MERISEL ANNOUNCES RECORD SALES IN SECOND QUARTER
MERISEL ANNOUNCES RECORD SALES IN SECOND QUARTER EL SEGUNDO, Calif., Aug. 4 /PRNewswire/ -- Merisel Inc.
(NASDAQ: MSEL) today reported record quarterly sales of $512,734,000 for the quarter ended June 30, 1992. This represents revenue growth of 41 percent over sales of $364,817,000 for the same period in 1991, and 6 percent growth over sales of $487,103,000 in the first quarter of 1992. Net sales for the six months ended June 30, 1992 increased to $999,837,000, up 37 percent from the same period in 1991.
Net income for the second quarter 1992 was $4,443,000, or $.15 per share, up from $1,482,000, or $.06 per share, in the second quarter of 1991. Net income for the six months ended June 30, 1992 increased to $8,583,000, up 329 percent from net income of $2,000,000 for the same period in 1991, while earnings per share increased to $.30 from $.08. "It is the first time that we have exceeded one-half billion dollars in revenue in a quarter and we are very pleased to achieve a 41 percent year-to-year rate of growth at a time when prices of hardware and software are decreasing and the growth of the industry remains moderate," said Merisel Co-Chairman and Chief Executive Officer Michael D. Pickett. "Revenue growth this quarter was particularly strong in U.S., Europe and Latin America. Second quarter sales growth rates for these markets were 43 percent, 55 percent and 51 percent, respectively." Pickett added, "This quarter, even though we have witnessed a downturn in gross margins as a result of competitive pressure, our operating expenses as a percentage of sales came down at a more rapid rate. Our Australian subsidiary made good progress in its effort to become consistently profitable. And, we entered the Mexican market with the acquisition of Dinamia." European revenues for the quarter were up 55 percent over revenues in the same period of 1991. Growth was particularly strong in Germany, as the company continued to expand its product offering and gain market share. The company also made progress in Austria, as it substantially increased sales since its start-up date a year ago. Due to France's and Switzerland's economic environment and intense competitive pressure, Merisel experienced difficulties in these markets. The company continues to add strategic manufacturers in each European market, while striving to balance its product mix between hardware and software. Some key product distribution agreements that were signed throughout the quarter included: Compaq's complete product line in the United Kingdom, Toshiba systems in France, IBM PS/1 systems and Expercomp's Ambra systems in Canada, Borland software in Latin America, AST computers in Australia, and in the United States, Commodore, Sharp and Zenith systems, IBM multimedia and token-ring products, Radius monitors and Quark software. "To offset the decline in gross margins, we continue to focus on lowering costs as a percentage of sales. In the U.S., we consolidated the corporate function of our Macintosh sales division Macamerica to corporate headquarters," said Merisel Senior Vice President, Finance and Chief Financial Officer James Brill. "We also placed $100 million in long-term debt and entered into a new three- year borrowing agreement with our banks. We continue to manage our asset levels. In fact, inventory turns in the quarter increased to 7.4 from 6.9 in the second quarter 1991." MERISEL INC. AND SUBSIDIARIES Summary of Operating Results (In thousands except per share amounts) Three months ended Six months ended June 30, June 30, 1992 1991 1992 1991 Net sales $512,734 $364,817 $999,837 $729,453 Gross profit 47,919 36,095 94,361 72,360 Income before tax 7,439 2,381 14,789 4,223 Net income 4,443 1,482 8,583 2,000 Net income per share .15 .06 .30 .08 Weighted average shares outstanding 30,289 24,957 28,324 24,957 Merisel is the world's largest publicly held distributor of microcomputer hardware and software products. The company presently stocks products from more than 700 manufacturers for sale to 50,000 resellers worldwide. Merisel currently maintains 20 distribution centers that serve North America, Europe, Latin America, the Caribbean and Australia. It sells more than 10,000 products worldwide and offers a wide range of services to support the sales of these products. -0- 8/4/92 /CONTACT: James Brill, CFO, 310-615-1259, or Cathy Quattrocchi, 310-615-1230, both of Merisel/ (MSEL) CO: Merisel Inc. ST: California IN: CPR SU: ERN
KJ -- LA008 -- 6506 08/04/92 09:06 EDT
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|Date:||Aug 4, 1992|
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