DPAC Technologies Reports Second Quarter Cash Earnings of $0.05 Per Share.Business Editors and High-Tech Writers GARDEN GROVE Garden Grove, city (1990 pop. 143,050), Orange co., S Calif., a suburb of Long Beach and Los Angeles, on the Santa Ana River; founded 1877, inc. 1956. Many of its residents work in nearby aerospace and defense installations, and there is light manufacturing. , Calif.--(BUSINESS WIRE)--Sept. 25, 2001 Revenue Increases by 14% Year-Over-Year, 10% Over Previous Quarter Cash Earnings Increase by 57% Over the Previous Quarter DPAC DPAC Denver Performing Arts Complex (CO, USA aka: DCPA) DPAC Deferred Policy Acquisition Costs (insurance) DPAC District Parent Advisory Committee DPAC Dover Partnership Against Crime Technologies Corp. (Nasdaq:DPAC), a provider of products and services for the Integration Age, today reported results for the second quarter, ended August 31, 2001 of its fiscal year 2002. The Company reported revenues of $8.2 million, an increase of 14 percent over the same period of the previous year's level of $7.2 million and a 10 percent increase over the previous quarter. Cash earnings, earnings before depreciation and amortization, were $1.0 million or $0.05 per 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. This compares to cash earnings of $771,000 or $0.04 per diluted share in the same period of the previous year and $647,000 or $0.03 per diluted share in the previous quarter. Net earnings for the quarter were $461,000 or $0.02 per diluted share. During the quarter, DPAC recorded amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and depreciation of $555,000. Periods Ended Second Quarter Six Months August 31 2001 2000 % B/(W) 2001 2000 % B/(W) In 000's except per share amounts Revenue $ 8,201 $ 7,205 14% $ 15,654 $ 18,185 (14%) Gross Profit $ 2,515 $ 2,381 6% $ 4,730 $ 5,487 (14%) Gain from Operations $ 460 $ 387 19% $ 534 $ 1,653 (68%) Operating Margin 5.6% 5.4% -- 3.4% 9.1% -- Cash Earnings(a)$ 1,016 $ 771 32% $ 1,664 $ 2,366 (30%) Cash EPS $ 0.05 $ 0.04 25% $ 0.08 $ 0.11 (27%) Net Income $ 461 $ 407 13% $ 572 $ 1,639 (65%) EPS Diluted basis $ 0.02 $ 0.02 -- $ 0.03 $ 0.08 (63%) Diluted Shares 21,338 20,947 -- 21,176 20,633 -- (a) Net income before amortization of intangible assets and depreciation. "Before deciding to increase our operating staff early in the quarter, we carefully assessed our business level," commented Ted Bruce, DPAC's 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. . "The increased level of business we experienced continued to pick up momentum as the quarter progressed, and we processed a record number of stacks this quarter." Mr. Bruce continued, "During the quarter, memory prices decreased by an unprecedented 75 percent, creating an opportunity for inexpensive memory upgrades. We believe this facilitated the increased business level." During the second quarter, gross margins improved slightly to 31 percent from 30 percent in the prior quarter. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: were virtually flat year-over-year, but increased significantly from the prior quarter level of 1.5 percent to 5.6 percent in the second quarter. Sales, general and administrative expenses, which decreased 26 percent during the first quarter, continued to decline an additional 9 percent or $141,000 in the second quarter. Bill Stowell, DPAC's chief financial officer, stated, "Our commercial units demand grew during the second quarter. The number of commercial stacks processed increased over 65 percent from the previous year's second quarter. We are encouraged by this increase, especially in light of recent semiconductor sales reports that indicated U.S. sales fell 51 percent in July compared to the same month last year and seven percent from June, which itself dropped nine percent from May." Second Quarter Developments -- DPAC contracted to provide design, development and manufacturing service for new phone system router for NEC -- DPAC announced plans to increase workforce by 10 to 15 percent -- Company changes name from Dense-Pac Microsystems to DPAC Technologies Corp. to reflect new diverse business model -- DPAC adds thin profile Memory Stack(TM) for rack-mount 1U network servers For the first six months of the current fiscal year, revenue decreased by 14 percent or $2.5 million, primarily due to the decrease in worldwide memory prices. The total units of stacked Stacked is an American television sitcom that premiered on Fox on April 13, 2005. On May 18, 2006, Stacked was cancelled, leaving five episodes unaired in the United States. The last episode aired on January 11, 2006. products shipped increased by three percent. Total 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. were virtually unchanged, year-over-year. Research and development costs rose to $891,000 or six percent of revenue from five percent for the same period of the previous year. Mr. Bruce commented further, "Although we are encouraged by the sustained level of business activity DPAC has experienced over the last four to five months, we remain cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the short-term future in light of the market's general state of uncertainty." DPAC has scheduled a conference call to present its fiscal second quarter financial results today, Tuesday, September 25, 2001 at 4:15 pm (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). Interested parties may access the conference call by dialing 888-857-6929. A replay of the conference call in its entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. will be available approximately one hour after its completion for seven days by dialing (719) 457-2600 and providing the following passcode: 643837. About DPAC Technologies Based in Garden Grove, CA, DPAC Technologies Advanced Packaging Group provides patented component packaging technology to create high-density, space-saving surface mount electronic components. DPAC's products are used in electronic circuits found in network servers, computer storage devices, medical instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. and communication devices. The Company's System Design Group provides outsourced engineering design services to aid customers in creating cost saving circuit designs. The Value Added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. Manufacturing Group provides contract manufacturing of prototype designs and medium volume production runs of circuit boards. DPAC's mission is to provide products and services for the Integration Age. Investor information is available through their corporate headquarters Investor Relations Investor relations The process by which the corporation communicates with its investors. Department at (714) 898-0007 x128, or contact Joe Zappulla at Wall Street Investor Relations Corp. (212) 973-0883. Visit the DPAC web site at www.DPACtech.com. This press release includes 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. , including statements regarding the management's current beliefs concerning Company's market, technology development, expansion and business plans, relationships in price parity parity or space parity, in physics, quantity that refers to the relationship between an object or process and the image that it can produce in a mirror. of existing technology with future technology, the need for emulation (architecture) emulation - When one system performs in exactly the same way as another, though perhaps not at the same speed. A typical example would be emulation of one computer by (a program running on) another. products, business interruptions due to acts of terrorism, which are subject to change as a result of various risks or uncertainties. Every statement herein that is not historic in nature is a forward-looking statement. These factors would include, but are not limited to, uncertainties and risks concerning acquisitions, challenges in integrating technologies or operations efficiently or managing acquired operations, risks concerning liabilities acquired and due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , protection of technology or proprietary rights, risks of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and others, and difficulties of controlling acquisition costs. The actual results may materially differ from those described in any forward-looking statement. Important factors that may cause actual results to differ are set forth in the company's periodic filing with the U. S. Securities and Exchange Commission including its Form 10-KSB for year-ended February 28, 2001 or subsequent Forms 10-Q. These statements speak as of the date of this release, and the Company undertakes no obligation to update these statements in light of future events or otherwise.
DPAC TECHNOLOGIES CORP.
Condensed Consolidated Balance Sheet Information
(In thousands)
(Unaudited)
8/31/01 2/28/01
Cash and cash equivalents $ 4,657 $ 5,347
Current assets $ 8,822 $ 10,373
Fixed assets, net $ 5,138 $ 5,381
Total assets $ 19,509 $ 21,763
Current liabilities $ 2,044 $ 4,755
Long-term debt $ 666 $ 787
Shareholders' equity $ 16,799 $ 16,221
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