Bogen Communications International Reports Record Third 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)--Nov. 13, 2000 Bogen Bogen may refer to the following locations:
Sales Third 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 3% to a record $16,548,000 from $16,045,000 in last year's third quarter. For the first nine months, net sales rose 18% to $50,089,000 from $42,328,000 in the comparable nine-month period in 1999. Bogen reported that: - U.S. third quarter sales rose 14.1% over 1999, with year-to-date sales up 35.0% from last year: - Engineered Systems is having a banner year, catalyzed by increased spending in public schools, an expanded sales force and marketing emphasis, and the introduction of new products; - Telco product sales (PBX peripherals) in the U.S. were up sharply overall this year. While non-OEM sales were down following the industry-wide trend by major supply houses to significantly reduce inventory levels, this was more than offset by momentum achieved in shipments to Lucent under the OEM supply agreement signed last year; - Commercial Audio sales have experienced continued softness reflecting weakness in overall demand, withdrawal from the NEAR Home Theater market, and delays affecting the launch of our new M-class amplifiers and A-series speakers; - Pro Audio sales, through our Apogee line, slowed during the quarter but have been healthy on a year-to-date basis. - European third quarter sales in U.S. dollars declined 18.3% from 1999, with year-to-date sales in U.S. dollars down 9.4%: - Currency fluctuations were a major factor; - The third quarter sales decline in deutsche marks was 5.1%, while year-to-date sales in deutsche marks are up 2.4%; - In deutsche marks, Speech Design's voicemail product sales remained strong within Germany; export sales to other European markets, however, continued to be slower than in 1999. Overall, Speech Design's year-to-date voicemail product sales are up compared to 1999; - Unified Messaging revenues continue to build, and in deutsche marks are up over the comparable three and nine months periods of 1999. Gross Margin The Company's overall gross margin was 52.3% in the third quarter 2000, down modestly from 53.1% in the third quarter of 1999, but improved from the 50.6% in the second quarter of 2000. For the first nine months of 2000, the gross margin was 51.1% versus 52.1% in the first nine months of 1999. Domestic gross third quarter margins, excluding the continued impact of Apogee apogee (ăp`əjē), point farthest from the earth in the orbit of a body about the earth. See apsis. The farthest point. with its traditional lower margins, would have approximated last year's third quarter level and been ahead for the first nine months of the year. In Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , overall
margins were significantly ahead of last year's three and
nine-month levels.
Operating & Other Expenses During the third quarter of 2000, operating and other expenses as a percent of sales were 40.3% versus 39.1% in last year's third quarter. The increase is largely associated with the investment in Speech Design's 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, where expenditures were up 69.6% over last year's levels, the establishment of a European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales force to address the PABX (Private Automatic Branch eXchange) Same as PBX. PABX - Private Automatic Branch eXchange after-market af·ter-mar·ket n. The market for parts and accessories used in the upkeep or enhancement of a previous purchase, as of a car or computer. af , increased overhead support for the Company's Telco-related business, and a longer than anticipated turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. at Apogee. Net Income Third quarter 2000 pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income of $1,990,000 was down from 1999's $2,255,000 but up versus $1,694,000 for second quarter of 2000. Apart from the increase in operating and other expenses, pre-tax income has also been strongly affected by the erosion of the deutsche mark against the dollar. Furthermore, the Company's effective tax rate for third quarter of 2000 was 43%, compared with 30% in the same period last year. The lower tax rate in 1999 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. Net income for the current third quarter was $1,130,000, or $.11 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, versus $1,578,000, or $0.22 per diluted share in the 1999 third quarter. For the first nine months of 2000, net income was $2,304,000, or $.25 per diluted share as compared to $3,184,000, or $.41 per diluted share in the comparable period of 1999. Because of the effects of the warrant call completed last May, per share calculations in the current three and nine month periods are based upon 40% and 21% more shares than in the respective periods in 1999. Comments by 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 Fleischer (or Fleisher) is a common German family name. Its literal meaning is "butcher". Other German family names with the same meaning include Metzger, Mezger, Flesher, Fleischman, and Fleischmann. Michael P. Fleischer, Bogen's President, stated, "We think the key story at Bogen this year is continued strength in our core businesses in the U.S. and Speech Design, with overall performance negatively affected by investments in two new areas: Pro Audio (i.e. Apogee) in 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. , and Unified Messaging in Europe. We believe the investments Bogen is making in these two areas are critical to building platforms for higher growth. In the case of Pro Audio, the growth will come from access to new markets; in the case of Unified Messaging, growth will come from the emergence of this exciting new market." Mr. Fleischer continued, "Overall, Bogen has continued to achieve above market growth in our U.S. business. Engineered Systems growth has been robust, reflecting our earlier investment in sales and marketing, and the addition of new products uniquely suited to flow through our channel to the robust school improvement market. 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 Telco sales have been similarly strong. Our challenge is to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. investments made in our non-OEM Telco and Commercial Audio businesses, and to complete the turnaround at Apogee. Towards that end, we are taking further action to bring Apogee's cost structure in line with sales volumes while preserving programs aimed at achieving growth." Bogen Communications International, Inc. Page 3 November November: see month. 13, 2000 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 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. , commenting, stated, "Overall voicemail See voice mail. deutsche mark revenues are up this year, with growth in Germany compensating for slower than anticipated export sales. Export voicemail sales have lagged largely due to internal reorganization at several of the major switch manufacturers Speech Design relies on to sell its products. As noted above, European results are principally denominated in deutsche marks, which have been depressed relative to the dollar and made the quarterly revenue and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. comparisons seem markedly worse. In actuality ac·tu·al·i·ty n. pl. ac·tu·al·i·ties 1. The state or fact of being actual; reality. See Synonyms at existence. 2. Actual conditions or facts. Often used in the plural. , while down in the third quarter, European revenues, for both the voicemail and Unified Messaging businesses, are actually up for the year. Mr. Guss continued, "We continue to emphasize developing our position as a leader in European Unified Messaging. This investment is partly reflected in increasing levels of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. associated with Unified Messaging. These costs, principally in the areas of R&D and sales and marketing, were up 54.4% for the year, and even more for the third quarter. We expect this to continue, and expect spending to increase another 50-75% over current levels. Our goal is to be Europe's number one Unified Messaging provider, via ISPs, enterprise installations, and mobile and fixed line operators." The two Bogen executives concluded, "Bogen is in the fortunate position of having stable, profitable businesses to sustain its investment in these two new, related areas. Our balance sheet is stronger than ever with approximately $10 million in cash, negligible  This article or section is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article or section in an . debt, and a current ratio of almost 5:1." About Bogen 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. Conference Call Bogen's management will be conducting a financial community conference call on Monday, November 13, 2000 at 12:00 Eastern Standard Time. Interested parties may listen to the conference call live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.vcall.com; a replay will also be available for 90 days. To listen to the live call, please go to the web site 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. 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 September 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 Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
--------- --------- --------- ---------
Net sales $ 16,548 $ 16,045 $ 50,089 $ 42,328
Cost of goods sold 7,889 7,520 24,512 20,293
--------- --------- --------- ---------
Gross profit 8,659 8,525 25,577 22,035
Operating expenses:
Research and development 530 1,109 2,296 3,096
Selling, general and
administrative 6,051 4,936 18,479 13,606
Amortization of goodwill
and intangible assets 235 192 714 545
--------- --------- --------- ---------
Income from operations 1,843 2,288 4,088 4,788
Other (income) expenses, net:
Interest (income)
expense, net (97) 41 (173) 126
Other income, net (50) (8) (29) (5)
--------- --------- --------- ---------
Income before provision
for income taxes 1,990 2,255 4,290 4,667
Provision for income taxes 860 677 1,986 1,483
--------- --------- --------- ---------
Net income $ 1,130 $ 1,578 $ 2,304 $ 3,184
========= ========= ========= =========
Basic net income (loss)
per common share $ 0.11 $ 0.24 $ 0.26 $ 0.48
========= ========= ========= =========
Diluted net income (loss)
per common share $ 0.11 $ 0.22 $ 0.25 $ 0.41
========= ========= ========= =========
Weighted average number
of common shares
outstanding-Basic 10,040,409 6,709,971 8,866,714 6,690,859
========== ========= ========= =========
Weighted average number
of common shares
outstanding-Diluted 10,170,004 7,245,594 9,381,388 7,765,915
========== ========= ========= =========
BOGEN COMMUNICATIONS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars, Except Share and Per Share Amounts)
September 30, December 31,
2000 1999
------------ -----------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 10,023 $ 792
Accounts receivable (less allowance
for doubtful amounts of $869 and $650
at September 30, 2000, and December
31, 1999, respectively) 9,220 8,455
Inventories, net 14,268 9,310
Prepaid expenses and other current assets 1,201 658
Deferred income taxes 958 882
-------- --------
TOTAL CURRENT ASSETS 35,670 20,097
Equipment and leasehold improvements, net 4,227 3,837
Goodwill and intangible assets, net 18,976 19,730
Other assets 361 214
-------- --------
TOTAL ASSETS $ 59,234 $ 43,878
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Amounts outstanding under revolving
credit agreements $ 664 $ 2,339
Current maturities of capital
lease obligations 243 224
Accounts payable 2,226 4,199
Accrued expenses 3,305 3,167
Income taxes payable 824 1,431
-------- --------
TOTAL CURRENT LIABILITIES 7,262 11,360
Advances and notes payable to related parties 178 194
Deferred income taxes 1,024 1,024
Capital lease obligations 355 505
-------- --------
TOTAL LIABILITIES 8,819 13,083
-------- --------
STOCKHOLDERS' EQUITY
Preferred stock - $.001 par value;
1,000,000 shares authorized; none
issued and outstanding at September
30, 2000 or December 31, 1999 - -
Common stock - $.001par value;
50,000,000 shares authorized;
10,087,756 and 6,784,121 shares
outstanding at September 30, 2000,
and December 31, 1999, respectively 10 7
Additional paid-in-capital 48,123 30,093
Retained earnings (accumulated deficit) 3,556 1,252
Accumulated other comprehensive loss (1,242) (557)
Treasury stock at cost - 3,572 shares
at September 30, 2000 (32) -
-------- --------
TOTAL STOCKHOLDERS' EQUITY 50,415 30,795
-------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 59,234 $ 43,878
======== ========
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