Tuesday July 25, 6:51 pm Eastern Time
Company Press Release
biz.yahoo.com
CompuCom Reports 2nd Quarter 2000 Results
DALLAS--(BUSINESS WIRE)--July 25, 2000--CompuCom Systems, Inc. (Nasdaq:CMPC - news), a leading provider of infrastructure solutions for Fortune 1000 companies, today announced results for the second quarter ended June 30, 2000.
Net earnings for the quarter were $2.6 million, or $.05 per share, including an after-tax gain on the sale of investments of $1.2 million, or $.02 per share, compared to net earnings of $2.5 million, or $.05 per share, in the comparable prior year period. However, second quarter net earnings showed dramatic improvement when compared to the first quarter 2000 net loss of ($7.2) million, or ($.15) per share (excluding a restructuring charge).
Second quarter 2000 net revenues were $691 million compared to $803 million for the same period last year, representing a decline of approximately 14% for both product and services revenue. Net revenues increased approximately 22% when compared to the first quarter of 2000.
J. Edward Coleman, CompuCom's chief executive officer, commented on today's announcement. ``We are encouraged by the profitable operating results of the second quarter, which were primarily the result of the rebound of our product business from the first quarter. While overall service revenue remained flat when compared to the March quarter, we are encouraged by recent outsourcing wins, a growing pipeline of opportunities and growth in the services we provide to manufacturers in support of their direct marketing initiatives.''
``With recent changes in the competitive landscape, we believe we are in a better position than ever to meet the needs of clients requiring a national, independent, multi-vendor provider of technology and services,'' continued Mr. Coleman. ``In addition, we continue to expand the range of leading-edge services and technologies we provide to meet emerging client needs. Our recent launch of systems integration and management services for handhelds like the Palm PDA and related wireless communication products is a prime example.''
``A significant factor in our profitable results was the increase in both product and service gross margins when compared to the first quarter,'' said M. Lazane Smith, CompuCom's senior vice president and chief financial officer. ``In addition, our continued focus on operating expense management, productivity enhancements and balance sheet improvement was a key contributor to our overall results.''
CompuCom Systems, Inc., headquartered in Dallas, provides people, process and technology to deliver infrastructure solutions that optimize E-business and enterprise applications. Combining knowledge, strategy and tactical experience, CompuCom offers business process outsourcing, IT outsourcing and consulting for clients operating in the re@l world. CompuCom is a Safeguard Scientifics (NYSE:SFE - news) partner company. 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; the Company may not meet its expectations in providing manufacturers support in implementing their direct marketing strategies; the ability to continue to decrease costs, improve gross margin and improve the balance sheet may not continue; the expansion of the services the Company provides may not continue. Other factors that could cause actual results to differ materially are: competitive pricing and supply, the impact of the manufacturer's shift to direct marketing programs may be more significant than anticipated, changes to manufacturers' pricing, price protection, rebate and incentive programs, short-term interest rate fluctuations, general economic conditions, employee turnover and possible future litigation, the ability to collect accounts receivable, 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.
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COMPUCOM SYSTEMS, INC.
COMPARATIVE FINANCIAL DATA
(All amounts in thousands except per share amounts)
(unaudited) |
