Bogen Communications International Reports 30% Increase in First Quarter Revenues.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)--May 16, 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 its first quarter ended March 31, 2000. Sales Growth First quarter 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 rose 30.3% to a first quarter record of $16,319,000 up from $12,522,000 in the same period of 1999, with gains achieved in both domestic and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales volume. Gross Margin Gross margin was 50.3% compared to 51.2% in the same period last year. Excluding the Apogee apogee (ăp`əjē), point farthest from the earth in the orbit of a body about the earth. See apsis. The farthest point. Sound products acquired in the third quarter of 1999, gross margin increased to 52.4% due to continued emphasis on lowering product costs, a better sales mix sales mix See product mix. , and to a lesser extent, price increases. Apogee products traditionally carry lower gross margins in comparison to other Bogen products, creating a slight downward effect on average margins. Net Income Net income was $302,000 or $.03 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. In the comparable period last year, net income was $471,000 or $.06 per diluted share. The decrease in net income stems from lower domestic income related to some one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. factors as well as to continued deliberate increases in spending on selling, general and administrative line items. The decrease in per share earnings was partly due to the higher average number of shares deemed to be outstanding for EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. purposes during the current period. The number of shares outstanding used in diluted EPS calculations increased to 9.1 million in the first quarter of 2000, from 7.8 million in the first quarter of 1999, as a result of higher stock prices and the large number of outstanding warrants and options deemed exercisable below such market prices. Comments by Jonathan Jonathan (jŏn`əthən) [short for Jehonathan, Heb.,=Yahweh has given]. 1 In the Bible, Saul's son and David's friend, both killed at the battle of Mt. Gilboa. David showed kindness to his son Mephibosheth. Guss and Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. 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, "The New Year is off to a strong start with both our European and domestic operations building upon the growth and progress achieved in 1999. In Europe, our Speech Design subsidiary continues to focus on opening up the huge installed base of switches to voicemail penetration (today under 10%). In order to pursue this opportunity, our sales force there has been doubled. Our marketing partners in this effort, major European PBX (Private Branch eXchange) An inhouse telephone switching system that interconnects telephone extensions to each other as well as to the outside telephone network (PSTN). manufacturers and telcos, strongly support this initiative and are coordinating their resources with our own. With respect to our 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, in addition to previously announced agreements with Freenet (one of the largest ISPs in Germany, a subsidiary of mobile telco Mobilcom) and Galactica (Italy's first ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. with a business customer focus), we have also launched Unified Messaging services with Easynet UK, a major ISP in Britain. We now have Thor platforms and services in place with 6 major ISPs in 3 European countries, giving over one million of their customers access to advanced Unified Messaging functions. We are in negotiations with a number of additional ISPs and telco carriers interested in offering such capabilities to their subscriber bases." Michael P. Fleischer, Bogen's President, commented, "Our U.S. business continues on its recently accelerated growth trajectory Trajectory The curve described by a body moving through space, as of a meteor through the atmosphere, a planet around the Sun, a projectile fired from a gun, or a rocket in flight. and we expect that all of 2000 will be marked by robust revenue gains. These gains will be driven by our augmented field sales efforts, particularly in Commercial Audio and Engineered Systems, 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 the Lucent OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and business, and by new product introductions accompanied by energetic marketing support. This year has already seen the announcement or launch of a new series of microphones and mixers, two new lines of speakers, and a new flagship power amplifier Power amplifier The final stage in multistage amplifiers, such as audio amplifiers and radio transmitters, designed to deliver appreciable power to the load. . In addition, the Apogee acquisition will contribute to higher sales through its own augmented sales efforts and product introductions. "Reported earnings in the U.S. were adversely affected in the quarter by the bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most of a major account, high levels of air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f charges related to launching the Lucent OEM business, and increased amortization associated with the acquisition of Apogee. We have reached a point, however, where domestic spending can be reined in allowing us to turn newly increased sales into 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. profits, and have already taken steps to accomplish this. The consequences are expected to be evident in the near future. "We are pleased to report that Apogee has made good progress since the acquisition, and as stated before, we expect it to begin contributing to profitability in the second half of this year. "We think that the U.S. business is gaining rapidly in scale and market position. The profit potential of the domestic business as it pushes up toward and past $50 million in revenues this year is far greater than it was when this was a $30 million business less than 3 years ago." The Bogen executives pointed out, "Our balance sheet has never been stronger. The nearly $14 million in additional working capital and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. stemming from the exercise of the remaining outstanding publicly traded warrants should help Bogen in a number of ways. Along with our current borrowing capacity, these additional funds enable us to pursue larger acquisitions while continuing our internal growth. In addition, we continue to explore alternative ways to finance the expansion of our Unified Messaging, and for that matter, our entire European operation. Finally, with approximately 10,000,000 shares now outstanding, we believe the larger float will bring, and already has begun to bring, greater liquidity for our shareholders. These factors, combined with expected top and bottom line growth, should make our Company more attractive to both individual and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. ." 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 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. 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
March 31, March 31,
2000 1999
---------- ----------
Net sales $ 16,319 $ 12,522
Cost of goods sold 8,107 6,109
---------- ----------
Gross profit 8,212 6,413
Operating expenses:
Research and development 866 920
Selling, general and administrative 6,449 4,450
Amortization of goodwill and intangible
assets 242 187
---------- ----------
Income from operations 655 856
Other expenses, net:
Interest expense, net 49 63
Other expense, net -- 11
---------- ----------
Income before provision for income taxes 606 782
Provision for income taxes 304 311
---------- ----------
Net income $ 302 $ 471
========== ==========
Basic net income per common share $ 0.04 $ 0.07
========== ==========
Diluted net income per common share $ 0.03 $ 0.06
========== ==========
Weighted average number of common
shares outstanding-Basic 7,091,399 6,663,671
========== ==========
Weighted average number of common
shares outstanding-Diluted 9,050,677 7,761,498
========== ==========
BOGEN COMMUNICATIONS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars, Except Share and Per Share Amounts)
March 31, December 31,
2000 1999
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 3,737 $ 792
Accounts receivable (less allowance
for doubtful amounts of $806 and $650
at March 31, 2000, and December 31, 1999,
respectively) 7,421 8,455
Inventories, net 11,059 9,310
Prepaid expenses and other current assets 815 658
Deferred income taxes 908 882
-------- --------
TOTAL CURRENT ASSETS 23,940 20,097
Equipment and leasehold improvements, net 4,615 3,837
Goodwill and intangible assets, net 19,108 19,730
Other assets 284 214
-------- --------
TOTAL ASSETS $ 47,947 $ 43,878
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Amounts outstanding under revolving credit
agreement $ 325 $ 2,339
Current maturities of capital lease
obligations 219 224
Accounts payable 3,100 4,199
Accrued expenses 3,444 3,167
Income taxes payable 99 1,431
-------- --------
TOTAL CURRENT LIABILITIES 7,187 11,360
Advances and notes payable to related parties 186 194
Deferred income taxes 1,024 1,024
Capital lease obligations 441 505
-------- --------
TOTAL LIABILITIES 8,838 13,083
-------- --------
STOCKHOLDERS' EQUITY
Preferred stock - $.001 par value; 1,000,000
shares authorized; none issued and
outstanding at March 31, 2000 or
December 31, 1999 -- --
Common stock - $.001par value; 50,000,000
shares authorized; 8,289,305 and 6,784,121
shares issued and outstanding at
March 31, 2000, and December 31, 1999,
respectively 8 7
Additional paid-in-capital 38,370 30,093
Retained earnings 1,554 1,252
Accumulated other comprehensive loss (823) (557)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 39,109 30,795
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 47,947 $ 43,878
======== ========
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