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Technology Stocks : HS - CHS Electronics -- Ignore unavailable to you. Want to Upgrade?

To: goinbrk who wrote (678)	6/19/1998 9:27:00 AM
From: Colby	Read Replies (1) \| Respond to of 1494

CHS Electronics Reports on Current Trends -- Sales Trend Is Within 3% Of Second Quarter Target -- Sales Are On Or Ahead Of Target In Europe And Latin America -- Gross Margin, DSO, Inventory And Receivables Ahead Of Target, SG&A On Target MIAMI, June 19 /PRNewswire/ -- CHS Electronics, Inc. (Nasdaq: CHSE), a leading international distributor of microcomputer products, said today that it feels positive about its performance in the second quarter of 1998. Claudio Osorio, chairman and chief executive officer of CHS Electronics, said the company's sales are on target or ahead of plan in Western Europe, Eastern Europe and Latin America. Sales are either on or ahead of target in all product categories except hard-disk drives, which are behind plan. Mr. Osorio said this has caused the current sales trend to be within three percent of the company's target. Recent price adjustments from the hard disk drive vendors have increased the sales run rate for those products. "Our gross margin is above our target for the quarter, and our operating expenses are in line with our target," Mr. Osorio said. "We have only 28 days' sales in inventory and receivables of only 30 days' sales outstanding. The overall situation is quite good, and we are positive about our performance for the quarter." Regarding the recently announced Metrologie acquisition, CHS expects to receive a response from the European Commission under EU merger regulations on June 25, 1998. Assuming approval, the company expects to close on a majority of Metrologie shares on June 30. It expects to commence a tender offer for the remaining shares in the first two weeks of July. Miami-based CHS Electronics, ranked number 320 on the latest Fortune 500 list of the largest U.S.-based industrial corporations, is a leading international, full-service distributor of microcomputers, peripherals and software products to more than 110,000 resellers in 42 countries in Europe, Latin America, Asia and Africa. Unlike other computer wholesalers, CHS Electronics distributes a limited product line for a limited number of leading computer manufacturers and does so only outside the United States. The company believes that its "focused distribution" enables it to respond more quickly to customers, provide better service, and reduce inventory and working capital requirements. CHS believes it is the largest microcomputer distributor in Latin America and Europe. To receive additional information on CHS Electronics, Inc. via fax at no charge, dial 1-800-PRO-INFO and enter code CHSE. The above statements regarding second quarter 1998 financial results including sales, gross margin and operating expense are based on current expectations and may differ materially from actual results. Among factors that could cause actual results to differ materially are changes in business and economic conditions, competition; changes in product mix; and the risk factors listed by CHS Electronics' reports filed with the Securities and Exchange Commission. SOURCE CHS Electronics, Inc. CO: CHS Electronics, Inc. ST: Florida IN: CPR SU: ECO