AmeriQuest Announces First Quarter Loss.WILLOW GROVE Willow Grove may refer to:
See: Over-the-counter. OTC See over-the-counter market (OTC). BB:AMQT) today announced financial results for its first fiscal quarter of 1999 which ended December December: see month. 31, 1998. Revenues for the first quarter decreased to $11,804,000 compared to $15,530,000 in the same quarter last year. The revenue decrease was attributable to the loss of approximately $5,200,000 of revenue from discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: vendors (including the IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) 2nd tier RS6000 business), offset in part by the efforts of the Company's recently expanded sales force towards "solution" selling with a focus on client server, networking, and storage products and services revenues, and away from commodity sales. The net loss for the first quarter was $543,000 compared to net income of $95,000 in the same quarter last year. The prior year quarterly profit included significant bad debt recoveries and a $184,000 gain on sale of AmeriQuest's Asian subsidiaries . The Company's balance sheet was re-capitalized on July July: see month. 20, 1998 as part of the transactions between Computer 2000 and Listen Group Partners, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Highlights of the unaudited December 31, 1998 and audited September September: see month. 30, 1998 Balance Sheet are attached. The Company notes that it was not profitable in the quarter and has not been profitable in prior quarterly periods without the benefit of reversal of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other reserves, and management now estimates that a 25 percent increase in sales will be required in order for the Company to achieve operating profitability at its current cost structure and product mix. The Company's objective is to achieve this improvement through its new "solution" selling method, but no assurance can be given that such a sales increase will occur or that operating profitability will be maintained on a consistent basis. The press release contains 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. that involve a number of risks and uncertainties. Among other factors that could cause actual operating results to differ materially are general economic and business conditions, the rate of growth in the computer industry, competitive factors and pricing pressures, changes in product mix, inventory risks due to shifts in market demand, and changes in agreements with manufacturers and master distributors regarding the terms of product sales to the Company. AmeriQuest is a technical distributor of computer technology solutions to "value-added" resellers and systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. . -0-
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Selected Income Statement Data
(in Thousands, except per share data)
Three Months Ended
December 31,
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1998 1997
---- ----
Net Sales $11,804 $15,530
Net Income (Loss) ($543) $95
Profit (Diluted Loss)
Per Common Share ($0.01) (1) ($0.01)
Diluted Common Shares 66,881,906 66,881,906
(1) Dividends on preferred stock of $525 were accrued but not paid
through December 31, 1997 and were a reduction of income available to
Common Shareholders.
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Selected Balance Sheet Data
(Dollars in Thousands)
December 31, September 30,
1998 1998
---- ----
Total Assets $11,980 $12,955
Current Liabilities 3,415 3,937
Stockholder's Equity 8,475 9,018
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Total Liabilities and Equity $11,890 $12,955
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