
Page No.
--------
<C> <S> <C>
Item 1. Financial Statements
Consolidated Statements of Income -
Three Months ended February 27, 1994
and February 28, 1993 3
Consolidated Balance Sheets -
February 27, 1994 and November 28, 1993 4-5
Consolidated Statements of Cash Flows -
Three Months ended February 27, 1994
and February 28, 1993 6
Notes to Consolidated Financial Statements 7-11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 12-14
</TABLE>
Part II. Other Information
- ------------------------------
<TABLE>
<C> <S> <C>
Item 6. Exhibits and Reports on Form 8-K 15
Signatures 16
Exhibits:
11 - Computation of Net Income Per Share 17
</TABLE>
2
<PAGE>
Part I. Financial Information
Item 1. Financial Statements
MEASUREX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollar amounts in thousands except per share data)
<TABLE>
<CAPTION>
Three Months Ended
----------------------------
February 27, February 28,
1994 1993
- ----------------------------------------------------------------------------
<S> <C> <C>
Revenues:
Systems $37,618 $37,454
Service and other 24,027 24,385
------- -------
Total revenues 61,645 61,839
------- -------
Operating costs and expenses:
Systems 23,956 25,869
Service and other 15,025 15,961
Product development 5,079 4,435
Selling and administrative 15,429 14,321
------- -------
Total operating costs & expenses 59,489 60,586
------- -------
Earnings from operations 2,156 1,253
Other income (expense):
Interest expense (336) (54)
Interest income and other 1,546 1,514
------- -------
Total other income, net 1,210 1,460
------- -------
Income before income taxes and cumulative
effect of accounting change 3,366 2,713
Provision for income taxes 1,178 977
------- -------
Income before cumulative effect of
accounting change 2,188 1,736
Cumulative effect of accounting change 524 -
------- -------
Net income $ 2,712 $ 1,736
======= =======
Income per share:
Income before cumulative effect of
accounting change $ .12 $ .10
Cumulative effect of accounting change .03 -
------- -------
Net income per share $ .15 $ .10
======= =======
Dividends per share $ .11 $ .11
======= =======
Average number of common and common
equivalent shares 18,150 18,216
======= =======
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the consolidated financial
statements.
3
<PAGE>
MEASUREX CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
February 27, November 28,
ASSETS 1994 1993
- -------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 50,810 $ 76,040
Marketable securities and short-term
investments 49,237 35,371
Accounts receivable 58,398 55,126
Inventories 34,021 35,697
Prepaid and other 11,697 11,473
-------- --------
Total current assets 204,163 213,707
-------- --------
Contracts receivable 26,924 26,651
Service parts, net 3,718 3,178
Property, plant and equipment, net 51,412 53,161
Other assets 21,469 21,619
-------- --------
Total assets $307,686 $318,316
======== ========
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the consolidated financial
statements.
4
<PAGE>
MEASUREX CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands except share and per share data)
<TABLE>
<CAPTION>
February 27, November 28,
LIABILITIES AND SHAREHOLDERS' EQUITY 1994 1993
- -------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
Current liabilities:
Current portion of long-term debt $ 4,448 $ 4,516
Accounts payable 4,503 6,732
Accrued expenses 55,937 62,594
Income taxes payable 589 2,145
-------- --------
Total current liabilities 65,477 75,987
-------- --------
Long-term debt 15,382 16,783
Deferred income taxes 13,722 13,682
-------- --------
Total liabilities 94,581 106,452
-------- --------
Commitments and Contingencies
Shareholders' Equity:
Preferred stock, $.01 par value:
Authorized: 10,000,000 shares;
issued and outstanding: none - -
Common stock, $.01 par value:
Authorized: 50,000,000 shares;
outstanding: 1994 - 19,035,868 shares,
1993 - 19,036,948 shares 190 190
Additional capital 75,260 75,202
Retained earnings 167,275 167,211
Cumulative translation adjustments (6,239) (5,707)
Less: Treasury stock, at cost: 1994 - 1,127,767
shares, 1993 - 1,192,726 shares (23,381) (25,032)
-------- --------
Total shareholders' equity 213,105 211,864
-------- --------
Total liabilities and shareholders' equity $307,686 $318,316
======== ========
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the consolidated financial
statements.
5
<PAGE>
MEASUREX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
Three Months Ended
----------------------------
February 27, February 28,
1994 1993
- ------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,712 $ 1,736
Non-cash items included in net income:
Depreciation and amortization:
Service parts 564 445
Property, plant and equipment 2,328 2,333
Capitalized software and goodwill 1,080 838
Deferred income taxes (484) 16
Translation loss 245 2,431
Inventory reserves 584 772
Net (increase) decrease in:
Accounts and contracts receivable (3,108) (4,488)
Inventories and service parts 91 (194)
Prepaid and other 148 (1,525)
Net increase (decrease) in:
Accounts payable and accrued expenses (8,862) (8,067)
Income taxes payable (1,592) (556)
Other, net 759 177
-------- --------
Net cash used in operating activities (5,535) (6,082)
-------- --------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of marketable securities and
short-term investments (38,814) (22,168)
Sale of marketable securities and short-
term investments 9,803 8,353
Maturities of short-term investments 15,145 11,461
Acquisition of property, plant and equipment (1,250) (1,389)
Capitalized software (699) (818)
-------- --------
Net cash used in investing activities (15,815) (4,561)
-------- --------
CASH FLOWS USED IN FINANCING ACTIVITIES:
Reductions of long-term debt (1,469) (740)
Dividends (1,966) (2,000)
Stock issued under stock purchase and stock
option plans 1,027 442
-------- --------
Net cash used in financing activities (2,408) (2,298)
-------- --------
Effect of exchange rate fluctuations on
cash and cash equivalents (1,472) (2,618)
-------- --------
Net decrease in cash and cash equivalents (25,230) (15,559)
Cash and cash equivalents at beginning of period 76,040 74,368
-------- --------
Cash and cash equivalents at end of period $ 50,810 $ 58,809
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest $ 336 $ 54
Income taxes 2,700 1,011
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the consolidated financial
statements.
6
<PAGE>
MEASUREX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
---------------------------------------
BASIS OF PRESENTATION
The accompanying consolidated financial statements have been prepared in
accordance with SEC requirements for interim financial statements. They,
therefore, do not include all the disclosures which are presented in the
Company's Annual Report on Form 10-K. It is suggested that the financial
statements be read in conjunction with the Consolidated Financial Statements and
notes thereto included in the Company's Annual Report on Form 10-K.
The information furnished reflects all adjustments (consisting only of normal
recurring adjustments) which are, in the opinion of management, necessary for
the fair statement of financial position, results of operations and cash flows
for the interim period. The year-end condensed balance sheet data was derived
from audited financial statements, but does not include all disclosures required
by generally accepted accounting principles. The results of operations for the
periods presented are not necessarily indicative of results to be expected for
the full year.
CONSOLIDATIONS
The consolidated financial statements include the accounts of all subsidiaries
after elimination of intercompany balances and transactions. The Company has
reclassified the presentation of certain prior year information to conform with
the current year presentation format.
NET INCOME PER SHARE
Net income per share is computed based on the weighted average number of common
shares outstanding during the year adjusted to reflect the assumed exercise of
outstanding stock options to the extent these had a dilutive effect on the
computation.
FISCAL YEAR
The Company uses a 52-53 week fiscal year. 1994 and 1993 are 52 week fiscal
years.
FAIR VALUE OF FINANCIAL INSTRUMENTS
Marketable securities and short-term investments are stated at cost, which
approximates market based on quoted market prices. The Company believes that
the fair value of its long-term debt approximates the carrying value of those
obligations as of February 27, 1994. The fair value of the Company's long-term
debt is estimated based on interest rates currently available to the Company for
debt with similar terms and maturities.
7
<PAGE>
MEASUREX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, (Continued)
(February 27, 1994 - Unaudited)
-------------------------------
ACCOUNTS RECEIVABLE
<TABLE>
<CAPTION>
February 27, November 28,
Accounts receivable consist of the following: 1994 1993
------------ ------------
<S> <C> <C>
Accounts receivable $55,163 $52,037
Contracts receivable 9,101 8,579
Less:
Allowance for noncollection and
system returns (5,866) (5,490)
------- -------
$58,398 $55,126
======= =======
- ------------------------------------------------------------------------------------
CONTRACTS RECEIVABLE
<CAPTION>
February 27, November 28,
Contracts receivable consist of the following: 1994 1993
------------ ------------
<S> <C> <C>
Contracts receivable $37,687 $36,887
Less:
Allowance for noncollection and
system returns (1,662) (1,657)
------- -------
36,025 35,230
Current portion (9,101) (8,579)
------- -------
$26,924 $26,651
======= =======
</TABLE>
Customer financing for systems is collateralized by security in the related
asset. The Company maintains allowances for potential credit losses and such
losses have been within management's expectations. Contracts receivable from
two major customers amounted to approximately $11.5 million at February 27,
1994.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
INVENTORIES
February 27, November 28,
Inventories consist of the following: 1994 1993
----------- ------------
<S> <C> <C>
Purchased parts and components $18,624 $18,217
Work in process 9,477 10,733
Finished subassemblies and systems 5,920 6,747
------- -------
$34,021 $35,697
======= =======
</TABLE>
- --------------------------------------------------------------------------------
8
<PAGE>
MEASUREX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, (Continued)
(February 27, 1994 - unaudited)
---------------------------------------
PROPERTY, PLANT AND EQUIPMENT
<TABLE>
<CAPTION>
Property, plant and equipment are recorded
at cost and consist of the following: February 27, November 28,
1994 1993
------------ ------------
<S> <C> <C>
Property, plant and equipment $109,882 $110,005
Less:
Accumulated depreciation (58,470) (56,844)
-------- --------
$ 51,412 $ 53,161
======== ========
- -----------------------------------------------------------------------------
OTHER ASSETS
February 27, November 28,
Other assets consist of the following: 1994 1993
------------ ------------
<S> <C> <C>
Capitalized software, net $ 7,046 $ 7,246
Goodwill and other 14,423 14,373
-------- --------
$ 21,469 $ 21,619
======== ========
</TABLE>
- --------------------------------------------------------------------------------
LONG-TERM DEBT
In May 1993, the Company borrowed $20 million under a 5.35% five-year unsecured
term loan agreement with a bank. Proceeds from the loan were used principally
to support the Company's United States equipment lease portfolio and provide a
hedge against interest rate fluctuations. Interest is payable quarterly, with
principal payable in equal quarterly installments of $1.0 million through June
1998. The loan agreement contains certain restrictive covenants which include
the maintenance of minimum consolidated cash balances, minimum tangible net
worth, and certain financial ratios. The Company was in compliance with all
covenants at February 27, 1994.
- --------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
As of February 27, 1994, the Company had unsecured bank lines of credit
agreements of $25.0 million, which provide for domestic and foreign currency
borrowings, advances and guarantees, Bankers' Acceptances, and letters of
credit. At that date, the Company was contingently liable for approximately
$8.3 million relating principally to letters of credit issued.
The agreements, which expire during fiscal year 1994, require the Company to
adhere to certain covenants regarding working capital, indebtedness, and minimum
shareholders' equity. A revolving credit agreement ($20 million) provides for
variable interest rates based on the London Interbank Offer Rate (LIBOR). Under
a multicurrency credit agreement ($5 million), the Company may obtain loans at
the lending bank's base rate plus 3/8%.
9
<PAGE>
MEASUREX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, (Continued)
(February 27, 1994 and February 28, 1993 are unaudited)
---------------------------------------
COMMITMENTS AND CONTINGENCIES (continued)
The Company is subject to legal proceedings and claims that arise in the normal
course of its business. In the opinion of management, these proceedings will
not have a material adverse effect on the financial position and results of
operations of the Company.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
INTEREST INCOME AND OTHER
Interest income and other consists
of the following: Three Months Ended
------------------------------
February 27, February 28,
1994 1993
------------ ------------
<S> <C> <C>
Interest income $1,678 $1,636
Foreign exchange loss (132) (122)
------ -------
$1,546 $1,514
====== =======
</TABLE>
- --------------------------------------------------------------------------------
INCOME TAXES
The Company's effective tax rate is based on the estimated income and related
tax provision for the entire year. It is the policy of the Company to provide
U.S. and foreign income taxes on the portion of the accumulated earnings of the
Company's foreign subsidiaries which are intended to be remitted to the parent
company within the foreseeable future. Income tax payments of $2.7 million were
made during the three months ended February 27, 1994.
Effective November 29, 1993, the Company adopted Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS 109"). The
adoption of SFAS 109 resulted in a cumulative adjustment which increased first
quarter 1994 earnings by $0.5 million. After adoption of SFAS 109, the primary
components of the Company's deferred tax assets and liabilities as of November
29, 1993, were as follows:
10
<PAGE>
MEASUREX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, (Continued)
(February 27, 1994 - unaudited)
--------------------------------------------------------
<TABLE>
<CAPTION>
INCOME TAXES (continued)
<S> <C>
Deferred income tax assets:
Noncollection and system return
reserves $ 2,167
Inventory reserves 4,482
Employee expenses 2,051
Operating expenses not currently
deductible 1,184
Other 1,156
Net operating loss and tax credit
carryforward 8,432
Valuation allowance for deferred
tax assets (7,317)
-------
Net deferred tax assets 12,155
-------
Deferred income tax liabilities:
Finance leases $ (2,673)
Property, plant and equipment (2,478)
Capitalized software (2,776)
Undistributed earnings of foreign
subsidiaries (3,668)
Other (1,143)
--------
Gross deferred tax liabilities (12,738)
--------
Net deferred tax liabilities $ (583)
========
</TABLE>
- --------------------------------------------------------------------------------
11
<PAGE>
MEASUREX CORPORATION
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
- --------------------------------------------------------------------------
OPERATIONS
- ----------
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
With $100 million in cash and cash equivalents, marketable securities and short-
term investments, Measurex's financial condition remained strong as of February
27, 1994. Net cash used in operations during the first quarter of 1994 was $5.5
million. Net income adjusted for noncash items was $7.0 million, down from $8.6
million in 1993. Offsetting the cash generated, accounts and contracts
receivable increased by $3.1 million, and accounts payable and accrued
liabilities decreased $8.9 million from year-end 1993. The increase of accounts
and contracts receivable corresponded with higher system shipments in the last
month of the quarter. Contracts receivable from two major customers amounted to
approximately $11.5 million at February 27, 1994. Accounts payable and accrued
liabilities decreased primarily due to year-end profit sharing and bonus
payments.
Net cash used in operations during the first quarter of 1993 was $6.1 million.
Net income adjusted for noncash items was $8.6 million. Offsetting the cash
generated, accounts and contracts receivable increased by $4.4 million, and
accounts payable and accrued liabilities decreased $8.1 million from year-end
1992. Accounts and contracts receivable increased due to timing of system
shipments as more systems were shipped in the last month of the quarter. 1992
year-end profit sharing payments as well as payments made for severance costs
led to the decrease in accounts payable and accrued liabilities.
Excluding marketable securities and short-term investments, net cash used for
investing activities totaled $1.9 million in the first quarter of 1994 as
compared to $2.2 million in the first quarter of 1993. Investments in property,
plant and equipment totaled $1.3 million during 1994, slightly lower than the
level in 1993. No major facility expansions occurred in the first quarter of
1994 or are planned for the remainder of the year. On April 7, 1993, the
Company acquired Roibox Oy, a worldwide supplier of web-inspection products for
the paper industry, for a cash payment of approximately $2 million. Roibox Oy
operates as a separate subsidiary of Measurex, with manufacturing, engineering,
product marketing and sales support. The net assets and operating results from
this subsidiary are included in the consolidated financial statements from the
date of acquisition.
Cash used for financing activities during the first quarter of 1994 totaled $2.4
million as compared to $2.3 million in the first quarter of 1993. Proceeds
received from stock issuances were offset by cash used to reduce outstanding
debt.
As a result of the above operating, investing and financing activities, and
giving effect to exchange rate fluctuations, the Company's cash and cash
equivalents decreased $25.2 million from $76.0 million at year-end 1993 to $50.8
million at February 27, 1994 while marketable securities and short-term
investments increased $13.8 million to $49.2 million. The Company's current
ratio (current assets divided by current liabilities) was 3.2 at the end of the
first quarter of 1994 compared to 2.8 at year-end 1993. Total debt was at 9% of
shareholders' equity at February 27, 1994 compared to 10% at November 28, 1993.
12
<PAGE>
MEASUREX CORPORATION
Item 2.
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
- -------------------------------
As of February 27, 1994, the Company's principal sources of liquidity included
cash, cash equivalents, marketable securities and short-term investments of $100
million and unsecured bank lines of credit of $25 million, of which $8.3 million
was committed to letters of credit. The Company believes that its financial
resources will provide adequate flexibility to fund the Company's operating
needs, capital expenditures and cash dividends during fiscal year 1994.
RESULTS OF OPERATIONS
- ---------------------
System orders for the quarter were $31 million, down 9 percent from $34 million
in 1993's first quarter. Pulp and Paper system orders in the major markets of
the United States and Europe exceeded last year's first quarter, while a
decrease in orders occurred in Asia/Japan and South American markets and in the
Industrial System product group.
System backlog at the end of 1994's first quarter was $83 million. This was
down 8 percent from $90 million in the comparable period a year ago.
Approximately 90 percent of the $83 million backlog is scheduled to be shipped
during the next 12 months. The reduction in Asian and Latin American backlog
was partially offset by higher backlog in the United States and Europe.
Systems revenue was $37.6 million in the first quarter of 1994, approximately
the same as the prior year's first quarter. Overall sales growth continued to
be restrained by a depressed market in the paper industry and ongoing price
competition. Service and other revenues decreased $0.4 million to $24.0 million
in the first quarter of 1994 from $24.4 million in the first quarter of 1993.
The decline in revenues was attributable to the impact of currency fluctuations.
Margins on systems revenue were 36% in the first quarter of 1994 as compared to
31% in the first quarter of 1993. The lower system margin in 1993 resulted
primarily from the factory startup costs and initial installation costs for the
new MXOpen(TM) product line. Service and other margins were 37% in the first
quarter of 1994 as compared to 35% in the first quarter of 1993. The
improvement in service margins reflected ongoing cost controls and better
utilization of field service resources.
Product development costs increased $0.6 million (10%) to $5.9 million in the
first quarter of 1994 from $5.3 million in the first quarter of 1993 due to
lower engineering charges to cost of sales and inclusion of Roibox Oy research
and development activities. Measurex capitalized $0.7 million and $0.8 million
of software development costs in the first quarter of 1994 and 1993,
respectively. Amortization of capitalized software to system costs totaled $0.9
million and $0.7 million in the first quarter of 1994 and 1993, respectively.
The Company's future results depend, to a considerable extent, on its ability to
maintain a competitive advantage in both the products and services it provides.
To this end, the Company believes it is critical to continue to make investments
in new product development. In January 1994, the Company introduced the
Calcoil(TM) 4000HT profiling system at EXFOR '94 in Montreal, Canada. In
addition, the Company announced evolutionary improvements to its MXOpen product
line including: MXOpen X-View Operator Station(TM),
13
<PAGE>
MEASUREX CORPORATION
Item 2.
RESULTS OF OPERATIONS (CONTINUED)
- ---------------------
CDOpen(TM) cross-direction profile control system and the QuadraTect Extensional
Stiffness Sensor at the Technical Association of Pulp and Paper Industry's
(TAPPI) exhibition in Atlanta, Georgia.
Selling and administrative expense increased $1.1 million (8%) from $14.3
million in the first quarter of 1993 to $15.4 million in the same period in
1994. This increase in expenditures in 1994 over 1993 was attributable in part
to the inclusion of Roibox operations and higher profit sharing expenses.
The Company plans to continue to invest in new product development, while
tightly controlling expenditures in the factory, selling and administrative
areas to ensure that expenses are in line with projected shipment levels.
The Company's effective tax rate during the first quarter of 1994 was 35%,
compared with 36% during the first quarter of 1993. In the first quarter of
1994, the Company adopted Statement of Financial Accounting Standards No. 109,
"Accounting for Income Taxes" ("SFAS 109"). The cumulative effect of this
change increased net income by $0.5 million, or $0.03 per share.
Net income for the first quarter of 1994 was $2.7 million, or $0.15 a share,
compared with $1.7 million or $0.10 a share in 1993's first quarter. Income
before cumulative effect of accounting change was $2.2 million, or $0.12 per
share, up 26 percent from $1.7 million, or $0.10 per share, in the first quarter
of 1993. Interest income in the first quarter of 1994 was slightly higher than
the same period in 1993.
14
<PAGE>
MEASUREX CORPORATION
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) Exhibits
Exhibit 11 - Computation of Net Income Per Share
(b) Reports on Form 8-K
No report on Form 8-K has been filed during the quarter ended
February 27, 1994.
15
<PAGE>
MEASUREX CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Measurex Corporation
--------------------------
(Registrant)
Date April 11, 1994 By /s/ Carl A. Thomsen
------------------- --------------------------
Senior Vice President and
Chief Financial Officer
16
<PAGE>
EXHIBIT 11
MEASUREX CORPORATION
COMPUTATION OF NET INCOME PER SHARE
(Unaudited)
-----------------------------------
(Dollar amounts in thousands except per share data)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------
February 27, February 28,
1994 1993
- ----------------------------------------------------------------------------
<S> <C> <C>
Primary:
Average shares outstanding 17,885 18,037
Net effect of dilutive stock options based
on the treasury stock method using average
market price 265 179
------- -------
Average common and common equivalent shares
outstanding 18,150 18,216
======= =======
Income before cumulative effect of
accounting change $ 2,188 $ 1,736
======= =======
Net income $ 2,712 $ 1,736
======= =======
Income per share before cumulative effect
of accounting change $ .12 $ .10
======= =======
Net income per share $ .15 $ .10
======= =======
Fully diluted: (Note A)
Average shares outstanding 17,885 18,037
Net effect of dilutive stock options based
on the treasury stock method using quarter
-end market price or average market price
when greater than quarter-end price 278 194
------- -------
Average common and common equivalent shares
outstanding 18,163 18,231
======= =======
Income before cumulative effect of
accounting change $ 2,188 $ 1,736
======= =======
Net income $ 2,712 $ 1,736
======= =======
Income per share before cumulative effect
of accounting change $ .12 $ .10
======= =======
Net income per share $ .15 $ .10
======= =======
</TABLE>
- --------------------------------------------------------------------------------
Note A: Fully diluted earnings per share have been calculated in accordance
with Accounting Principles Board Opinion No. 15, "Earnings Per Share".
17
