Creative Computers, Inc. Announces Fourth-Quarter Financial Results and Record Annual Sales; Fourth Quarter EPS $0.13 -- Net Income Up 96% Over Same Qes Increase 13% Sequentially.TORRANCE, Calif.--(BUSINESS WIRE)--Jan. 22, 1997- period ended December 31, 1996. The Company continued to improve operating results by posting its seconder profit of $650,000 and up over 100% from third quarter 1996 profit of $557,000. "We are very proud competitors. Our management team continues to sed 79% this quarter over the corresponding quo see opportunities for greater efficiencies throughout the business," stated Frank Khulusi, Creative's President and Chief Executive Officer. Fourth Quarter and Year End 1996 Financial Summary 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 quarter ended December 31, 1996 were $130.0 million, up 17%year's fourth quarter to 12.6% in the fourth qourth quarter of 1996 declined by $3.5 million the third quarter of 1996. Lower SG&A compared to the fourth quarter of 1995 is primarily due to $1.2 mipense as a percentage of net sales. The Company reported net income of $1.3 million, or $0.13 per share, compared with net income of $0.6 million, or $0.07 per sharehs ended December 31, 1996 increased 6% to $44ouraged by the fact that our trend in sales for the last two quarters has been positive, going from a 7% decrease in the third quarter of 1996 to an increase of 8% in December 1996 over comparable periods in the previous year. We continue to look for and find innovative, cost-effective methods of attracting, servicing and retaining our customers and expect to further enhance our business model," commented Khulusi. Outstanding PC/Wintel Results The Company experienced a very strong quarter and year in 1996 compared to Q3 1996. "We are pleased with our increasing penetration into the PC/Wintel market. We year, including major ones such as Intel's Pentium processor with MMX technology MMX technology - Matrix Math eXtensions and Microsoft's Office `97,by Strong Clone Performance "We are also pleased with our results on the Mac side of our business ac market. Our results indicate that our marketover 20% of our Macintosh CPU CPU in full central processing unit Principal component of a digital computer, composed of a control unit, an instruction-decoding unit, and an arithmetic-logic unit. sales. Mac and Our customers' purchases indicate that they are excited about the many Apple and Mac OS- compatible CPU choices that are now available on the market. A number of these systems are below the prices of equivalent systems on the Wintel platform, a factor which may drive further intC sales exceeded $100 million -- Increased proprietary database 99% in 1996 over 1995 to over 2.5 million names -- Established dedicated outbound telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. group -- Obtained additional catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. authorizations for Compaq, Digital Equipment, Hewlett-Packard, Toshiba, Sony, Motorola, and Hitachi computers -- Completed warehouse move to FedEx hub city Hub (Urdu: حب ) city is located in Hub Tehsil of Lasbela District in Balochistan, Pakistan. See also
realized -- New management team transition completed Outlook "In 1997, we plan to further increase our PC/Wintel-based sales efforts significantly. PC Mall catalog circulation is expected to increase by over 50% this year. In addition, outbound selling will be a greatly expanded effort for PC Mall in 1997," said Khulusi. "The sales outlook for 1997 is favorable as our customers adopt new technologies. We expect to receive additional product line authorizations this year, which are expected to contribute to sales in 1997. Additionally, we continue to aggressively seek better pricing and special buys and promotions from our vendors, such as the Zip Drive See Zip disk. (hardware, storage) Zip Drive - A disk drive from Iomega Corporation which takes removable 100 megabyte hard disks. Both internal and external drives are manufactured, making the drive suitable for backup, mass storage or for moving files between computers. for $99 (after rebates) that we offered in the fourth quarter," said Dan DeVries, Executive Vice President, Marketing. Creative Computers, Inc. is a leading direct marketer of personal computer hardware, software and peripheral products for users of PC/Wintel and Apple Macintosh Apple Macintosh - Macintosh and compatible personal computers. The Company offers over 14,500 products to its customers through its distinctive, full-color PC Mall, MacMall and DataCom Mall catalogs, and other promotional materials. The Company's staff of knowledgeable sales, customer service and technical support personnel work together to provide high level customer service and gain customer loyalty. Customers may call PC Mall sales representatives at (800) 555-MALL and MacMall sales representatives at (800) 222-2808, or shop on the Internet at http://www.pcmall.com or http://www.macmall.com . Except for historical information, all of the statements, expectations and assumptions contained in this press release are 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. . The realization of any or all of these expectations and assumptions is subject to a number of risks and uncertainties, and it is possible that the assumptions made by management may notd demand for products manufactured by and compatible with Apple Computer and clones thereof, our reliance on Apple Computer, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Hewlett Packard, Compaq and other venrt on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for 1995. For more infoEMENTS OF OPERATIONS (unaudited, in thousands except per share data) For the three For the twelve months ended months ended Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold 113,645 111,617 395,000 361,803 Gross Profit 16,337 18,906 49,971 59,074 Selling, general and administrative expenses 14,368 16,649 60,585 48,455 Cost associated with the and income taxes .65 Weighted average number of shares outstanding 9,940 9,900 9,767 9,021 CONTACT: AT THE COMPANY (310) 442-0599 Steve Seiler Media Contact (310) 442-0599 Renee Law Investor Contact l file on the Internet with Hyperlinks to your home page. URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com |
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