Wednesday May 10, 12:55 pm Eastern Time
Company Press Release
ATEC Group Reports Third Quarter/Nine Months Results
Net Income for Quarter Up 121%; Gross Profit as Percentage of Sales Rises
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--May 10, 2000-- ATEC Group, Inc. (NASDAQ: ATEC - news), today announced results for the third quarter and first nine months of fiscal 2000 ended March 31, 2000.
For the quarter, net income rose 121 percent to $134,184, or two cents per basic and diluted share, from $60,596, or one cent per basic and diluted share, for the third quarter of fiscal 1999. Net revenues for the quarter totaled $15,592,963, versus $22,839,467 for the year-ago period, and gross profit was $2,483,512, compared with $3,249,511 in the corresponding quarter of fiscal 1999. Gross profit as a percentage of sales increased to 16 percent, compared with 14 percent in the 1999 quarter.
For the nine months ended March 31, 2000, net income climbed 90 percent to $540,564, or eight cents per basic and diluted share, from $284,884, or four cents per basic and diluted share, in the first nine months of fiscal 1999. Net revenues for the fiscal 2000 nine months were $53,313,156, compared with $90,457,405 in the corresponding period last year, while gross profit increased to $9,389,600, up four percent from $9,003,054 in the year-ago nine month period. Gross profit as a percentage of sales improved to 18 percent, compared with 10 percent in the prior-year period.
Revenues for the quarter declined in part because the company has exited its low-margin distribution business. During the quarter, the company also began to realize improving results from its higher-margin businesses, primarily service, integration and web-based solutions.
Surinder Rametra, chairman and CEO of ATEC Group, Inc., said, ``We are pleased with our steadily rising gross profit, Internet sales and web solutions, as well as our increasing revenues from systems integration, connectivity and services. We aim to continue to focus on PC manufacturing, software development and e-commerce as sources of the company's future revenue growth.''
About ATEC Group
Based in Hauppauge, New York, ATEC Group, Inc., is a leading system integrator and provider of a full line of information technology products and services. As a one-stop company for the computer needs of businesses, government agencies and educational institutions, ATEC Group offers computer hardware and software, system integration networking, graphic arts, Internet and Intranet. The company is positioned for growth through its capabilities as a PC manufacturer of Nexar technology, in software development and e-commerce.
For more information on ATEC Group, please visit the company's web site at www.atecgroup.com.
ATEC GROUP, INC.
Financial Highlights
For the Three For the Nine
Months Ended Months Ended
3/31/00 3/31/99 3/31/00 3/31/99
------- ------- ------- -------
Net revenues $15,592,963 $22,839,467 $53,313,156 $90,457,405
Gross profit 2,483,512 3,249,511 9,389,600 9,003,054
Net income 134,184 60,596 540,564 284,884
Net income per share
Basic $.02 $.01 $.08 $.04
Diluted $.02 $.01 $.08 $.04
Average shares
outstanding 7,185,063 8,201,818 7,247,013 7,975,613
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements that are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including, but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.
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Contact:
ATEC GROUP, INC.
Jim Charles, CFO
(631) 231-2832
or
Porter, LeVay & Rose, Inc.
Lori Parks, VP
Sari Ellen Clement, Investor Relations
(212) 564-4700 |
