Alpha Technologies Group Third Quarter Net Income From Continuing Operations Triples to $0.32 Per Diluted Share on 35% Revenue Gain.Business Editors & High-Tech Writers LOS ANGELES--(BUSINESS WIRE)--Sept. 7, 2000 Nine-Month Net Income 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 Increases 267% to $0.75 Per Diluted Share Alpha Technologies Group, Inc. (Nasdaq:ATGI ATGI Alpha Technologies Group, Inc. ATGi Active Technologies Group, Inc. ) announced today that net income from continuing operations for the third quarter of fiscal 2000 ended July 30, 2000 nearly tripled to $2,399,000, or $0.32 per diluted share, from $820,000, or $0.11 per diluted share, for the third quarter of fiscal 1999. Revenue from continuing operations, which is now exclusively thermal management product sales, increased 35% to $16,244,000 from $12,056,000 a year earlier. On July 28, 2000, Alpha completed the sale of Uni-Star Industries, Inc., its electronic connector subsidiary, to Tyco Electronics Tyco Electronics was the largest unit of Tyco International Ltd., and the world's leading supplier of passive electronic components. On June 29, 2007 Tyco Electronics became a wholly independent publicly-traded company, along with Covidien, from the breakup of the Tyco conglomerate Corporation, a subsidiary of Tyco International For the unrelated division of Mattel, see . Tyco International Ltd. NYSE: TYC is a diversified manufacturing conglomerate incorporated in Bermuda, with United States operational headquarters in New Jersey. Ltd. (NYSE NYSE See: New York Stock Exchange :TYC TYC Texas Youth Commission TYC Torneos Y Competencias (Argentina) TYC To Your Credit TYC Toronto Youth Cabinet (youth members of the Toronto City Council) TYC Teconnaught Youth Club (Ireland) ) (LSE LSE - Language Sensitive Editor :TYI TYI Thank You India ) (BSX BSX Bermuda Stock Exchange BSX Bandai Satellaview-X BSX Bicycle Super-X (Cross) :TYC), for $12,300,000 in cash. Lawrence Butler, chairman and chief executive officer of Alpha, said, "The sale of Uni-Star is strategically important for Alpha. It dramatically improved our balance sheet and frees both our management and financial resources to focus on the growth opportunity in thermal management. In addition, Alpha plans to sell its remaining non-thermal business, Malco Technologies, Inc., in the near future. We are committed to continuing to build our thermal management business through internal growth and acquisitions." Because Alpha is now focused exclusively on its thermal management business, Malco, which manufactures electronic systems, is required to be presented as an asset held for sale on Alpha's financial statements. Accordingly, both Uni-Star and Malco are reported as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for the fiscal 2000 third quarter and prior periods have been restated to reflect this reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. . For the nine months ended July 30, 2000, net income from continuing operations was $5,459,000, or $0.81 per diluted share, on revenue of $43,486,000. This compares to net income from continuing operations for the first nine months of fiscal 1999 of $1,484,000, or $0.21 per diluted share, on revenue of $35,652,000. "Our diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d efforts to improve operating performance are meeting with success, as demonstrated by the increase in gross margin to 31% from 26% for last year's third quarter, and 29% for this year's second quarter. We are encouraged by these gains in profitability, as well as by the rapid growth in thermal management sales in the third period. Alpha's commitment to quality products, first-class customer service, and reliable, on-time delivery is the formula for our continued success that is helping us win new business and expand our share of the thermal management market," Butler said. The 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. added that, assuming that the Company continues to meet its expectations for revenue and earnings, it will soon exhaust its available tax loss carryforwards tax loss carryforward See carryforward. . He said that Alpha currently expects to accrue a net provision for income taxes at the rate of approximately 15-20% in the fourth quarter of fiscal 2000 and at the full statutory rate of approximately 34-40% beginning in the first quarter of the new fiscal year. Alpha accrued taxes at the rate of approximately 2% for the third quarter of fiscal 2000. About Alpha Technologies Group Alpha Technologies Group, Inc. designs, manufactures and sells 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; and custom-designed electronic subsystems. In conjunction with the provisions of the "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 press 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.
ALPHA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE QUARTERS
AND NINE MONTHS ENDED AUGUST 1, 1999 AND JULY 30, 2000
(Unaudited)(In Thousands, Except Per Share Data)
Quarter Ended Nine Months Ended
Restated (1) Restated (1)
August 1, July 30, August 1, July 30,
1999 2000 1999 2000
Sales $ 12,056 $ 16,244 $ 35,652 $ 43,486
Cost of sales 8,893 11,167 26,944 30,683
Gross profit 3,163 5,077 8,708 12,803
Operating expenses
Research and
development 185 212 559 637
Selling, general
and administrative 1,954 2,231 5,971 6,250
Total operating
expenses 2,139 2,443 6,530 6,887
Operating income 1,024 2,634 2,178 5,916
Interest income
(expense), net (205) (158) (716) (556)
Other income
(expense), net 1 (27) 22 149
Income before taxes 820 2,449 1,484 5,509
Provision for
income taxes -- (50) -- (50)
Income before
discontinued
operations 820 2,399 1,484 5,459
Gain on sale of
discontinued
operations, net
of income tax -- 6,478 -- 6,478
Income from
discontinued
operations, net
of income tax 382 227 1,083 943
Net income $ 1,202 $ 9,104 $ 2,567 $ 12,880
Basic earnings per
common share
Income before
discontinued
operations $ 0.12 $ 0.36 $ 0.21 $ 0.81
Gain on sale of
discontinued
operations -- 0.97 -- 0.97
Income from
discontinued
operations 0.05 0.03 0.16 0.14
Net income $ 0.17 $ 1.36 $ 0.37 $ 1.92
Diluted earnings
per common share
Income before
discontinued
operations $ 0.11 $ 0.32 $ 0.21 $ 0.75
Gain on sale of
discontinued
operations -- 0.87 -- 0.88
Income from
discontinued
operations 0.06 0.03 0.15 0.13
Net income $ 0.17 $ 1.22 $ 0.36 $ 1.76
Shares used in
computing net
income per share
Basic 6,944 6,692 6,937 6,700
Diluted 7,235 7,470 7,062 7,320
(1) Restated to reflect discontinued operations
ALPHA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - OCTOBER 31, 1999 AND JULY 30, 2000
(In Thousands, Except Share and Per Share Data)
Restated (1)
October 31, July 30,
1999 2000
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 233 $12,492
Accounts receivable, net 7,092 9,461
Inventories, net 5,004 6,289
Net assets of discontinued operations 6,061 1,947
Prepaid expenses 700 939
Total current assets 19,090 31,128
Property and equipment, net 9,698 9,253
Goodwill, net 1,883 1,747
Other assets, net 2,291 2,234
TOTAL ASSETS $32,962 $44,362
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $ 3,836 $ 5,519
Accrued compensation and related benefits 1,325 1,617
Other accrued liabilities 1,496 1,715
Current portion of long-term debt 1,080 1,080
Total current liabilities 7,737 9,931
Revolving credit facility 2,799 --
Long-term debt 3,780 2,470
Other long-term liabilities 144 129
Stockholders' equity 18,502 31,832
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $32,962 $44,362
(1) Restated for discontinued operations
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