Conner Reports Third Quarter Results.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Oct. 23, 1995--Conner Peripherals, Inc. (NYSE NYSE See: New York Stock Exchange :CNR See riser card. CNR - Communication and Network Riser ) today reported net income of $13.4 million and fully-diluted earnings per share of $0.25 on 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 of $687.2 million for the third quarter ended September September: see month. 30. These results include a charge of $2.8 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta for the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of in-process R&D associated with the acquisition in July July: see month. of Sytron by Arcada Software Arcada Software was a computer software company that was formed in early 1994 by the merger of Conner Software (the software division of Conner Peripherals) of Lake Mary, Florida, and Astora Software, formerly Quest Development Corporation, of San Luis Obispo, California. , Inc., a Conner con 1 adv. In opposition or disagreement; against: debated the issue pro and con. n. 1. An argument or opinion against something. 2. subsidiary. Without that charge, net income and earnings per share would have been $15.3 million and $0.27, respectively. These results compare with those from the third quarter of 1994 of net income of $10.2 million, fully-diluted earnings per share of $0.20 and net sales of $559.5 million. For the nine months of 1995, net income was $36.4 million, fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.67 and net sales were $1.940 billion, compared with the same period of 1994 of $65.5 million, $1.10 and $1.774 billion, respectively. "In light of serious and continuing component availability and component cost pressures in the quarter, our financial performance continued to be depressed," said Finis Conner, chairman and chief executive officer. "However, our new products are performing well with major OEMs, and demand has continued strong across the board. A significant challenge going foward continues to be managing component costs and availability." The company shipped approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. three million disk drives and ended the quarter with 145 thousand disk drives in finished goods inventory. During the quarter, the company reached a definitive agreement to merge See mail merge and concatenate. with Seagate Technology (company) Seagate Technology - A major manufacturer of hard disk drives, founded in 1979 as "Shugart Technology" by Alan F. Shugart and Finis Conner. That name is on the original patents for the 5.25" hard disk drive. , Inc. This agreement is subject to a number of conditions, including regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval and approval by shareholders of both companies. Founded in 1986, Conner sells, designs and builds a comprehensive line of information storage solutions products, including disk drives, tape drives, storage management software and disk array storage systems for a wide range of computer applications. -0-
CONNER PERIPHERALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1995 1994 1995 1994
Net sales $687,179 $559,504 $1,939,912 $1,773,541 Cost of sales 581,555 458,323 1,623,025 1,402,318 Gross Profit 105,624 101,181 316,887 371,223
Operating expenses:
Selling, general and
administrative 46,586 43,375 153,630 140,739
Research and development 29,670 32,297 99,862 95,195
Amortization of goodwill
and other intangibles 2,694 3,774 7,777 11,272
Unusual items 2,817 -- 2,817 --
Total operating expenses 81,767 79,446 264,086 247,206 Income from operations 23,857 21,735 52,801 124,017 Other income/(expense), net (3,851) (6,463) (7,686) (26,323) Income before income taxes and extraordinary item 20,006 15,272 45,115 97,694 Provision for income taxes (6,602) (5,042) (14,888) (32,190) Income before extraordinary item 13,404 10,230 30,227 65,504 Extraordinary item: Gain on extinguishment of debt (less applicable income taxes of 4,288) -- -- 6,171 -- Net income $13,404 $10,230 $36,398 $65,504 Net income per share:
Primary:
Income before
extraordinary item $ 0.25 $ 0.20 $ 0.57 $ 1.26
Extraordinary item -- -- 0.11 --
Total $ 0.25 $ 0.20 $ 0.68 $ 1.26
Fully diluted:
Income before
extraordinary item $ 0.25 $ 0.20 $ 0.56 $ 1.10
Extraordinary item -- -- 0.11 --
Total $ 0.25 $ 0.20 $ 0.67 $ 1.10
Weighted average shares: Primary 52,240 52,209 53,471 52,175 Fully diluted 74,871 52,209 54,365 74,489
CONNER PERIPHERALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
ASSETS
September 30, December 31,
1995 1994
Current assets:
Cash and short-term investments $ 349,450 $ 443,239
Accounts receivable, net 418,377 307,454
Inventory 265,356 255,880
Deferred income taxes 51,950 51,950
Other 118,157 111,187
Total current assets $1,203,290 $1,169,710
Property, plant and equipment, net 242,076 237,066 Goodwill and other intangibles, net 35,099 39,255 Other 10,322 15,398
$1,490,787 $1,461,429
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 259,649 $ 139,559
Accrued expenses 181,393 190,372
Current portion of long-term debt 3,014 34,922
Total current liabilities 444,056 364,853
Long-term debt, less current portion 527,961 627,059 Deferred income taxes and other 131,644 131,193 Minority interest 3,411 1,648
Stockholders' equity:
Common stock and paid-in-capital 271,233 260,592
Retained earnings 112,482 76,084
Total stockholders' equity 383,715 336,676
$1,490,787 $1,461,429
CONTACT: Conner Peripherals Conner Peripherals was a company that manufactured hard drives for personal computers. Conner Peripherals was founded in 1986 by Seagate Technology co-founder Finis Conner, as a merger between a company of his and another started by MiniScribe founders John Squires and Terry , Inc. Analyst: Jack Bell, 408/456-3770 Dawn Morse, 408/456-3078 or Media: Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) Burr burr (bur) bur. burr n. Variant of bur. burr 1. a plant seed capsule carrying many hooked structures which catch in animal coats thus promoting dissemination of the plant. , 408/456-3134 Mike Seither, 408/456-3743 |
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