Manchester (NASDAQ:MANC)
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Manchester Reports Fiscal Fourth Quarter and Year End Results
HAUPPAUGE, N.Y., Oct. 28 /PRNewswire-FirstCall/ -- Manchester Technologies,
Inc. (NASDAQ:MANC), a leading distributor of display technology solutions and
plasma display monitors, today announced financial results for the fourth
quarter and fiscal year ended July 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 consolidated statements of operations.
Revenue from continuing operations for the quarter was $40.1 million as
compared with $40.5 million for the comparable quarter last year. Income from
continuing operations for the quarter was $265,000 or $0.03 per diluted share
as compared with a loss from continuing operations of $206,000 or $0.03 per
diluted share reported a year ago. Weighted average common shares outstanding
used for the computation of diluted earnings per share were 8,310,000 and
7,990,000, respectively.
Revenue from continuing operations for the fiscal year ended July 31, 2004 was
$173.0 million as compared with $164.2 million for the fiscal year ended July
31, 2003. Income from continuing operations for the fiscal year was $2.3
million or $0.28 per diluted share as compared with $2.6 million or $0.33 per
diluted share reported a year ago. Weighted average common shares outstanding
used for the computation of diluted earnings per share were 8,210,000 and
8,007,000, respectively.
Barry R. Steinberg, President and CEO of Manchester Technologies, Inc., stated,
"While revenues in the quarter were slightly lower than last year, we are
pleased that our gross margins increased both in dollars and as a percentage of
revenues. The display technology market is expected to continue to grow and we
remain a dominant player in this market. As a result of the sale of our IT
product and service business, we are now able to focus all our efforts on
continuing to grow our display solutions business."
The Company ended the quarter with cash and cash equivalents of $16.9 million,
working capital of $34.4 million, total assets of $71.6 million and
shareholders' equity of $42.1 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 can be obtained by visiting
the Company's website 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," "will," "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, 2003, 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
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three months ended Year ended
July 31, July 31,
2004 2003 2004 2003
(Unaudited)
Revenue $40,097 $40,520 $173,040 $164,156
Cost of Revenue 36,642 37,240 156,354 147,672
Gross profit 3,455 3,280 16,686 16,484
Selling, general and
administrative expenses 3,157 3,557 12,892 12,214
Income (loss) from
operations 298 (277) 3,794 4,270
Interest and other income
(expense), net 146 (31) (20) 115
Income (loss)from
continuing operations
before income taxes 444 (308) 3,774 4,385
Income tax provision
(benefit) 179 (102) 1,490 1,775
Income (loss) from
continuing operations 265 (206) 2,284 2,610
Discontinued operations:
Loss from operations of
discontinued
component (5,302) (3,411) (7,616) (8,005)
Income tax benefit (1,947) (970) (2,851) (2,807)
Loss from
discontinued
operations (3,355) (2,441) (4,765) (5,198)
Net loss $(3,089) $(2,647) $ (2,481) $(2,588)
Income (loss)
per share from
continuing operations
Basic $0.03 $(0.03) $0.28 $0.33
Diluted $0.03 $(0.03) $0.28 $0.33
Loss per share from
discontinued
operations
Basic $(0.41) $(0.31) $(0.59) $(0.65)
Diluted $(0.41) $(0.31) $(0.59) $(0.65)
Net loss per share
Basic $(0.38) $(0.33) $(0.31) $(0.32)
Diluted $(0.38) $(0.33) $(0.31) $(0.32)
Weighted average shares
outstanding
Basic 8,117 7,990 8,077 7,990
Diluted 8,310 7,990 8,210 8,007
Manchester Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except per share amounts)
July 31, July 31,
2004 2003
Assets
Current assets:
Cash and cash equivalents $16,881 $ 8,553
Accounts receivable, net of allowance for
doubtful accounts of $2,848 and $1,426,
respectively 15,530 35,117
Inventory 20,301 9,605
Deferred income taxes 1,212 603
Prepaid taxes 916 1,704
Prepaid expenses and other current assets 1,266 709
Total current assets 56,106 56,291
Property and equipment, net 9,890 13,985
Goodwill, net 3,735 6,439
Deferred income taxes 1,728 757
Other assets 183 278
Total assets $71,642 $77,750
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $21,492 $24,752
Deferred service contract revenue -- 666
Current portion of capital lease obligations 246 212
Total current liabilities 21,738 25,630
Deferred compensation payable 98 263
Capital lease obligations, net of current portion 7,683 7,923
Total liabilities 29,519 33,816
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, 8,163 and 7,990 shares issued
and outstanding 82 80
Additional paid-in capital 19,597 18,942
Deferred compensation -- (13)
Retained earnings 22,444 24,925
Total shareholders' equity 42,123 43,934
Total liabilities and shareholders' equity $71,642 $77,750
DATASOURCE: Manchester Technologies, Inc.
CONTACT: Elan Yaish, Chief Financial Officer of Manchester Technologies,
Inc., +1-631-951-7060, or fax, +1-631-951-7639,
Web site: http://www.e-manchester.com/
http://www.electrograph.com/