COMPUTER PRODUCTS REPORTS SECOND QUARTER RESULTS
COMPUTER PRODUCTS REPORTS SECOND QUARTER RESULTS BOCA RATON, Fla., July 23 /PRNewswire/ -- Computer Products, Inc.
(NASDAQ: CPRD) today reported net income for the second quarter ended July 3, 1992, of $620,000, or $0.03 per share, on sales of $28.6 million, vs. net income of $339,000, or $0.02 per share, on sales of $21.5 million in the second quarter of 1991.
Results for the 26 weeks ended July 3, 1992, included net income of $181,000, or $0.01 per share, on sales of $55.0 million, vs. net income of $407,000, or $0.02 per share, on sales of $42.1 million in the first half of 1991. Computer Systems' orders, sales and results of operations are included in 1992 but excluded from 1991 due to the acquisition of Heurikon Corporation in January 1992. The company's order rate continued to improve, reaching $30.5 million in the second quarter, vs. $20.6 million in the second quarter a year ago and $27.6 million in the first quarter of 1992. Orders at Power Conversion are up significantly over both year-ago levels and the first quarter of this year. This reflects both improving business conditions as well as positive results from the restructuring of the sales organization. Orders at Computer Systems improved over the disappointing level of the first quarter. Process Automation experienced softness in order patterns during the quarter, primarily due to delays in capital spending projects in the nuclear power and process industries. Although this division may have a soft third quarter, the fourth quarter is expected to once again show strength. Higher sales vs. both prior quarter and year-ago periods reflect continued improvement at Power Conversion and Computer Systems, partially offset by the slowdown at Process Automation. Higher gross margins of 44.4 percent, vs. 44.2 percent in the first quarter and 43.2 percent a year ago, were aided by higher volume, particularly at Computer Systems. Selling, general and administrative expenses climbed as a result of the inclusion of Computer Systems which has a higher expense profile, as well as expenses related to the marketing efforts on the new BasixTM product line. Research and development expenses continued at relatively high levels vs. a year ago, reflecting a continuation of work on the BASIX product line and new products being developed in the computer systems area. Commenting on the second quarter results, John N. Lemasters, chairman and chief executive officer, stated, "These results are in line with our expectations and represent a gradual improvement in demand as well as the positive effects of our prior initiatives. We are particularly pleased with the performance of our Power Conversion business. The slowdown at Process Automation is a disappointment, but we are fortunate to have the ability to vary manufacturing capacity and couple expenses closely to order patterns in that area. We are also encouraged by the fact that Process Automation has already booked several major orders for the fourth quarter. Therefore, our greatest area of concentration in the near term will be Computer Systems, with the goal of returning to acceptable sales growth during the second half of the year. Computer Products, Inc. headquartered in Boca Raton, Fla., is a multinational manufacturer of standard and custom-designed electronic products and subsystems for power conversion, industrial automation, and other real-time systems applications. The company has operations in Pompano Beach, Fla.; Madison, Wi.; Boston, Mass.; Fremont, Calif.; Hong Kong and the Republic of Ireland. COMPUTER PRODUCTS, INC. CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In thousands except per share amounts) QUARTER ENDED YEAR TO DATE ENDED July 3, June 28, July 3, June 28, 1992 1991 1992 1991 ORDERS $30,504 $20,593 $58,080 $40,711 SALES: Power Conversion $18,873 $16,248 $35,820 $32,762 Process Automation 4,601 5,298 9,777 9,380 Computer Systems 5,079 9,416 TOTAL SALES 28,553 21,546 55,013 42,142 COST OF SALES 15,877 12,248 30,631 24,459 GROSS PROFIT 12,676 9,298 24,382 17,683 EXPENSES: Selling, general and administrative 8,957 6,590 17,790 12,486 Research and development 2,204 1,537 4,638 3,036 TOTAL EXPENSES 11,161 8,127 22,428 15,522 OPERATING INCOME 1,515 1,171 1,954 2,161 OTHER INCOME (EXPENSE): Interest expense (1,124) (1,168) (2,243) (2,373) Interest income 272 586 586 1,213 TOTAL OTHER INCOME (EXPENSE) (852) (582) (1,657) (1,160) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EXTRAORDINARY ITEM 663 589 297 1,001 PROVISION FOR INCOME TAXES 94 100 167 216 INCOME FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEM 569 489 130 785 LOSS FROM DISCONTINUED OPERATIONS -- (190) -- (418) EXTRAORDINARY CREDIT - UTILIZATION OF NET OPERATING LOSS CARRYFORWARDS 51 40 51 40 NET INCOME $620 $339 $181 $407 PER SHARE AMOUNTS: Income from continuing operations before extraordinary item $.03 $.03 $.01 $.04 Loss from discontinued operations -- (.01) -- (.02) Extraordinary credit - utilization of net operating loss carryforwards -- -- -- -- Net income $.03 $.02 $.01 $.02 Weighted average number of common and equivalent shares outstanding 20,695 20,559 21,122 20,379 CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Dollars in thousands) July 3, 1992 Jan. 3, 1992 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and equivalents $23,267 $27,177 Accounts receivable, net 19,161 16,624 Inventories 12,996 13,000 Prepaid expenses 1,465 1,295 Total current assets 56,889 58,096 PROPERTY, NET 22,519 19,252 OTHER ASSETS: Goodwill, net 19,689 20,096 Other assets, net 5,697 4,086 Assets of discontinued operations -- 3,893 Total other assets 25,386 28,075 TOTAL ASSETS $104,794 $105,423 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES $21,560 $22,588 LONG-TERM LIABILITIES: Long-term debt 8,836 9,249 Lease liabilities 7,539 5,888 Convertible subordinated debentures 37,895 37,895 Liabilities of discontinued operations -- 1,272 Total long-term liabilities 54,270 54,304 TOTAL LIABILITIES 75,830 76,892 STOCKHOLDERS' EQUITY 28,964 28,531 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $104,794 $105,423 07/23/92 /NOTE TO EDITOR: BASIX is a trademark of Computer Products, Inc./ /CONTACT: John Lemasters of Computer Products, 407-451-1000; or Claudia Zaner, 212-830-9080, for Computer Products, Inc./ (CPRD) CO: Computer Products, Inc. ST: Florida IN: CPR SU: ERN
AW-JJ -- FL002 -- 2288 07/23/92 09:00 EDT
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|Date:||Jul 23, 1992|
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