SBS Technologies, Inc. Issues Preliminary Financial Results and Revises Short-Term Outlook
... Major Corporate Development Efforts to Continue
SBS Technologies, Inc. ("SBS") (NASDAQ: SBSE) today issued its outlook for the second fiscal quarter ending December 31, 1998 and for the fiscal year ending June 30, 1999. "On October 20, 1998 we will be reporting our financial performance for the quarter ended September 30, 1998, and are comfortable that we will report within the range of current estimates, excluding the effect of an in-process research and development charge we will take associated with the acquisitions we closed during the quarter," said Christopher J. Amenson, Chairman and Chief Executive Officer. "We have seen sufficient softening in the quotation and booking activities of our business that it is prudent to update the financial community concerning the short-term outlook for our Company. Based upon recent sales activities, we estimate that revenue and earnings for the second fiscal quarter are likely to be flat with our first quarter. The results of what we are seeing lead us to estimate that revenue for the full fiscal year ending June 30, 1999, will be in the $100 million to $108 million range, as compared with last year's $74 million in revenue," continued Amenson. "On an earnings per share basis, we now estimate that the year will improve modestly over the $1.64 we earned in fiscal 1998, and be in the $1.70 to $1.85 range, again excluding the in-process R&D charges. We have instituted prudent cost control measures, predominantly in a slowdown in hiring and reduction of discretionary expenditures. We will continue, however, to increase our research and development and sales activities' expenditures, as these form the foundation of our continued growth. Our greatest development expenditures will continue to be in the integration activities of our recently acquired companies and in developing a strong basis of support for our European customers. Additionally, the expenditures on the PC-MIP, DataXpress and Computer Systems business we are developing will continue on track," Amenson continued. "I will more fully discuss the first quarter financial performance, our development activities and our business outlook during the conference call scheduled for October 20, 1998," Amenson said. 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 interface 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 commercial and aerospace markets. For news releases, product and other information, visit SBS on the World Wide Web 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.