ATEC Group Announces Second Quarter/Six Months Results; Net Income for Three-Month Period Climbs 480%; Gross Profit Up 24%.Business Editors HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Feb. 4, 2000 ATEC ATEC Army Test and Evaluation Command (US Army; formerly OPTEC, Operational Test & Evaluation Command) ATEC Australian Tourism Export Council ATEC Advanced Technologies (Hamburg, Germany) Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ATEC), today announced results for the second quarter and first six months of fiscal 2000 ended Dec. 31, 1999. For the quarter, net income increased nearly five-fold to $136,251, or two cents per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $23,474, or less than one cent per basic and diluted share, for the second quarter of fiscal 1999. Net revenues were $17,531,550, versus $32,797,105 for the corresponding period last year. Gross profit for the period climbed 24 percent to $3,088,381, compared with $2,497,499 in the prior year. For the six months ended Dec. 31, 1999, net income rose 81 percent to $406,380, or six cents per basic and diluted share, from $224,287, or three cents per basic and diluted share, in the first six months of fiscal 1999. Net revenues for the first six months of fiscal 2000 totaled $37,720,193, compared with $67,617,938 in the year-ago period. Gross profit for the six months increased 20 percent to $6,906,088, versus $5,753,543 last year. The company attributes the revenue decline chiefly to continued weakness in its low-margin distribution division due to a shortage of product availability and uncertainty over the Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 issue. In addition, last year the company, in an effort to improve margins, shifted its focus away from unprofitable lines of business in favor of its new software and Nexar(R) divisions. Surinder Rametra, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ATEC Group, Inc., commented, &uot;Although our newly established Nexar PC manufacturing division has not yet significantly contributed to revenues, we are enthusiastic about the opportunities afforded to us by this division. We have more than 50,000 customers that we have served over the past several years for technical support, many of which are trying our Nexar line. Among the highlights of the quarter, we continued our development efforts and launched our high-end Infinity infinity, in mathematics, that which is not finite. A sequence of numbers, a1, a2, a3, … , is said to "approach infinity" if the numbers eventually become arbitrarily large, i.e. line. &uot;Looking ahead, we aim to continue our focus on high-margin businesses such as PC manufacturing, software development and e-commerce in order to position the company for further growth,&uot; Rametra concluded. About ATEC Group Based in Hauppauge, New York Hauppauge (pronounced /hɔpɔg/) is a hamlet in the Town of Islip and the Town of Smithtown in Suffolk County, New York, United States. , ATEC Group, Inc., is a leading system integrator and provider of a full line of information technology products and services. As a one-stop company for the computer needs of businesses, government agencies and educational institutions, ATEC Group offers computer hardware and software, system integration networking, graphic arts graphic arts: see aquatint; drawing; drypoint; engraving; etching; illustration; linoleum block printing; lithography; mezzotint; niello; pastel; poster; silk-screen printing; silhouette; silverpoint; sketch; stencil; woodcut and wood engraving. , Internet and Intranet. The company is positioned for growth through its capabilities as a PC manufacturer of Nexar technology, in software development and e-commerce. For more information on ATEC Group, please visit the company's web site at www.atecgroup.com.
ATEC GROUP, INC.
Financial Highlights
For the Three Months Ended For the Six Months Ended
12/31/99 12/31/98 12/31/99 12/31/98
Net revenues $17,531,550 $32,797,105 $37,720,193 $67,617,938
Gross profit 3,088,381 2,497,499 6,906,088 5,753,543
Net income 136,251 23,474 406,380 224,287
Net income per share
Basic $.02 $.00 $.06 $.03
Diluted $.02 $.00 $.06 $.03
Average shares
outstanding 7,269,838 7,192,285 7,269,838 7,192,285
Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements that are not historical facts contained in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve certain risks and uncertainties including, but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission. |
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