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Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 27, 2002

OR

[   ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transaction period from _________ to __________

Commission file number 0-9321

PRINTRONIX, INC.
(Exact name of registrant as specified in its charter)

Delaware		95-2903992
(state or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)
14600 Myford Road
Irvine, California		92606
(Address of principal executive offices)		(Zip Code)

(714) 368-2300
(Registrant’s telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

YES    [X]                NO   [   ]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

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PRINTRONIX, INC. AND SUBSIDIARIES
TABLE OF CONTENTS

						Page
PART I.		FINANCIAL INFORMATION
		Item 1.		Financial Statements
				Consolidated Balance Sheets at September 27, 2002 and March 29, 2002		3 - 4
				Consolidated Statements of Operations for the Three and Six-Months Ended September 27, 2002 and September 28, 2001		5
				Consolidated Statements of Comprehensive Income for the Three and Six-Months Ended September 27, 2002 and September 28, 2001		6
				Consolidated Statements of Cash Flows for the Six-Months Ended September 27, 2002 and September 28, 2001		7
				Condensed Notes to Consolidated Financial Statements		8
		Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
		Item 3.		Quantitative and Qualitative Disclosure about Market Risk		20
		Item 4.		Controls and Procedures		21
Part II.		OTHER INFORMATION
		Item 1.		Legal Proceedings		22
		Item 4.		Submission of Matters to a Vote of Security Holders		22
		Item 6.		Exhibits and Reports on Form 8-K		22
		Signatures				23
		Certifications Pursuant to the Sarbanes-Oxley Act of 2002				24

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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

PRINTRONIX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)

				September 27, 2002				March 29, 2002
ASSETS:
Current assets:
	Cash and cash equivalents			$	26,285			$	22,618
	Accounts receivable, net of allowance for doubtful accounts of $2,714 and $2,524 as of September 27, 2002 and March 29, 2002, respectively				17,114				18,232
	Inventories:
	Raw materials, subassemblies and work in process				10,944				12,443
	Finished goods				2,448				2,620
	Total inventory				13,392				15,063
	Prepaid expenses and other current assets				1,763				1,346
	Deferred income tax assets				4,010				4,010
Total current assets					62,564				61,269
Property, plant and equipment, at cost:
	Machinery and equipment				28,851				29,154
	Furniture and fixtures				27,813				27,513
	Buildings and improvements				22,828				22,819
	Land				8,100				8,100
	Leasehold improvements				922				792
					88,514				88,378
	Less: Accumulated depreciation and amortization				(47,455	)			(45,481	)
		Property, plant and equipment, net			41,059				42,897
Other assets					217				305
Long-term deferred income tax assets					488				488
Total assets				$	104,328			$	104,959

The accompanying notes are an integral part of these consolidated financial statements.

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PRINTRONIX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS continued
(Amounts in thousands, except share and per share data)
(Unaudited)

				September 27, 2002				March 29, 2002
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities:
	Short-term debt			$	700			$	700
	Accounts payable				7,135				7,546
	Accrued liabilities:
		Payroll and employee benefits			4,595				4,840
		Warranty			1,262				1,304
		Deferred revenue			1,169				1,449
		Other			4,963				4,944
Total current liabilities					19,824				20,783
Long-term debt, net of current portion					15,225				15,575
Other non-current liabilities					13				59
Commitments and contingencies (See Note 8)
Stockholders’ equity:
	Common stock, $0.01 par value (Authorized 30,000,000 shares, issued and outstanding 5,836,184 and 5,849,864 shares as of September 27, 2002 and March 29, 2002, respectively)				58				58
	Additional paid-in capital				28,889				28,815
	Retained earnings				40,320				39,669
	Accumulated other comprehensive income				(1	)			—
Total stockholders’ equity					69,266				68,542
Total liabilities and stockholders’ equity				$	104,328			$	104,959

The accompanying notes are an integral part of these consolidated financial statements.

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PRINTRONIX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(Unaudited)

				Three Months Ended								Six-Months Ended
				Sept. 27, 2002				Sept. 28, 2001				Sept. 27, 2002				Sept. 28, 2001
Net sales				$	32,006			$	36,519			$	69,309			$	76,126
Cost of sales					20,885				24,972				45,188				52,530
Gross margin					11,121				11,547				24,121				23,596
Operating expenses:
		Engineering and development			4,078				3,863				8,139				7,810
		Sales and marketing			5,022				4,747				10,599				9,512
		General and administrative			2,099				2,203				4,485				4,423
Total operating expenses					11,199				10,813				23,223				21,745
(Loss) income from operations					(78	)			734				898				1,851
Other (income) expense, net					(114	)			222				(381	)			689
Income before provision for income taxes					36				512				1,279				1,162
Provision for income taxes					7				102				256				233
Net income				$	29			$	410			$	1,023			$	929
Net income per common share:
	Basic			$	0.00			$	0.07			$	0.17			$	0.16
	Diluted			$	0.00			$	0.07			$	0.16			$	0.16
Weighted-average common shares:
	Basic				5,874,594				5,846,839				5,870,668				5,846,839
	Diluted				6,111,605				5,907,506				6,155,806				5,887,438

The accompanying notes are an integral part of these consolidated financial statements.

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PRINTRONIX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
(Unaudited)

		Three Months Ended								Six-Months Ended
		Sept. 27, 2002				Sept. 28, 2001				Sept. 27, 2002				Sept. 28, 2001
Net income		$	29			$	410			$	1,023			$	929
Other comprehensive income (expense), net of tax			79				—				(1	)			—
Comprehensive income		$	108			$	410			$	1,022			$	929

The accompanying notes are an integral part of these consolidated financial statements.

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PRINTRONIX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)

					Six-Months Ended
					Sept. 27, 2002				Sept. 28, 2001
Cash flows from operating activities:
	Net income				$	1,023			$	929
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization				3,790				4,336
		Provision for doubtful accounts receivable				185				206
		Loss on disposal of property and equipment				167				506
		Changes in assets and liabilities:
			Accounts receivable			933				(137	)
			Inventories			1,671				4,077
			Other assets			(418	)			(244	)
			Accounts payable			(411	)			(251	)
			Payroll and employee benefits			(245	)			528
			Deferred revenue			(302	)			(30	)
			Other liabilities			(48	)			134
Net cash provided by operating activities						6,345				10,054
Cash flows from investing activities:
	Purchase of property, plant and equipment					(2,123	)			(2,803	)
	Proceeds from disposition of property, plant and equipment					93				26
Net cash used in investing activities						(2,030	)			(2,777	)
Cash flows from financing activities:
	Payments made on long-term note					(350	)			(350	)
	Payments made on line of credit					—				(3,500	)
	Repurchase and retirement of common stock					(734	)			—
	Proceeds from the exercise of stock options					436				—
Net cash used in financing activities						(648	)			(3,850	)
Net increase in cash and cash equivalents						3,667				3,427
Cash and cash equivalents at beginning of period						22,618				9,832
Cash and cash equivalents at end of period					$	26,285			$	13,259
Supplementary disclosures of cash flow information:
	Income tax paid				$	465			$	649
	Interest paid				$	273			$	727

The accompanying notes are an integral part of these consolidated financial statements.

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PRINTRONIX, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 27, 2002
(Unaudited)

1)		Basis of Presentation
		The unaudited, consolidated financial statements included herein have been prepared by Printronix, Inc., pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures are adequate to make the information presented not misleading.
		In the opinion of management, the consolidated financial statements reflect all adjustments (which include only normal recurring adjustments) considered necessary to present fairly the financial position and results of operations as of and for the periods presented. These consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our latest Annual Report on Form 10-K for the fiscal year ended March 29, 2002, as filed with the Securities and Exchange Commission. The results of operations for such interim periods are not necessarily indicative of the results for the full year.
		Unless the context otherwise requires, the terms “we,” “our,” “us,” “Company” and “Printronix” refer to Printronix, Inc. and its consolidated subsidiaries.
		Certain amounts for the previous fiscal year have been reclassified to conform to fiscal year 2003 presentation.
2)		Other Assets
		Other assets included intangible assets with historical costs of $0.9 million and $1.4 million as of September 27, 2002 and March 29, 2002, respectively. The related accumulated amortization was $0.8 million, leaving a net book value of $60 thousand, as of September 27, 2002. The accumulated amortization was $1.2 million, leaving a net book value of $148 thousand, as of March 29, 2002.
3)		Bank Borrowings and Debt Arrangements
		On May 1, 2000, we entered into a $17.5 million, seven-year note secured by our Irvine facility and a $10.0 million three-year unsecured line of credit. During the first quarter of fiscal year 2002, we repaid the line of credit borrowings as scheduled and cancelled the $10.0 million unsecured line of credit. Interest on the seven-year note is at variable rates based on London Interbank Offered Rate (“LIBOR”) plus 1.25%, and is reset at our discretion for periods not exceeding one year. Monthly principal and interest payments are required for the seven-year note. The interest rate on

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		the note was 3.125% at September 27, 2002. During the current quarter, the weighted average interest rate on the note was 3.125%. Total interest expense was $0.1 million for the current quarter compared with $0.3 million for the same quarter last year. Total fiscal year to date interest expense was $0.3 million and $0.7 million for the current and prior year periods, respectively. We ended the current quarter with a balance of $15.9 million on the note, which consisted of $15.2 million long-term debt and $0.7 for the current portion of long-term debt.
		At September 27, 2002, one of our foreign subsidiaries maintained unsecured lines of credit for $2.1 million with foreign banks, which included a standby letter of credit of $1.8 million. These credit facilities are subject to parent company guarantees, require payment of certain loan fees, and provide for interest at approximately 0.75% to 1.0% above the bank’s cost of raising capital. During fiscal year 2002 and for the six-months ended September 27, 2002, there were no cash borrowings against these lines of credit.
		On June 26, 2000, we entered into a credit agreement with a major foreign bank to support our hedging activities. This credit agreement is available to fund any forward currency contracts should we be unable to satisfy our obligations. During fiscal year 2002 and for the six-months ended September 27, 2002, there were no borrowings under this credit agreement.
4)		Net Income per Share
		Basic net income per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted average number of shares of common stock outstanding and potential shares outstanding during the period, if dilutive. Net income per share information for the quarters ended September 27, 2002 and September 28, 2001, is as follows:
		(Amounts in thousands, except share and per share data)