‘Finally!’ – CRL Sees a Profit

With a restructuring of debt behind it, CRL says it is generating profits, and enjoyed a 42% increase in net sales in the recent quarter.
In a statement releasing its latest financials, President/CEO Jay Brentlinger said, “Finally! Patience and perseverance have prevailed, allowing us to generate a profit for the company. I feel this sets the stage for a healthier, more stable financial environment.”
Circuit Research Labs Inc., which makes Orban and CRL products, reported earnings for the three and six months ended June 30 of about $2.62 million and $2.44 million respectively. That compares to net losses of $264,000 and $301,000 for the periods a year earlier.
The increases were due, it said, to restructuring of loans with Harman International Industries Inc. and to more sales.
“In exchange for restructuring its debt owed by the company, we issued common stock representing approximately 19 percent of our total shares to Harman Pro North America,” it said. “The restructure will allow the company to save approximately $824,000 in interest annually.”
Operating revenue for the recent quarter was $612,000, and for the last six months $712,000, compared to $22,000 and $276,000 in 2004.
Net sales were $4.4 million and $7.6 million, respectively, compared to $3.1 million and $6.4 million for the same periods in 2004. Those are increases of 42% and 19% respectively, which the company attributes to the introduction of its Optimod-FM 8500 and increased demand in higher-end processors.
VP/CFO Robert McMartin stated, “With the restructure behind us, we can now focus on broadening our market and providing our customers with even better service. We can now work toward refining our operations to meet future demands.”