Avocent Reports Fourth Quarter Results.Business Editors & Technology Writers HUNTSVILLE Huntsville, town, Canada Huntsville, town (1991 pop. 14,997), SE Ont., Canada, on the Muskoka River. It has lumber mills and a woodworking plant, but it is sustained mainly by its year-round tourist trade. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Feb. 1, 2001 Avocent Avocent Corporation (NASDAQ: AVCT) is an information technology products manufacturer headquartered in Huntsville, Alabama. Avocent was formed in 2000 from the merger of the world’s two largest KVM (keyboard, video and mouse) switch manufacturers: Apex and Cybex Corporation (Nasdaq/NM:AVCT AVCT Advanced Vehicles Concept Team ) today reported its results for the fourth quarter ended December December: see month. 31, 2000. The financial results prior to July July: see month. 1, 2000, reflect the historical combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
"Fourth quarter sales rose 16.4% to $80.5 million as a result of continued demand for our connectivity solutions," stated Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and F. Thornton Thornton, city (1990 pop. 55,031), Adams co., NE Colo., a residential and industrial suburb of Denver; inc. 1956. Industries include oil and gas development and the production of computer graphics systems, wood products, coffee and tea, building components, infant , president and chief executive officer of Avocent Corporation. "International sales were particularly strong, including sales in Asia that have doubled since last year. "Income, excluding merger-related expenses, increased 30.5% to $16.9 million, or $0.37 per 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. share, compared with combined income of $13.0 million, or $0.29 per diluted share, in the fourth quarter of last year. Our income growth benefited from higher sales and higher margins. "We shipped our first digital KVM (K Virtual Machine) A version of the Java Virtual Machine for small devices with limited memory. See J2ME. See also KVM switch. KVM - Keyboard Video Mouse over IP product, the DS1800, in late November November: see month. . Initial demand from large customers is very encouraging. The proprietary technology of the DS1800 is well suited to larger server installations and provides unprecedented control that is proving attractive to these customers. Sales of the DS1800 are also expected to stimulate demand for related software and hardware in the future." Fourth Quarter Results 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 for the fourth quarter rose to $80.5 million compared with combined net sales of $69.2 million in the fourth quarter a year ago. Sales in the U.S. accounted for 59%, or $47.5 million of fourth quarter sales; European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales totaled $22.9 million, or 28% of fourth quarter sales; and rest of world sales grew to $10.1 million, or 13% of fourth quarter sales. Gross profit for the fourth quarter rose 23.4% to $41.3 million with a gross margin of 51.2%, compared with gross profit of $33.4 million in the fourth quarter of 1999. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the fourth quarter rose 21.5% to $22.3 million compared with combined operating income of $18.4 million in the fourth quarter a year ago. Research and development expenses rose 7% to $4.0 million for the fourth quarter and represented 5% of sales. These costs for 2000 supported three research and development facilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and two in Europe. "Our R&D staff is focused on new product development and product enhancements," continued Mr. Thornton. "Our staff is charged with improving product design to enhance manufacturing efficiencies and accounted, in part, for our margin improvement since last year." Avocent recorded purchase accounting expenses of $36.7 million related to the combination of Apex Inc. and Cybex Computer Products Corporation into Avocent Corporation. The transaction was accounted for as a purchase of Cybex by Apex with the purchase price allocated to the assets and liabilities of Cybex based on their fair values, with the excess allocated to identifiable intangibles and goodwill. Equinox equinox (ē`kwĭnŏks), either of two points on the celestial sphere where the ecliptic and the celestial equator intersect. The vernal equinox, also known as "the first point of Aries," is the point at which the sun appears to cross the Acquisition "Our acquisition of Equinox Systems, Inc. will accelerate key enhancements to the DS1800," stated Mr. Thornton. "Equinox software engineers are already working on expanding the capabilities of the DS1800, and we expect their expertise to accelerate the development cycle. In addition, our Equinox engineering team is working on integrating the Equinox terminal server product with the DS1800 to further broaden our market." Avocent completed the acquisition of Equinox effective on January 3, 2001, and it was treated as a purchase for accounting purposes. As a result of the acquisition, Avocent expects to take a first quarter charge for in-process R&D and merger-related expenses. About Avocent Corporation Avocent Corporation is the leading supplier of connectivity solutions for enterprise data centers, service providers and financial institutions worldwide. Branded products include switching, extension, remote access and video display solutions. Additional information is available at: www.avocent.com 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 that 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 earnings expectations, product development, engineering and design activities, and integration of the Apex, Cybex, and Equinox operations and businesses. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, risks related to continued integration of the combined Apex, Cybex, and Equinox businesses, risks attributable to future sales and expenses; risks associated with reliance on a limited number of component suppliers and single source components, and risks associated with product design efforts. Other factors that could cause operating and financial results to differ are described in Avocent's Form S-4 filed with the Securities and Exchange Commission on March 31, 2000 (under Avocent's former name, Aegean Sea Aegean Sea, Gr. Aigaion Pelagos, Turkish Ege Denizi, arm of the Mediterranean Sea, c.400 mi (640 km) long and 200 mi (320 km) wide, off SE Europe between Greece and Turkey; Crete and Rhodes mark its southern limit. Inc.), and Apex's, Cybex's, and Equinox's Securities and Exchange Commission filings, including Apex's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on March 30, 2000 (as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. on May 25, 2000), and Cybex's annual report on Form 10-K filed on June 22, 2000. Other risks may be detailed from time to time in reports to be filed with the SEC. Avocent does not undertake any obligation to publicly release the result of any revisions to forward-looking statements that may be made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or 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. Conference Call Information Avocent will provide an on-line, real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. Web-cast and rebroadcast of its fourth quarter results conference call to be held today, February 1, 2001. The live broadcast of will be available on-line at www.streetevents.com and www.vcall.com beginning at 10:00 a.m. central time. The on-line replay will follow immediately and continue for 30 days.
AVOCENT CORPORATION
Unaudited Income Statements
(Dollars in thousands, except per share data)
Combined
Results for
For the Three the Three
Months Ended Months Ended
December 31, December 31,
2000 1999
-------------- -------------
Net sales $ 80,526 $ 69,177
Cost of sales 39,273 35,740
-------------- -------------
Gross profit 41,253 33,437
Research and development expenses 3,971 3,725
Selling, general and
administrative expenses 14,960 11,344
-------------- -------------
Operating income 22,322 18,368
Other income 2,115 1,408
-------------- -------------
Income before provision for
income taxes, excluding amortization
and merger-related expenses 24,437 19,776
Provision for income taxes 7,518 6,814
-------------- -------------
Income excluding intangible
amortization and merger-related
expenses 16,919 12,962
Intangible amortization and
merger-related expenses 36,660 1,563
-------------- -------------
Net income (loss) $ (19,741) $ 11,399
============== =============
Earnings per share excluding
amortization and merger-related expenses:
Basic $ 0.39 $ 0.31
Diluted $ 0.37 $ 0.29
Earnings per share:
Basic $ (0.45) $ 0.27
Diluted $ (0.45) $ 0.26
Weighted average shares outstanding:
Basic 43,820 41,860
Diluted 46,105 44,348
AVOCENT CORPORATION
Unaudited Balance Sheets
(Dollars in thousands)
Combined
December 31, December 31,
2000 1999
------------ ------------
Cash, cash equivalents
and short-term investments $ 121,478 $ 88,592
Accounts receivable, net 63,532 50,959
Current and deferred income
tax receivable 9,353 2,615
Other receivable 10,800 -
Inventories 34,458 21,198
Other current assets 3,029 2,711
------------- ------------
Total current assets 242,650 166,075
Investments 5,993 12,609
Property and equipment, net 16,062 14,355
Intangible assets 549,911 6,859
Other assets 580 1,401
------------- ------------
Total assets $ 815,196 $ 201,299
============= ============
Accounts payable and other
accrued expenses $ 12,592 $ 12,702
Income taxes payable - 4,746
Other current liabilities 13,890 10,833
------------- ------------
Current liabilities 26,482 28,281
Non-current liabilities 30,189 -
------------- ------------
Total shareholders' equity 758,525 173,018
------------- ------------
Total liabilities and
shareholders' equity $ 815,196 $ 201,299
============= ============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion