PNDS DID IT!!...PDSi Reports Record Fourth-Quarter/Year-End Results; Company Achieves Post-Split EPS of 15 Cents (on 2.4 Millions shares...)
COLUMBUS, Ohio--(BUSINESS WIRE)--March 29, 2000--Pinnacle Data
Systems, Inc. (PDSi) (OTC BB: PNDS), a leading engineering design
center and repair facility providing high-end Unix-based solutions for
the telecommunications industry and original equipment manufacturers
(OEMs), today announced record results for the 13 and 52-week periods
ended Dec. 31, 1999. All earnings per share totals reflect the 2-for-1
stock split announced by the company on March 7, 2000.
For the 13-week period, revenues rose 57 percent to $4,240,161,
compared with $2,703,254 in the three-month period ended Dec. 31,
1998. Net income for 1999 totaled $128,468, or five cents per diluted
share, versus $81,579, or three cents per diluted share, for the
corresponding period last year.
For the 52 weeks ended Dec. 31, 1999, revenues totaled
$12,202,701, up 35 percent from $9,032,332 in 1998. Net income for
1999 was $351,166, or 15 cents per diluted share, compared with $588,
or less than one cent per diluted share, for 1998. Results for the
1998 period included a $300,000 non-cash, pre-tax charge to
operations, reflecting the company's decision to write down a portion
of inventory related to its Third Party Maintainer (TPM) repair
business. Net income for 1999 includes a one-time, pre-tax gain on the
sale of the company's former office building of $85,992 or two cents
per diluted share.
Thomas J. Carr, PDSi treasurer and chief financial officer, said,
"We are very pleased to have met our profitability objectives for the
year, despite major significant reinvestments in people, equipment and
space, which we made in order to increase our capacity for additional
growth."
Commenting on the results, John Bair, PDSi president and chief
executive officer, said, "Many of the key events of the past year -
the winning of several large contracts from leading OEMs, our facility
and staff expansion, working closely with Sun Microsystems'
Microelectronics division in the development of new groundbreaking
board-level technology, our growing presence in the wireless
telecommunications market - all serve to position the company for
continued growth in 2000 and beyond. We will continue to focus on new
product development, especially in the growing areas of wireless
telecommunications and medical systems, and on expanding the repair
side of the business to enhance our position as a leading provider of
customer-defined service and support solutions for OEMs worldwide."
About PDSi
PDSi provides leading-edge technology and service solutions to the
telecommunications, medical systems and manufacturing process control
markets. By combining high-end engineering design capability with
knowledge of standard, commercially available hardware and software,
PDSi is able to expedite the application development process to meet
Original Equipment Manufacturers' (OEMs) unique needs, typically
reducing or eliminating non-recurring engineering (NRE) charges and
fast-tracking time-to-market.
PDSi's comprehensive end-of-life control allows OEMs to maximize
their return on investment in technology by minimizing re-engineering
and software development charges that often result when key components
are no longer provided by suppliers. PDSi also provides complete,
customer-defined service and support programs for OEM products, as
well as depot repair services and parts stocking. For more
information, visit the PDSi web site at www.pinnacle.com.
Safe Harbor Statement: Statements in this release which relate to
other than strictly historical facts, including statements about the
Company's plans and strategies, as well as management's expectations
about new and existing products and services, technologies and
opportunities, market growth, demand for acceptance of new and
existing products and services are forward-looking statements. The
words "believe," "expect," "anticipate," "estimate," "project," and
similar expressions identify forward-looking statements that speak
only as of the date thereof. Investors are cautioned that such
statements involve risks and uncertainties that could cause actual
results to differ materially from historical or anticipated results
due to many factors. The Company undertakes no obligations to publicly
update or revise such statements.
-0-
*T
For the Three Months Ended For the Years Ended
-------------------------- -------------------
12/31/99 12/31/98 12/31/99 12/31/98
-------- -------- -------- --------
SALES
Service sales $ 838,789 $ 759,017 $3,044,099 $2,721,388
Product sales 3,372,139 1,914,521 9,036,646 6,141,722
Other sales 29,232 29,717 121,956 169,222
--------- --------- ---------- ----------
4,240,161 2,703,254 12,202,701 9,032,332
--------- --------- ---------- ----------
COST OF SALES
Service sales 453,895 414,531 1,702,240 1,936,882
Product sales 2,711,378 1,561,394 7,225,533 5,017,652
Other sales 33,626 116,733 153,879 237,700
--------- --------- ---------- ----------
3,198,899 2,092,658 9,081,652 7,192,234
--------- --------- ---------- ----------
GROSS PROFIT 1,041,261 610,597 3,121,049 1,840,098
--------- --------- ---------- ----------
OPERATING EXPENSES
Selling, general
and administrative 822,604 444,772 2,555,657 1,751,213
--------- --------- ---------- ----------
INCOME FROM OPERATIONS 218,657 165,825 565,392 88,885
--------- --------- ---------- ----------
OTHER INCOME (EXPENSE)
Interest expense (23,415) (22,723) (92,473) (83,552)
Gain on sale of
building - - 85,922 -
--------- --------- ---------- ----------
(23,415) (22,723) (6,551) (83,552)
--------- --------- ---------- ----------
INCOME BEFORE INCOME
TAXES 195,242 143,102 558,841 5,333
--------- --------- ---------- ----------
INCOME TAXES 58,774 61,523 207,675 4,745
--------- --------- ---------- ----------
NET INCOME $ 136,468 $ 81,579 $ 351,166 $ 588
========= ======== ========= ==========
Net income per share
Basic $ 0.06 $ 0.03 $ 0.15 $ 0.00
Diluted $ 0.05 $ 0.03 $ 0.14 $ 0.00
*T
--30--db/ny*
CONTACT: Porter, LeVay & Rose, Inc., New York
Lori Parks, VP
Linda Decker, Investor Relations
(212) 564-4700
or
Pinnacle Data Systems, Inc., Columbus
John Bair, President & CEO
(614) 748-1150
|
