Manchester Technologies, Inc. Announces Fiscal First Quarter Results

Manchester Technologies, Inc. Announces Fiscal First Quarter Results 


HAUPPAUGE, N.Y., Dec. 11  /PRNewswire-FirstCall/ -- Manchester Technologies,
Inc. , a leading computer and network solutions provider and display technology
distributor, today announced financial results for its first fiscal quarter
ended October 31, 2003.

Revenue for the quarter was $74.7 million as compared with $68.3 million for the
comparable quarter last year.  Earnings for the quarter were $311,000 or $0.04
per diluted share as compared with $158,000 or $0.02 per diluted share reported
a year ago.  Weighted average common shares outstanding used for the computation
of diluted earnings per share were 8,251,000 and 7,991,000, respectively.

Barry R. Steinberg, President and CEO of Manchester Technologies, Inc., stated
"We are pleased that we were able to return to profitability in our first
quarter of fiscal 2004. We are seeing an increase in IT spending, although the
increase has not been continuous. Revenues for the quarter increased as compared
to last year.  In particular, our service revenues increased by 19% as compared
to last year and revenues from our Electrograph subsidiary increased by 23% as
compared to last year, with demand for display technology solutions remaining
strong. Pricing pressure and competition continue to affect our gross margins
and our gross margin percentage decreased as compared to last year. However, on
a sequential basis, our gross margin percentage has remained consistent."

"We remain committed to our strategy of providing business solutions, services,
product fulfillment and display technologies that meet all of our customers'
needs."

The Company ended the quarter with cash and cash equivalents of $10.7 million,
working capital of $31.1 million, total assets of $77.0 million and
shareholders' equity of $44.2 million.

About Manchester Technologies, Inc.

Manchester Technologies, Inc. is a single-source solutions provider specializing
in hardware and software procurement, display technology, custom networking,
security, IP telephony, remote management, application development/e-commerce,
storage, enterprise and Internet solutions. Manchester offers its customers
single-source solutions customized to their information systems needs by
integrating its analysis, design and implementation services with hardware,
software, networking products and peripherals from leading vendors. In addition,
Manchester offers a complete line of products and peripherals for customers'
display technology requirements. More information about the Company can be
obtained by visiting the Company's website located at
http://www.e-manchester.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
               CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                 (in thousands, except per share amounts)
                               (Unaudited)

                                                     Three months ended
                                                  October 31,    October 31,
                                                     2003           2002

  Revenue
    Products                                       $70,452        $64,715
    Services                                         4,248          3,570

                                                    74,700         68,285
  Cost of revenue
    Products                                        62,726         56,918
    Services                                         3,078          2,403

                                                    65,804         59,321

    Gross profit                                     8,896          8,964

  Selling, general and administrative expenses       8,290          8,840

    Income from operations                             606            124

  Interest and other income (expense), net             (87)           140

    Income before income taxes                         519            264

  Income tax provision                                 208            106

    Net income                                        $311           $158

  Net income per share
    Basic                                            $0.04          $0.02
    Diluted                                          $0.04          $0.02

  Weighted average shares outstanding
    Basic                                            7,990          7,990
    Diluted                                          8,251          7,991


              Manchester Technologies, Inc. and Subsidiaries
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                 (in thousands, except per share amounts)

                                             October 31, 2003  July 31, 2003
                                                (Unaudited)

  Assets
  Current assets:
   Cash and cash equivalents                      $ 10,667        $ 8,553
   Accounts receivable, net                         33,671         35,117
   Inventory                                         8,916          9,605
   Deferred income taxes                               603            603
   Prepaid income taxes                              1,404          1,704
   Prepaid expenses and other current assets           429            709

      Total current assets                          55,690         56,291

  Property and equipment, net                       13,891         13,985
  Goodwill, net                                      6,439          6,439
  Deferred income taxes                                757            757
  Other assets                                         227            278

      Total assets                                 $77,004        $77,750

  Liabilities and shareholders' equity
  Current liabilities:
   Accounts payable and accrued expenses           $23,610        $24,752
   Deferred service contract revenue                   802            666
   Current portion of capital lease obligations        220            212

      Total current liabilities                     24,632         25,630

  Deferred compensation payable                        263            263
  Capital lease obligations, net of current portion  7,864          7,923

      Total liabilities                             32,759         33,816

  Shareholders' equity:
   Preferred stock, $.01 par value; 5,000 shares
    authorized, none issued                              -              -
   Common stock, $.01 par value; 25,000 shares
    authorized, 7,990 issued and outstanding            80             80
   Additional paid-in capital                       18,942         18,942
   Deferred compensation                               (13)           (13)
   Retained earnings                                25,236         24,925


      Total shareholders' equity                    44,245         43,934

      Total liabilities and shareholders' equity   $77,004        $77,750


   CONTACT:  Elan Yaish
             Chief Financial Officer
             Telephone:  [phone]
             Fax: [phone]
             email: 

DATASOURCE: Manchester Technologies, Inc.



CONTACT:  Elan Yaish, Chief Financial Officer of Manchester Technologies,

Inc., [phone], Fax - [phone],  



Web site:  http://www.e-manchester.com/ 

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