Alpha Technologies Group Inc. First- Quarter Net Income is $0.06 Per Share Vs. a Loss of $0.25 Per Share as Revenue Rises 19 Percent to a Record $20.4 Million.BEVERLY HILLS Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , Calif.--(BUSINESS WIRE)--Feb. 19, 1998--Alpha Technologies Group Inc. (Nasdaq:ATGI ATGI Alpha Technologies Group, Inc. ATGi Active Technologies Group, Inc. ) Thursday announced that net income for the first quarter of fiscal 1998 ended Jan. 25, 1998, rose to $397,000, or 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , on a 19 percent increase in revenue to a record $20,400,000. This compares with a net loss of $1,652,000, or 25 cents per share, on revenue of $17,153,000 (restated to reflect the exclusion of the hermetic hermetic /her·met·ic/ (her-met´ik) impervious to air. her·met·ic or her·met·i·cal adj. Completely sealed, especially against the escape or entry of air. connector business which was sold in June 1997) for the first quarter of fiscal 1997. Results for the fiscal 1997 first quarter reflected a loss from continuing operations continuing operations Parts 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 $1,465,000, or 22 cents per share, and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $214,000. Sales of thermal management products increased approximately 20 percent for the first quarter to $15,791,000 from $13,212,000 a year earlier. Sales of connector products rose 36 percent to $3,356,000 compared with $2,461,000 (excluding hermetic connectors and electronic subsystems) for the prior year. Sales of electronic subsystems, which previously had been reported as part of connector sales, declined to $1,253,000 from $1,480,000 last year. However, President and Chief Executive Officer Lawrence Butler said that the profitability of the electronic subsystems business increased compared with the fiscal 1997 first quarter as emphasis was shifted in June 1997 to design and final assembly while component manufacturing was discontinued. Noting that revenue and income from continuing operations, excluding restructuring charges, have increased for four consecutive quarters, Butler said: "Alpha's first-quarter results are evidence that last year's difficult restructuring is beginning to yield the benefits we anticipate. "We expect earnings from operations to increase throughout 1998 on the strength of further revenue growth and margin improvement as we complete the consolidation of our thermal management manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in the coming months." He added that gross margin increased to 20 percent of consolidated revenue for this year's first quarter from 14 percent last year, and that 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. were essentially unchanged from last year despite the increase in revenue. "Demand for Alpha's thermal management products remains strong for computer, consumer electronics, automotive and defense applications," Butler said, "and we have responded by redoubling our efforts to increase manufacturing capacity through more efficient throughput at our Fall River, Mass., and Temecula, Calif., facilities. "We also are moving forward with our plans to expand our Fall River plant later this year so that we can build on our well-established position in this growing business." Butler said that Alpha's connector business, located in South Pasadena South Pasadena (păs'ədē`nə), city (1990 pop. 23,936), Los Angeles co., S Calif., a residential suburb of Los Angeles; inc. 1888. Medical supplies, clothing, and transportation and electronic equipment are manufactured. , Calif., exceeded its profitability goals for the first quarter. "Although we expect a slow second quarter for the connector business, we anticipate that it will perform well in the second half of the year," Butler said. Turning to the company's electronic subsystems business, Butler said, "This division's performance has improved primarily due to the recent award of a significant new order for backplane An interconnecting device that has sockets for printed circuit boards to plug into. Passive and Active Although resistors may be used, a "passive" backplane adds no processing in the circuit. assemblies from a major customer." Alpha Technologies Group designs, manufactures and sells thermal management products, connectors and custom electronic systems. The company's thermal management products, principally heat sinks A material that absorbs heat. Typically made of aluminum, heat sinks are widely used in amplifiers and other electronic devices that build up heat. Small heat sinks are the most economical method for cooling microprocessors and other chips. that dissipate dis·si·pate v. dis·si·pat·ed, dis·si·pat·ing, dis·si·pates v.tr. 1. To drive away; disperse. 2. unwanted heat generated by electronic components, serve the microprocessor, computer, consumer electronics and other industries. Its sub-miniature, micro-miniature and ultra-miniature connector products serve a variety of industries, including aerospace, automotive, communications and defense. Its custom-designed electronic systems are used by military, telecommunications and commercial customers. -0- In conjunction with the provisions of the new "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. " section of 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, this news release may contain 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. pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to future anticipated projected plans, performance and developments, as well as other statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future operations. All such forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors which could affect Alpha Technologies Group Inc. are included in the company's Form 10Q and Form 10K filed with the Securities and Exchange Commission. -0-
Alpha Technologies Group Inc. and Subsidiaries
Condensed Statement of Income
($ in thousands, except for per-share data)
Three Months Ended
Jan. 25 Jan. 25
1998 1997(a)
(restated)
Sales $ 20,400 $ 17,153
Cost of sales 16,314 14,765
Gross profit 4,086 2,388
Operating expenses
Research & development 490 371
Sales & marketing 1,601 1,658
General & administrative 1,515 1,571
Restructuring & other -- 214
Total operating expenses 3,606 3,814
Operating income (loss) 480 (1,426)
Net interest and
other income (expense) (83) (253)
Operating income (loss)
before taxes 397 (1,679)
Provision (benefit) for
income taxes -- --
Income (loss) before
operations sold and
minority interest 397 (1,679)
Income from operation sold
net of income taxes -- 27
Net income (loss) $ 397 $ (1,652)
Net income (loss)
per common share $ 0.06 $ (0.25)
Average common shares
used in computation 6,825 6,675
(a) Restated to discontinue the hermetic connector business sold in
June 1997
SELECTED BALANCE SHEET DATA
($ in thousands)
Jan. 25, Oct. 27,
1998 1997
(unaudited)
Cash $ 1,432 $ 1,707
Working capital 12,461 10,331
Debt (including current maturities) 11,712 9,557
Total assets 43,336 41,378
Stockholders' equity 19,225 18,801
CONTACT: Alpha Technologies Group Inc. Johnny J. Blanchard, 281/647-9689 or Neil Berkman Associates, 310/277-5162 |
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