Bell Microproducts Announces Record Q2 1999 Results; Q2 1999 Revenues Up 86 Percent from Q2 1998.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)--July 22, 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 second quarter ended June June: see month. 30, 1999. Revenues from 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 for the second quarter were a record $231.6 million, up approximately 5.5 percent from $219.6 million in the first quarter, and up 86.2 percent from $124.4 million reported in the second quarter of 1998. Net income in the second quarter of 1999 was $2.1 million, compared with net income of $1.9 million in the previous quarter and net income of approximately $1.9 million in the second quarter a year ago. Second quarter 1999 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 $0.24 on approximately 9 million shares outstanding. This compares with first quarter 1999 diluted earnings per share from continuing operations of $0.21 on 9 million shares outstanding, and diluted earnings per share of $0.22 on 8.9 million shares outstanding in the same period a year ago. The above results do not include discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . "We are happy to announce record second quarter revenues. As in the first quarter, contributing factors were strong computer product sales and increased semiconductor sales as we expected," said Don Bell, president and chief executive officer of Bell Microproducts. "Sales of computer products, including mass storage products, increased 5.5 percent, and semiconductor sales increased 5.3 percent over the first quarter of 1999. We gained market share in storage products during the quarter, and we believe we are the largest distributor of Seagate (Seagate Technology, Inc., Scotts Valley, CA, www.seagate.com) The largest independent manufacturer of disk drives. Founded in 1979 by Alan Shugart, Tom Mitchell and Doug Mahon, it was the first to offer a 5MByte drive using 5. , Quantum, 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) and Maxtor Maxtor Corporation was an American manufacturer of computer hard disk drives founded in 1982 and acquired by Seagate in 2006. As of December 2005, just prior to the acquisition, Maxtor was the world's third-largest manufacturer of hard disks. in the Americas A·mer·i·cas , the See America. . "The second quarter was a productive one for Bell Microproducts. We completed the sale of Quadrus, our contract manufacturing division, which will allow us to concentrate on our growing and profitable core distribution business and value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. services. We also announced the acquisition of Future Tech, a value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: distributor primarily serving the Caribbean and Latin Lat·in n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of markets. With our Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. subsidiary, we now have complete coverage of the Americas. "We also continued to expand our infrastructure. We have opened corporate centers in Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. and Toronto. We have also hired key managers which we feel will contribute significantly to the growth of Bell Microproducts. They include Gary Gammon as senior vice president of sales for the computer products division, Brian Paterson, vice president of storage systems and Robert Watson Robert Watson may be:
focus - cause to converge on or toward a central point; "Focus the light on this image" 2. and commitment to expand our business, we are well positioned for continued growth." Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This news release discusses our expectations about our semiconductor, computer products and future customer prospects in the third quarter and beyond. These statements are forward-looking within the meaning of Section 27A of the Securities Act of 1933, 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. , and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to risks and uncertainties. Actual results could differ materially from any future performance suggested above. Among the factors that could affect the final results of the third quarter of 1999 and subsequent periods are the impact of competitive products and pricing, integration of acquired operations, reductions in or cancellations of customer orders, changes in relationships with suppliers, product mix sold by the company and other factors described in the company's most recent periodic filings with the Securities and Exchange Commission. 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. in the Americas. 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)
June 30, December 31,
1999 1998
ASSETS
Current assets:
Cash $ 4,482 $ 4,082
Accounts receivable, net 133,449 106,609
Inventories 125,949 105,330
Prepaid expenses and
other current assets 5,071 5,226
Assets of discontinued
operations -- 47,790
--------- ----------
Total current assets 268,951 269,037
Property and equipment, net 4,313 3,355
Goodwill 11,778 12,362
Other assets 2,651 826
========= ========
Total assets $ 287,693 $ 285,580
========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 97,986 $ 72,002
Other accrued liabilities 10,016 8,429
Accrued liabilities relating
to discontinued activities -- 16,240
--------- ---------
Total current liabilities 108,002 96,671
Notes payable, less current
portion 90,300 102,400
Capitalized lease obligations,
less current portion 36 33
--------- ---------
Total liabilities 198,338 199,104
--------- ---------
Shareholders' equity:
Common Stock 56,716 56,181
Retained earnings 32,369 30,247
Cumulative translation adjustment 270 48
------------- -----------
Total shareholders' equity 89,355 86,476
------------- -----------
Total liabilities and
shareholders' equity $ 287,693 $ 285,580
=============== ============
BELL MICROPRODUCTS INC.
Statements of Income
(in thousands, except per share data)
(unaudited)
Three months ended Six months ended
June 30, June 30,
---------------------------------------------
1999 1998 1999 1998
-------------- -------------- --------------
Sales $ 231,627 $ 124,402 $ 451,226 $ 241,060
Cost of sales 210,826 109,666 411,003 211,735
--------- --------- --------- ---------
Gross profit 20,801 14,736 40,223 29,325
Selling, general and
administrative expenses 15,926 10,847 30,881 21,838
--------- --------- --------- ---------
Income from continuing
operations 4,875 3,889 9,342 7,487
Interest expense 1,556 595 2,780 1,376
Remeasurement gain (358) -- (358) --
--------- --------- --------- ---------
Income from continuing
operations before
income taxes 3,677 3,294 6,920 6,111
Provision for income taxes 1,544 1,383 2,906 2,566
--------- --------- --------- --------
Income from continuing
operations 2,133 1,911 4,014 3,545
Loss from discontinued
operations, net of
income tax benefit (2,295) (553) (2,946) (1,992)
Gain on sale of contract
manufacturing segment 1,054 -- 1,054 --
========= ========= ========= ===========
Net income $ 892 $ 1,358 $ 2,122 $ 1,553
========= ========= ========= ===========
Earnings per share
Basic $ 0.10 $ 0.15 $ 0.24 $ 0.18
Discontinued operations (0.14) (0.06) (0.21) (0.23)
========= ========= ========= =========
Continuing Operations $ 0.24 $ 0.22 $ 0.45 $ 0.41
========= ========= ========= =========
Earnings per share
Diluted $ 0.10 $ 0.15 $ 0.24 $ 0.18
Discontinued operations (0.14) (0.06) (0.21) (0.23)
========= ========= ========= ==========
Continuing operations $ 0.24 $ 0.22 $ 0.45 $ 0.40
========= ========= ========= ==========
Shares used in per
share calculation
Basic 8,945 8,767 8,939 8,745
======= ======= ======== =========
Diluted 8,982 8,855 8,996 8,825
======= ======= ======== ==========
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