MANC, just turned in excellent numbers. Trading below book value. Low float.
SOURCE: Manchester Equipment Co., Inc.
Record Revenues and Higher Earnings Again Announced By Manchester Equipment Co., Inc.
HAUPPAUGE, N.Y., Dec. 2 /PRNewswire/ -- Manchester Equipment Co., Inc. (Nasdaq: MANC - news) today announced record financial results for the first quarter of fiscal 2000.
Manchester achieved record revenue of $65.4 million for the first quarter ended October 31, 1999, an increase of 13.7% over the $57.5 million in the comparable period of the prior year. Net income for the quarter soared by more than 91% to $1.1 million, or $0.13 per basic and diluted share, almost doubling the net income of $568,000, or $0.07 per basic and diluted share reported in the first quarter of the prior fiscal year. Weighted average common shares outstanding used for the computation of diluted earnings per share were 8,074,161 and 8,096,600 for the fiscal 2000 and 1999 first quarters, respectively.
Barry R. Steinberg, Manchester's President and CEO stated, ''We are delighted with the strong growth in both revenue and earnings for the first quarter. This is our second consecutive quarter reporting both record revenue and very strong growth in earnings. The Company as a whole experienced strong demand for products, a growing demand for services, and more stable price points. Our Electrograph subsidiary in particular generated outstanding product demand and revenue growth in its market-leading niche area of large- screen flat panel displays.''
Mr. Steinberg continued, ''We continue to make significant investments in our capabilities in both business to business and retail e-commerce, as well as in our services and solutions infrastructure. There are tremendous uncertainties in the marketplace today, particularly the impact of Y2K and the declines in average selling prices for personal computers. However, we continue to be confident that our long-term prospects are good and that our strategy will be successful in growing the Company and maximizing shareholder value.''
Manchester Equipment Co., Inc. is an integrator and reseller of computer hardware, software and networking products, primarily for commercial customers. The Company offers its customers single-source solutions customized to their information systems needs by integrating analysis, design and implementation services with hardware, software, networking products and peripherals from leading vendors. More information about the Company can be obtained by visiting the Company's website located at e-manchester.com.
This press release contains certain forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from the results discussed herein as a result of a number of unknown factors. Such factors include, but are not limited to, there being no assurance that the Company will be successful in its efforts to focus on higher-margin products and value-added services, that the Company will be successful in attracting and retaining highly skilled technical personnel and sales representatives necessary to implement the Company's growth strategies, that the Company will be successful in expanding its Internet presence, that the Company will not be adversely affected by continued intense competition in the computer industry, continued deterioration in average selling prices, a lack of product availability, deterioration in relationships with major manufacturers, a loss or decline in sales to any of its major customers, or any of the other risks set forth in the Company's Annual Report on Form 10-K for the year ended July 31, 1999, and those set forth from time to time in the Company's other filings with the Securities and Exchange Commission.
Manchester Equipment Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
Three months ended October 31,
1999 1998
Unaudited
Revenue
Products $63,448 $55,675
Services 1,912 1,824
65,360 57,499
Cost of revenue
Products 54,287 48,382
Services 1,330 1,104
55,617 49,486
Gross profit 9,743 8,013
Selling, general and
administrative expenses 8,019 7,185
Income from operations 1,724 828
Interest expense (1) (2)
Interest and investment income 118 115
Income before income taxes 1,841 941
Provision for income taxes 755 373
Net income $1,086 $568
Net Income per share
Basic $0.13 $0.07
Diluted $0.13 $0.07
Weighted average shares outstanding
Basic 8,074 8,097
Diluted 8,076 8,097
Manchester Equipment Co., Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands except share amounts)
October 31, 1999 July 31, 1999
(Unaudited)
Assets:
Cash and cash equivalents $13,408 $5,749
Accounts receivable, net 32,082 34,747
Inventory 7,115 8,245
Deferred income taxes 538 538
Prepaid expenses and other
current assets 237 340
Total current assets 53,380 49,619
Property and equipment, net 5,882 6,248
Goodwill, net 5,002 5,070
Deferred income taxes 560 560
Other assets 262 281
$65,086 $61,778
Liabilities:
Current maturities under
capital lease obligation $ 54 $ 85
Accounts payable and
accrued expenses 23,003 20,824
Deferred service revenue 615 581
Income taxes payable 834 668
Total current liabilities 24,506 22,158
Deferred compensation payable 34 34
Total liabilities 24,540 22,192
Shareholders' equity:
Preferred stock, $.01 par value;
5,000,000 shares authorized,
none issued -- --
Common stock, $.01 par value;
25,000,000 shares authorized,
8,041,800 and 8,084,800
issued and outstanding 80 81
Additional paid-in capital 18,667 18,799
Deferred compensation (31) (38)
Retained earnings 21,830 20,744
Total shareholders' equity 40,546 39,586
$65,086 $61,778
See notes to condensed consolidated financial statements.
SOURCE: Manchester Equipment Co., Inc. |
