Fibre Channel Marketplace News- Box Hill Q3 Results
NEW YORK, Oct. 30 /PRNewswire/ -- Box Hill Systems Corp. (NYSE: BXH), a
leading provider of high-performance data storage systems for the Open Systems
computing environment, today announced third quarter and nine month results
for the period ended September 30, 1997.
Net revenues for the 1997 third quarter reached $18.1 million, an increase
of 40.3% from $12.9 million in the 1996 comparable quarter. The third quarter
revenue growth, which was partially offset by price reductions, resulted from
an increase in volume, primarily due to increased demand for the Company's
products. Net revenues from sales of the Company's RAID products,
comprehensive disk storage and backup solutions contributed approximately
equally to the increase in revenues for the three months ended September 30,
1997.
Gross profit for the third quarter of 1997 increased 64.1% to
$6.4 million, from $3.9 million for the comparable period for 1996. As a
percentage of net revenues, gross profit increased from 30.7% to 35.2%,
principally as a result of a more favorable product mix.
Pro forma net income increased to $1.7 million, or $0.14 per share, from
pro forma net income of $0.8 million, or $0.07 per share in the 1996 third
quarter. The number of shares used to compute pro forma net income per share
were 12.2 million for the 1997 third quarter versus 11.7 million in the same
period of 1996, reflecting the successful completion of the initial public
offering on September 16, 1997. Pro forma net income and net income per share
have been presented as if the Company had been subject to federal and state
income taxes, and as if all shareholder officers had received compensation
pursuant to new employment contracts, for all periods presented. Net income
per share has been presented on a pro forma basis to include as outstanding,
the number of shares required to be sold at the IPO price to fund
$10.5 million of distributions to the Company's prior S Corporation
shareholders.
Comments From Management
Philip Black, Box Hill's CEO, said, "Box Hill had an excellent third
quarter. Revenue for the quarter reached an all-time high, based on continued
demand for our comprehensive disk and RAID storage and our high-end backup
solutions."
Mr. Black added, "During the third quarter, we introduced the Fibre
Box(R), our new Fibre Channel storage system featuring embedded X/OR RAID
technology. Initial response has been favorable, as has been the market's
overall acceptance of Fibre Channel technology as a replacement for SCSI
(Small Computer Systems Interface)."
Nine Month Results
Net revenues for the nine months ended September 30, 1997 increased 39.7%
to $50.3 million, from $36.0 million for the corresponding period of 1996. The
revenue growth for the period was the result of an increase in volume, which
was partially offset by price reductions. The increase in volume was
primarily the result of the ramp-up of new RAID products, which were
introduced in November 1995. During the nine-month period, net revenues from
sales of RAID products increased $7.1 million, or 120.3%, to $13.0 million for
1997 from $5.9 million for 1996. Net revenues from sales of the Company's
comprehensive disk storage and backup solutions also increased during the
nine-month period, due to an increased demand for the Company's products.
Gross profit for the nine months ended September 30, 1997 increased 49.6%
to $17.8 million, from $11.9 million for the comparable period of 1996. As a
percentage of net revenues, gross profit increased from 32.9% to 35.3%,
principally as a result of a more favorable product mix in 1997.
Pro forma net income for the nine months ended September 30, 1997
increased to $4.8 million, or $0.40 per share, from pro forma net income of
$2.5 million, or $0.21 per share in the corresponding period of 1996. The
number of shares used to compute pro forma net income per share were
11.9 million for the 1997 nine-month period versus 11.7 million in the same
period of 1996, reflecting the successful completion of the initial public
offering on September 16, 1997. Pro forma net income and net income per share
have been presented as if the Company had been subject to federal and state
income taxes, and as if all shareholder officers had received compensation
pursuant to new employment contracts, for all periods presented. Net income
per share has been presented on a pro forma basis to include as outstanding,
the number of shares required to be sold at the IPO price to fund
$10.5 million of distributions to the Company's prior S Corporation
shareholders.
Box Hill designs, manufacturers, markets and supports high performance
data storage systems for the Open Systems computing environment. The Company's
storage solutions encompass a broad range of scalable products and services
targeting high-end customers who demand high-performance, high availability
and the highest level of customer and technical support. Box Hill is also a
leader in providing comprehensive "best of breed" backup solutions to the Open
Systems marketplace.
Certain statements contained in this press release, including statements
regarding the anticipated development and expansion of Box Hill Systems
Corp.'s (the "Company") business, the intent, belief or current expectations
of the Company, its directors or its officers, primarily with respect to the
future operating performance of the Company and the products it expects to
offer and other statements contained herein regarding matters that are not
historical facts, are "forward looking" statements. Because such statements
include risks and uncertainties, actual results may differ materially from
those expressed or implied by such forward-looking statements. Factors that
could cause actual results to differ materially from those expressed or
implied by such forward-looking statements include, but are not limited to,
the factors set forth in "Risk Factors," "Management's Discussion and Analysis
of Financial Condition and Results of Operations" and "Business," found in the
Company's Prospectus dated September 16, 1997, relating to its Common Stock,
as filed with the Securities and Exchange Commission.
To receive additional information on Box Hill Systems Corp. via fax at no
charge, dial 1-800-PRO-INFO and enter ticker symbol BXH. Or to visit the
Company's web site, visit www.boxhill.com
BOX HILL SYSTEMS CORP. AND SUBSIDIARIES
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