The following is an earnings release from Osicom's smallest distributor. Note that they attribute part of the increase to new products. Osicom just began supplying them in this quarter. According to their press releases, Osicom is 1 of 5 new suppliers (there may be more that went unannounced).
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Business Wire - April 23, 1997 10:08
FINANCIAL SOUTHERN-ELECTRONICS SECX GEORGIA COMPUTERS ELECTRONICS COMED EARNINGS
V%BW P%BW
ATLANTA--(BUSINESS WIRE)--April 23, 1997--Southern Electronics Corporation reported today revenues and
earnings for the third quarter of fiscal 1997.
Revenues rose to $165.2 million for the third quarter ended March 31, 1997, up 40.9% from $117.3 million reported
for the comparable quarter last year. Net earnings for the third quarter totalled $2.0 million compared with $1.5 million
the year-earlier period. Net earnings per share for the third quarter were $.27, up 35% compared with $2.0 for the same
period last year.
Revenues for the nine months ended March 31, 1997 were $478.6 million, up 45.4% from $329.1 million in the
year-earlier period. Net earnings were $5.8 million compared with $3.8 million in the same period last year. Net
earnings per share were $.75 for the nine months ended March 31, 1997, up 41.5% compared with $.53 for the
year-earlier period.
In commenting on the results of the third quarter, Gerald Diamond, Chairman and Chief Executive Officer said, "Our
shipment sales out of Miami increased approximately 83% compared to the same quarter last year. We attribute this
success to growth within our existing product lines and the addition of new lines. Our export sales are principally to the
Latin American market, which continues to be one of strong demand. Shipment sales from Atlanta increased 10%. I
would like to mention that cellular telephone sales increased 55%, with most of the increase from Miami.
"Looking to the balance of calendar year 1997, the newly signed lease in the City of Industry, Calif., will aid sales and
open up the largest market in the U.S. to SECX's entire product line."
Our selling, general and administrative expenses for the third quarter declined to 3.5% of net sales as compared to 4.1%
in the third quarter of the prior year. This decline is due principally to greater revenue coverage of expenses and a better
than expected experience with doubtful accounts.
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995,
which reflect management's best judgement based on factors currently known. The statements, however, involve risks
and uncertainties which could cause actual results to differ materially from the forward-looking statements contained in
this press release. These risks and uncertainties include, but are not limited to, general economic conditions, industry
trends, the dependence upon and/or loss of key suppliers or customers, the loss of strategic project shipping
relationships, customer demand, product availability, competition (including pricing and availability), concentrations of
credit risks, distribution efficiencies, capacity constraints, technological difficulties, risks of international operations
including exchange rate fluctuations, the regulatory and trade environment (both domestic and foreign), and other risks
detailed in the Company's Annual Report on Form 10-K for the year ended June 30, 1996 and in the Company's
quarterly reports on Form 10-Q for each of the three quarters ended March 31, 1997.
Southern Electronics Corporation distributes microcomputers, computer peripheral products and cellular telephone
products to value-added resellers and dealers. The Company's stock is traded on the Nasdaq National Market under the
symbol SECX.
SOUTHERN ELECTRONICS CORPORATION
Condensed Consolidated Statement of Earnings (Unaudited)
Three Months Nine Months
Ended March 31, Ended March 31,
------------------ ------------------
1997 1996 1997 1996
------ ------ ------ ------
Net Sales $165,168,000 $117,261,000 $478,568,000 $329,119,000
Cost and
expenses:
Cost of
sales,
including
buying and
occupancy
expenses 155,311,000 109,821,000 449,870,000 308,212,000
Selling,
general,
and
administrative 5,843,000 4,821,000 17,801,000 14,042,000
----------- ----------- ------------ -----------
161,154,000 114,642,000 467,671,000 322,254,000
Operating
Income 4,014,000 2,619,000 10,897,000 6,865,000
Interest
expense,
net 751,000 209,000 1,506,000 632,000
Earnings before
income taxes 3,263,000 2,410,000 9,391,000 6,233,000
Income taxes 1,253,000 941,000 3,618,000 2,400,000
Net earnings $2,010,000 $1,469,000 $5,773,000 $3,833,000
----------- ----------- ----------- ----------
Net earnings
per common
share $.27 $.20 $.75 $.53
---- ---- ---- ----
Weighted
average
shares
outstanding 7,576,000 7,363,000 7,628,000 7,189,000
SOUTHERN ELECTRONICS CORPORATION
Condensed Consolidated Balance Sheets
March 31, June 30,
1997 1996
(unaudited)
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 358,000 $ 662,000
Trade accounts receivable, net 52,409,000 44,621,000
Inventories 93,399,000 72,501,000
Deferred income taxes 1,401,000 1,230,000
Other 1,101,000 527,000
------------ ------------
TOTAL CURRENT ASSETS 148,668,000 119,541,000
PROPERTY AND EQUIPMENT, net 5,347,000 4,341,000
INTANGIBLES, net 7,170,000 7,423,000
------------ ------------
$161,185,000 $131,305,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving bank debt $ 40,000,000 $ --
Accounts payable 71,978,000 75,508,000
Accrued and other current
liabilities 2,686,000 2,842,000
Income taxes payable -- 695,000
------------ ------------
TOTAL CURRENT LIABILITIES 114,664,000 79,045,000
REVOLVING BANK DEBT 10,610,000
STOCKHOLDERS' EQUITY 46,521,000 41,650,000
------------ ------------
$161,185,000 $131,305,000
============ ============
CONTACT: Southern Electronics Corp., Atlanta
Ray D. Risner, 770/491-8962
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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