SBS Technologies, Inc. Announces Record 2nd Quarter Fiscal 1998 Sales of $18.4 Million and EPS of $0.37 Per Share
SBS Technologies, Inc. ("SBS") ("the Company") (Nasdaq:SBSE) today announced results of its second fiscal quarter ended December 31, 1997. The Company indicated that sales revenue for the quarter reached $18.4 million, an all-time record for sales in a single quarter. Sales for the quarter increased 49.8% over the second quarter of the prior fiscal year. Net income for the quarter was $2.3 million, or $0.37 per share, which was slightly ahead of the consensus analysts' estimates. Net income increased 39.6% over net income of the prior year quarter, excluding the effect of an $11.0 million in-process R&D charge taken during the second quarter of the prior year. Diluted Earnings Per Share increased 15.6 %, again excluding the effect of the $11.0 million charge.
For the six months ended December 31, 1997, sales increased 47.6% or $11.2 million to $34.7 million from $23.5 million for the same period of the prior fiscal year. Net income for the six months ended December 31, 1997, increased 52.3% or $1.6 million to $4.6 million or $0.76 per share from $3.0 million or $0.65 per share for the same period of the prior fiscal year, excluding the effect of the one-time charge.
"Our financial performance indicates strength in our combined product lines," said Christopher J. Amenson, Chairman and Chief Executive Officer. "We are pleased with the operating performance of the product businesses which compose our Company. Several years ago, we established the strategy of broadening our product line to better serve our customers through aggressive internal development and strategic business acquisition, and that strategy has continued to yield the results targeted by the Company," Amenson continued.
"During the quarter we made great strides in our conversion from a collection of companies with separate company identities and separate sales forces to an integrated operating entity," said Steve Cooper, President and Chief Operating Officer. "We have almost completed our conversion to a company with one customer identity under the 'SBS' trade name. In place of the six separate sales forces, which were augmented by separate networks of independent sales representatives, we now have two well-staffed salaried sales forces, with one focusing on the aerospace market and the other serving the general purpose embedded computer market," Cooper continued. "We have nearly doubled the number of SBS salaried sales personnel, as we terminated most of the independent representatives who had been marketing our products along with those of other manufacturers. We believe that this sales force will be better trained in our products and more suited to selling multiple SBS products into our broad base of customers. A significant portion of the cost of this transition occurred in the December quarter," Cooper said.
Highlights of our just completed quarter include:
The completion of the acquisition of Micro Alliance, Inc., a designer and manufacturer of PCI and ISA bus computer systems, and the Company's fifth company acquisition in the embedded computer market.
The announcement of several significant new products, including Broadcast Memory&8482; a unique product providing simultaneous high-speed data sharing among up to 144 workstations, PC-MIP, a new high speed mezzanine input/output product, and DataXpress&8482;, a high performance data acquisition software product.
Progress in reducing the Company's material costs through the combined purchasing power of its several entities.
Relocation of its SBS Bit 3 Operations subsidiary into a substantially larger, more contemporary facility.
Election of Alan F. White, Senior Associate Dean of the MIT Sloan School, to the Company's Board of Directors.
The appointment of Dave Greig as President of SBS Bit 3 Operations to succeed Phil Vukovic, who retired as contemplated during the Company's November 1996 acquisition of Bit 3.
SBS Technologies, Inc. is a leading designer and manufacturer of open-architecture, standard bus embedded computer components that system designers can easily utilize to create a custom solution specific to the user's unique application.
SBS product lines include CPU boards, input/output (I/O) modules, avionics modules and analyzers, interconnection and expansion units, telemetry boards, data acquisition software and industrial computers.
SBS embedded computer components are used in a variety of applications, such as telecommunications, medical imaging, industrial control and flight instrumentation, in the commercial and aerospace markets. For news releases, product and other information, visit the SBS Web site at http://www.sbs.com.
Certain of the foregoing information are forward-looking statements regarding the future events or the future financial performance of the Company, and are subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors are: general business and economic conditions; customer acceptance of and demand for the Company's new products; the Company's overall ability to design, test and introduce new products on a timely basis; the cyclical nature of the markets addressed by the Company's products; and the risk factors listed from time to time in documents filed by the Company with the Securities and Exchange Commission.
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