AMNEX announces second quarter earnings and revenue.NEW YORK--(BUSINESS WIRE)--Aug. 14, 1996--AMNEX Inc. (Nasdaq: AMXI) today announced that revenues for the three and six months ended June June: see month. 30 were $26,426,000 and $50,758,000 as compared to $26,323,000 and $50,253,000 for the same periods in 1995. Net income decreased to $277,000 and $798,000 for the three and six months ended June 30, 1996 as compared to $418,000 and $870,000 for the comparable periods in 1995. Peter M. Izzo Jr., AMNEX's chief executive officer, stated, "The results for the second quarter were adversely affected by the necessary investment the Company made in its core strategic operations prior to the acquisition of CNSI CNSI California NanoSystems Institute (University of California at Santa Barbara) CNSI Committee on the Safety of Nuclear Installations CNSI Classified National Security Information (US) . In addition, the Company absorbed Absorbed 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. certain expenses related to its acquisition program. The Company is now better positioned to profit from increased growth in its new higher margin businesses including the Coin Sent Paid product, the payphone payphone Noun a coin-operated telephone payphone pay n → Münztelefon nt; (card phone) → Kartentelefon nt division and our new international division. Coin Sent Paid and payphones when combined generated over $2.5 million in new revenues for the quarter." Kenneth G. Baritz, the company's chairman, stated, "Management was able to maintain profitability while growing the Company's total employment by over 30 percent and successfully completing an acquisition that should generate approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $40 million in revenue over the next twelve months. This accomplishment is even more impressive when consideration is given to the decline as anticipated of approximately $2 million in revenue from the Company's domestic operator services A variety of telephone services that require human intervention, including person-to-person calls, collect calls, credit card billing and directory and dialing assistance. Such services are performed by LECs, IXCs and alternative operator services (AOS), organizations that are used by business. The investment we have made in the Company during the second quarter should immediately impact future profitability. I expect that AMNEX will produce record operating results in the third and fourth quarters and for all of 1996." AMNEX Inc. is a provider of enhanced telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. products and services including direct dial and operator assisted long distance calling, full service network management, value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. information services See Information Systems. and enhanced wireless information delivery. The AMNEX network provides an "open" architecture that is extremely flexible and robust allowing AMNEX to offer a total telecommunications solution to a growing number of sophisticated telecommunications consumers. -0-
AMNEX Inc.
Condensed Consolidated Statements of Income
Three and Six Months Ended June 30, 1996 and 1995
(Unaudited)
($000)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Revenues $ 26,426 $ 26,323 $ 50,758 $ 50,253
Costs and expenses:
Cost of sales 21,828 21,711 41,538 41,105
Selling, general and
administrative 3,244 2,966 6,198 5,804
Depreciation and
amortization 457 449 924 891
25,529 25,126 48,660 47,800
Operating income 897 1,197 2,098 2,453 Interest expense 559 479 1,104 913 Income before income taxes 338 718 994 1,540 Provision for income taxes 61 300 196 670 Net income $ 277 $ 418 $ 798 $ 870 Preferred share dividend 154 132 307 233 Net income available for common shares $ 123 $ 286 $ 491 $ 637 Earnings per common share $ 0.01 $ 0.02 $ 0.02 $ 0.03 Weighted average number of shares outstanding used in computing earnings per common share: 21,371 18,779 20,923 18,778 CONTACT: AMNEX Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Kenneth G. Baritz, 212/867-0166 |
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