Aztec Technology Partners Announces Lower Than Expected First Quarter and Calendar Year Earnings.BOSTON--(BUSINESS WIRE)--March 24, 1999-- Board Committee Formed to Explore Shareholder Value Enhancing Alternatives Aztec Technology Partners, Inc., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AZTC), a leading single-source provider of information technology business solutions and internet development and utilization consulting, today announced that based on management's current assessment, the Company will report lower than expected earnings for both the first quarter ending March 31, 1999, and for the fiscal year ending December 31, 1999. The Company anticipates that earnings per share for the first quarter will be in the range of $.01 to $.03 per share compared with analysts' estimates of $0.12 per share, and that earnings for calendar 1999 are currently expected to be in the range of $0.20 to $0.30 per share compared with estimates of $.55 to $.58 per share. The Company expects that total revenues for the first quarter of 1999 will be $80 million to $85 million compared with analysts' expectations of $89 million to $93 million, and for calendar 1999 will be $375 million to $385 million compared with analysts' expectations of $384 million to $399 million. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for calendar 1999 is expected to be between $23 million and $25 million. Jim Claypoole, Aztec's chairman and chief executive officer stated: "The reduction in expected earnings reported today is caused primarily by three factors: the effects of continued competitive pressure on product margins not offset by higher service growth; a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the cabling portion of our voice and data business unit in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, ; and higher overhead at one of our branches that increased staff in anticipation of fulfilling service revenues that did not materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. ." Mr. Claypoole added: "Since our spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. in June 1998, we have been transitioning to a stronger IT service model by expanding our pure services business - particularly web and internet applications development - and increasing the amount of IT services revenue in branches that have been dependent on the sale of computer products. The disappointment with these operating results highlights the need to further accelerate our move toward a stronger contribution from IT services. Ultimately, faster migration away from product dependency in some branches of the Company will help offset the adverse effects in our performance that we are currently experiencing." Doug Johnson The name Doug Johnson may refer to the following people:
The Company also announced that the NASDAQ has agreed to exempt the Company from the $5.00 per share minimum bid price requirement for NASDAQ listing purposes until May 17, 1999. If the bid price of the Company's shares does not satisfy the minimum requirement by that date, the Company could then apply before a NASDAQ hearing panel for a further extension or a permanent exemption. If the panel concludes that the Company's shares should be de-listed from the NASDAQ National Market, the Company will seek an alternative listing on the NASDAQ Small Capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. Market. The Company also announced that the Board of Directors has established a Strategic Committee to explore and evaluate financial and strategic alternatives for increasing shareholder value including ways of repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. the Company in higher margin business and other alternatives such as strategic alliances, recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. , taking the company private, or merger. "Implementation plans are well underway to correct each of the problems that contributed to its reduction in expected earnings," explained Mr. Claypoole. "Based on the growth of its services revenue and the continued demand for engagements that require multiple IT solutions, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that Aztec will realize our goal of becoming a dominant force as a single-source IT provider in the web and internet services industry." About Aztec Technology Partners Aztec Technology Partners, Inc. is a "one-stop" information technology solutions provider for middle market and Fortune 1000 companies from a broad range of industries. Aztec provides superior client service and value-added solutions to customers throughout the U.S. For more information, please visit the Company's web site at www.aztectech.com. This 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. ." Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our anticipated operating results for the quarter ended March 31, 1999, and the full year ended December 31, 1999, and our anticipated cash flow, and to future actions, future performance, or results of current and anticipated sales and marketing efforts, expenses, the outcome of contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. such as legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. and other financial results. Any of these forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. These risks include the absence of the Company's history as a stand-alone company stand-alone company An independent operating firm. For example, a large diversified firm may consider spinning off a subsidiary because, as a stand-alone company, the subsidiary would command a higher price-earnings ratio than the parent. , the risks relating to acquisitions, our dependence on acquisitions for future growth, the variability of our quarterly operating results, the inherent difficulties in projecting financial results in the services industry, and other risks identified by us from time to time in our 1O-Q, 8-K and 1O-K reports filed with the Securities and Exchange Commission. We urge you to read these reports in evaluating the forward-looking statements in this press release. Other factors besides those listed could also adversely affect the Company. Finally, we call your attention to the fact that we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. |
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