Merry Christmas!!! Shareholders need this in light of the Barron's article.
Vitech America Reports 55% Increase in Sales and 67% Increase in Net Income for First Six Months
Business Wire - July 24, 1997 10:59
VITECH VTCH %FLORIDA %COMPUTERS %ELECTRONICS %COMED %EARNINGS V%BW P%BW
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MIAMI, FL--(BUSINESS WIRE)--July 24, 1997--Vitech America, Inc. (NASDAQ: VTCH) a US-based, manufacturer and distributor of computers, servers and networking equipment in Brazil, today announced that for the six months ended June 30, 1997, sales reached $40.3 million, a 55% increase over the $26.1 million for the same period in 1996. Net income rose 67% to $4.5 million, or $0.42 per share on 10,739,941 shares outstanding, for the six month period in 1997, as compared to net income of $2.7 million, or $0.32 per share on 8,503,853 shares outstanding, for the first six months of 1996.
"Our business strategy continues to produce impressive sales and earnings, validating our plan and the strength of the Brazilian market," stated William C. St. Laurent, President and COO of Vitech America, Inc. For the three month period ended June 30, 1997, sales rose 62% to $23.3 million, and net income increased 65% to $2.7 million, or $0.26 per share on 10,745,202 shares outstanding. This compares to revenues of $14.4 million and net income of $1.7 million, or $0.20 per share on 8,503,853 shares outstanding, for the same period in 1996.
These results do not include Vitech's recent acquisition of Microtec Sistemas Ind. e Com. S.A., which was purchased on July 11, 1997. Microtec, a Sao Paulo-based PC manufacturer and distributor, has a strong reputation and user base in the corporate and government sectors. As a combined company, Vitech has virtually doubled its size and is now the fourth largest player in the Brazilian PC market. During the second quarter, the Company signed agreements with two premier suppliers: Microsoft(R) and Intel. The Microsoft contract entitles Vitech to be an OEM licensed supplier, bundling Microsoft software in Portuguese with its Vitech Vision(TM) PC. Vitech is also a direct OEM purchaser of Intel's Pentium processors and can use the "Intel Inside" logo. Vitech America, Inc. assembles and offers its own brand name personal computers, business systems integration and network equipment, servers and related products in Brazil under the names: Vitech Vision(TM), EasyNet(TM), and MultiShow(TM). Microtec produces personal computers under the names Mythus(TM) and Quest(TM). The newly combined company will utilize the direct-to-end-users selling model to grow its marketshare in all sectors of the Brazilian marketplace. The Brazilian computer market is expected to grow at about 30% annually for the next eight to ten years.
Except for the historical information herein, the matters discussed in this press release include forward-looking statements that may involve a number of risks and uncertainties. Future results may vary significantly based on a number of factors, including, but not limited to, risks in market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and in Brazil and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.
Vitech America, Inc.
Summary of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
Sales: $ 23,342,760 $ 14,375,171 $ 40,337,322 $ 26,080,299
Gross profit: $ 7,779,712 $ 4,285,086 $ 12,747,645 $ 7,391,963
SG&A: $ 3,235,437 $ 1,269,706 $ 5,677,334 $ 2,462,646
Operating income: $ 4,544,275 $ 3,015,380 $ 7,070,312 $ 4,929,317
Net income: $ 2,739,809 $ 1,665,112 $ 4,528,963 $ 2,704,140
Net income
per share: $ 0.26 $ 0.20 $ 0.42 $ 0.32
Weighted average
number of
common shares 10,745,202(a) 8,503,853 10,739,941(a) 8,503,853
(a) Number of shares outstanding in 1997 increased as a result of
the Company's initial public offering in November 1996.
Summary Balance Sheet
June 30, 1997
(Unaudited)
Assets
Current Assets:
Cash $ 9,627,703
Accounts receivable, net 34,879,630
Inventories 22,494,413
Other current assets 2,392,316
Total Current Assets 69,394,062
Property, plant & equipment, net 6,491,876
Other assets 1,013,276
Total Assets $ 76,899,214
Liabilities & Shareholders' Equity
Current Liabilities:
Accounts payable $ 8,485,669
Short-term debt 4,668,697
Accrued expenses 345,454
Taxes payable 1,920,527
Short-term notes payable -
related party 10,000,000
Total Current Liabilities 25,420,347
Convertible note - related party 10,000,000
Long-term debt 1,376,721
Total shareholders' equity 40,102,146
Total Liabilities &
Shareholders' Equity $ 76,899,214 |
