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WYLE LABORATORIES HAS RECORD THIRD QUARTER; NET INCOME RISES 129 PERCENT BEFORE ONE-TIME CHARGE

 EL SEGUNDO, Calif., Nov. 23 ~PRNewswire~ -- Wyle Laboratories (NYSE: WYL) reported the best quarterly performance in its history for the three months ended Oct. 31, 1992, reflecting record operating results at its Electronics Marketing Group. Third quarter net income (before a one-time charge for an enhanced early retirement program) surged 129 percent from the previous year on a sales increase of 32 percent.
 For the quarter, net income before the non-recurring charge totaled $4,250,000, equal to 40 cents per share (37 cents fully diluted), compared with $1,855,000, or 18 cents per share (primary and fully diluted), in the corresponding quarter resulted in a pre- tax charge of $947,000, which reduced earnings per share for the quarter by 5 cents.
 After the charge, net income for the third quarter was $3,649,000, equal to 35 cents per share (32 cents fully diluted). Sales for the quarter climbed to a record $146.4 million, compared with $110.7 million in the prior year and $127.6 million in this year's second quarter.
 Before the non-recurring charge, net income for the nine months rose 64 percent to $11,270,000, equal to $1.08 per share (99 cents fully diluted), from $6,873,000, or 67 cents per share (64 cents fully diluted), a year ago. Year-to-date net income after the charge was $10,669,000, equal to $1.02 per share (94 cents fully diluted). Nine-month sales totaled $396.6 million, an increase of 20 percent from $331.8 million in the previous fiscal year.
 Charles M. Clough, chairman and chief executive officer, said: "Operating results continued to reflect strong gains in sales and earnings generated by our value-added services, a new high-volume marketing program for certain products and an improving semiconductor market. In each of the past two quarters we've posted record results. Our carefully focused strategy, expanded value-added capabilities and dedication to quality and customer service have provided a solid foundation for our progress.
 "For the quarter, our Electronics Marketing Group posted a 37 percent sales increase from the prior year to $121.9 million and income jumped 131 percent to $6,971,000. The group's sales growth reflects a broad-based increase in semiconductor demand and significantly higher shipments of low-margin, PC-related components, primarily microprocessors.
 "Revenues from our kitting and turnkey manufacturing activities grew 50 percent during the quarter compared with last year. To better serve this rapidly growing business, we recently doubled our facility capacity and formed Liberty Contract Services, a new business unit dedicated to providing these value-added services. As a result, we're well-positioned to realize the opportunities created by customers seeking to outsource their inventory handling and manufacturing requirements.
 "In another key value-added service area, our fifth IDEAL(R) center for semiconductor design, programming and testing services opened in Austin, Texas, during the quarter.
 "The increased sales of lower margin products have been generated by a streamlined cost structure marketing program that was initiated in our second quarter and executed in such a way that overall profit margin targets are achieved. Although the change in our product mix resulted in a lower overall gross margin for the quarter, this effect was more than offset by incremental profit from the sales growth combined with a reduction in the group's operating expenses as a percent of sales."
 Clough continued: "The Scientific Services & Systems Group posted sales of $24.5 million, up 14 percent from last year's third quarter. Income before the early retirement charge totaled $1,868,000, which was in line with profit levels in five the past six quarters.
 "To maintain Scientific Services & Systems' profitability in today's declining aerospace~defense markets, we realigned the group's cost structure by implementing the early retirement program this past quarter. The resulting charge to earnings will be recovered in the form of payroll cost savings beginning in the fourth quarter.
 "The group has benefited from strong demand for its nuclear power-related engineering and test services, as well as growing international business opportunities, particularly in the Pacific Rim. Also, we were recently awarded the recompetition for a five- year, $75 million contract to provide instrumentation support services to NASA's Langley Research Center. Wyle has served this Hampton, Va., complex since 1968."
 Clough concluded: "The semiconductor market remains strong. Our Electronics Marketing Group is seeing healthy order levels, continuing extended lead times for many devices and low component inventories at the customer base. We're enthusiastic about the progress we've recorded this year as well as the opportunities that we see ahead."
 WYLE LABORATORIES
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands except per share data)
 Third quarter ended Nine months ended
 Oct. 31, Oct. 31,
 1992 1991 1992 1991
 Net sales $146,360 $110,716 $396,623 $331,756
 Costs and
 expenses 140,612 107,817 379,821 321,017
 Income before
 income taxes 5,748 (a) 2,899 16,802 (a) 10,739
 Income taxes 2,099 1,044 6,133 3,866
 Net income $3,649 $1,855 $10,669 $6,873
 Income per share:
 Primary $.35 (a) $.18 $1.02 (a) $.67
 Fully diluted $.32 (a) $.18 $.94 (a) $.64
 Average common and
 common equivalent
 shares 10,496 10,137 10,438 10,193
 Sales and income
 by group
 Sales:
 Electronics
 Marketing $121,882 $89,210 $323,518 $261,265
 Scientific
 Services
 & Systems 24,478 21,506 73,105 70,491
 Total $146,360 $110,716 $396,623 $331,756
 Income:
 Electronics
 Marketing $6,971 $3,021 $18,340 $10,994
 Scientific
 Services
 & Systems 921 (a) 1,865 4,830 (a) 5,870
 Operating
 income 7,892 4,886 23,170 16,864
 General
 corporate
 expenses 1,512 1,360 4,323 4,285
 Interest expense,
 net 632 627 2,045 1,840
 Income before
 income taxes $5,748 $2,899 $16,802 $10,739
 (a) Includes a non-recurring pre-tax charge of $947,000 related to an enhanced early retirement program which reduced earnings per share by 5 cents.
 -0- 11~23~92
 ~CONTACT: John Foley of The Foristall Co., 213-626-4524, for Wyle Laboratories~
 (WYL)


CO: Wyle Laboratories ST: California IN: CPR SU: ERN

MS-JB -- LA005 -- 0301 11~23~92 09:29 PST
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Date:Nov 23, 1992
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