Avocent Reports First Quarter Results
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HUNTSVILLE, Ala.--(BUSINESS WIRE)--April 19, 2001--Avocent Corporation (Nasdaq/NM:AVCT - news) today reported its results for the first quarter ended March 30, 2001. The financial results prior to July 1, 2000, reflect the historical combined operations of Apex Inc. and Cybex Computer Products Corporation. The Company also announced that David P. Vieau was elected to the Board of Directors as a Class I Director.
``First quarter sales rose 16.5% to $73.2 million as a result of demand for newer products and the contribution of the Equinox acquisition completed on January 3, 2001,'' stated Stephen F. Thornton, president and chief executive officer of Avocent Corporation. ``We continue to make significant investments in new product research and expect to release major products developed at all locations during the year. We anticipate our newer products, including the DS1800 introduced in the fourth quarter last year as the industry's first digital KVM switch and the recently announced CPS line of products, will have a positive impact on sales as the economy strengthens.''
First Quarter Results
Net sales for the first quarter rose to $73.2 million compared with combined Apex and Cybex net sales of $62.8 million in the first quarter a year ago. Sales in the U.S. accounted for 60%, or $44 million of first quarter sales; European sales totaled $21 million, or 29% of first quarter sales; and rest of world and other Americas' sales grew to $8 million, or 11% of first quarter sales. Sequential sales declined from $80.5 million in the fourth quarter of 2000 primarily due to a weakening economy.
Gross profit for the first quarter rose 13.8% to $36.5 million with a gross margin of 49.9%, compared with a combined gross profit of $32.1 million in the first quarter of 2000. Operating income for the first quarter was down 6.8% to $15.7 million, excluding intangible amortization and merger-related expenses, compared with a combined operating income of $16.8 million, excluding intangible amortization and merger-related expenses, in the first quarter a year ago.
Research and development expenses rose 33.9% to $4.5 million for the first quarter and represented 6% of sales.
Income, excluding intangible amortization and merger-related expenses, was $11.9 million, or $0.26 per diluted share, compared with combined income of $12.1 million, or $0.27 per diluted share, in the first quarter of last year.
David P. Vieau Elected to Board of Directors
David P. Vieau was recently elected to Avocent's Board of Directors as a Class I Director. Class I directors' terms expire at the Company's annual meeting in June 2001, and Avocent's Board has nominated Mr. Vieau for election to a full three-year term to be voted on at the annual meeting.
``We are delighted to have David join us on the Avocent Board,'' stated Mr. Thornton. ``David's extensive management experience in the technology industry and his sales and marketing background bring added depth to our board. We look forward to his participation.''
Mr. Vieau served as Vice President of Worldwide Business Development of American Power Conversion Corporation, a publicly traded company that provides power protection, environmental control, and site monitoring services for the personal computer and information systems markets, from September 1995 through November 2000. Prior to that time, he served as Vice President of Marketing of American Power Conversion from September 1991 though August 1995.
About Avocent Corporation
Avocent Corporation is the leading supplier of connectivity solutions for enterprise data centers, service providers and financial institutions worldwide. Branded products include switching, extension, remote access and video display solutions. Additional information is available at: avocent.com
Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding earnings expectations, product development, engineering and design activities, and integration of the Apex, Cybex, and Equinox operations and businesses. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, risks related to continued integration of the combined Apex, Cybex, and Equinox businesses, risks attributable to future sales and expenses, risks associated with reliance on a limited number of component suppliers and single source components, and risks associated with product design efforts. Other factors that could cause operating and financial results to differ are described in Avocent's annual report on Form 10-K filed with the Securities and Exchange Commission on March 27, 2001, and in Avocent's Form S-4 filed on March 31, 2000 (under Avocent's former name, Aegean Sea Inc.). Other risks may be detailed from time to time in reports to be filed with the SEC. Avocent does not undertake any obligation to publicly release the result of any revisions to forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Conference Call Information
Avocent will provide an on-line, real-time Web-cast and rebroadcast of its first quarter results conference call to be held today, April 19, 2001. The live broadcast will be available on-line at vcall.com and streetevents.com beginning at 10:00 a.m. central time. The on-line replay will follow immediately and continue for 30 days. |
