CompuCom Announces 1st Quarter Earnings and Revenues.DALLAS--(BUSINESS WIRE)--April 16, 1997--CompuCom Systems, 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 : CMPC CMPC Classified Matter Protection and Control CMPC Compañia Manufacturera de Papeles y Cartones S.A. CMPC Cisco Multi-Path Channel CMPC Children's Media Policy Coalition CMPC Central Milk Producers Cooperative CMPC Connecticut Minority Purchasing Council ), a leading provider of distributed desktop products and network integration services, today announced revenues and net earnings for the quarter ended March 31, 1997 of $432 million and $4.9 million, respectively. Comparable 1996 first quarter revenues were $413 million with earnings of $5.8 million. First quarter fully 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. earnings were $.10 per share, compared with $.12 per share for 1996. "The service business continued to be strong, up 63% from the same period a year ago, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite flat product growth. We believe this is a strong indication there has been continued demand by corporate customers for asset management of the distributed desktop," said Ed Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic , president and 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. . "We believe the softness in product volume can be attributed to three factors: lower than anticipated price reductions from Intel in both August and January; confusion by corporate customers regarding which processor to buy; and increased market share gain by direct marketers," Anderson continued. "We expect sequential quarterly improvement in product sales for the second quarter. The combination of price drops by Intel in May and final assembly beginning in the July quarter should set the stage for resumed growth in product in the second half of the year. "We took steps during the fourth quarter of 1996 to reduce inventory levels and implement cost reduction programs. We were pleased with the results as first quarter 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. declined $4.4 million from the 4th quarter 1996 while inventory levels fell approximately $40 million when compared to both March 31, 1996 and December 31, 1996," Mr. Anderson Mr. Anderson can refer to several fictional characters:
CompuCom Systems, Inc., headquartered in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. is a leading provider of distributed desktop products and network integration services for large corporate customers worldwide. CompuCom's services include LAN/WAN LAN/WAN Local Area Network/Wide Area Network projects and consulting, network management, help desk, field engineering, configuration, distribution and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. . CompuCom is accessible via 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.compucom.com . This press release contains certain 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. regarding revenues, margin, earnings, growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. and certain business trends that involve risks and uncertainties that could cause actual results to differ materially from the results discussed herein. Recipients of this press release are cautioned to consider these risks and uncertainties and to not place undue reliance on these forward-looking statements. -0-
COMPUCOM SYSTEMS, INC.
COMPARATIVE FINANCIAL DATA
(All amounts in thousands except per share amounts)
Three Months Ended March 31,
1997 1996 Change
Revenue
Product $ 375,605 $ 377,983 -0.6%
Service 53,728 32,937 63.1%
Other 2,556 2,414 5.9%
Total revenue 431,889 413,334 4.5%
Gross Margin
Product 38,932 38,169
Service 19,362 12,237
Other 1,184 845
Total Gross Margin 59,478 51,251
Gross Margin Percentage
Product 10.4% 10.1%
Service 36.0% 37.2%
Other 46.3% 35.0%
Total Gross Margin 13.8% 12.4%
Operating expenses
Selling and service 30,785 25,905
General and administrative 14,737 10,954
Depreciation and amortization 2,591 1,854
Total operating expenses 48,113 38,713 24.3%
Earnings from operations 11,365 12,538 -9.4%
Interest 3,245 2,935
Earnings before income taxes 8,120 9,603 -15.4%
Income taxes 3,248 3,841
Net earnings $ 4,872 $ 5,762 -15.4%
Earnings per common share
Primary $ .10 $ .12
Fully diluted $ .10 $ .12
Average common shares outstanding
Primary 47,145 46,921
Fully diluted 49,748 49,692
Earnings per common share calculations are based on the weighted
average number of shares outstanding
in each period.
COMPUCOM SYSTEMS, INC.
SUMMARY BALANCE SHEET
March 31, 1997
(All amounts in thousands)
3/31/97 12/31/96
Cash 4,251 4,320
Accounts Receivable 310,176 377,598
Inventory 192,298 233,464
Other Current Assets 3,517 3,508
Total Current Assets 510,242 618,890
Other Assets 76,834 74,095
Total Assets 587,076 692,985
Accounts Payable 141,445 217,424
Accrued Liabilities 55,108 59,342
Total Current Liabilities 196,553 276,766
Long-Term Debt 204,615 236,450
Deferred Income Taxes 5,492 5,671
Convertible Subordinated Debt 3,000 3,000
Stockholders' Equity 177,416 171,098
Total Liabilities and
Stockholders' Equity 587,076 692,985
CONTACT: CompuCom Systems Inc. Edward R. Anderson, 214/265-3600 (President & CEO) M. Lazane Smith, 214/265-3600 (CFO See Chief Financial Officer. ) |
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