ATL Products Reports 61% Increase in Second Quarter Sales.IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--Oct. 20, 1997--ATL Products Inc. (NASDAQ/NMS:ATLPA) today reported that revenues for the second quarter of its fiscal year ending March 31, 1998 increased 61% to $22,902,000 compared with $14,263,000 in the corresponding period of the prior year. Net income for the quarter was $1,591,000, or $0.16 per share compared to $1,378,000 or $0.16 per share in the corresponding period last year. Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) Daly, 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. stated, "We are extremely pleased today to report both record unit shipments and record revenues. This quarter's performance reflected the continued growth of the DLT (Digital Linear Tape) A magnetic tape technology originally developed by Digital for its VAX line. The technology was later sold to Quantum, which makes it available to other manufacturers. DLT uses half-inch, single-hub cartridges similar to IBM's 3480/3490/3590 line. (tm) library business, the particularly strong acceptance of our 7100 Series libraries, and the continuing trend toward DLT7000-based libraries. The second quarter growth was broadly based which permitted us to maintain the consistent balance between the 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 and VAR channels which we saw in the first quarter. "In the quarter, sales of DLT7000-based libraries increased to approximately 54% of overall product sales reflecting both an increased availability of the drives and a strong demand for high performance DLT libraries. The increased availability of DLT7000 drives during the quarter also permitted us to begin to satisfy the demand for field upgrades of DLT2000 and DLT4000 libraries. "Earnings per share for the second quarter were $0.16 which is equal to the prior year period. However, shares outstanding for the quarter ended September 30, 1997 rose 19% to 10,111 from 8,484 in the prior year resulting in a dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. of $0.03 in the earnings per share calculation." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Dr. Daly, "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. for the quarter were down slightly to 38% from 42% in the previous year. The decline was anticipated and is primarily the result of an increase in the average value of the drive component of the products shipped in the second quarter. 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. rose to approximately 25% of sales in the quarter up from approximately 23% in the prior year quarter and are attributable to increased staffing as we have continued to make the necessary long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investments in marketing, engineering and other key operating functions". This news release contains statements which may be deemed to be forward looking. The actual results of ATL (Active Template Library) A set of software routines from Microsoft that provide the basic framework for creating ActiveX and COM objects. Stemming from the standard template library (STL) that comes with C++ compilers, ATL includes an object wizard that sets up may differ materially and will depend on its performance which could be adversely affected by such factors as unexpected shortages of critical components, short product lives, the timing and market acceptance of planned new product introductions, competition (including new and directly competitive products from others), and the significant uncertainty of market acceptance of new products by both distribution channels and end-user customers. For a discussion of such factors, see Risk Factors and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations in ATL's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. (Commission File No. 000-22037). ATL Products, Inc. designs, manufactures and markets automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. tape libraries for the networked computer market. ATL's products incorporate DLT tape drives as well as ATL's proprietary IntelliGrip automation technology, providing end users with rapid and reliable access to computer data across a variety of networks. ATL Products, Inc. provides sales and service throughout the US and in major cities in Europe and Asia. The company's headquarters are located at 2801 Kelvin kelvin, abbr. K, official name in the International System of Units (SI) for the degree of temperature as measured on the Kelvin temperature scale. A unit of measurement of temperature. Avenue, Irvine, Calif. 92614-5872. Telephone 714/774-6900. Fax 714/477-7890. Email: atlpsales@atlp.com. World Wide Web site: http://www.atlp.com . -0-
ATL PRODUCTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
(unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1997 1996 1997
Net Sales:
Products $12,768 $19,816 $24,186 $36,493
Service and
spare parts 1,495 3,086 2,854 4,976
Total net sales 14,263 22,902 27,040 41,469
Cost of sales:
Products 8,010 12,433 15,002 22,406
Service and
spare parts 279 1,707 1,138 2,922
Total cost of
sales 8,289 14,140 16,140 25,328
Gross profit 5,974 8,762 10,900 16,141
Expenses:
Research and
development 1,110 1,837 1,695 3,598
Sales and
marketing 1,315 3,022 2,829 5,720
General and
administrative 819 992 1,599 1,653
Income from
operations 2,730 2,911 4,777 5,170
Interest charge
by parent 434 259 929 535
Income before
income taxes 2,296 2,652 3,848 4,635
Income taxes 918 1,061 1,539 1,854
Net income $ 1,378 $ 1,591 $ 2,309 $ 2,781
Net income per
share $ 0.16 $ 0.16 $ 0.27 $ 0.28
Shares used in
computation of
net income
per share 8,484 10,111 8,484 10,082
ATL PRODUCTS, INC.
CONDENSED BALANCE SHEETS
(in thousands)
March 31, Sept 30,
1997 1997
(unaudited)
ASSETS
Current Assets $35,206 $35,314
Property, plant
and equipment (net) 2,719 3,904
Total assets $37,925 $39,218
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities $19,312 $19,174
Long-Term Debt 9,748 8,402
Stockholders' Equity 8,865 11,642
Total liabilities and
stockholders' equity $37,925 $39,218
CONTACT: ATL Products, Irvine Mark de Raad, Vice President/CFO 714/477-7805 Home page: http://www.atlp.com |
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