SBS Technologies, Inc. Announces Results For Fiscal 1999 2nd Quarter Ended December 31, 1998
Reports Record Sales of $26.9 Million
SBS Technologies, Inc. ("SBS") ("the Company") (NASDAQ: SBSE) today announced results of its second quarter of fiscal 1999 ended December 31, 1998. The Company reported sales for the quarter of $26.9 million, a 47% increase over the $18.4 million in sales for the second quarter of the prior fiscal year. Net income for the quarter was $2.8 million, compared to $2.3 million of reported net income for the same quarter of the prior fiscal year, a 26% increase. Net income per share - assuming dilution was $0.47, compared to $0.37 reported for the second quarter of fiscal 1998, a 27% increase. For the six months ended December 31, 1998, sales increased -48%, or $16.8 million, to $51.5 million, from $34.7 million for the same period of the prior fiscal year. Net income for the six months ended December 31, 1998, increased 21% or $940,000 to $5.5 million or $0.90 per share from $4.6 million or $0.76 per share for the same period of the prior fiscal year. Excluding the effect of the in-process research & development charge taken in the quarter ended September 30, 1998, net income per share - assuming dilution, for the six months ended December 31, 1998 would have been $0.94. "We are pleased with the company's performance for the second quarter ended December 31, 1998. The majority of the markets we serve demonstrated good resiliency, though not the level of growth experienced in previous years, " said Christopher J. Amenson, Chairman and Chief Executive Officer. "We have a very diversified product line and customer base and there is strength in that diversification which is serving our company well. During the first quarter, we expanded our market by acquiring a controlling interest in our new German subsidiary. In December we completed the purchase of the remaining interest in this subsidiary to accelerate the growth of our European business. During the quarter just ended, we continued investing to develop SBS through increased expenditures in research and development and in our marketing and sales efforts, in order to take advantage of the opportunities we believe lie before us. We are committed to the long-term growth of our Company and will continue to make the investments necessary to support that growth. We are cautiously optimistic in the short term and very optimistic in the long term strength and performance of our company," 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 www.sbs.com. Certain of the foregoing information are forward-looking statements regarding the future events or the future financial performance of SBS, which are subject to risks and uncertainties. SBS' actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. Although it is not possible to predict or identify all of those factors, they may include: 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.