IRVINE--- Meade Instruments Corp. Delays Release of Fourth Quarter and Fiscal 2006 Results; Company Reaffirms Guidance; Expects
Meade Instruments Corp. (Nasdaq:MEAD) today announced that the company will delay the release of its results for the fourth quarter and year ended February 28, 2006, which was previously scheduled for May 5, 2006.
The Company reiterated its previous expectations for fiscal 2006 of a net loss of up to $5 million, or 25 cents per share. This loss, combined with previous years' losses, has prompted the Company to evaluate the realizability of its deferred tax assets. The Company's reiterated expectations for fiscal 2006 include a third quarter charge of approximately $1 million as a valuation allowance against its deferred tax assets related to its foreign tax credits; however, these expectations do not include a charge for an allowance against the Company's remaining deferred tax assets. The Company said that it is in the process of evaluating the need for a valuation allowance on its remaining deferred tax assets. Current accounting standards require that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset may not be realized. Cumulative losses weigh heavily in the assessment of the need for a valuation allowance. In the event the Company determines that a valuation allowance is necessary, the non-cash charge would increase the tax provision for the year ended February 28, 2006 by up to $8 million, or $0.41 per share. The Company will announce results for the fourth quarter and year ended February 28, 2006 on Thursday, May 25, 2006.
The company also reiterated its earlier guidance of fiscal 2006 revenues in the range of $120 to $122 million.
ABOUT MEADE INSTRUMENTS
Meade is a leading designer and manufacturer of optical products including telescopes and accessories for the beginning to serious amateur astronomer. Meade offers a complete line of binoculars that address the needs of everyone from the casual observer to the serious sporting or birding observer, as well as a complete line of rifle scopes under the Simmons(R), Weaver(R) and Redfield(R) brand names. The Company distributes its products worldwide through a network of specialty retailers, mass merchandisers and domestic and foreign distributors. Additional information on Meade is available at www.meade.com.