Good Morning, Tim and All - Would you comment on what might happen to Jaco for those of us who are holding. Looks like he might be temp. dead. Thanks, Honor
Jaco Electronics Reports Fourth Quarter and Fiscal 1999 Results
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Sept. 16, 1999--Jaco
Electronics, Inc. (Nasdaq: JACO), a distributor of electronic
components to original equipment manufacturers, today reported results
for the fiscal 1999 fourth quarter and year-end ended June 30, 1999.
Net sales for the fourth quarter of fiscal 1999 were $36,301,000
compared with $38,673,000 during the same period last year. The
Company incurred a net loss for the fiscal 1999 fourth quarter of
$919,000, or $0.25 per share, including an approximately $630,000 bad
debt expense ($0.13 per share after tax), compared to net income of
$60,000, or $0.02 per share, during the same period last year. The
weighted average number of diluted shares outstanding for the fourth
quarter of fiscal 1999 was 3,653,521, compared with 3,893,005 during
the same period last year.
Net sales for the year-end ended June 30, 1999 were $140,711,000
compared with $153,674,000 during the same period last year. Net loss
for the year-end ended June 30, 1999 was $1,157,000, or $0.31 per
diluted share, compared to net income of $1,184,000, or $0.30 per
diluted share, during the same period last year. The weighted average
number of diluted shares outstanding for the year-end ended June 30,
1999 was 3,698,270, compared with 3,921,518 during the same period
last year.
Commenting on the results, Joel Girsky, Jaco's Chairman and Chief
Executive Officer, said, "The early part of the fourth quarter was
impacted by weak demand resulting in a decline of the gross profit
margin of 1.3% compared to the same period last year, as well as a
sizable bad debt write-off."
Near the end of the fourth quarter Jaco began experiencing a
resurgence in order activity in all product sectors. Accordingly, the
fourth quarter results also reflect the addition of sales and
marketing personnel which were put in place in expectation of a
continuation of this trend.
"We entered fiscal 2000 with strong bookings, an attractive
broadly diverse line card and an incentivized sales and field support
staff. These factors, the strengthening of the electronics
distribution industry and our strong balance sheet lend cautious
optimism to our expectations for operating improvements in the current
fiscal year."
Jaco Electronics, Inc. markets and distributes passive and active
electronic components to original equipment manufacturers throughout
the United States and Canada from two distribution centers and
fourteen sales offices. The Company distributes over 60,000 products
such as semiconductors, capacitors, electro-mechanical devices,
computers and computer subsystems, which are used in the manufacture
and assembly of electronic products. Jaco's Flat Panel Display
Marketing Group provides distribution, solutions and turnkey
integration for leading computer-based manufacturers. The Company also
provides a variety of value-added services including configuring
complete computer systems, kitting the component requirements of
certain customers, and furnishing contract manufacturing services.
Except for the historical information in this press release, this
press release includes forward-looking statements that involve risks
and uncertainties, including, but not limited to, the impact of
competitive products, product demand and market acceptance risks,
fluctuations in operating results, delays in development of
highly-complex products and other risks detailed from time to time in
the Company's Securities and Exchange Commission filings. Actual
results may differ materially from such information set forth herein.
-table follows-
JACO ELECTRONICS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
($ in thousands, except per share amounts)
Three months ended Fiscal year ended
June 30, June 30,
1999 1998 1999 1998
Net sales $ 36,301 $ 38,673 $ 140,711 $ 153,674
Gross profit 6,985 7,949 27,376 31,878
Selling, general
& administrative
expense 7,841 7,490 27,642 28,707
Operating profit
(loss) (856) 459 (266) 3,171
Interest expense 319 317 1,309 1,140
Earnings (loss)
before income
taxes (1,175) 142 (1,575) 2,031
Income tax
(benefit)
expense (256) 82 (418) 847
Net
earnings (loss) $ (919) $ 60 $ (1,157) $ 1,184
Earnings (loss)
per common
share:
Basic $ (0.25) $ 0.02 $ (0.31) $ 0.31
Diluted $ (0.25) $ 0.02 $ (0.31) $ 0.30
Weighted average
shares:
Basic 3,653,521 3,776,221 3,698,270 3,836,700
Diluted 3,653,521 3,893,005 3,698,270 3,921,518
Summary Balance Sheet
As of June 30, 1999
Receivables (net) $23,400,000
Inventories 33,200,000
Long-Term Debt $18,900,000
A/C Payable and
Accrued Expenses 17,600,000
Shareholder's Equity $34,900,000
Key Financial Statistics
LT Debt to Capitalization 35%
Per Share Price (9/15/99) $3.875
Book Value Per Share $9.54
CONTACT:
Jaco Electronics, Inc.
Jeffrey D. Gash
Vice President, Finance
516/273-5500
or
Jaffoni & Collins Incorporated
Joseph N. Jaffoni
212/835-8500 or jaco@jcir.com |
