Computer Products reports record second quarter results; earnings up 77.5%.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)--July 16, 1996--Computer Products Inc. (Nasdaq/NM:CPRD CPRD Chehalem Park and Recreation District (Newberg, Oregon) CPRD Corporate Policy and Research Department (PBGC) ) today reported record earnings for the second quarter and six months ended June 28, 1996. Net income for the quarter rose 77.5% to $4.4 million, or $0.18 per share, on sales of $51.7 million, versus net income of $2.5 million, or $0.10 per share, on sales of $47.3 million in the second quarter a year ago. For the first six months, sales totaled $102.1 million, up 11.5% from $91.6 million in 1995. Net income rose 85% to $8.3 million, or $0.34 per share, up from $4.5 million, or $0.20 per share, in 1995. The second quarter sales increase of 9% over the same quarter a year ago was the result of Power Conversion sales growth of 12.4% partially offset by a 5% decrease in both Computer Systems and Industrial Automation sales. Orders for the quarter were $51.3 million, a 4% increase compared to the $49.2 million reported a year ago. The slower increase is consistent with the current trend of customers working through excess inventory levels. This over inventory position is expected to clear and orders are expected to increase at a more rapid pace in the second half of the year. 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. rose 33% in the second quarter to $6.3 million compared to $4.7 million a year ago. Gross margin improved to 37.8% compared to the 37.0% reported in the second quarter of 1995 reflecting lower manufacturing costs and process improvements. Selling, general and administrative expenses for the quarter declined to 17% of sales from 18% a year ago consistent with the Company's continued focus on overhead cost control. Research and development (R&D) expenses were 8.5% of sales which is greater than industry averages as the Company continues to fund new product design and development for the high growth segments of the communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. . 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. as a percent of sales declined to 25.6% for the second quarter of 1996 compared to 27% for the same quarter a year ago. As a result, operating income rose to 12% of sales from 10% a year ago. Joseph M. O'Donnell, 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. , commenting on operating results said: "Recent performance is the result of our increased investment in new product development targeted at the communications market and the continued focus on cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. and overhead reduction. As our customers clear excess inventory and contracts currently in design enter higher volume production, we expect sales to increase through the second half of the year particularly in the fourth quarter." Computer Products Inc., headquartered in Boca Raton, is a manufacturer of standard and custom-designed electronic products and subsystems for power conversion, industrial automation, and other real-time systems Real-time systems Computer systems in which the computer is required to perform its tasks within the time restraints of some process or simultaneously with the system it is assisting. applications. The majority of Computer Products' sales are derived from servicing the communications marketplace through its Power Conversion division. The Company has operations in Pompano Beach Pompano Beach (pŏm`pənō), city (1990 pop. 72,411), Broward co., SE Fla., on the Atlantic coast and the Intracoastal Waterway; inc. 1908. It is a resort city with ocean beaches, excellent fishing, and a harness-racing track. , Fla., Madison, Wis., Boston, Fremont, Calif., Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and the Republic of Ireland. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by the Company with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. -0-
COMPUTER PRODUCTS INC.
Condensed Financial Highlights
(In Thousands Except Per Share Amounts)
Three Months Ended Six Months Ended
6/28/96 6/30/95 6/28/96 6/30/95
Sales $51,673 $47,316 $102,108 $91,614 Income 4,382 2,866 8,294 4,885 a-Extraordinary Charge -- (397) -- (397) Net Income 4,382 2,469 8,294 4,488 Average Shares 24,508 24,148 24,331 22,504 Primary Earnings per Share Income $0.18 $0.12 $0.34 $0.22 Net Income 0.18 0.10 0.34 0.20 Fully Diluted Earnings per Share Income $0.18 $0.12 $0.33 $0.23 Net Income 0.18 0.11 0.33 0.21 a - Charge, net of taxes, for retirement of 9-1/2% Convertible Subordinated Debentures. CONTACT: Computer Products Inc., Boca Raton Richard Thompson, Chief Financial Officer 407/451-1000 |
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