EXIDE ELECTRONICS ANNOUNCES RECORD THIRD QUARTER RESULTS PRIMARY EARNINGS PER SHARE UP 86 PERCENT
RALEIGH, N.C., July 27 /PRNewswire/ -- Exide Electronics Group, Inc. (NASDAQ: XUPS), the world's largest supplier of power management and power protection hardware, software and services, today reported record revenues and earnings for its third fiscal quarter ended June 30, 1993. Revenues for the quarter were $75.1 million, up 38 percent from $54.3 million for the third quarter of fiscal 1992. Net income for the quarter was $2,486,000, up 97 percent from $1,264,000 in the third quarter of 1992. Primary earnings per share were $0.39 for the third quarter of 1993, as compared to $0.21 for the corresponding period in 1992, and fully diluted earnings per share were $0.33 versus $0.21 a year ago. Fully diluted shares outstanding in the third quarter were 39 percent higher in 1993 than in 1992. Commenting on the company's record financial performance, Jim Risher, president and chief executive officer, stated: "We are clearly pleased with the company's record results this quarter. It represented our highest quarterly revenues ever and has given us momentum going into the fourth quarter, which has historically been our strongest quarter. We achieved this growth while controlling our operating costs, thereby improving income from operations in both absolute terms and as a percentage of revenues. "Looking forward, we anticipate achieving a record financial performance in fiscal 1993. We continue to expect strong Federal revenues; additionally, we are excited about our new power management solutions recently introduced for the high performance LAN, workstation, and personal computer environments. We were delighted with the level of interest expressed in our new Powerware Network Power Management Services at Comdex and other trade shows. We are encouraged by the response to our new MORE Value Added Reseller (VAR) program, having exceeded our goal to sign on 500 BARs by September 30. We expect significant levels of shipments of these products to begin in the fourth quarter." Revenues for the first nine months of fiscal 1993 were $194.4 million, up 31 percent from $148.5 million in fiscal 1992. Income before the cumulative effect of an accounting change was $4,576,000, up 93 percent from $2,372,000 in 1992. Primary earnings per share before the cumulative effect of an accounting change were $0.66 for the first nine months of 1993, an increase of 74 percent over the $0.38 for the corresponding period in 1992. Fully diluted earnings per share before the cumulative effect of an accounting change were $0.63 versus $0.38 for the same period in 1992. Fully diluted shares were 41 percent higher for the first nine months of 1993 compared to 1992. As previously reported, earnings for the first quarter of 1993 were increased by $1 million from the cumulative effect of adopting Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." With the adoption of this standard, the company had net income for the nine months ended June 30, 1993, of $5,576,000, as compared to $2,372,000 in 1992, and had primary net income per share of $0.84 in 1993 versus $0.38 in 1992. Fully diluted net income per share including the accounting change was $0.76 for the nine months ended June 30, 1993, double the $0.38 per share recorded in 1992. The 38 percent increase in third quarter revenues was led by large increases in sales to the U.S. Federal government, primarily from the provision of products and services to the Federal Aviation Administration ("FAA"). Exide Electronics is providing the FAA with uninterruptible power systems ("UPS"), ancillary power equipment, and systems engineering and implementation services at 26 locations under the FAA's Air Route Traffic Control Center Modernization Program. The company is currently installing its UPS products and providing systems implementation services at eight FAA sites, and is developing the engineering design for an additional eight locations. In addition, the company experienced moderate commercial growth in its domestic markets. However, this growth was partially offset by sluggish sales in Canada and Europe as a result of continued weakness in their economies.
Small Systems Fuel Commercial Growth
The increase in domestic commercial sales was fueled primarily by sales in the small systems market, driven by the company's Powerware(R) Plus line, which ranges from 6 kVA to 36 kVA. Revenues this quarter benefited from the new 3 kVA Powerware Premier and the first production shipments of the company's new Powerware Plus 36 model. The company has established a strong market position for small systems requiring power protection of 3 kVA and above, and is continuing to strengthen its position in the market below 3 kVA. The company's recent additions to its small systems offerings include: the ONE-UPS(R), providing a low- cost standby solution; its Powerware Network Power Management Services, including several models of the new Powerware Prestige ranging from 800 VA to 1500 VA for high-performance workstations and networks; enhanced versions of its OnliNet(R) automatic shutdown and monitoring software packages, and open systems networking solutions including SNMP. Most of these new products were announced in May at Comdex in Atlanta.
Gross Profits Improve/Operating Expense Ratio Declines
The healthy growth in revenues helped the company's overall gross profits improve by $3.9 million or 25 percent for the quarter and by $10.3 million or 25 percent year-to-date as compared to the prior year. Gross profit margins decreased by 2.7 points for the quarter and 1.2 points year-to-date as compared to the corresponding periods in 1992 because of the higher mix of Federal government revenues. The company's government sales generally have lower gross margin percentages than commercial sales, while generally producing similar operating margins. Selling, general and administrative expenses and research and development expenses declined significantly as a percentage of sales to 18.4 percent in the third quarter of 1993 from 23.1 percent in 1992, and to 20.7 percent on a year-to-date basis from 23.3 percent in 1992. However, these operating expenses grew in absolute dollars to support the higher level of sales and the continued investment in new products and distribution channels for the company's Small Systems Group. The increases in gross profits, combined with decreases in operating costs and interest expense as a percentage of sales, resulted in the company's strong earnings growth. Exide Electronics is the largest company in the world dedicated exclusively to developing, manufacturing and servicing a full line of power management and power protection systems. Headquartered in Raleigh, N.C., Exide Electronics responds to the power management needs of a broad range of businesses and institutions worldwide, including many Fortune 1000 companies. Exide Electronics' products are used for financial, medical, industrial, telecommunications, military, and aerospace applications -- wherever continuous power is essential to daily operations. EXIDE ELECTRONICS GROUP, INC. CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) (in thousands, except per share amounts) Three Months Ended Nine Months Ended June 30, June 30, 1993 1992 1993 1992 Revenues Products $50,719 $40,125 $135,859 $112,347 Services 24,416 14,177 58,583 36,169 Total revenues 75,135 54,302 194,442 148,516 Cost of revenues Products 38,512 30,107 103,191 86,097 Services 17,350 8,811 39,997 21,480 Total cost of revenues 55,862 38,918 143,188 107,577 Gross profit 19,273 15,384 51,254 40,939 Selling, general and administrative expense 11,818 10,633 34,181 29,246 Research and development expense 2,016 1,886 6,084 5,319 Income from operations 5,439 2,865 10,989 6,374 Interest expense 1,206 1,248 3,144 3,464 Interest income (56) (75) (343) (391) Other (income) expense 39 (504) 366 (525) Income before income taxes and the cumulative effect of accounting change 4,250 2,196 7,822 3,826 Provision for income taxes 1,764 932 3,246 1,454 Income before the cumulative effect of accounting change 2,486 1,264 4,576 2,372 Cumulative effect of accounting change for income taxes -- -- 1,000 -- Net income $2,486 $1,264 $5,576 $2,372 Preferred stock dividends 297 101 823 300 Net income available to common shareholders $2,189 $1,163 $4,753 $2,072 Per share amounts: Primary Income before the cumulative effect of accounting change $ 0.39 $ 0.21 $ 0.66 $ 0.38 Cumulative effect of accounting change for income taxes -- -- 0.18 -- Net income $ 0.39 $ 0.21 $ 0.84 $ 0.38 Weighted average number of common and equivalent shares outstanding 5,666 5,562 5,685 5,514 Fully diluted Income before the cumulative effect of accounting change $ 0.33 $ 0.21 $ 0.63 $ 0.38 Cumulative effect of accounting change for income taxes -- -- 0.13 -- Net income $ 0.33 $ 0.21 $ 0.76 $ 0.38 Weighted average number of common and equivalent shares outstanding 7,756 5,562 7,771 5,519 -0- 7/27/93 /CONTACT: (Media) Karin Cram, Corporate Communications, 919-870-3239 or (Investor) Marty Kittrell, Chief Financial Officer, 919-872-3020, both of Exide Electronics Group, Inc./ (XUPS)
CO: Exide Electronics Group, Inc. ST: North Carolina IN: CPR SU: ERN
MM -- CH001 -- 6064 07/27/93 08:55 EDT
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|Date:||Jul 27, 1993|
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