Computer Integration Corp. reports profitable results for fiscal 1997 first quarter.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--November 5, 1996--Computer Integration Corporation (Nasdaq SmallCap:CICC CICC Custom Integrated Circuits Conference CICC Center for the Improvement of Child Caring (Studio City, CA) CICC China International Capital Corp. ), a leading reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. of microcomputers and related products, today reported financial results for the fiscal first quarter ended September September: see month. 30, 1996. 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 for the fiscal 1997 first quarter totaled $108.3 million, compared with $120.9 million for the first quarter of the prior fiscal year. Income from operations was $2.7 million for the most recent quarter, versus $3.8 million in the same three months of fiscal 1996. Computer Integration's net income for the fiscal 1997 first quarter was $607,000, or $0.07 per 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. share, compared with fiscal 1996 first quarter net income of $1.3 million, or $0.16 per fully diluted share. The Company noted that while its net income for the fiscal 1997 first quarter was below the first quarter a year ago, profitability improved in comparison with the most recent two quarters. Computer Integration recorded a net loss of $418,000, or $0.06 per fully diluted share, in the fiscal 1996 third quarter, and a net loss of $2.1 million, or $0.31 per fully diluted share (including one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges), in the fiscal 1996 fourth quarter. "Computer Integration's return to profitability in the fiscal 1997 first quarter reflected an increasing proportion of personal computers, rather than computer peripherals, in our sales mix sales mix See product mix. . This shift contributed to our solid gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. of 10.8% for the most recent quarter, compared to 9.2% for the first quarter of fiscal 1996," commented Ronald G. Farrell, Chairman and Chief Executive Officer. Additionally, Mr. Farrell noted that the Company has decided not to proceed with the previously announced relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of its headquarters and distribution facilities to Atlanta, and will instead consolidate these functions into its existing facilities in Boston, MA and Charlotte, NC. This decision primarily reflects the Company's desire to retain certain key executives for whom relocation was not a viable option, as well as other cost considerations. Accordingly, Computer Integration will reverse a significant portion of the non-recurring pre-tax charge of $2.3 million recorded in the fiscal 1996 fourth quarter for restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs related to the relocation plan. The gain on the reversal of the charge will be recognized in the fiscal 1997 second quarter ending December 31, 1996. "Consolidating our headquarters functions into our present Boston facility, while maintaining regional sales and distribution centers in Charlotte, NC and Torrance, CA, will accomplish our goal of better serving our growing nationwide customer base without unnecessary dislocations of key personnel," stated Mr. Farrell. He added that the Company's Boca Raton, FL headquarters would be closed and its operations moved to Boston during the third quarter of fiscal 1997. Computer Integration Corp. is one of the largest volume resellers of microcomputers, workstations and related products to large and medium-sized corporations, government entities and educational institutions in the U.S. The company distributes a broad range of microcomputer-related products from major manufacturers and software developers and is one of the largest resellers in the U.S. of computer products manufactured by Hewlett-Packard Company. -0-
Computer Integration Corp.
(Nasdaq SmallCap: CICC)
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share)
Three Months Ended
9/30/96 9/30/95
Net Sales $108,332 $120,910
Gross Profit 11,713 11,173
SG&A Expense 9,055 7,329
Income from Operations 2,658 3,844
Interest Expense 1,149 1,143
Net Income $ 607 $ 1,339
Net Income Per Share --
Fully Diluted $ 0.07 $ 0.16
Common Shares and
Equivalents Outstanding --
Fully Diluted 8,462,415 8,403,864
CONTACT: Computer Integration Corp. Ronald G. Farrell Chairman 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. (407) 482-6678 or John F. Chiste Chief Financial Officer (407) 482-6678 |
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