Kent Electronics Comments on Fourth Quarter Revenues and Earnings.HOUSTON--(BUSINESS WIRE)--Feb. 23, 1998--Kent Electronics Corporation (NYSE NYSE See: New York Stock Exchange :KNT KNT Knight KnT Kino No Tabi (book series by Keiichi Sigsawa) ) announced that it expects its revenues and earnings for the fourth quarter ending March 28, 1998 to be sequentially below those of the third quarter. Revenues for the fourth quarter are expected to be in the range of $160 million to $ 165 million, modestly below third quarter revenues of $177 million. Net earnings for the fourth quarter are expected to be in the range of $6.5 million to $7.0 million, or approximately $0.23 to $0.25 per share (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. ). This compares to net earnings of $10.1 million or $0.36 per share (diluted) reported for the third quarter ended December 27, 1997. The shortfall in revenues and earnings is attributable to the Company's contract manufacturing business, which provides cable assembly and full box building services to approximately 30 customers. Fourth quarter revenues are being hurt primarily by a reduction in orders from certain of the Company's semiconductor capital equipment customers who are being impacted by the Asian economic situation. Additionally, pricing pressures from customers in the computer industry are expected to reduce Kent's revenues and gross margin in the fourth quarter. The combined effect of the order trends of the Company's semiconductor capital equipment and computer customers will not be offset by the addition of several new and substantial customers that have signed contracts for Kent's contract manufacturing services during the fourth quarter. Kent's distribution businesses continue to perform well in the fourth quarter, and the Company is successfully building its components, datacomm and redistribution re·dis·tri·bu·tion n. 1. The act or process of redistributing. 2. An economic theory or policy that advocates reducing inequalities in the distribution of wealth. operations by capitalizing on its supply chain management capabilities. The Company noted that while it has not completed its business plan for fiscal 1999, it expects the period to be a year of progressive improvement in overall financial performance. This press release contains forward-looking information based on certain assumptions and contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. that involve risks and uncertainties. The 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. are made pursuant to the 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. provisions of 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 and relate to the Company's performance going forward. In making these forward-looking statements, and in addition to the effects of current general industry and economic conditions, the Company assumed that (i) contract manufacturing revenues from certain of its semiconductor capital equipment and computer customers will be less than the third fiscal quarter, (ii) revenues from new contract manufacturing customers and growth in the Company's distribution businesses will not completely offset the reduction of revenues and gross profit from current contract manufacturing customers, (iii) there will be continued pricing pressures from customers in the computer industry which will cause gross margins to be lower than the fiscal third quarter, and (iv) during the next fiscal year, the Company will be able to increase revenues and net earnings by continuing to add to its customer base while expanding capabilities with existing customers. There can be no assurance that the above mentioned range of estimated revenues and earnings will actually occur. Kent Electronics is among the largest publicly traded specialty electronics distributors. Kent's contract manufacturing subsidiary, U.S. CONTACT: Stephen J. Chapko Executive Vice President & CFO See Chief Financial Officer. 281-243-4000 or Robert P. Jones/Ed Bisno Media Contact: Lee Foley fo·ley n. 1. A technical process by which sounds are created or altered for use in a film, video, or other electronically produced work. 2. A person who creates or alters sounds using this process. Morgen-Walke Associates 212-850-5600 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion