Ault Reports Strongly Improved First Quarter Operating Results.MINNEAPOLIS--(BUSINESS WIRE)--Sept. 23, 1998-- Cable Modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. Market Drives Sales and Earnings Growth Ault Ault as a personal name can refer to:
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. share for the first quarter of fiscal 1999 ended August 30, up substantially from $87,000 or $.02 per share in the year-earlier period. 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 increased 20% in the first quarter to $11,337,000, from $9,423,000 in the comparable period of fiscal 1998. Sales of switching power supplies Switch´ing power supply n. 1. a device used as part of an electronic device, which transforms electrical current from an AC line circuit to DC for use in electronic devices, and which can use either 110 volt or 220 volt AC line curent. to OEMs of new-generation cable modems generated a substantial portion of the Company's first quarter sales growth. However, virtually every other sector of the Company's business met or exceeded budgeted sales levels, including switching power supplies for medical equipment. Reflecting the shift in the sales mix sales mix See product mix. toward higher-margin switching power supplies, the first quarter gross margin rose to 27.0%, from 23.4% in the year-earlier period. Frederick Frederick, city, United States Frederick, city (1990 pop. 40,148), seat of Frederick co., NW Md.; settled 1745, inc. 1817. The processing center of a fertile farm and dairying area, it makes beer, household items, optical and glass products, leather goods, M. Green, president and chief executive officer, said cable modem OEMs have largely solved the infrastructure and installation-related problems that impeded im·pede tr.v. im·ped·ed, im·ped·ing, im·pedes To retard or obstruct the progress of. See Synonyms at hinder1. [Latin imped sales of this high-speed data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. product over the past 12 to 18 months. As a result, he continued, shipments of switching power supplies for cable modems appear poised to start meeting the aggressive growth forecasts of Ault's customers. Green added that the sales mix shift toward switching power supplies and resulting margin expansion clearly indicate how the Company is positioned to benefit from the growth of its targeted data communications, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and medical markets. Green said the strong first quarter operating results strengthen his belief that Ault is on track toward posting solid sales and earnings growth for the first half and all of fiscal 1999. Ault is the largest independent manufacturer of external power conversion products based in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The Company is a leading supplier to original equipment manufacturers of telecommunications and medical equipment. -0-
AULT INCORPORATED & SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Amounts Per Share)
(Unaudited)
First Quarter Ended
August 30, August 31,
1998 1997
Net Sales $11,337 $9,423
Cost of Goods Sold 8,275 7,214
Gross Profit 3,062 2,209
Operating Expenses
Marketing 1,035 887
Design Engineering 485 403
General & Administrative 907 797
2,427 2,087
Operating Income 635 122
Other Income (Expense)
Interest Expense (29) (42)
Other 112 68
Income Before Income Taxes (Note 2) 718 146
Income Taxes 243 59
Net Income $75 $87
Earnings Per Common and Equivalent Share
Outstanding, Assuming (Note 3):
Basic EPS $0.11 $0.02
Diluted EPS $0.11 $0.02
Common and equivalent shares outstanding:
Basic EPS 4,161,758 4,082,067
Diluted EPS 4,264,337 4,308,501
6 Statements regarding Ault's anticipated performance in fiscal 1999 are forward-looking and therefore involve risks and uncertainties, including but not limited to: market conditions in the global electronics industry, buying patterns of major customers including OEMs of cable modems, competitive products and technologies, and other factors set forth in the Company's filings with the Securities and Exchange Commission. |
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