Bell Microproducts Announces Q1 1999 Results Which Reflect Discontinued Operations.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--May 14, 1999-- Bell Microproducts Inc. (Nasdaq:BELM Belm is also an English colloqualism used to refer to the motion of pressing the tongue in to the lower lip and/or chin. A BBC article discussing the term can be found on the Ouch! News micro-site[1]. ) today announced its financial results for the first quarter ended March 31, 1999, after giving effect to the company's recently announced definitive agreement to sell its Quadrus manufacturing division. Because of this agreement, financial results reflect the company's continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and, separately, the results from the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: Quadrus operations. Revenues from continuing operations in the first quarter of 1999 were a record $219.6 million, up 88 percent from $116.7 million in the same period a year ago. Income from continuing operations was $1.9 million, up 15.1 percent from $1.6 million in the first quarter of 1998. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations were $.21 on approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 8.9 million shares outstanding. This compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with diluted earnings per share of $0.19 on 8.8 million shares outstanding in the same period a year ago. After the loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $651,000 in the current quarter, the company's net income was $1.2 million, or $0.14 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. This compares with a loss from discontinued operations of $1,439,000 in the first quarter of 1998, which resulted in the company's net income being $195,000, or $0.02 per diluted share. About Bell Microproducts Bell Microproducts Inc. is a distributor of high technology products serving the industrial and commercial markets. The company markets and distributes the products of more than 100 manufacturers of semiconductors, disk drives, tape drives, optical drives, computers, enhancement products and peripherals primarily to original equipment manufacturers (OEMs), value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. (VARs) and system integrators See systems integrator. nationwide. The company adds value to its products through a broad range of services including testing, kitting, mass storage subsystem The part of a computer system that provides the storage. It includes the controller and disk drives. See storage system. assembly and the integration of complete computer systems. More information on the company is available from the company's SEC filings or by contacting the company directly. Bell Microproducts' news and product/service information are available at World Wide Web site http://www.bellmicro.com. -0-
Bell Microproducts Inc.
Balance Sheets
(in thousands)
(unaudited)
Mar. 31, 1999 Dec. 31, 1998
ASSETS
Current assets:
Cash $ 1,942 $ 4,082
Accounts receivable, net 127,147 106,609
Inventories 117,391 105,330
Prepaid expenses and
other current assets 5,479 5,226
Assets of discontinued operations 46,121 47,790
-------- --------
Total current assets 298,080 269,037
Property and equipment, net 3,859 3,355
Goodwill 12,226 12,362
Other assets 946 826
======== ========
Total assets $315,111 $285,580
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 93,499 $ 72,002
Other accrued liabilities 9,511 8,429
Accrued liabilities relating
to discontinued activities 16,534 16,240
-------- --------
Total current liabilities 119,544 96,671
Borrowing under the line of credit 107,600 102,400
Other liabilities 34 33
-------- --------
Total liabilities 227,178 199,104
-------- --------
Shareholders' equity:
Common Stock 56,332 56,181
Retained earnings 31,477 30,247
Cumulative translation adjustment 124 48
-------- --------
Total shareholders' equity 87,933 86,476
-------- --------
Total liabilities and
shareholders' equity $315,111 $285,580
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BELL MICROPRODUCTS INC.
Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended
3/31/99 3/31/98
Sales $ 219,599 $ 116,658
Cost of sales 200,177 102,069
--------- ---------
Gross profit 19,422 14,589
Marketing, general and
administrative expenses 14,955 10,991
--------- ---------
Income from continuing operations 4,467 3,598
Interest expense 1,224 781
--------- ---------
Income from continuing operations before
income taxes 3,243 2,817
Provision for income taxes 1,362 1,183
--------- ---------
Income from continuing operations 1,881 1,634
Loss from discontinued operations, net of
income tax benefit of $471 and $1,042 (651) (1,439)
--------- ---------
Net income $ 1,230 $ 195
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Earnings per share
Basic
Continuing operations $ 0.21 $ 0.19
Discontinued operations (0.07) (0.17)
===== =====
Total $ 0.14 $ 0.02
===== =====
Diluted
Continuing operations $ 0.21 $ 0.19
Discontinued operations (0.07) (0.17)
===== =====
Total $ 0.14 $ 0.02
===== =====
Shares used in per share calculation
Basic 8,932 8,723
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Diluted 9,010 8,795
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