Wednesday May 7 7:32 AM EDT
NIXA, Mo.--(BUSINESS WIRE)--May 7, 1997--Applied Cellular Technology Inc. (NASDAQ:ACTC) Wednesday
reported that its revenues and net income for the first quarter ended March 31, 1997 were both at a record high.
First-quarter revenue of $18.13 million nearly equaled revenue for the entire 1996 calendar year and was up by 1,370 percent
compared with last year's first quarter revenue of $1.22 million.
For the first quarter, net income was $279,000, or $0.05 per share, after preferred dividends of $18,000, vs. the year-earlier
net income of $41,000, or $0.02 per share, a 580 percent increase. No preferred dividends were paid in the first quarter of
1996.
For the full year 1996, the company reported revenue of $19.9 million with net income, after $60,000 in preferred dividends, of
$626,219, or $0.19 per share.
Chairman and Chief Executive Officer Richard J. Sullivan said that all three operating groups within Applied Cellular -- the
Retail Group, Computer Group and Manufacturing Group -- reported strong increases year-over-year.
The specialty telecommunications company has made numerous acquisitions in the last 12 months as it executes its strategy to
provide a full array of digital wireless services and applications to coordinate with broad industry trends away from analog
wireline services.
Sullivan commented: ``While first quarter results for all three operating groups, when compared to the first quarter last year,
were up substantially due to the success of our strategic acquisition program, results from operations that have been in place for
twelve months were strong as well.
``As the telecommunications industry moves to digital and wireless communications, we are convinced that we are well
positioned to take advantage of this trend in two ways.
``First, through expanding the markets for our existing products and services, and second, through our ability to find, acquire
and integrate high quality companies at attractive prices.
``At the heart of our successful acquisition program is a strict adherence to our acquisition model,'' Sullivan said. ``We seek
companies that are established niche-market leaders, with three to five years of continuous profitability, and that are synergistic
with the other organizations within Applied Cellular.
``We provide each acquired company with capital to expand and we create a partnership with management based on strong
performance-based incentives to ensure the continuation of their entrepreneurial drive to succeed.
``The company's management has demonstrated its confidence in our go-forward strategy as can be seen by a recent purchase
of a large number of shares of the company's stock by a key member of our management team.''
The balance sheet at the end of this year's first quarter remained strong with cash and cash equivalents of $1.19 million and total
assets of $39.07 million. Shareholders' equity was $11.40 million.
Applied Cellular Technology Inc. is a specialty telecommunications company specializing in communication interconnect
technologies, computer aftermarket products, and customized electrical component installation and manufacturing.
APPLIED CELLULAR TECHNOLOGY
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
March 31,
1997 1996
Net operating revenue $18,127,000 $1,223,000
Cost of goods sold 12,078,000 748,000
Gross profit 6,049,000 485,000
Selling, general and
administrative expense 5,343,000 439,000
Operating income 706,000 47,000
Interest income 45,000 21,000
Interest expense (179,000) (8,000)
Income before provision
for income taxes and
minority interest 572,000 60,000
Provision for income taxes 205,000 --
Net income before
minority interest 367,000 60,000
Minority interest (70,000) (19,000)
Preferred Stock Dividends (18,000) --
Net income applicable to
common shareholders $279,000 $41,000
Net income per common share $ 0.05 $ 0.02
Weighted average number of
common shares outstanding 6,145,000 2,287,000
Common shares outstanding
as of March 31, 7,343,000 2,310,000
Note to Editors: Statements about the company's future expectations, including future revenues and earnings, and all other
statements in this news release other than historical facts are ``forward-looking statements'' within the meaning of Section 27A
of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private
Securities Litigation Reform Act of 1995. The company intends that such forward-looking statements be subject to the safe
harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are
subject to change at any time, the company's actual results could differ materially from expected results.
Synopsis
Revenues were right on target. A slight disapointment in earnings per
share. Would have like to have hit 8-9 cents, but was not that
suprised. Would have made it if not for the $179,000 interest expense. I wonder where the interest expense came from since supposedly there was no debt issued with all the purchases. Might this expense only be a short term problem? Feeling great about the 1.19 million in cash and equivalents. Any information on who the high ranking individual who purchased a large block of shares?
Comparisons between fourth quarter 96 and now are much more valid compared to whats in the article.
The comment from investor relations concerning all the purchases tickled me. One of the last purchases manufactured automotive parts!
Still long and have recently doubled down.
looking for profits
Mrski |
