Pomona, CA: Auto-Graphics, Inc. (BB AUGR) today reported a net income of $27,000 or $.01 per share for the second quarter ended June 30, 2002 compared to a net loss of $689,000 in 2001 or $.14 per share. Net sales were essentially unchanged from $1,594,000 in 2001 to $1,596,000 in 2002.
Robert S. Cope, Chairman and President expressed satisfaction with the progress of the restructuring plan, but warned that planned 2002 profits “...may be impaired by substantial legal expenses associated with defending the multiple lawsuits filed by Robert H. Bretz, subsequent to his firing as corporate counsel in May of 2001. Total legal expenses in the second quarter of 2002 were approximately $216,000 (the equivalent of approximately $0.04 per share) and total legal expenses in 2002 ($477,000 year-to-date) could exceed total legal expenses incurred in 2001 of $570,000, if present trends continue.” Mr. Bretz is a dissident former director and current shareholder of Auto-Graphics, Inc.
Mr. Cope also reported that the parties have reached an agreement in principle on a settlement in July, 2002 of the lawsuit regarding the 2001 acquisition of the Pigasus Inc. “Wings” software.
Robert S. Cope, James R. Yarter and Thomas J. Dudley were elected Directors at the 2002 Annual Shareholders Meeting held July 27, 2002.
Auto-Graphics provides applications software and Web hosting services to clients who create, manage, publish and access information using the Internet. The Company's systems are used by more than 10,000 libraries in the United States and Canada.
Visit www. auto-graphics.com for additional information on the Company it's products and services.