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
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|Date:||Jul 23, 1992|
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