AMERIQUEST REDUCES THIRD-QUARTER LOSS FROM YEAR EARLIER AND INITIATES FURTHER COST-REDUCTIONS.SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--Aug. 5, 1996--AmeriQuest Technologies, Inc. (NYSE NYSE See: New York Stock Exchange :AQS AQS American Quilter's Society AQS Air Quality Standard AQS Arbeitsgemeinschaft zur Förderung der Qualitätssicherung in der Medizin (Koeln, Germany) AQS Air Quality Subsystem AQS Advanced Quality System AQS AetherQuest Solutions ) announced improved financial results for the third quarter ended June 30, 1996. Net loss for the quarter was $8,472,000, compared to a net loss of $58,123,000 reported for the same period in 1995. Loss per share for the quarter was $0.14, compared to a net loss of $2.85 per share for the same period in 1995, and includes a $2,700,000 charge for the relocation of the corporate headquarters. Year-to-date results also showed marked improvement. While year-to-date revenues decreased to $320,953,000, compared to $367,095,000 in the same period last year, this year's net loss of $22,440,000 for the nine-month period ending June 30, 1996, was about one-third of the $66,453,000 loss for the same period in 1995. That translates to a $0.59 loss per share versus a $3.28 loss per share for the first three quarters of fiscal year 1995. The current year-to-date loss includes a non-recurring charge of $3,700,000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. of a significant property, and $2,700,000 relating to restructuring costs associated with the headquarters move. While the Company expects continuing losses, senior management expects them to substantially diminish during the next fiscal year. "AmeriQuest has taken the difficult steps needed to put us on the road toward profitability," says AmeriQuest Chairman and Chief Executive Officer Steve DeWindt, "and the continued financial support and know-how of our majority investor, Computer 2000, will definitely help us complete our journey." Also, in a recent press conference, Computer 2000's parent holding Company, VIAG, pledged its continued support and commitment to the strengthening of AmeriQuest. Substantially Reduced Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. While third quarter revenue was flat at $110,983,000, compared to $110,907,000 in the same quarter last year, the Company reduced operating expenses from $51,913,000 to $14,013,000. Overall operating expenses during the same period last year included a $23,777,000 write-off of intangibles which did not recur this year. Selling, general and administrative expenses also fell 59 percent from $28,136,000 in the third quarter of 1995 to $11,313,000. AmeriQuest Names Michael Dressen President The AmeriQuest board named Michael Dressen as president of AmeriQuest. Dressen brings more than nine years of experience at Computer 2000, most recently as a managing director of Computer 2000's Italian subsidiary where he was directly responsible for returning that Company to profitability. Prior to his tenure in Italy, Dressen held a number of senior posts within Computer 2000, Germany. Dressen now fills a position that has been vacant since May, when Mark Mulford's contract ended as President/COO of AmeriQuest. Harry Krischik, co-chairman of AmeriQuest and co-president of Computer 2000 AG, stated that the appointment of Michael Dressen "underscores Computer 2000's commitment to AmeriQuest to provide experience and knowledge gained in other countries around the world." Headquarters Move to Florida The Company also announced plans to streamline and consolidate operations aimed at restoring the firm to profitability. It is planned that by October 7, 1996, AmeriQuest will move the Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, headquarters to existing facilities in the greater Miami, Florida “Miami” redirects here. For the Native American tribe, see Miami tribe. Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. area. The move and the elimination of redundant operations, facilities and personnel is expected to reduce operating expenses significantly beginning in early 1997. "By bringing our operations together in one location, we will not only reduce operational expenses, but should be able to improve communication, service and support to both customers and vendors, and eliminate the redundancies we have today," said DeWindt. AmeriQuest will move purchasing, marketing and administration together with their extensive sales and customer service organization already stationed in Florida. The consolidation is expected to significantly improve synergy between departments. AmeriQuest's Advanced Systems Group will remain in its current location in Horsham, Pennsylvania Horsham is a census-designated place (CDP) in Montgomery County, Pennsylvania, United States. The population was 14,779 at the 2000 census. Horsham is located entirely within Horsham Township, Pennsylvania. . Also, CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. Enhancements, Inc., the AmeriQuest mass storage manufacturing subsidiary, will remain located at its manufacturing and distribution facilities in Anaheim, California “Anaheim” redirects here. For Annaheim, see Annaheim, Saskatchewan. Anaheim is a city in Orange County, California, located 28 miles southeast of Los Angeles. . Adds Two New Board Members In a recent board meeting Manfred Guenzel, co-president of Computer 2000 AG, and Richard Iverson, past President of the American Electronics Association The American Electronics Association (now known as AeA) is a nationwide non-profit trade association that represents all segments of the technology industry in the United States. , joined the seven member AmeriQuest board of directors, filling recently vacated positions. This news release contains forward-looking statements, including statements as to the expectation of reducing future losses and the possibility of achieving future profitability. These statements involve a number of risks and uncertainties. Among other factors that could cause actual results to differ materially are general economic and business conditions, the possibility that the anticipated cost reductions will not materialize or will adversely affect revenue and profitability, the rate of growth in the computer industry, competitive factors and pricing pressures, changes in product mix, inventory risks due to shifts in market demand, the effect of continued losses on the Company's supplier and customer relationships and the Company's needs for additional capital. AmeriQuest AmeriQuest Technologies, Inc. is a distributor of advanced technology solutions including computer systems, peripherals, networking products and accessories. AmeriQuest offers products from the best names in computer hardware to its customer base of value-added resellers throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . AmeriQuest's headquarters are located in Santa Ana, Calif. with regional offices in Hollywood, Fla.; Miami, Fla.; and Horsham, Pa. The Company distributes products nationwide through its six warehouses in Visalia, California
Visalia is a Central California city situated in the heart of California’s agricultural San Joaquin Valley, approximately 230 miles southeast of San Francisco and 190 miles north of Los ; Dallas; Chicago; Philadelphia; Atlanta and Miami. In addition, AmeriQuest distributes products throughout Latin America via an export operation located in Miami and Computer 2000 subsidiaries located in several Latin American countries List of American countries Nations:
Majority share in the publicly traded Company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. is owned by Munich, Germany-based Computer 2000 Group, the largest distributor of computer products in Europe and the third largest world-wide. Computer 2000 AmeriQuest's majority investor is Computer 2000 AG of Munich, Germany, which was founded in 1983. In the fiscal year 1994/95 (September 30), the Computer 2000 Group, with over 40 subsidiaries in more than 30 countries in Europe, USA, Latin America, Asia and the Middle East, reached a sales volume of almost DM 5 billion. This makes Computer 2000 the leading European wholesale and service Company for PC products and solutions and one of the three largest world-wide. -0-
SELECTED INCOME STATEMENT DATA
(Dollars in thousands)
Three Months Ended Nine Months Ended
June 30, June 30,
1996 1995 1996 1995
Net Sales $110,983 $110,907 $320,953 $367,095 Net inc./ (loss) ($8,472) ($58,123) ($22,440)(a) ($66,453) Earnings/ (loss) per share ($0.14) ($2.85) ($0.59) ($3.28) Avg. no. of shares 60,332,570 20,360,478 38,006,160 20,248,193
(a): includes non-recurring charge of $2.7 million in the three
months ended June 30, 1996, for moving headquarters to Florida
and a $3.7 million charge relating to the sublease of a
significant property in the nine months ended June 30, 1996.
CONTACT: AmeriQuest Peter Quill, 714/445-5119 (Press contact) Peter S.H. Grubstein, 714/445-5009 (Financial contact) or Shafer Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Linda Waters, 800/503-1177 (PST PST Paroxysmal supraventricular tachycardia, see there ) |
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