HARLYN PRODUCTS INC. DISCLOSED RESTRUCTURING, POTENTIAL BANKRUPTCY
FILING AND POSSIBLE SALE OF ITS OPERATIONS
Los Angeles CA September 30, 1996-Harlyn Products, Inc. (AMEX: HRN) today announced: its unaudited
results for fiscal year ended June 30, 1996; the proposed plan to sell its Thailand operations; its revised operating
results for the quarters ending December 31, 1995 and March 31, 1996; and the need for financial restructuring.
The company has just been informed by its auditors that they have resigned. Therefore the companies 10K will
be delayed. The company is exploring the consequences of this action.
Due in large part to declining sales of $10,094,000 and substantial write-offs of inventory and other assets in
excess of $9,500,000, the company recorded a loss of $14,535,000 or ($3.06) per share on net sales of
$25,915,000 for the year ended June 30, 1996. This compares with the loss of $1,873,000 or ($0.39) per share
on net sales of $36,009,000 for the prior fiscal year. For the three months ended June 30, 1996, the company
recorded a loss of $6,975,000 or ($1.45) per share on net sales of $5,373,000, due primarily to declining sales
of $3,312,000 and inventory write downs in excess of $4,500,000. This compares with a loss of $2,965,000 or
($0.62) per share on net sales $8,685,000 for last quarter of prior fiscal year.
Due to the foregoing, the company is presently suffering liquidity problems. In connection with resolving such
liquidity problems, the company further reported that it is currently attempting to negotiate an extension of its
bank borrowing agreement that otherwise terminates October 1, 1996 and its agreement with its gold lessor
which has expired. The company reported that if its negotiations with its financing sources were unsuccessful, the
company would be forced to consider the possibility of operating and debt restructuring under the protection of
The company also reported that it signed a letter of intent with a domestic public company t