Printer Friendly

MICRONICS REPORTS THIRD QUARTER FINANCIAL RESULTS

 MICRONICS REPORTS THIRD QUARTER FINANCIAL RESULTS
 FREMONT, Calif., July 23 /PRNewswire/ -- Micronics Computers Inc.


(NASDAQ: MCRN) today reported financial results for the quarter and nine months ended June 30, 1992. Net sales reached a record $41.1 million for the quarter, up 18 percent from the comparable prior year quarter. Net income of $1,681,000 ($.15 per share) decreased 36 percent from $2,644,000 ($.32 per share) in the prior year's third fiscal quarter. The 1992 third quarter net income includes the effect of approximately $800,000 of one-time inventory adjustments related to products phased out during the quarter. Micronics now has reported 23 consecutive quarters of profitable operations since its founding in late 1986.
 For the nine months ended June 30, 1992, the company's net sales increased 25 percent to $119.9 million from $96.2 million, for the same period last year. Net income was $6,882,000 ($.62 per share), down 2 percent from $7,011,000 ($.83 per share) in the prior year period. The 1992 third quarter and nine-month earnings per share amounts include the effect of 2,600,000 common shares sold by the company in its July 1991 initial public offering.
 Micronics CEO Chuck Chan said that the company's results are very encouraging given that intense price competition in the personal computer industry has many other companies reporting declining sales as well as operating losses. "During this last quarter, Micronics has responded to extremely difficult market conditions by reducing product costs, controlling on-going operating expenses, and by phasing out our systems products in order to best leverage the company's strengths in the system board business," Chan said. "Two major factors contributed to a third quarter gross margin of just under 18 percent -- the decline of average selling prices for the company's system board products and one-time inventory adjustments of approximately $800,000 (after-tax effect of approximately $.05 per share) related to the phased-out system products.
 "Micronics' consistent strategy of staying in the high end of the system board market, where the margin opportunities are better, and targeting the fast-growing direct-marketing channels has proven to be a sound one," said Chan. "We feel that the recent decisions by IBM and Compaq to enter the direct-marketing business show only too well how important that channel has become."
 Micronics Computers is a leading supplier of high-performance system boards incorporated in high-end IBM-compatible personal computers sold by OEMs and VARs. A system board contains the microprocessor and supporting logic circuitry and memory components that form the core of a personal computer. The company sells primarily to direct marketers and other marketing-oriented personal vendors.
 MICRONICS COMPUTERS
 Condensed Statement of Operations
 (In thousands, except per share data)
 Three Months Ended
 June 30,
 1992 1991
 Net sales $41,107 $34,977
 Gross profit $7,240 8,303
 Income from operations $2,404 3,952
 Net income $1,681 2,644
 Net income per share $.15 $.32
 Common and common equivalent
 shares outstanding 10,927 8,391
 Nine Months Ended
 June 30,
 $24,711 23,402
 Income from operations $10,312 10,795
 Net income 6,882 7,011
 Net income per share $.62 $.83
 Common and common equivalent
 shares outstanding 11,059 8,478
 -0- 7/23/92
 /CONTACT: Robert Campbell of Micronics, 510-651-2300/
 (MCRN) CO: Micronics ST: California IN: CPR SU: ERN


RM -- SJ003 -- 2295 07/23/92 09:04 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 23, 1992
Words:564
Previous Article:POPE RESOURCES REPORTS SECOND-QUARTER INCOME OF $1,511,000
Next Article:SCHULER HOMES INC. REPORTS SALES AND EARNINGS FOR SECOND FISCAL QUARTER, 1992
Topics:


Related Articles
MICRONICS COMPUTERS REPORTS FIRST QUARTER FINANCIAL RESULTS
MICRONICS ANNOUNCES RECORD SECOND-QUARTER RESULTS
MICRONICS ANNOUNCES THIRD QUARTER RESULTS
MICRONICS ANNOUNCES FOURTH QUARTER RESULTS
MICRONICS ANNOUNCES THIRD QUARTER RESULTS
Micronics Adjusts Revenue Outlook
Micronics Revises Results For Year Ended September 30
Micronics Announces First Quarter Results
Micronics Revises Second Quarter Income Expectations
Micronics Announces Fourth Quarter Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters