Bogen Communications International Reports 25% Increase in Second Quarter Sales.Business Editors RAMSEY Ramsey, residential borough (1990 pop. 13,228), Bergen co., NE N.J.; settled 1846, inc. 1908. Dairy and truck farms are in the area. , N.J.--(BUSINESS WIRE)--Aug. 10, 2000 Bogen Bogen may refer to the following locations:
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 : BOGN) ("Bogen") today announced results for the second quarter and six months ended June June: see month. 30, 2000. Sales Growth 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 have continued to improve since the start of the year and for the second quarter of 2000 rose 25% to $17,222,000 from second quarter 1999 sales of $13,761,000. Net sales for the second quarter of 2000 also represents a 5.5% increase over first quarter 2000 sales of $16,319,000. The improvement stems from gains in the U.S. business and the inclusion of Apogee apogee (ăp`əjē), point farthest from the earth in the orbit of a body about the earth. See apsis. The farthest point. Sound sales, acquired in the third quarter of 1999. In all, net sales for the six months rose 27.6% from $26,283,000 in 1999 to $33,541,000 for the six months ended June 30, 2000. Gross Margin The gross margin for the second quarter of 2000 was 50.6%, slightly ahead of the first quarter's 50.3% but down from 51.6% for the second quarter of 1999. Excluding Apogee results, gross margin rose to 52.8% for the second quarter as a result of lower product costs, better sales mix sales mix See product mix. , and select price increases. Apogee products traditionally carry lower gross margins as compared to other Bogen products, thus modestly reducing average margins. Net Income Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income of $1,694,000 for second quarter of 2000 was slightly ahead of 1999's second quarter despite the $1,759,000, or 41.7%, increase in selling, general and administrative expense, largely associated with investment in the Unified Messaging Having access to e-mail, voice mail and faxes via a common computer application or by telephone. For example, unified messaging may send faxes and digitized voice mail to a mail server that turns them into e-mail attachments. business, the acquisition of Apogee, and additional overhead support for the Company's Lucent-related business. The Company's effective tax rate for second quarter of 2000, however, increased significantly to 48.5%, compared with a second quarter 1999 effective tax rate of only 30%. This increase was largely due to the Company reducing its valuation allowance related to net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. and other timing differences in 1999, and the effects of non-deductible goodwill amortization in the period. Net income was $872,000 in the second quarter of 2000 compared to $1,135,000 in the second quarter of 1999. It is important to note that 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 $.09 for the second quarter of 2000 were calculated on 21.5% more shares than last year's $.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. The sharp increase in weighted average diluted shares is primarily due to the Company's warrant redemption on May 1st. Comments by Jonathan Guss and Michael P. Fleischer Jonathan Guss, Bogen's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "Our higher selling and related expenses for the Unified Messaging business reflect our continued commitment to invest in making Speech Design a premier supplier of Unified Messaging products and services across Europe. Overall Speech Design quarterly revenues in deutsche marks were up about 5% year over year; an erosion in the value of the deutsche mark against the dollar, however, made this year's quarterly dollar-denominated results appear about 7% lower than last year's. Voicemail revenues were up about 6% in deutsche marks; this represents a blend between a sharp increase in domestic (i.e. German) voicemail shipments, and a decline in shipments to the rest of Europe. Improvements in domestic sales were largely driven by the continued ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of Teleserver(TM) (our new generation voicemail product), the continued development of our relationship with Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. , and our initiative to exploit the huge aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. for pbx peripherals. Weakness in "export" (i.e. non-German) shipments is largely related to organizational turmoil within several European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. switch manufacturers, and continues to be a major area of focus for Speech Design. "With respect to our Unified Messaging business, in addition to our previously announced emphasis on developing partnerships with leading ISPs across Europe, Speech Design is increasingly focusing on penetrating penetrating breaching the tissues of the body. the market for Unified Messaging services represented by wireless and fixed line telcos. This is a huge market, much larger than the ones targeted earlier in development of the Unified Messaging business. Moreover the rate at which subscribers are added to wireless networks continues to be significant, with the absolute number of incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. annual mailboxes in the millions. Sales and marketing resources have been, and continue to be, added to help us address this critical market. At this point Speech Design is in discussions with several telcos with the goal of installing our Unified Messaging system on a test basis as a means of validating val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. its scalability and robustness." Michael P. Fleischer, Bogen's President, commented, "The U.S. core business had a successful second quarter. Top line growth, gross margins, and 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. were all up sharply compared to the first quarter of this year, and the second quarter of 1999. Reinvigorating revenue growth at Bogen has been a top priority over the last two years, and we are pleased with the results to date. We have invested significantly in additional sales and other resources to acquire and serve this additional business; and while we will continue to pursue increases in revenue in our core and related markets, it will not be at the expense of growth in operating income. "Apogee continues to make good progress towards its objective of making contributions to overall profitability by the end of this year. At this point we have identified each opportunity necessary to achieve that goal, and implementation is well under way." The Bogen executives pointed out, "Our balance sheet continues to be strong, and we are committed to utilizing it in a way to enhance our value for shareholders. We also believe that the investment community has not yet recognized the value embedded Inserted into. See embedded system. in our European operations, and this issue too continues to be a major area of focus for the Board. We are confident that addressing these two issues, while continuing improvements in the operations of the business, will benefit shareholders and make our Company more attractive to investors." Bogen Communications International, Inc., based in Ramsey, New Jersey Ramsey is a borough in Bergen County, New Jersey, United States. As of the United States 2000 Census, the borough population was 14,351. Ramsey was incorporated as a borough by an Act of the New Jersey Legislature on March 10, 1908, from portions of Hohokus Township (now and Munich, Germany, develops, manufactures, and markets telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. peripherals, sound processing equipment, and Unified Messaging products and services. Bogen's products are sold to commercial, industrial, professional and institutional customers worldwide. Except for historical information contained herein, the statements made in this release constitute 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. that involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including general market conditions, new technological developments, competition, potential acquisitions and divestitures, the availability of financing alternatives and other risks. Certain of these risks, factors and other considerations are detailed from time to time in Bogen's reports on file at the Securities and Exchange Commission, including Bogen's 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. for the fiscal year ended December 31, 1999, and Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 30, 2000. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
BOGEN COMMUNICATIONS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands of Dollars, Except Share and Per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
Net sales $ 17,222 $ 13,761 $ 33,541 $ 26,283
Cost of goods sold 8,516 6,664 16,623 12,773
Gross profit 8,706 7,097 16,918 13,510
Operating expenses:
Research and development 900 1,067 1,766 1,987
Selling, general and
administrative 5,979 4,220 12,428 8,670
Amortization of goodwill
and intangible assets 237 166 479 353
Income from operations 1,590 1,644 2,245 2,500
Other (income) expenses:
Interest (income)
expense, net (125) 22 (76) 85
Other (income) expense 21 (8) 21 3
Income before provision for
income taxes 1,694 1,630 2,300 2,412
Provision for
income taxes 822 495 1,126 806
Net income $ 872 $ 1,135 $ 1,174 $ 1,606
Basic net income (loss)
per common share $ 0.09 $ 0.17 $ 0.14 $ 0.24
Diluted net income
(loss) per common
share $ 0.09 $ 0.14 $ 0.13 $ 0.20
Weighted average number
of common
shares
outstanding-Basic 9,455,436 6,772,854 8,273,418 6,681,145
Weighted average number
of common
shares
outstanding-Diluted 9,885,679 8,134,104 9,241,281 7,910,215
BOGEN COMMUNICATIONS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars, Except Share and Per Share Amounts)
June 30, December 31,
2000 1999
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 10,486 $ 792
Accounts receivable (less allowance for
doubtful amounts of $818 and $650
at June 30, 2000, and
December 31, 1999, respectively) 9,966 8,455
Inventories, net 12,844 9,310
Prepaid expenses and other current assets 834 658
Deferred income taxes 934 882
TOTAL CURRENT ASSETS 35,064 20,097
Equipment and leasehold improvements, net 4,332 3,837
Goodwill and intangible assets, net 19,216 19,730
Other assets 390 214
TOTAL ASSETS $ 59,002 $ 43,878
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Amounts outstanding under revolving
credit agreements $ 1,176 $ 2,339
Current maturities of capital
lease obligations 266 224
Accounts payable 2,773 4,199
Accrued expenses 3,275 3,167
Income taxes payable 375 1,431
TOTAL CURRENT LIABILITIES 7,865 11,360
Advances and notes payable to related parties 189 194
Deferred income taxes 1,024 1,024
Capital lease obligations 399 505
TOTAL LIABILITIES 9,477 13,083
STOCKHOLDERS' EQUITY
Preferred stock - $.001 par value; 1,000,000
shares authorized; none issued and
outstanding at June 30, 2000
or December 31, 1999 - -
Common stock - $.001par value; 50,000,000
shares authorized; 10,038,684 and 6,784,121
shares issued and outstanding at June 30, 2000,
and December 31, 1999, respectively 10 7
Additional paid-in-capital 47,907 30,093
Retained earnings (accumulated deficit) 2,426 1,252
Accumulated other comprehensive loss (786) (557)
Treasury stock at cost- 3,572 shares
at June 30, 2000 (32) -
TOTAL STOCKHOLDERS' EQUITY 49,525 30,795
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 59,002 $ 43,878
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