Allen Group characterizes fourth quarter and full year 1995 earnings.CLEVELAND--(BUSINESS WIRE)--Jan. 23, 1996--The Allen Group Inc. announced today that it is expecting earnings per share to be $.24 or $.25 for its fourth quarter ended December 31, 1995. This would result in earnings per share from continuing operations continuing operationsParts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $.94 or $.95 for the full year 1995 compared with $.74 in 1994. 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 FOREM Force Requirements and Methodology acquisition. Mr. Robert G. Paul, President 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 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 (Private Branch eXchange) An inhouse telephone switching system that interconnects telephone extensions to each other as well as to the outside telephone network (PSTN). , 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 (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. 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 Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale 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 NYSE See: New York Stock Exchange symbol - ALN ALN Asynchronous Learning Networks (e-learning) ALN Aluminum Nitride (ceramic substrate material used for heat dissipation in electronics) ALN Arid Lands Newsletter ALN Adaptive Logic Network ) 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 |
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