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Technology Stocks : American Power Conversion -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (2490)	2/1/2002 8:30:33 AM
From: JakeStraw	Read Replies (1) \| Respond to of 2574

American Power Conversion Announces Fourth Quarter and Full Year 2001 Financial Results biz.yahoo.com WEST KINGSTON, R.I., Jan. 31 /PRNewswire-FirstCall/ -- American Power Conversion Corporation (Nasdaq: APCC) today reported financial results for the fourth quarter and full year ended December 31, 2001. Revenues for the fourth quarter 2001 were $348.1 million, a decrease of 15 percent from $407.3 million for the fourth quarter 2000. Net income for the fourth quarter 2001 was $30.9 million ($.16 per share) down 20 percent versus $38.4 million ($.20 per share) in the fourth quarter 2000. Revenues for the twelve months ended December 31, 2001 were $1.43 billion, down 3 percent from $1.48 billion in 2000. Net income for the year 2001 was $115.2 million ($.59 per share) versus $165.7 million ($.83 per share) in 2000. Excluding 2001 after-tax charges of $15.0 million ($.08 per share) from the write-off of excess inventory and from headcount reductions, including costs associated with employment termination, facilities closings and asset impairment, full year 2001 net income was $130.2 million ($.66 per share). Excluding after-tax special charges of $34.0 million ($.17 per share) associated with the partial write-off of fully paid-up patent licenses obtained by APC during 2000, net income for 2000 was $199.7 million ($1.00 per share). ``I am extremely pleased with the outstanding job the APC team did in such a challenging environment last year. Our top line has outperformed the year- over-year declines much of the broad IT industry participants experienced and we have been able to remain profitable during a time when many others have not,'' said Rodger B. Dowdell, Jr., APC's president and CEO. ``We made some difficult trade-offs during the year, but we have stayed invested in programs with a long-term focus helping us provide our customers with the industry's strongest and most innovative suite of power and availability solutions. Furthermore, we ended the year with a very healthy balance sheet. Cash, cash equivalents and short-term investments increased $65.5 million sequentially to $393.1 million in the fourth quarter and were at the highest level since the first quarter 2000.'' The Company's small systems business, which provides power protection, uninterruptible power supply (UPS) and management products for the PC, server and networking markets, represented approximately 83 percent of revenues in the fourth quarter and 82 percent for the full year. Revenue for this segment was down 12 percent year-over-year in the fourth quarter 2001 and down 7 percent for the full year. ``Following a strong third quarter performance relative to the overall IT market, the small systems business exhibited a seasonal sequential revenue pattern in the fourth quarter and was down approximately six percent from the third quarter. Competition in this space remains tight, but given our financial strength and market presence APC is uniquely positioned to be aggressive when necessary during these difficult economic times,'' said Dowdell. ``The large systems business continues to be challenging and the year-over-year comparison was quite difficult given that large systems' revenues reached their highest historical level in the fourth quarter 2000. We have, however, begun to see our cost cutting measures take effect and gross margins in this segment increased sequentially more than 20 percentage points.'' The large systems segment, consisting primarily of 3-phase UPS, DC-power systems and precision cooling products for data centers, facilities and communication applications, represented approximately 14 percent of revenues in the fourth quarter and 15 percent for the full year. The large systems segment revenue was down 30 percent year-over-year for the fourth quarter and up 9 percent for the full year. On a geographic basis, revenues in the Americas (North and Latin America) were down 19 percent on a year-over-year basis in the fourth quarter and represented 50 percent of revenues for the Company. For the full year, revenues in the Americas were down 2 percent and made up 58 percent of total revenues. Europe, the Middle East and Africa (EMEA) revenue declined 12 percent year-over-year for the quarter and made up 32 percent of revenues. For the full year, EMEA revenue was down 6 percent and EMEA was 26 percent of the total. Finally, Asia revenue was down 6 percent in the fourth quarter versus the fourth quarter 2000 and made up 18 percent of total company quarterly revenues. For the full year, revenues in Asia were down 2 percent and represented 16 percent of the total. On a constant currency basis, EMEA revenue was down 13 percent in the fourth quarter and down 5 percent for the full year. Additionally, revenues in Asia were flat in the fourth quarter and up 4 percent for the full year 2001 in constant currency. Business Outlook ``While the prospects for a near term economic recovery remain unclear, we cannot sit idly by waiting for it to arrive. Our 2002 plan calls for APC to become increasingly aggressive in the market through pricing, innovation and a heightened competitive focus. Additionally, we will continue to uncompromisingly work to increase productivity and efficiency,'' explained Dowdell. ``These actions place APC in an extremely strong competitive position and we are well-positioned to capitalize on an economic recovery when it occurs.''