Bell Microproducts Announces Record Sales, Improved Results for Second Quarter.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 16, 1998--Bell Microproducts 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 :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, 1998. Revenues for the second quarter of 1998 were a record $144.7 million. This compares with revenues of $129.3 million in the first quarter of 1998, and $115.1 million reported in the second quarter of 1997. Net income for the second quarter of 1998 was $1.4 million. This compares with net income of $195,000 in the first quarter of 1998 and $1.7 million reported in the second quarter a year ago. Second quarter 1998 earnings per share were $0.15 on a 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. basis. This compares with 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 of $0.02 in the first quarter of 1998 and diluted earnings per share of $0.19 reported in the second quarter of 1997. "We are pleased with our performance for the quarter, especially the progress we have made to date at Quadrus," said Don Bell, president and chief executive officer for Bell Microproducts. "As anticipated, sales in the second quarter for our Quadrus manufacturing division substantially improved to $20.3 million, an increase of nearly 60 percent from $12.6 million reported in the previous quarter. We have been rebuilding our customer base at Quadrus after the loss of two major customers last year. We are pleased to be nearing the end of that transition period, having ramped up production for some important new customers. The division's pretax loss pretax loss A loss reported before tax benefits are considered. was reduced by more than half, from $2.7 million in the first quarter, or a loss of $0.18 per diluted share, to a pretax loss of $1.1 million, or a loss of $.07 per diluted share this quarter," said Mr. Bell. "Sales in the distribution division were a record $124.4 million in the second quarter, up seven percent from sales of $116.7 million in the first quarter of the year. Sales of semiconductors rose 16 percent compared with the first quarter, while sales of computer products rose five percent. The division's pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profits were $3.4 million, equal to $0.22 per diluted share. This compares to earnings of $0.20 per diluted share in the first quarter," Mr. Bell said. "We signed two significant new distribution agreements during the quarter. Most recently we were chosen by Viking Viking Either of two unmanned U.S. spacecraft launched by NASA in 1975. After nearly yearlong journeys, Vikings 1 and 2 entered orbits around Mars and released landers that touched down on the planet and relayed measurements of properties of its atmosphere and soil, as well Components to distribute Viking's full line of memory products, ATA flash See flash memory. cards, CompactFlash A flash memory format introduced in 1994 by SanDisk Corporation, Milpitas, CA (www.sandisk.com). At 36.4 x 42.8 x 3.3 mm, CompactFlash (CF) cards are larger than other flash formats, but have become very popular for storage in digital cameras. cards, SmartMedia An ultra-compact flash memory format developed by Toshiba and introduced in 1995. About the size of CompactFlash, but as thin as a credit card, SmartMedia cards were popular storage for digital cameras for a while, but capacities never reached beyond 128MB. Available in 3. cards and fax modems fax modem n. A modem that sends and receives fax transmissions. to original equipment manufacturers, 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. and system integrators See systems integrator. across 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. . Earlier in the quarter, we were chosen by Overland o·ver·land adj. Accomplished, traversing, or passing over the land instead of the ocean: an overland journey; an overland route. adv. Data, Inc. to distribute the Company's full line of automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. DLT (Digital Linear Tape) A magnetic tape technology originally developed by Digital for its VAX line. The technology was later sold to Quantum, which makes it available to other manufacturers. DLT uses half-inch, single-hub cartridges similar to IBM's 3480/3490/3590 line. storage solutions. In addition, we have been informed by Quantum Corporation that we will be named as one of the select group of distributors for their ATL (Active Template Library) A set of software routines from Microsoft that provide the basic framework for creating ActiveX and COM objects. Stemming from the standard template library (STL) that comes with C++ compilers, ATL includes an object wizard that sets up product line of library products upon completion of their acquisition of ATL later this year." This news release discusses our expectations about our semiconductor, computer products, contract manufacturing businesses and future customer prospects in the third quarter and beyond. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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 1998 and subsequent periods are the impact of competitive products and pricing, 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. 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 70 manufacturers of semiconductors, disk drives, tape drives, optical drives, computers, enhancement products and peripherals primarily to original equipment manufacturers (OEMs), value-added resellers (VARs) and system integrators 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. Bell Microproducts, through its Quadrus Division, operates an advanced contract manufacturing facility for printed circuit board assemblies and custom systems assembly. 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.
Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Six Months
Ended Ended
-------------------- --------------------
6/30/98 6/30/97 6/30/98 6/30/97
--------- --------- --------- ---------
Sales $144,718 $115,136 $273,998 $256,104
Cost of sales 129,487 101,511 245,265 226,331
--------- --------- --------- ---------
Gross profit 15,231 13,625 28,733 29,773
Marketing, general and
administrative expenses 11,699 9,569 23,544 20,720
--------- --------- --------- ---------
Income from operations 3,532 4,056 5,189 9,053
Interest expense (1,191) (1,178) (2,512) (2,070)
--------- --------- --------- ---------
Income before income taxes 2,341 2,878 2,677 6,983
Provision for income taxes (983) (1,209) (1,124) (2,933)
--------- --------- --------- ---------
Net income $ 1,358 $ 1,669 $ 1,553 $ 4,050
========= ========= ========= =========
Earnings per share
Basic $ 0.15 $ 0.20 $ 0.18 $ 0.48
========= ========= ========= =========
Diluted $ 0.15 $ 0.19 $ 0.18 $ 0.45
========= ========= ========= =========
Shares used in per share
calculation
Basic 8,767 8,539 8,745 8,505
========= ========= ========= =========
Diluted 8,855 8,978 8,825 8,957
========= ========= ========= =========
Bell Microproducts Inc.
Balance Sheets
(in thousands)
(unaudited)
June 30, Dec. 31,
1998 1998
----------- -----------
ASSETS
Current assets:
Cash $ 3,523 $ 6,325
Accounts receivable, net 92,969 79,389
Inventories 100,532 98,379
Prepaid expenses and other
current assets 3,819 3,812
----------- -----------
Total current assets 200,843 187,905
Property and equipment, net 11,066 10,733
Goodwill 6,216 6,372
Other assets 402 410
----------- -----------
Total assets $ 218,527 $ 205,420
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 58,264 $ 45,540
Other accrued liabilities 8,550 6,025
Current portion of capitalized lease
obligations 1,916 1,728
----------- -----------
Total current liabilities 68,730 53,293
Notes payable 65,400 70,000
Capitalized lease obligations, less
current portion 4,252 4,460
----------- -----------
Total liabilities 138,382 127,753
----------- -----------
Shareholders' equity:
Common Stock 54,420 53,495
Retained earnings 25,725 24,172
----------- -----------
Total shareholders' equity 80,145 77,667
----------- -----------
Total liabilities and
shareholders' equity $ 218,527 $ 205,420
=========== ===========
-0- CONTACT: Bell Microproducts Inc. W. Donald Bell, 408/451-9400 (Chief Executive Officer) or Stapleton Communications Inc. Deborah Stapleton or Ellen Brook, 650/470-0200 |
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