Earnings Announcement.
SAN DIEGO (July 25) BUSINESS WIRE -July 25, 1996--Alpharel/Trimco (NASDAQ/NMS:[AREL]), today announced record revenues and net income for the second quarter ended June 30, 1996.
Revenue in the second quarter was $6,106,000 versus $3,351,000 in the same period last year. Net income in the second quarter increased 105% to $875,000, or $0.05 per share, compared to $427,000, or $0.03 per share, in the comparable quarter last year.
For the six months ended June 30, 1996, revenue increased to $12,167,000 from $6,502,000 in the same period a year ago. Net income for the six-month-period was $1,552,000, or $0.08 per share, which represented a 138% increase over net income of $652,000, or $0.05 per share, in the year-ago period.
"Our record results in the second quarter along with the record first quarter demonstrate the continuing momentum generated by the combination of Alpharel and Trimco," commented Jay Tanna, President and Chief Executive Officer. "During the quarter, we added significant new customers, furthering our leadership position in key markets, while continuing to diversify our customer base and expand the range of industries our products serve."
"Included in our second quarter results are major new contracts from Jacksonville Electric Authority and Michigan Consolidated Gas. With these new contracts, Alpharel/Trimco has over 25 utilities customers including such leading companies as Entergy, Northeast Utilities, ScottishPower, and Union Electric," continued Tanna. "For the first six months of 1996, the utility market contributed more than $6 million in new and repeat orders. In addition, in the second quarter we received follow-on orders from customers such as ABB, Continental Airlines, British Petroleum, Amoco, General Motors, Abbey National Bank, English Heritage, and Westinghouse. I believe these contracts and add-on orders demonstrate the excellent growth opportunities ahead for the Company."
"An exciting development was the recent approval of our document management system, installed at Continental Airlines, by the Federal Aviation Authority (FAA) for document retention for aircraft assembly and appliance maintenance as well as training records for maintenance personnel," said Tanna. "By demonstrating that our products meet the regulatory guidelines that govern this key market, a second customer, currently applying for similar government approval from the Civil Aviation Authority (CAA) in the U.K., can use Continental as its benchmark for approval."
John W. Low, Chief Financial Officer, noted, "Gross profit percentage increased to 65% for the second quarter as compared to 58% in the second quarter of 1995. The improvement is directly related to the increase in software license revenue, which accounted for 69% of the quarter"s revenues versus 40% in the second quarter of 1995. With the acquisition of Trimco, over 40% of our sales are now international, which will add some seasonality during the historically slower summer months in Europe. However, the opportunities for international and domestic expansion are very good and we continue to build momentum in the second half of 1996."
Alpharel/Trimco is a leader in delivering enterprise-wide integrated information management software to thousands of customers installations around the world that include hundreds of thousands of users and tens of millions of documents. Across industries and applications, the Company provides its customers with quality document management software systems that increase productivity and profitability. From manufacturing and utilities to banking and government, Alpharel/Trimco systems integrate with existing computer resources, ensuring that data of every size and shape is handled rapidly and cost-effectively over global networks. -0- |
