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To: Jimmy Dell who wrote (11362)	7/13/1998 4:34:00 PM
From: Jenna	Read Replies (4) \| Respond to of 120523

Apex PC Solutions Reports Second Quarter Results; Net Sales Up 51%, <APEX.O> On earnings plays watch list already popped big on Thursday. Apex PC Solutions Reports Second Quarter Results; Net Sales Up 51%, Earnings Up 71% WOODINVILLE, Wash.--(BUSINESS WIRE)--July 13, 1998--Apex PC Solutions, Inc. (NASDAQ:APEX) today reported results for the second quarter and six months ended June 26, 1998. For the second quarter, net income was $3.6 million, an increase of 71% over the second quarter of 1997. Earnings per share for the quarter rose 53% to $0.26, compared to $0.17 for the same period of 1997. Earnings per share grew less rapidly than net income due to the increase in weighted average shares outstanding resulting from the Company's August 1997 follow-on stock offering. Apex's net sales grew 51% to $18.3 million, from $12.1 million in the second quarter of 1997. Gross margin in the second quarter of 1998 was 46.3%, up from 45.4% in the second quarter of 1997. This increase was due both to higher margins resulting from increased sales volume and to a higher percentage of switch sales in the Company's product mix. For the first six months of 1998, net sales increased 44% to $34.0 million from $23.7 million a year ago. Net income increased 76% to $6.9 million, and earnings per share rose 47% to $0.50. Second quarter branded sales were $7.1 million, up from $5.1 million a year ago. For the first six months of 1998, branded sales were up 76% to $14.1 million, from $8.0 million in the first half of 1997. "Our second quarter sales growth was fueled by a combination of strong demand from our private-label OEM customers and growth in sales of our Apex-brand switching solutions to both OEM and end-user customers," said Kevin J. Hafer, president and chief executive officer. "As we announced today, Apex has entered into a Distribution Agreement with Tech Data Corporation, a leading distributor of computer products to more than 100,000 resellers. These resellers are key prospective customers for our Apex-brand switching solutions, and we believe our relationship with Tech Data Corporation will translate into expanded market presence and increased sales of our branded products."