AmeriQuest Announces Second Quarter Financial Results.WILLOW GROVE Willow Grove may refer to:
AmeriQuest Technologies, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:AMQT) today announced financial results for its second fiscal quarter of 1999 which ended March 31, 1999. Revenues for the second quarter increased to $12,560,000 compared to $11,804,000 in the previous quarter ended December 31, 1998. The revenue increase occurred across most vendor lines and resulted in part from the efforts of the Company's recently expanded and restructured sales force towards "solution" selling with a focus on client server, networking, and storage products and services revenues. Revenues for the second quarter of $12,560,000 declined by 8% from $13,581,000 for the same quarter last year. However, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of the Company's new focus has replaced 99% of the prior year's approximately $3,635,000 of net sales 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) as the prior year quarter also included revenue of $980,000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of excess inventory. While selling, general and administrative expense remained under tight control, gross profit performance for the current quarter declined due to unfavorable product mix. The desired transition resulting from expansion and 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). of the Company's sales force towards "solution" and services selling and away from low margin commodity type sales is taking longer than anticipated. The net loss for the second quarter was $678,000 compared to net income of $89,000 in the same quarter last year. The prior year quarterly profit included a $250,000 reversal of accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. and reserves. The Company's balance sheet was re-capitalized on July 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 March 31, 1999 and audited September 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 and other reserves, and management estimates that a 25% increase in sales and product margins will be required in order for the Company to achieve operating profitability at its current cost structure, year to date revenue 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 and "Silent Partner" 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
(Dollars in Thousands, except per share data)
Three Months Ended Six Months Ended
March 31, March 31,
1999 1998 1999 1998
---- ---- ---- ----
Net Sales $12,560 $13,581 $24,364 $29,111
Net Income (Loss) ($678) $89 ($1,221) $184
Profit (Diluted Loss)
Per Common Share ($0.01) ($0.01) (1) ($0.02) ($0.01) (1)
Diluted Common
Shares 66,881,906 66,881,906 66,881,906 66,881,906
(1) Dividends on preferred stock of $1,050 ($525 per quarter) were
accrued but not paid for the six months ended March 31, 1998 and were
a reduction of income available to Common Shareholders.
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Selected Balance Sheet Data
(Dollars in Thousands)
March 31, 1999 September 30, 1998
-------------- ------------------
Total Assets $11,049 $12,955
Current Liabilities 3,252 3,937
Stockholder's Equity 7,797 9,018
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Total Liabilities and Equity $11,049 $12,955
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