AM announces third quarter fiscal 1996 results.QUAKERTOWN, Pa.--(BUSINESS WIRE)--Feb. 8, 1996--AM Communications Inc. (AMCI AMCI Advanced Micro Controls Inc. AMCI Automotive Marketing Consultants, Inc. AMCI Air Mobility Command Instruction AMCI Associazione Italiana Medici Cattolici (Italian Association of Catholic Physicians) ) Thursday Thursday: see week. announced the financial results for the third quarter of fiscal 1996 ended Dec. 30, 1995. Revenues for the third quarter of fiscal 1996 were $2.0 million, up 39% from the $1.5 million reported for the third quarter of fiscal 1995. The company reported a net loss of $974,000 during the recent quarter, compared to a net income of $224,000 in the comparable period in fiscal 1995. Included in the net loss for the third quarter are reversals of $221,000 related to income tax benefits recorded in the first two quarters of fiscal 1996 and $300,000 of additional inventory reserves. For the nine months of fiscal 1996, revenues increased to $5.4 million, up 56% from $3.4 million in the comparable period in 1995. The net loss for the nine month period was $1,280,000 compared to a net income of $479,000 for the same period in fiscal 1995. Commenting on the results, Keith Keith may refer to: People with the given name Keith:
"However, we have continued to experience manufacturing delays due to technical and manufacturing process issues in transitioning these products from engineering to volume production. As a result, manufacturing costs have increased due to excessive yield losses, product rework re·work tr.v. re·worked, re·work·ing, re·works 1. To work over again; revise. 2. To subject to a repeated or new process. n. , capacity limitations and expediting costs. "Excluding inventory reserves, gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. were 28%, significantly below acceptable levels. We have recently implemented an aggressive action plan which includes restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). the management of the manufacturing operation, redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re of certain products to reduce costs and improve yields and evaluation and qualification of additional contract assemblers This is a list of assemblers. Hundreds of assemblers have been written; some notable examples are:
"Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. grew to $5.1 million at December December: see month. 31, 1995 compared to $3.1 million a year ago," continued Schneck. "We continue to see expanding new business opportunities from the major cable operators and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customer base. During the quarter we announced that AM was selected by Rogers Cable Rogers Cable Inc., a subsidiary of Rogers Communications Inc., is Canada's largest cable television service provider with about 2.25 million television customers, and over 930,000 Internet subscribers, in Southern Ontario, New Brunswick and Newfoundland and Labrador. Systems of Canada to provide monitoring systems throughout their entire system. This is a multi-million dollar design win that will span several years." "Our internal development efforts during the past nine months have included a significant amount of new product development for our OEM partners. Our OEM partners are aggressively expanding their network monitoring The term network monitoring describes the use of a system that constantly monitors a computer network for slow or failing systems and that notifies the network administrator in case of outages via email, pager or other alarms. marketing strategies, based largely on AM's monitoring systems, to respond to the industry demand for improved systems reliability and management efficiency. "With the industry uncertain over telecom reform now removed, we believe we are very favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. positioned to benefit as both cable and phone operators prepare for increased competition," concluded Schneck. AM Communications, founded in 1974, is one of the world's leading suppliers of status monitoring systems for CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. and broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). communications networks The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. . AM products are sold directly to cable system operators and through original equipment manufacturers including AT&T, General Instrument, ADC (1) See A/D converter. (2) (Apple Display Connector) A peripheral connector from Apple that combines digital video display, USB and power in one cable. Communications, Philips, and Texscan. -0-
AM Communications Inc.
Condensed statements of operations ($000)
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Unaudited Three months ended Nine months ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
1995 1994 1995 1994
------- ------- ------- --------
Net revenues $ 2,042 $ 1,469 $ 5,352 $ 3,427
Cost of sales 1,783 610 3,598 1,473
Selling, general &
administration 486 337 1,417 845
Research and development 530 266 1,645 566
------- ------- ------ --------
Operating (loss) income (757) 256 (1,308) 543
Other (income) expense (4) 2 (28) (1)
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Income (loss) before
income taxes (753) 254 (1,280) 544
Income tax provision
(benefit) 221 30 -0- 65
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Net income (loss) $ (974) $ 224 $(1,280) $ 479
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Earnings per share $ (0.03) $ 0.01 $ (0.04) $ 0.02
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Equivalent shares
outstanding (000)
Used in computing
earnings per share 33,290 32,699 32,774 32,699
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Condensed balance sheet ($000) ------------------------------
Dec. 30, April 1,
1995 1995
------- -------
(unaudited) (audited)
Cash $ 245 $ 454
Accounts receivable 1,354 811
Inventory 2,343 1,360
Prepaid expenses and other 18 42
Deferred tax asset 229 229
------- -------
Total current assets 4,189 2,896
Equipment and fixtures, net 521 194
Deferred software, net of accumulated
amortization 197 308
Deferred tax asset, net 707 707
Other 76 76
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Total assets $ 5,690 $ 4,181
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Accounts payable $ 1,032 $ 600
Advances 71 368
Accrued and other expenses 319 395
Capitalized leases 31 -0-
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Total current liabilities 1,453 1,363
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Capitalized leases - long term 66 -0-
Senior convertible preferred stock 2,582 2,583
Common stock 3,041 2,456
Capital in excess of par 30,731 28,682
Accumulated deficit (32,183) (30,903)
------- -------
Stockholders' equity 4,171 2,818
------- -------
Total liabilities and
stockholders' equity $ 5,690 $ 4,181
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CONTACT: AM Communications, Quakertown Keith D. Schneck, president/CFO, 215/536-1354 or 800/248-9004 (outside 215 area) |
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