Allen Group characterizes fourth quarter and full year 1995 earnings.
Sales for the fourth quarter of 1995 and the full year were approximately $83 million and $314 million, respectively, compared to $59.9 million and $216.5 million for the respective periods last year. Approximately $20 and $56 million, respectively, of this increase in sales is attributable to our FOREM acquisition.
Mr. Robert G. Paul, President and CEO of the Allen Group, stated, "These fourth quarter sales and earnings, while strong in relation to last year, are less than anticipated by analysts. Our fourth quarter was affected by weakness in domestic sales of Systems and Site Management products, which includes boosters, repeaters, filters and combiners for the wireless telephony markets. This weakness began in the third quarter when spending by the U.S. domestic cellular operating companies for infrastructure equipment was reduced. The company anticipates that future sales from new products, such as its Smart Cell and Wireless PBX, will capture an increased portion of the cellular infrastructure investment next year.
"The company's Comsearch division, which is at the forefront of engineering and planning services for the new domestic PCS networks, continues to experience robust growth as planning for the 1996 deployment of PCS systems accelerates. Orders for PCS equipment are being received by both our Site Management and our base station antenna businesses.
"The weaker than anticipated fourth quarter sales and the time required to develop and introduce our new cellular products, suggests that our next phase of rapid growth is more likely to be apparent in the last half of 1996, rather than earlier. The expected ramp up of domestic PCS business during 1996 and the development and expansion of wireless communications systems throughout the world, continue to convince us that the long-term potential for our company's products remains very strong."
The Allen Group (NYSE symbol - ALN) is a leading supplier to the worldwide two-way wireless communications marketplace of systems expansion, site management products and antennas; provides frequency planning, systems engineering services and design programs to current and emerging wireless markets; and operates centralized automotive emissions inspection programs.
CONTACT: Allen Group, Beachwood
Robert A. Youdelman, 216/765-5820