Printer Friendly

WYLE LABORATORIES POSTS RECORD EARNINGS FOR FOURTH QUARTER AND FISCAL YEAR

 EL SEGUNDO, Calif., Feb. 23 /PRNewswire/ -- Fourth quarter net income for Wyle Laboratories (NYSE: WYL) was the highest of any quarter in company history. Reflecting record operating results at its Electronics Marketing Group, consolidated earnings climbed 70 percent on a 19 percent sales increase for the three months ended Jan. 31, 1993, compared to the same period in the prior year.
 Net income for the quarter totaled $4,759,000, equal to 43 cents per share (39 cents fully diluted), compared with $2,795,000, or 28 cents per share (26 cents fully diluted) in the year-earlier quarter. Sales for the fourth quarter advanced to $144.9 million from $121.7 million a year ago.
 For the fiscal year, net income grew to a record $15,428,000 equal to $1.45 per share ($1.33 fully diluted), which includes a $947,000 pre-tax charge for an enhanced early retirement program at the company's Scientific Services & Systems Group.
 In the previous year, net income was $9,668,000, equal to 95 cents per share (90 cents fully diluted). Even after absorbing the early retirement charge, current year net income surged 60 percent from the level of the prior year. Sales for the year increased 19 percent to an all-time high of $541.5 million from last year's $453.4 million.
 Charles M. Clough, chairman and chief executive officer, said: "The company's favorable operating results continue to reflect a strong semiconductor market, combined with the success of our carefully focused strategy and dedication to quality and customer service. In addition, during the fourth quarter, we were successful in further reducing our general and administrative expenses as a percent of sales to the lowest level ever, 14.9 percent, as a result of increasing productivity and controlling costs.
 "For the quarter, the Electronics Marketing Group registered a 25 percent improvement in sales from the prior year to $123.1 million and operating income jumped 69 percent to $7,511,000, both record highs. Our sales growth reflects a broad-based increase in semiconductor demand, continued gains in value-added services and higher shipments of low-margin, PC-related components. The group's sales performance was particularly impressive considering that the fourth quarter had five less shipping days than the prior year and three fewer shipping days than the third quarter.
 "Our kitting and turnkey manufacturing programs are on a solid growth track, fueled by the continuing trend of customers to outsource inventory handling and assembly requirements. Fourth quarter sales and new orders booked were at unprecedented levels. Our recently expanded capacity to provide these value-added activities places Wyle in an excellent position to serve this rapidly growing business.
 "Demand for application specific integrated circuits (ASICs) and the semiconductor design, programming and testing services provided by our five IDEAL(R) centers continues to rise, supported by sales strength in our high-end, user configurable lines. We also enjoyed good fourth quarter sales in our computer products business due to increased shipments of Digital Equipment products."
 Clough continued: "Results of our Scientific Services & Systems Group reflected continued pressure on sales and margins in the declining aerospace and defense markets. Group sales decreased 6 percent to $21.8 million, and income was $1,711,000, slightly less than least year, but basically comparable to profit levels we've reported in six of the last seven quarters.
 "In response to the present challenging environment for aerospace and defense business, we're emphasizing tight cost controls as evidenced by the implementation of the group's early retirement program in the third quarter.
 "Demand for our nuclear power-related engineering and test services, particularly from the Electric Power Research Institute (EPRI), continues strong. International business opportunities are an important focus and showed growth from the prior year. Under a recently signed contract with Korean Nuclear Engineering Laboratory Ltd. (KONEL), Wyle will provide consulting and training services required to establish KONEL as an engineering, test and certification laboratory for the Korean nuclear power industries.
 "The development of new business opportunities within the group's core strengths is also a major thrust. During the fourth quarter, the group was awarded $3.2 million in contracts for sonic boom research and residential soundproofing, primarily in support of Air Force programs."
 Clough concluded: "The outlook for the semiconductor market is positive, and our value-added programs are working well. Healthy order levels, extended lead times for many devices and low-component inventories at the customer base give us reason to be optimistic about our prospects in the coming year.
 "We enter the new year with the strongest balance sheet in our history. The successful call for redemption of our convertible subordinated debentures in the fourth quarter resulted in $25 million of long-term debt being converted into equity. The company's financial strength provides important flexibility to pursue our plans for future growth."
 Wyle Laboratories is one of the nation's leading marketers of high-technology electronic products, specializing in semiconductors, computer systems and related value-added services. The company is also a major supplier of research, engineering, testing and support services to the aerospace, defense and energy industries.
 WYLE LABORATORIES
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands except per share amounts)
 Fourth Quarter Ended Year Ended
 Jan. 31, Jan. 31,
 1993 1992 1993 1992
 Net sales $144,864 $121,679 $541,487 $453,435
 Costs and
 expenses 137,369 117,312 517,190 438,329
 Income before
 income taxes 7,495 4,367 24,297 15,106
 Income taxes 2,736 1,572 8,869 5,438
 Net income $4,759 $2,795 $15,428 $9,668
 Income per share:
 Primary $.43 $.28 $1.45 $.95
 Fully diluted $.39 $.26 $1.33 $.90
 Average common and
 common equivalent
 shares 11,147(a) 10,158 10,615(a) 10,184
 Sales and income
 by group
 Sales:
 Electronics
 Marketing $123,091 $98,603 $446,609 $359,868
 Scientific
 Services
 & Systems 21,773 23,076 94,878 93,567
 Total $144,864 $121,679 $541,487 $453,435
 Income:
 Electronics
 Marketing $7,511 $4,450 $25,851 $15,444
 Scientific
 Services
 & Systems 1,711 1,794 6,541 7,664
 Operating
 income 9,222 6,244 32,392 23,108
 General
 corporate
 expenses (1,489) (1,291) (5,812) (5,576)
 Interest expense,
 net (238) (586) (2,283) (2,426)
 Income before
 income taxes $7,495 $4,367 $24,297 $15,106
 (a) During the fourth quarter ended Jan. 31, 1993, a total of 1,622,057 shares of Wyle Laboratories' common stock were issued upon conversion as a result of the company's call for redemption of its 6 1/4 percent Convertible Subordinated Debentures due 2002.
 -0- 2/23/93
 /CONTACT: Van Holland, executive VP-finance of Wyle Laboratories, 310-322-1763/
 (WYL)


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

MS-EH -- LA001 -- 9242 02/23/93 08:31 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 23, 1993
Words:1127
Previous Article:BIOWHITTAKER ANNOUNCES RESULTS
Next Article:LARSON-DAVIS ANNOUNCES SECOND QUARTER RESULTS
Topics:


Related Articles
WYLE'S ELECTRONICS MARKETING GROUP EXPERIENCING RECORD SHIPMENTS; COMPANY EXPECTS SECOND QUARTER EARNINGS TO DOUBLE OVER LAST YEAR
WYLE LABORATORIES HAS RECORD THIRD QUARTER; NET INCOME RISES 129 PERCENT BEFORE ONE-TIME CHARGE
WYLE REPORTS RECORD SALES FOR THE YEAR; ELECTRONICS BUSINESS STRONG, EXPANSION GOING WELL
WYLE REGISTERS RECORD SALES IN FIRST QUARTER; ELECTRONICS BUSINESS FUELS GROWTH
WYLE REPORTS RECORD SALES AND PROFITS IN FIRST QUARTER; EARNINGS PER SHARE TRIPLE ON 42 PERCENT SALES INCREASE
Wyle Electronics Reports Fourth Quarter Results
Wyle Electronics Expects Lower First Quarter Earnings
Wyle Electronics Reports First Quarter Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters