Alpha Technologies Group Inc. Third-Quarter Net Loss is $0.07 Per Share vs. Profit of $0.07 Per Share On Revenue of $17.8 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)--Aug. 25, 1998--Alpha Technologies Group Inc. (Nasdaq:ATGI ATGI Alpha Technologies Group, Inc. ATGi Active Technologies Group, Inc. ) Tuesday announced a net loss for the third quarter of fiscal 1998 ended July 26, 1998, of $453,000, or $0.07 per 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. share, on revenue of $17,823,000. This compares with net income of $452,000, or $0.07 per diluted share, on revenue 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 $19,313,000 for the third quarter of fiscal 1997. Results for this year's third quarter included pre-tax 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 $165,000. Last year's third-quarter net income included pre-tax restructuring charges of $252,000 and a gain on the sale and an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. from 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 of $610,000 and $30,000, respectively. For the nine months ended July 26, 1998, net income was $453,000, or $0.07 per diluted share, compared with a net loss of $1,645,000, or $0.25 per diluted share, for the first nine months of last year. Revenue increased 8 percent to $60,518,000 from $56,026,000 (excluding hermetic connector sales) for the same period of fiscal 1997. Results for this year's first nine months included pre-tax restructuring charges of $207,000. Last year's nine-month results included pre-tax restructuring charges of $466,000, additional inventory reserves of $588,000 and a gain on the sale and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from the hermetic connector business of $610,000 and $54,000, respectively. As announced on June 11, 1998, this year's third-quarter results reflected a substantial decrease in thermal management product bookings and shipments that first became evident in June 1998. Thermal management product revenue declined 11 percent for the period to $13,226,000 from $14,890,000 a year earlier. President and Chief Executive Officer Lawrence Butler said that the company believes that the decrease was primarily the result of the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the personal computer industry combined with lower volumes and average sales price declines due to increased competition from Asian manufacturers. He added that sales of the company's connector products were $3,127,000 for this year's third quarter vs. $3,272,000 a year earlier; that sales of electronic subsystems were $1,470,000 compared with $1,151,000 last year; and that both of these businesses were profitable in the third quarter and for the fiscal year to date. Butler said that the company has reduced costs at Wakefield Engineering Inc., its wholly owned thermal management subsidiary, including workforce reductions and other measures. "In the short term, responding to the current slowdown in the electronics and personal computer industries, we are moving aggressively to bring costs into line with projected sales," Butler said. Butler added, "We are continuing to focus on enhancing Alpha's competitive position in the thermal management industry through the development of a new product line for the microprocessor market. "These products are smaller, lighter, and thermally more efficient than current generation 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. , will meet the heat displacement displacement, in psychology: see defense mechanism. Same as offset. See base/displacement. requirements for the next generation of microprocessors and are highly price competitive with current generation products imported from Asia," Butler continued. Alpha Technologies Group designs, manufactures and sells thermal management products, electronic connectors and custom-designed electronics subsystems. The company's thermal management products, principally heat sinks 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, transportation and other industries. Its connector products serve a variety of industries including aerospace, automotive, communications and defense. Its custom-designed subsystems are used by military, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and commercial customers. 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 are included in the company's Form 10Q and Form 10K filed with the Securities and Exchange Commission.
ALPHA TECHNOLOGIES GROUP INC. AND SUBSIDIARIES
CONDENSED STATEMENT OF INCOME
($ in thousands, except for per share data)
(unaudited)
Three Months Ended Nine Months Ended
July 26 July 26 July 26 July 27
1998 1997 1998 1997 (a)
(restated)
Sales $ 17,823 $ 19,313 $ 60,518 $ 56,026
Cost of sales 14,123 15,291 47,836 46,343
Gross profit 3,700 4,022 12,682 9,683
Operating expenses
Research &
development 565 396 1,741 1,131
Sales & marketing 1,637 1,618 5,016 4,934
General &
administrative 1,604 1,637 4,792 4,712
Restructuring 165 252 207 466
Total operating
expenses 3,971 3,903 11,756 11,243
Operating income
(loss) (271) 119 926 (1,560)
Net interest and
other income
(expense) (182) (247) (473) (749)
Operating income (loss)
before taxes (453) (128) 453 (2,309)
Provision (benefit) for
income taxes -- -- -- --
Income (loss) before
operations sold (453) (128) 453 (2,309)
Gain from sale of
operation net of
income taxes -- 610 -- 610
Income (loss) from
operation sold
net of income taxes -- (30) -- 54
Net income (loss) $ (453) $ 452 $ 453 $ (1,645)
Net income (loss)
per common share
Basic $ (0.07) $ 0.07 $ 0.07 $ (0.25)
Diluted $ (0.07) $ 0.07 $ 0.07 $ (0.25)
Average common shares
used in computation
Basic 6,728 6,687 6,707 6,679
Diluted 6,728 6,748 6,836 6,679
SELECTED BALANCE SHEET DATA
($ in thousands) (Oct. 1997 audited)
July 26, Oct. 26,
1998 1997
Cash $ 1,999 $ 1,707
Working capital 13,136 10,331
Debt (including current maturities) 12,378 9,557
Total assets 41,731 41,378
Stockholders' equity 19,512 18,801
(a) restated to discontinue the hermetic connector business sold in
June 1997
CONTACT: Alpha Technologies Group Inc. Johnny J. Blanchard, 281/759-7740 or Neil Berkman Associates 310/277-5162 |
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