Printronix Announces First Quarter Results for Fiscal Year 2006

Printronix, Inc. (NASDAQ:PTNX), the leading manufacturerof integrated enterprise printing solutions for the supply chain,today announced results for the first quarter of fiscal year 2006,which ended June 24, 2005. First quarter revenue was $31.8 million,down 4.5% from $33.3 million in the year ago quarter and down 2.8%from $32.7 million in the fourth quarter of fiscal 2005. The companyreported net income for the quarter of $0.2 million, or $0.03 perdiluted share, compared with net income of $0.4 million, or $0.07 perdiluted share, in the year ago quarter and net income of $0.7 million,or $0.10 per diluted share, in the fourth quarter of fiscal 2005.

Gross margin was 38.7% for the first quarter, down from 40.0% inthe same period one year ago due to lower volumes and product mix,partially offset by a stronger Euro and a lower inventory provision.Gross margin during the first quarter of fiscal 2006 was comparable tothe fourth quarter of fiscal 2005.

Operating expenses in the quarter were $12.2 million, down from$12.5 million in the year ago fiscal period. A reduction of $0.3million in the company's allowance for doubtful accounts requirementwas offset by severance costs of $0.3 million.

The quarter includes income tax benefits and refunds of $0.1million generated from foreign net operating losses.

The company ended the first fiscal quarter of 2006 with cash andshort-term investments of $44.3 million, up $5.3 million compared withthe first quarter of fiscal 2005. Interest income increased $0.2million compared with the year ago quarter due to higher cash andshort-term investment balances and higher interest rates. During thecurrent quarter, the company declared and paid $0.5 million for itssecond quarterly cash dividend of $0.07 per share, an increase of$0.02 per share.

"Although we were disappointed with the slowdown in sales for ourcore business, we were very encouraged by the progress we made in ourgrowing RFID segment," said Robert Kleist, President and CEO ofPrintronix. "This quarter we achieved $943 thousand in RFID printersales, the highest in our history, which we believe is indicative ofthe tangible traction we are gaining in the early deployment of RFID.In addition, we also recently announced strategic RFID partnershipswith IBM and Microsoft, two key leaders and developers in the RFIDspace. We also made strategic progress within our core line matrixbusiness, including the renewal of our longstanding agreement withIBM, in connection with the introduction of new line matrix printersfor both IBM and Printronix. We continue to believe that our strongbalance sheet and core business in line matrix and high-performancethermal printers coupled with our new opportunities within RFIDposition us well for future growth."

There will be an earnings conference call at 11:00 a.m. PT (2:00p.m. ET) on July 29, 2005. The call will be broadcast live over theInternet and will be hosted by Robert Kleist, President and CEO, andGeorge Harwood, Senior Vice President and CFO. To access the liveaudio webcast, go to the Printronix web site at www.printronix.com andselect the conference call link to register.

Except for historical information, this press release contains"forward-looking statements" about Printronix, within the meaning ofthe Private Securities Litigation Reform Act of 1995. Terms such as"objectives," "believes," "expects," "plans," "intends," "should,""estimates," "anticipates," "forecasts," "projections," and variationsof such words and similar expressions are intended to identify suchforward-looking statements. These statements involve a number ofrisks, uncertainties and other factors that could cause actual resultsto differ materially, including: adverse business conditions and afailure to achieve growth in the computer peripheral industry and inthe economy in general; the ability of the company to achieve growthin the Asia Pacific market; adverse political and economic events inthe company's markets; a worsening of the global economy due togeneral conditions; a worsening of the global economy resulting fromterrorist attacks or risk of war; a worsening of the global economyresulting from a resurgence of SARS (Severe Acute RespiratorySyndrome); the ability of the company to maintain its productioncapability in its Singapore plant or obtain product from its AsiaPacific suppliers should a resurgence of SARS occur; the ability ofthe company to hold or increase market share with respect to linematrix printers; the ability of the company to successfully competeagainst entrenched competition in the thermal printer market; theability of the company to adapt to changes in requirements for radiofrequency identification ("RFID") products by Wal-Mart and/or theDepartment of Defense and others; the ability of the company toattract and to retain key personnel; the ability of the company'scustomers to achieve their sales projections, upon which the companyhas in part based its sales and marketing plans; the ability of thecompany to retain its customer base and channel; the ability of thecompany to compete against alternate technologies for applications inits markets; and the ability of the company to continue to develop andmarket new and innovative products superior to those of thecompetition and to keep pace with technological change. The companydoes not undertake to publicly update or revise any of itsforward-looking statements, even if experience or new informationshows that the indicated results or events will not be realized.

About Printronix, Inc.

Since 1974, Printronix, Inc. (NASDAQ:PTNX) has created innovativeprinting solutions for the industrial marketplace and supply chain.The company is the worldwide market leader in enterprise solutions forline matrix printing and has earned an outstanding reputation for itshigh-performance thermal and fanfold laser printing solutions.Printronix also has become an established leader in pioneeringtechnologies, including radio frequency identification (RFID)printing, bar code compliance and networked printer management.Printronix is headquartered in Irvine, California. For companyinformation, see www.printronix.com.
Printronix, Inc., and Subsidiaries

Consolidated Statements of Operations (Unaudited)

(Dollars in Thousands, Except
Share and Per Share Data)

Three Months Ended
--------------------------------
6/24/05 3/25/05 6/25/04
---------- ---------- ----------

Revenue $31,787 $32,697 $33,278
Cost of sales 19,478 20,041 19,968
---------- ---------- ----------
Gross margin 12,309 12,656 13,310
Engineering and development 3,868 3,711 3,998
Sales and marketing 6,116 6,190 6,280
General and administrative 2,250 2,127 2,183
---------- ---------- ----------
Total operating expenses 12,234 12,028 12,461
Income from operations 75 628 849
Interest and other (income) expense,
net (205) (2) 62
---------- ---------- ----------
Income before taxes 280 630 787
Provision (benefit) for income taxes 70 (34) 338
---------- ---------- ----------
Net income $210 $664 $449
========== ========== ==========

Net Income Per Share:
-------------------------------------
Basic $0.03 $0.10 $0.07
Diluted $0.03 $0.10 $0.07

Shares Used in Computing Net Income
Per Share:
-------------------------------------
Basic 6,492,516 6,429,487 6,280,643
Diluted 6,636,244 6,613,757 6,446,960

Gross margin % 38.7% 38.7% 40.0%
Operating expenses % 38.5% 36.8% 37.4%
Income from operations % 0.2% 1.9% 2.6%
Net income % 0.7% 2.0% 1.3%


Consolidated Balance Sheets (Unaudited)
----------------------------------------------------------------------

(Dollars in Thousands)

6/24/05 3/25/05 6/25/04
---------- ---------- ----------
Assets
-------------------------------------
Cash and cash equivalents $27,656 $35,405 $38,974
Short-term investments 16,600 9,500 --
Accounts receivable, net 17,104 18,207 17,354
Inventory, net 13,991 13,093 13,312
Other current assets 5,044 4,381 6,762
Property, plant and equipment, net 33,108 32,926 34,651
Other long-term assets 2,061 1,954 1,216
---------- ---------- ----------
Total assets $115,564 $115,466 $112,269
========== ========== ==========

Liabilities and Stockholders' Equity
-------------------------------------
Current portion of long-term debt $700 $700 $700
Accounts payable 7,623 7,162 7,623
Other current liabilities 11,603 12,404 11,595
Other long-term liabilities 16,051 16,044 15,828
Stockholders' equity 79,587 79,156 76,523
---------- ---------- ----------
Total liabilities and
stockholders' equity $115,564 $115,466 $112,269
========== ========== ==========





Printronix, Inc., and Subsidiaries

Sales Classification (Unaudited)

Sales by Geographic
Region
-----------------------

------------------- -------------------
Three Months Ended Percent of Total
Sales
------------------- -------------------
June 24, June 25, Percent June 24, June 25,
2005 2004 Change 2005 2004
--------- --------- ----------------- ---------
($ in thousands)
Americas $16,186 $14,916 8.5% 50.9% 44.8%
EMEA 10,417 12,714 (18.1)% 32.8% 38.1%
Asia Pacific 5,184 5,648 (8.2)% 16.3% 17.1%
--------- --------- --------- ---------
$31,787 $33,278 (4.5)% 100.0% 100.0%
========= ========= ========= =========


Sales by Product
Technology
-----------------------

------------------- -------------------
Three Months Ended Percent of Total
Sales
------------------- -------------------
June 24, June 25, Percent June 24, June 25,
2005 2004 Change 2005 2004
--------- --------- ----------------- ---------
($ in thousands)
Line matrix $22,204 $24,004 (7.5)% 69.9% 72.1%
Thermal(a) 6,147 5,338 15.2% 19.3% 16.2%
Laser 2,799 3,337 (16.1)% 8.8% 9.9%
Verification products 637 599 6.3% 2.0% 1.8%
--------- --------- --------- ---------
$31,787 $33,278 (4.5)% 100.0% 100.0%
========= ========= ========= =========

(a)RFID $943 $159 493.1% 3.0% 0.5%
========= ========= ========= =========


Sales by Channel
-----------------------

------------------- -------------------
Three Months Ended Percent of Total
Sales
------------------- -------------------
June 24, June 25, Percent June 24, June 25,
2005 2004 Change 2005 2004
--------- --------- ----------------- ---------
($ in thousands)
OEM $9,492 $10,517 (9.7)% 29.9% 31.5%
Distribution 20,824 20,258 2.8% 65.5% 61.0%
Direct 1,471 2,503 (41.2)% 4.6% 7.5%
--------- --------- --------- ---------
$31,787 $33,278 (4.5)% 100.0% 100.0%
========= ========= ========= =========


Sales by Customer
-----------------------

------------------- -------------------
Three Months Ended Percent of Total
Sales
------------------- -------------------
June 24, June 25, Percent June 24, June 25,
2005 2004 Change 2005 2004
--------- --------- ----------------- ---------
($ in thousands)
Largest customer - IBM $7,640 $7,222 5.8% 24.0% 21.6%
Second largest customer 2,596 2,585 0.4% 8.2% 7.8%
Top ten customers 16,076 17,528 (8.3)% 50.6% 52.6%