Computer Products reports third quarter results; power conversion sales up 26%.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)--Oct. 15, 1996--Computer Products, Inc. (Nasdaq/NM:CPRD CPRD Chehalem Park and Recreation District (Newberg, Oregon) CPRD Corporate Policy and Research Department (PBGC) ) Tuesday reported earnings for the third quarter and nine months ended Sept. 27, 1996. Net income for the quarter rose 18% to $5.1 million, or $0.21 per share, as sales increased 23% to $57.8 million, versus net income of $4.4 million, or $0.18 per share, on sales of $46.9 million in the third quarter a year ago. For the first nine months of 1996, sales totaled $159.9 million, up 15% from $138.5 million in 1995. Net income rose 52% to $13.4 million, or $0.55 per share, up from $8.8 million or $0.38 per share for the comparable period in 1995. The third quarter sales increase of 23% over the same quarter a year ago was primarily due to Power Conversion's sales growth of 26% from increased worldwide demand in the communications marketplace, particularly from direct sales to OEM's. Industrial Automation's sales increased 4% over last year's third quarter while Computer Systems' sales were 18% higher than the third quarter of 1995 as a result of increased penetration of the communications market. 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. in the third quarter of $7.2 million compared to $6.1 million a year ago showed continued improvement as higher revenues and reductions in selling, general and administrative expenses as a percent of sales more than offset lower gross margins and ongoing research and development investment. As a result, 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 decreased to 23% compared with 26% for the same quarter a year ago. Gross margins of 35.4% were down compared to the 39.2% reported in the third quarter of 1995, as the Power Conversion business incurred manufacturing start up costs for an unusually large number of new custom and standard products that began shipping late in the quarter. 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, "Our third quarter and 1996 performance reflect continued growth in revenue and profitability due to our focus on the communications market." Mr. O'Donnell continued, "During the quarter, we successfully executed on the acquisition component of our growth strategy by purchasing Jeta Power Systems, Inc. The Jeta acquisition will benefit both existing and new communication customers by adding important high power technology. We also entered into long term agreements with Alcatel Telecom, a division of France's Alcatel Alsthom and Yamabishi Electric Company of Japan. Both of these agreements expand our sales opportunities and further leverage our R&D investments." Computer Products, Inc., headquartered in Boca Raton, is a manufacturer of standard and custom-designed electronic products and subsystems for 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. 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 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., Huntington Beach Huntington Beach, city (1990 pop. 181,519), Orange co., S Calif., on the Pacific coast, across from Santa Catalina Island, in an oil-producing area; inc. 1909. It manufactures aerospace vehicles, aircraft parts, optical instruments, and heat transfer equipment. , Calif., China, 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. Computer Products, Inc. will be presenting at the upcoming 26th Annual Monterey Classic hosted by the American Electronics Association The American Electronics Association (now known as AeA) is a nationwide non-profit trade association that represents all segments of the technology industry in the United States. (AEA AEA Atomic Energy Authority AEA n abbr (BRIT) (= Atomic Energy Authority) → consejo de energía nuclear; (BRIT) (SCOL) (= Advanced Extension Award) → ). Management will be presenting during Session 1, on Monday and Tuesday, Oct. 28th and 29th and would welcome your attendance. 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 Nine Months Ended
9/27/96 9/29/95 9/27/96 9/29/95
Sales $57,760 $46,905 $159,868 $138,518
Income 5,131 4,358 13,424 9,243
(a)Extraordinary Charge -- -- -- (397)
Net Income 5,131 4,358 13,424 8,846
Average Shares 24,612 24,313 24,436 23,015
Primary Earnings
per Share
Income $0.21 $0.18 $0.55 $0.40
Net Income 0.21 0.18 0.55 0.38
Fully Diluted Earnings
per Share
Income $0.21 $0.18 $0.54 $0.42
Net Income 0.21 0.18 0.54 0.40
(a) Charge, net of taxes, for retirement of 9-1/2%
Convertible Subordinated Debentures.
NOTE TO EDITORS: For access to: Computer Products - News On Demand Plus, call 800/311-7735. For access to: Computer Products Corporate News on the net: http://www.businesswire.com/cnn.cprd.htm CONTACT: Investor Relations Investor relations The process by which the corporation communicates with its investors. Contact: John Nesbett, Lippert/Heilshorn & Associations 212/838-3777 or Company Contact: Richard Thompson, Chief Financial Officer 407/451-1000 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion