All American Announces Second Quarter Results.Business Editors MIAMI--(BUSINESS WIRE)--Aug. 7, 2003 All American Semiconductor, Inc. (Nasdaq:SEMI), a leading distributor of electronic components, today announced its results for the second quarter of 2003. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter ended June 30, 2003 were $71.9 million, compared to $87.4 million for the same period of 2002. Income from operations was $778,000 for the second quarter of 2003, compared to $1.1 million for the second quarter of last year. Net income for the quarter ended June 30, 2003 was $63,000 or $.02 per share (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. ), compared to $198,000 or $.05 per share (diluted) for the second quarter of 2002. For the first half of 2003, net sales were $141.8 million, compared to $169.5 million for the first half of 2002. Income from operations was $1.5 million for the first six months of 2003, compared to $2.3 million for the same period of 2002. Net income was $124,000 or $.03 per share (diluted) for the six months ended June 30, 2003, compared to $317,000 or $.08 per share (diluted) for the same period of 2002. Bruce M. Goldberg, President and Chief Executive Officer of All American, stated: "Despite the sustained weakness in market conditions, we were able to record our sixth consecutive quarter of modest profitability. Although it remains difficult to project when and to what extent the electronics component market will significantly rebound, we have begun to see more positive signals. Our sales for the second quarter represented our first sequential increase in four quarters. We experienced a slight increase in demand during the months of June and July and we remain confident that our company's positioning will result in enhanced returns to our shareholders in future periods." All American is recognized as the nation's 4th largest distributor of semiconductors and the 10th largest electronic components distributor overall. The Company has offices in 36 strategic locations throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , as well as operations in the United Kingdom and Seoul, South Korea. To the extent that this press release discusses financial projections, future performance, expectations, beliefs or intentions about our bookings, sales, markets, operating results, growth, or otherwise makes statements about positive signals with respect to market conditions or our industry's or the Company's future or plans, the statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from the statements made. Factors that could adversely affect the Company's future results, performance or achievements include, without limitation: the continuance The adjournment or postponement of an action pending in a court to a later date of the same or another session of the court, granted by a court in response to a motion made by a party to a lawsuit. of the broad-based industry downturn resulting in the decline in demand for electronic components and further excess customer inventory; continuing or worsening wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. Noun 1. worsening - process of changing to an inferior state decline in quality, deterioration, declension in the overall economic weakness; the continuance of a trend for electronics manufacturing This article presents a typical manufacturing process of an electronic assembly. Component manufacturing Components such as resistors, capacitors and integrated circuits are generally made by specialized contractors. to move offshore; the level of effectiveness of the Company's business and marketing strategies, including those outside North America; an increase in the allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. receivable and bad debts or further write-offs of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying as a result of the weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. and/or further weakening
financial condition of certain of the Company's customers; further
write-offs of inventory arising from customers returning additional
inventory and further canceling orders or the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of inventory
as a result of adverse market conditions; a reduction in the
Company's development of new customers, existing customer demand as
well as the level of demand for products of its customers; deterioration de·te·ri·o·ra·tionn. The process or condition of becoming worse. in the relationships with existing suppliers, particularly one of our largest suppliers; price erosion in and price competition for products sold by the Company; difficulty in the management and control of expenses; the inability of the Company to generate revenue commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the level of personnel and size of its infrastructure; price decreases on inventory that is not price protected; decreases in 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. , including decreasing margins resulting from the Company being required to have aggressive pricing programs; an increasing number of low-margin, large volume transactions and increased availability of the supply for certain products; increased competition from third party logistics and fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. companies, e-brokers and other Internet providers Internet provider - Internet Service Provider through the use of the Internet as well as from its traditional competitors; insufficient funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. , from the Company's credit facility and from other sources (debt and/or equity) to support the Company's operations; problems with telecommunication, computer and information systems; the inability of the Company to expand its product offerings or obtain product during periods of allocation; the inability of the Company to continue to enhance its service capabilities and the timing and cost thereof; the failure to achieve acceptance of or to grow in all or some of the new technologies that have been or are being supported by the Company; an increase in interest rates; the adverse impact of any product liability or warranty claims or intellectual property claims; the impact from changes in accounting rules; the adverse impact of terrorism on the economy; and the other risks and factors including those detailed in the Company's reports on Forms 10-K and Forms 10-Q and other press releases. These risks and uncertainties are beyond the ability of the Company to control. In many cases, the Company cannot predict the risks and uncertainties that could cause actual results to differ materially from those indicated by the 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. . The Company undertakes no obligation to update publicly or revise any forward-looking statements, business risks and/or uncertainties. (see accompanying table)
ALL AMERICAN SEMICONDUCTOR, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands
except per share amounts)
Quarters Six Months
Periods Ended June 30 2003 2002 2003 2002
----------------------------------------------------------------------
Net Sales $71,932 $87,397 $141,801 $169,539
========= ========= ========= =========
Income from Operations $778 $1,139 $1,462 $2,290
========= ========= ========= =========
Net Income $63 $198 $124 $317
========= ========= ========= =========
Earnings Per Share:
Basic and Diluted $.02 $.05 $.03 $.08
========= ========= ========= =========
Average Shares:
Basic 3,808,448 3,856,904 3,814,106 3,856,904
========= ========= ========= =========
Diluted 3,857,476 3,867,185 3,832,586 3,872,451
========= ========= ========= =========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion