SBS Technologies, Inc. Announces Record 3RD Quarter Fiscal 1998 Sales of $18.9 Million and EPS of $0.42 Per Share
<B>Earnings Per Share Increased 35% On Strong Internal Growth</B>
SBS Technologies, Inc. ("SBS") ("the Company") (Nasdaq: SBSE) today announced results of its third fiscal quarter ended March 31, 1998. The Company reported that sales for the quarter reached $18.9 million, an all-time record for sales in a single quarter. Sales for the quarter increased 33% over the third quarter of the prior fiscal year. Net income for the quarter was $2.6 million, or $0.42 per share (diluted), which exceeded the consensus of analyst estimates. Net income increased 39% and Diluted Earnings Per Share increased 35% over the prior year quarter. For the nine months ended March 31, 1998, sales increased 42% or $15.9 million to $53.6 million from $37.7 million for the same period of the prior fiscal year. Net income for the nine months ended March 31, 1998, increased 47% or $2.3 million to $7.2 million or $1.17 per share (diluted) from $4.9 million or $0.96 per share (diluted) for the same period of the prior fiscal year, excluding the effect of an $11.0 million in-process R&D charge taken in the quarter ended December 31, 1996. "The third quarter demonstrated continued progress in our financial performance and in the development of SBS," said Christopher J. Amenson, Chairman and Chief Executive Officer. "Our businesses grew 25% internally over the third quarter of the prior year, which, when added with the acquisition of Micro Alliance, contributed to the overall sales growth of 33% for the quarter. The organization change we made during the quarter, an alignment of our operating entities into the Computer Group and the Aerospace Group, will provide increased management focus on developing the synergies inherent in our complimentary businesses. We were pleased with the pace of new product introduction during the quarter, and the completion of our transition from dependence upon independent sales representatives to a salaried sales force. Our strategy will remain the internal development of SBS through increased investments in research and development and augmentation of that growth through the acquisition of good, related growth businesses," Amenson continued. 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 SBS, 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 SBS' new products; SBS' overall ability to design, test and introduce new products on a timely basis; the cyclical nature of the markets addressed by SBS' products; and the risk factors listed from time to time in documents filed by SBS with the Securities and Exchange Commission.
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