i can't believe this stock is trading down on this release.....
biz.yahoo.com
Tuesday October 19, 8:04 pm Eastern Time
Company Press Release
CompuCom Reports 3rd Quarter 1999 Results
DALLAS--(BUSINESS WIRE)--Oct. 19, 1999--CompuCom Systems, Inc. (NASDAQ:CMPC - news), a leading distributed technology services company, today announced its third quarter 1999 net revenues were $889 million versus $603 million for the same period last year, representing an increase of 47%. Revenue growth for the third quarter was related to the acquisition of the Technology Acquisition Services Division (TASD) of ENTEX in May and continued growth in services. Services revenue increased 23% compared to the third quarter 1998 while services gross margins were 34.9% compared to 32.5% a year ago.
Net earnings showed dramatic improvement when compared to prior year and the previous quarter. Net earnings were $6.5 million, or $.13 per share (diluted), compared to net earnings of $1.1 million, or $.02 per share (diluted) for the same period last year and $2.5 million, or $.05 per share (diluted) for the second quarter of 1999.
Harry Wallaesa, CompuCom's chairman and interim CEO, commented on today's announcement. ''We are encouraged by the continued improvement in our financial results. We are particularly pleased with the increase in both services revenue and services gross margin compared to a year ago and the June 1999 quarter. Our immediate goal is to continue improving profitability as we implement our strategy of becoming a Total Solutions Provider by moving into new areas of information technology services,'' he concluded.
''We have continued to focus on lowering our operating expenses, which dropped to 8.6% as a percentage of revenue, the lowest level we have experienced since the second quarter of 1996. In addition, we have ongoing initiatives to lower our costs further,'' said M. Lazane Smith, the company's senior vice president and chief financial officer. ''During the quarter, we completed the integration of the TASD acquisition while retaining nearly all of our new customers.''
Thomas C. Lynch, president and chief operating officer of CompuCom, said, ''During the past two weeks, we were awarded Cisco's prestigious Technical Support Supplier of the Year Award, as well as Delta Air Lines' Telecommunications and Technology Supplier of the Year Award, Delta's highest honor in the Telecommunications and Technology category. This recognition is a strong signal we are continuing to provide the solutions today's businesses demand.''
CompuCom Systems, Inc., headquartered in Dallas, Texas is a leading provider of technology products and services for large corporate clients nationwide. By serving as a primary partner for evaluating, acquiring, deploying and managing new technologies, CompuCom helps clients focus on core business activities and reduce their total cost of system ownership. Service offerings include network deployment projects, consulting, asset management, network management, help desk and field engineering, as well as computer and computer peripheral procurement, configuration, distribution and software management. CompuCom is accessible via the Internet at www.compucom.com.
This press release contains certain forward-looking statements regarding revenues, margin, earnings, growth rates and certain business trends that involve risks and uncertainties that could cause actual results to differ materially from the results discussed herein, specifically, the ability to grow product and service revenue may not continue; the improvement in service and product gross margins may not continue; the ability to decrease costs through the TASD acquisition may not be as great as anticipated; the company may not be able to find additional ways to leverage costs and reduce costs further. Other factors that could cause actual results to differ materially are: competitive pricing and supply, short-term interest rate fluctuations, general economic conditions, employee turnover and possible future litigation, the impact Y2K and the related uncertainties may have on future revenue and earnings as well as the risks and uncertainties set forth from time to time in the Company's other public reports and filings and public statements. Recipients of this press release are cautioned to consider these risks and uncertainties and to not place undue reliance on these forward-looking statements. |
