Apex Expects Third Quarter Revenue Shortfall.REDMOND, Wash.--(BUSINESS WIRE)--Sept. 30, 1999-- Apex Inc. (Nasdaq:APEX) announced today that it expects revenue and net income for the quarter ending October 1, 1999, to be negatively affected by transitional issues in the launch of a new generation of products for an OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customer. Apex began building new products for this customer in July, and the Company believes that approximately four weeks of revenue were lost due to transition issues involving work-in-process, channel inventory, and order timing. Apex currently expects third quarter revenue of $23.75 to $25 million. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. are expected to be sequentially lower. 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. net income is currently expected to be approximately $0.21 to $0.23 per share. As of September 30, 1999, the Company's backlog was approximately $18 million and its inventory was approximately $7 million. Apex will report its third quarter results on October 13, 1999, after the market close. 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. This press release contains statements which are forward-looking statements as defined within 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. These include statements regarding Apex's expected revenue and net income for the third quarter, Apex's backlog and inventory at the beginning of the fourth quarter, and Apex's future business with its OEM customers. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from the statements made, including the risks related to sales in an intensely competitive industry with increasing price competition, dependence on a limited number of customers, future general and administrative expenses, future research and development expenses, backlog, and inventory. Other factors which could cause Apex's operating and financial results to differ are described in Apex's Securities and Exchange Commission filings, including its Forms 10-K and 10-Q, and include other risks detailed from time to time in Apex's reports to be filed with the SEC. Apex undertakes no obligation to publicly release the result of any revisions to forward-looking statements which may be made to reflect events or circumstances after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. About Apex Apex Inc., based in Redmond, Wash., is committed to helping IT professionals manage their growing server populations. The Company develops server management products, including console switching systems Switching systems (communications) The assemblies of switching and control devices provided so that any station in a communications system may be connected as desired with any other station. , remote server management products, and integrated server cabinet solutions. Apex's OutLook(R), ViewPoint(R), and Emerge(TM) product families help manage servers in thousands of companies worldwide. Top server manufacturers, including Compaq, Dell, and 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) , continue to choose Apex products for their rack-mounted server See rack server. offerings. Additionally, Apex was recently ranked fifth in Business Week's 1999 listing of "100 Hot Growth Companies" in America. More information on Apex products and services is available by calling 800/861-5858, via email at sales@apex.com, or on the World Wide Web at www.apex.com. |
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