Random Access announces second quarter results.DENVER--(BUSINESS WIRE)--April 13, 1995--Random Access, Inc. (Nasdaq National Market - RNDM RNDM Sisters of Our Lady of the Missions, Religieuses de Notre Dame Missions (religious order) ), a leading provider of information technology solutions to corporate and institutional clients in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century , today announced results for its second quarter of fiscal 1995 ended February 28, 1995. Second quarter 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 increased 26% to $59 million from $47 million in the same quarter last year. Net income was $43,000, or 1 cent per share, as compared to $452,000, or 7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , in the second quarter a year ago. Second quarter gross margins increased to 16.3% from 14.4% in the second quarter a year ago. Management attributed the improved margins to increased revenue from its value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. . Increased investment in infrastructure to accommodate anticipated revenue growth in value-added services resulted in higher selling, general, and administrative expenses. As a percent of revenue, these expenses increased to 15.3% in the second quarter from 12.8% in the same quarter last year. "We are pleased that Random Access has reacted positively to industry-wide margin pressures and is successfully implementing a strategy to integrate value-added services into our revenue mix, however, we are obviously disappointed in the bottom line results for the second quarter," said Richard Crawford, 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. . "Our investments in personnel and infrastructure are necessary to support our value-added services strategy. We are confident that this will begin driving income to the bottom line in the future. In the near term, however, these costs have a negative impact on earnings." During recent months, Random Access completed two acquisitions. Documatrix, Inc., a Denver-based designer and integrator of document imaging systems, is a high growth company with strong margins on both a sales and operational basis. It was acquired in mid-February and is run as a separate division of Random Access. In the beginning of March, Random Access completed its acquisition of Advanced Systems and Peripherals, Inc. (ASAP (chat) asap - As soon as possible. ), a St. Louis-based company specializing in the design and integration of education computer systems for K-12 school systems in a five-state area, which includes Illinois, Missouri, Iowa, Kansas, and Oklahoma. Additionally, the Company provides systems integration services for corporate clients in the St. Louis metropolitan area. Both acquisitions were driven by the Company's continued strategy to increase the percentage of revenue from value-added services. "These acquisitions, as well as our internal investments in value-added services, are consistent with our strategy to build shareholder value over the long term," Crawford added. Headquartered in Denver, Colorado, Random Access maintains 12 branch offices in a 10-state region. The Company provides microcomputer hardware and software; local and wide area networking systems, design and support; document imaging; videoconferencing A real time video session between two or more users or between two or more locations. Although the first videoconferencing was done with traditional analog TV and satellites, inhouse room systems became popular in the early 1980s after Compression Labs pioneered digitized video systems and telecommunications consulting; high performance workstations; and service, training/education and support to corporate and institutional clients in the western United States. -0-
Random Access Inc.
INCOME STATEMENT DATA
Second Quarter Ended
February 28,
1995 1994 (a)
Net sales $ 59,489,000 $ 47,276,000 Gross profit $ 9,717,000 $ 6,820,000 S,G&A $ 9,126,000 $ 6,073,000 Operating income $ 591,000 $ 747,000 Pre-tax income $ 70,000 $ 701,000 Net income (loss) $ 43,000 $ 452,000 Earnings (loss) per share $ .01 $ .07 Weighted average shares outstanding 6,766,000 6,837,000
BALANCE SHEET DATA February 28, August 31,
1995 1994
Working capital $ 7,829,000 $ 12,637,000 Total assets $ 64,925,000 $ 56,383,000 Long-term liabilities $ 2,588,000 $ 2,359,000 Shareholder's equity $ 19,307,000 $ 18,868,000 (a) Restated to reflect the April 8, 1994 acquisition of JLV JLV Junior League of Victoria, Texas Enterprises, Inc. in accordance with the pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. method of accounting. CONTACT: Random Access Inc., Denver Richard Crawford, CEO, 303/745-9600 or Pfeiffer Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Inc., Denver Jay Pfeiffer or Kim Smith Kim Smith may be:
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