Ameriquest announces Profitable Second Quarter Results.HORSHAM, Pa.--(BUSINESS WIRE)--May 15, 1998--AmeriQuest Technologies Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: AMQT), Horsham, announced financial results for the second fiscal quarter of 1998, ended March 31, 1998. Revenues for the quarter decreased to $13,581,000 compared to $75,295,000 in the same quarter last year. Net profit for the quarter ended March 31, 1998 was $89,000 (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. loss of $.01 per common share due to accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. , but not paid, 7% dividend of $525,000 on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. ) compared to a net loss of $33,101,000 (Diluted loss of $.49 per common share) in the same quarter last year. The improvement from a net quarterly loss last year to a net profit this year resulted partially from a $219,000 recovery of bad debt and from a $156,000 improvement in inventory loss reserves. The 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. , without consideration of the above, was $286,000. The decrease in revenue was due primarily to the impact of the now completed 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). plan, wherein where·in adv. In what way; how: Wherein have we sinned? conj. 1. In which location; where: the country wherein those people live. 2. various divisions and subsidiaries were either closed or sold. As previously disclosed, the company had embarked on a wide-ranging restructuring plan encompassing staffing and facility reductions in the previous fiscal year with the goal of focusing on and strengthening the activities of its Advanced Systems Group (ASG ASG Assign ASG Allen Systems Group (Naples, FL) ASG Abu Sayyaf Group (terrorist group) ASG Associated Student Government ASG Area Support Group ASG Adaptive Services Grid ASG Assistant Secretary General ), based in Horsham. To achieve profitability without benefit of non-operating income for ASG, the sole remaining operating business of AmeriQuest, the company currently estimates that an increase in sales of 15% to 25% would be required over recent historical levels. No assurance can be given that such a sales increase will occur or that profitability can be achieved. 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 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 the effect of the decision to close the standard distribution and export businesses on the company's vendor and customer relationships. AmeriQuest is a distributor of computer technology solutions to "value-added" resellers, systems integrators and technical distributors. -0-
Selected Income Statement Data
(Unaudited)
(Dollars in Thousands)
Three Months Ended Six Months Ended
March 31, March 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
Net Sales $ 13,581 $ 75,295 $ 29,111 $ 164,624
Net Income $ 89 ($ 33,101) $ 184 ($ 36,822)
Diluted Loss
per Common
share ($ .01) ($ 0.49) ($ .01) ($ 0.55)
Diluted
Common
shares 66,881,906 66,881,906 66,881,906 $66,881,906
CONTACT: AmeriQuest Jon Jensen, 215/675-9300 |
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