SBS Technologies, Inc. Announces Fiscal Year End and Record 4th Quarter Results Quarter Sales Increased 79.1% and net income increased 96.0%


SBS Technologies, Inc. ("SBS") (NASDAQ: SBSE) today announced its fiscal 1997 year end results and record sales and record net income for its fourth fiscal quarter ended June 30, 1997. Sales for the fourth quarter of fiscal 1997 increased 79.1% or $6.7 million to $15.1 million from $8.4 million in the fourth quarter of fiscal 1996. Net income for the quarter, increased 96.0% or $1.07 million to $2.19 million from $1.12 million in the fourth quarter of the prior year. Earnings per share increased 31% to $0.38 from $0.29 in the fiscal 1996 fourth quarter, including the effect of approximately 2 million additional shares outstanding, primarily resulting from SBSí Follow-on Stock Offering in November, 1996. For the full fiscal year ended June 30, 1997 sales increased 68.6% or $21.5 million to $52.8 million from $31.3 million for the prior fiscal year. Excluding the effect of the one time $11.0 million charge taken during the second quarter ended December, 31, 1996 to expense in-process research and development associated with the acquisition of Bit 3 Computer Corporation, net income increased 97.2% or $3.5 million to $7.1 million from $3.6 million. Also, excluding the effect of the one time charge, earnings per share for the year ended June 30, 1997 increased 38.1% from $0.97 in fiscal 1996 to $1.34. Taking into consideration the one time charge resulted in fiscal year net income of $461,687 or $0.09 per share. "This has been a year of strong growth on all fronts for SBS," said Christopher J. Amenson, Chairman and CEO. "During the year, the revenue for our avionics and I/O product lines exceeded our expectations and we added to our core business through two strategic acquisitions. In August, we acquired a leading producer of Intel-based VME CPU boards, and in November we acquired a leading manufacturer of computer networking and interconnection hardware for many of the most widely used computer architecture standards in the standard bus embedded computer market. These acquisitions have expanded our product offerings and provided new marketing opportunities for SBS' other products. Also, through a combination of earnings and a Follow-on Stock Offering in November 1996, we strengthened the Companyís balance sheet to its strongest position ever. These events are a continuation of our strategy to expand our penetration of the embedded computer market and provide the Company an excellent platform for continued growth." Amenson added. "We are beginning to see the development of the natural synergies among our product lines. But we cannot stop here," said Steve Cooper, President and Chief Operating Officer. "We are taking the integration to the next level as we incorporate our operating units into a more unified SBS to truly take advantage of our complimentary product offerings and cross-marketing potential. Our customers are just now beginning to see the effect of our company integration program ," Cooper continued