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Zomax Announces Fourth Quarter and Full Year 2004 Results.

Article Excerpt
MINNEAPOLIS, MN, March 29, 2005 /PRNewswire-FirstCall/ -- Zomax Incorporated , today announced financial results for the fourth quarter and full year ended December 31, 2004. Revenue for the fourth quarter was $58.6 million compared with $62.1 million for the fourth quarter of 2003. Revenue for the full year ended December 31, 2004 was $199.4 million compared with $197.8 million for 2003.

Net loss for the fourth quarter of 2004 was $0.04 per share compared with net income of $0.16 per share for the fourth quarter of 2003. The fourth quarter 2004 results include a pre-tax loss of approximately $2.0 million, or $0.06 per share, relating to the Company's operations in Ireland and a pre-tax charge of $1.0 million, or $0.02 per share, relating to a previously disclosed settlement offer made in connection with the Company's pending consolidated class action lawsuit.

"Despite a challenging year, we were able to achieve revenue at the high end of our expectations for the fourth quarter," said Anthony Angelini, President and CEO of Zomax. "However, our earnings for the year were impacted by a number of items including costs related to our litigation reserves, increased polycarbonate costs, incremental costs related to our Sarbanes-Oxley compliance program, and the negative impact of our Irish operations. Excluding the negative impact of Ireland and the charge related to our settlement offer, we would have achieved a profitable fourth quarter. We believe we are making the necessary adjustments to our operating model to improve our performance."

Net loss for the full year 2004 was $0.26 per share compared with a restated net loss of $0.04 per share for 2003. As previously announced, the Company determined the need to restate its financial statements for the full year 2003 and the first three quarters of 2004 as a result of accounting irregularities at the Company's Ireland subsidiary, Zomax Limited. The Company has finalized the restatements for the first three quarters of 2004, which were equal to the Company's previously announced estimates. In each of the first three quarters of...