NEWS...(ACMM)..............
(PR NEWSWIRE) Accom(R) Announces First Quarter Results
Accom(R) Announces First Quarter Results
MENLO PARK, Calif., May 15 /PRNewswire/ -- Accom, Inc.
(OTC Bulletin Board: ACMM), today reported results for its first fiscal
quarter ended March 31, 2000. Net income was $2.7 million, or $0.25 per share
on a diluted basis, compared to net income of $514,000, or $0.05 per share,
for the first quarter of 1999. Revenues totaled $8.4 million compared to
$9.5 million for the quarter ended March 31, 1999. Net income for the quarter
included a pre-tax gain of $2.9 million, or $0.26 per share on a diluted
basis, on the sale of the ELSET(R) virtual set product line in January.
In comparison, revenues for the fourth quarter of 1999 were $6.3 million
while revenues for the first quarter of 1999 were $ 9.5 million. Net loss for
the fourth quarter of 1999 was $1.7 million or $0.17 per share while net
income for the first quarter of 1999 was $514,000 or $0.05 per share.
"First quarter revenues and profits were in line with our internal goals,"
commented Junaid Sheikh, Chairman and CEO. "The sale of ELSET not only
provided us with cash but more importantly allows us to sharpen our focus and
concentrate on our core business of editing, digital video effects, digital
disk recorders and servers."
Sheikh continued, "Our current and new products were well received at NAB,
the largest trade show in our industry, which was held in Las Vegas last
month. In the editing area, we demonstrated significant new features and low
cost storage area networking on the AFFINITY(TM) system. We introduced the
WSD/HD(R) Digital Disk Recorder aimed at the post-production and electronic
film markets. The Abekas(R) 6000 MultiFlex(TM) DTV Server was shown with a
number of new features. We also announced that HDveous is expected to be
available at the end of this year. HDveous provides a path to high definition
for the industry standard Dveous? digital video effects system."
About Accom
Accom, headquartered in Menlo Park, California, designs, manufactures,
sells, and supports a complete line of digital video production, disk
recording, and editing tools for the professional worldwide television
production postproduction, broadcasting, and computer video marketplaces.
For more information, visit the Accom web site at accom.com.
Special Note: This press release contains forward-looking statements based
upon current expectations or beliefs as well as a number of assumptions about
future events, and that are subject to factors and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements. The reader is cautioned not to put undue reliance
on these forward-looking statements, which are not a guarantee of future
performance and are subject to a number of uncertainties and other factors,
many of which are outside the control of Accom. The forward-looking statements
in this release address several subjects including, for example, the product
offerings of the company, investment in new product development, the expected
revenue and profitability of the company, and the ability to serve customer
needs in the future. The following factors, among others, could cause actual
results to differ materially from those described in these forward-looking
statements: increased competition and technological changes in the industry in
which Accom competes; the risk that the Company's new products will not be
released on a timely basis or will not achieve market acceptance, and the risk
that the Company will not return to profitable growth. For a detailed
discussion of these and other cautionary statements, please refer to Accom's
filings with the Securities and Exchange Commission, on Form 10-K for the year
ended December 31, 1999, including the section entitled "Additional Factors
That May Affect Future Results." The 10-K report is available by calling
Accom at 650-328-3818 or by accessing Accom's EDGAR filings on the SEC home
page on the Internet at sec.gov.
Accom, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
As of
March 31, December 31,
2000 1999
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 193 $ 328
Accounts receivable, net 3,628 1,616
Inventories 4,132 5,112
Other current assets 564 580
Total current assets 8,517 7,636
Property and equipment, net 2,300 2,343
Intangibles, net 1,885 1,986
Restricted cash 1,795 --
Other assets 67 70
Total assets $14,564 $12,035
Liabilities and Stockholders' Equity
Current liabilities:
Bank borrowings - line of credit $ 735 $ 559
Current portion of notes payable 750 1,315
Other current liabilities 5,648 5,562
Total current liabilities 7,133 7,436
Long-term debt 3,275 3,261
Stockholders' equity 4,156 1,338
Total liabilities and
stockholders' equity $14,564 $12,035
Accom, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2000 1999
Net sales $8,403 $9,538
Cost of sales 3,787 4,059
Gross profit 4,616 5,479
Operating expenses:
Research and development 1,796 1,945
Marketing and sales 2,236 2,100
General and administrative 653 807
Total operating expenses 4,685 4,852
Operating income (loss) (69) 627
Interest and other income, net (41) (111)
Proceeds from sale of ELSET
product line 2,888 --
Income before provision for
income taxes 2,778 516
Provision for income taxes 54 2
Net income $2,724 $514
Net income per share - basic $0.27 $0.05
Net income per share - diluted $0.25 $0.05
Shares used in computing net income
per share - basic 10,136 10,122
Shares used in computing net income
per share - diluted 11,156 10,422
SOURCE Accom, Inc.
-0- 05/15/2000
/CONTACT: Junaid Sheikh, Chairman & CEO, 650-328-3818, ext. 244, Donald
K. McCauley, Sr. VP Finance & CFO, 650-328-3818, ext. 201, of Accom, Inc./
/Web site: accom.com
(ACMM)
CO: Accom, Inc.
ST: California
IN: CPR
SU: ERN
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