NEWS: Box Hill Systems Corp. Reports 1998 First Quarter Results
biz.yahoo.com
Tuesday April 28, 8:29 am Eastern Time
Company Press Release
SOURCE: Box Hill Systems Corp.
First Quarter Highlights: -- Net Revenues of $16.0 Million Reported -- Basic and Diluted Net Income Per Share of $0.09 -- Strategic OEM Relationship Formed With NeTpower -- San Francisco Office Opened To Focus On Video, Multimedia And Digital Imaging Markets.
Financial Summary Table (in millions, except per share data)
Three Months Ended March 31, 1998 1997 % Change
Net Revenues $16.0 $15.2 5.3%
Net Income(A) $1.3 $1.4 (7.1%)
Basic Net Income Per Share(A) $0.09 $0.13 (30.8%)
Diluted Net Income Per Share(A) $0.09 $0.12 (25.0%)
(A) For the three months ended March 31, 1997, net income, basic net income per share and diluted net income per share have been presented on a pro forma basis as if the Company had been subject to federal and state income taxes, and as if all shareholder officers had received
compensation pursuant to new employment contracts.
NEW YORK, April 28 /PRNewswire/ -- Box Hill Systems Corp. (NYSE: BXH - news), a leading provider of high-performance data storage systems for the Open Systems computing environment, today announced first quarter results for the three months ended March 31, 1998.
Net revenues for the 1998 first quarter increased 5.3% to $16.0 million, compared to $15.2 million for the corresponding period in 1997. The first quarter revenue growth resulted from an increase in volume, which was partially offset by price reductions. Gross profit for the first quarter of 1998 reached $5.5 million, an increase of 5.8% from $5.2 million for the first quarter of 1997. The gross margin for the quarter increased slightly to 34.4% from 34.2%. Net income in the first quarter of 1998 decreased to $1.3 million, or $0.09 per share on a diluted basis, from pro forma net income of $1.4 million, or $0.12 per share on a diluted basis, in the first quarter of 1997. These results are slightly above the estimates indicated in the
preliminary earnings release issued on April 14, 1998.
The number of shares used to compute diluted net income per share were 15.1 million for the 1998 first quarter versus 11.6 million for the same period of 1997, reflecting the successful completion of the initial public offering in September 1997. For the three months ended March 31, 1997, pro forma net income and net income per share have been presented on a diluted basis as if the Company had been subject to federal and state income taxes, and as if all shareholder officers had received compensation pursuant to new employment contracts. Shares used in computing basic and diluted pro forma net income per share for the three months ended March 31, 1997 include as outstanding, the number of shares required to be sold at the IPO price to fund $10.5 million of distributions to the Company's prior S Corporation shareholders in September 1997.
Comments From Management
Box Hill CEO Philip Black said, ''While first quarter results were lower than expectations, we are pleased that the business picked up in March. Our business levels in January and February may have been indicative of an overall market slowdown. Our fundamentals remain strong, and we are confident in our business strategy.''
Box Hill designs, manufactures, markets and supports high performance data storage systems for the Open Systems computing environment. The Company's storage solutions encompass a broad range of scalable products and services targeting high-end customers who demand high-performance, high availability and the highest level of customer and technical support. Box Hill is also a leader in providing comprehensive ''best of breed'' backup solutions to the Open Systems marketplace.
Box Hill, the Box Hill logo and the Fibre Box are registered trademarks or trademarks of Box Hill Systems Corp. All other
products mentioned herein are trademarks or registered trademarks of their respective owners.
Certain statements contained in this press release, including statements regarding the anticipated development and expansion of
Box Hill Systems Corp.'s (the ''Company'') business, the intent, belief or current expectations of the Company, its directors or
its officers, primarily with respect to the future operating performance of the Company and the products it expects to offer and
other statements contained herein regarding matters that are not historical facts, are ''forward looking'' statements within the
meaning of the Private Securities Litigation Reform Act. Because such statements include risks and uncertainties, actual results
may differ materially from those expressed or implied by such forward-looking statements. Those risks and uncertainties
include, among others: rapid technological change, frequent new product introductions, evolving industry standards and
changing customer preferences in the Open Systems storage market. In addition, the Company's business and results of
operations are subject to numerous additional risks and uncertainties, including availability and cost of key components;
dependence on a limited number of customers; reliance on the financial services and telecommunications industries; ability to
attract, train, retain and motivate qualified management, technical, manufacturing, sales and support personnel; demand on
administrative, operational, financial, manufacturing, sales and customer service resources caused by the Company's growth
and expansion; and the Company's ability to protect its proprietary software and other intellectual property rights. All forward
looking statements speak only as of the date on which they are made. Box Hill undertakes no obligation to update such
statements to reflect events which occur or circumstances which exist after the date on which they are made. |
