Manchester (NASDAQ:MANC)
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HAUPPAUGE, N.Y., Dec. 13 /PRNewswire-FirstCall/ -- Manchester Technologies,
Inc. (NASDAQ:MANC), a leading distributor of display technology solutions and
plasma display monitors, today announced financial results for the first
quarter ended October 31, 2004.
On May 28, 2004, the Company sold its end-user information technology
fulfillment and professional services business to ePlus, inc., a leading
provider of Enterprise Cost Management, in an all cash transaction. The
results of operations for the end-user information technology fulfillment and
professional services business have been recorded as discontinued operations in
the accompanying condensed consolidated statements of income.
Revenue from continuing operations for the quarter was $46.9 million as
compared with $45.4 million for the comparable quarter last year. Income from
continuing operations for the quarter was $1.8 million or $0.21 per diluted
share as compared with $844,000 or $0.10 per diluted share reported a year ago.
Weighted average common shares outstanding used for the computation of diluted
earnings per share were 8,434,000 and 8,251,000, respectively.
Barry R. Steinberg, President and CEO of Manchester Technologies, Inc., stated,
"We are pleased with the increase in revenues and profitability as compared to
last year. In particular, sales of our display technology solutions increased
by 12% as compared to last year. However, this increase was partially offset
by decreased sales of computer hardware to dealers and systems integrators as a
result of our inability to procure products for this line of business."
The Company ended the quarter with cash and cash equivalents of $20.9 million,
working capital of $37.4 million, total assets of $74.4 million and
shareholders' equity of $45.0 million.
About Manchester Technologies, Inc.
Manchester Technologies, Inc. is a distributor of display technology solutions
and plasma display monitors through its subsidiary Electrograph Systems, Inc.
and is a distributor of computer hardware, primarily to dealers and system
integrators. More information about the Company and Electrograph can be
obtained by visiting their websites located at http://www.e-manchester.com/ and
the website of its subsidiary at http://www.electrograph.com/.
Statement Under the Private Securities Litigation Reform Act
This press release includes information that may constitute forward-looking
statements within the meaning of the federal securities laws. All statements
other than statements of historical fact, including, without limitation, those
with respect to Manchester Technologies, Inc.'s objectives, plans and
strategies set forth herein and those preceded by or that include the words
"believes," "intends," "expects," "plans," "anticipates," or similar
expressions, are forward-looking statements. These forward-looking statements
speak only as of the date of this press release. Manchester's actual results
may differ materially from the results discussed herein as a result of a number
of unknown factors, including, without limitation, there being no assurance
that Manchester will be successful in its efforts to focus on
higher-margin products and services, in identifying suitable acquisition
candidates and in integrating acquired companies, or in attracting and
retaining highly skilled technical personnel and sales representatives
necessary to implement its growth strategies, or that Manchester will not be
adversely affected by continued intense competition in the computer industry,
continued deterioration in average selling prices of personal computers and
display technologies, a decrease in the growth of the display technology
market, a lack of product availability, deterioration in relationships with
major manufacturers, a loss or decline in sales to any of its major customers,
or any of the other risks set forth in Manchester's Annual Report on Form 10-K
for the year ended July 31, 2004, and those set forth from time to time in
Manchester's other filings with the Securities and Exchange Commission.
Manchester assumes no obligation to update any of the information referenced in
this press release. These documents are available through the Company, or
through the Securities and Exchange Commission's Electronic Data Gathering
Analysis and Retrieval system (EDGAR) at http://www.sec.gov/.
Manchester Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements Of Income
(in thousands, except per share amounts)
(Unaudited)
Three months ended
October 31, October 31,
2004 2003
Revenue $46,881 $45,378
Cost of revenue 40,849 40,644
Gross profit 6,032 4,734
Selling, general and administrative expenses 3,129 3,340
Income from operations 2,903 1,394
Interest and other income (expense), net 15 (20)
Income from continuing operations before income
taxes 2,918 1,374
Income tax provision 1,167 530
Income from continuing operations 1,751 844
Discontinued operations
Income (loss) from operations of discontinued
component 995 (855)
Income tax (provision) benefit (398) 322
Income (loss) from discontinued operations 597 (533)
Net income $2,348 $311
Income per share from continuing operations
Basic $0.21 $0.11
Diluted $0.21 $0.10
Loss per share from discontinued operations
Basic $0.07 $(0.07)
Diluted $0.07 $(0.07)
Net income per share
Basic $0.29 $0.04
Diluted $0.28 $0.04
Weighted average shares outstanding
Basic 8,226 7,990
Diluted 8,434 8,251
Manchester Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
October 31, 2004 July 31, 2004
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $20,933 $16,881
Accounts receivable, net of allowance for
doubtful accounts of $1,772 and $2,848,
respectively 22,207 15,530
Inventory 12,922 20,301
Deferred income taxes 1,212 1,212
Prepaid taxes 630 916
Prepaid expenses and other current assets 1,196 1,266
Total current assets 59,100 56,106
Property and equipment, net 9,699 9,890
Goodwill, net 3,735 3,735
Deferred income taxes 1,728 1,728
Other assets 97 183
Total assets $74,359 $71,642
Liabilities and Shareholders'
Equity
Current liabilities:
Accounts payable and accrued expenses $21,439 $21,492
Current portion of capital lease obligations 255 246
Total current liabilities 21,694 21,738
Deferred compensation payable 98 98
Capital lease obligations, net of current portion 7,615 7,683
Total liabilities 29,407 29,519
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value; 5,000 shares
authorized, none issued -- --
Common stock, $.01 par value; 25,000 shares
authorized, 8,290 and 8,163 shares issued and
outstanding 83 82
Additional paid-in capital 20,077 19,597
Retained earnings 24,792 22,444
Total shareholders' equity 44,952 42,123
Total liabilities and shareholders'
equity $74,359 $71,642
DATASOURCE: Manchester Technologies, Inc.
CONTACT: Elan Yaish, Chief Financial Officer, +1-631-951-7060, or Fax,
+1-631-951-7639,
Web site: http://www.e-manchester.com/