Manchester Technologies, Inc. Announces Fiscal Second Quarter Results

Manchester Technologies, Inc. Announces Fiscal Second Quarter Results 


HAUPPAUGE, N.Y., March 9  /PRNewswire-FirstCall/ -- Manchester Technologies Inc.
, a leading computer and network solutions provider, today announced financial
results for its second fiscal quarter and six months ended January 31, 2004.

Revenue for the quarter was $79.8 million as compared with $80.5 million for the
comparable quarter last year and $74.7 million in the first quarter of this
fiscal year.  The Company reported netincome for the quarter of $295,000 or
$0.04 per diluted share as compared with a net loss of $125,000 or $0.02 per
diluted share reported a year ago and net income of $311,000, or $0.04 per
diluted share, for the first quarter of this fiscal year.

Revenue for the six months ended January 31, 2004 was $154.5 million as compared
with $148.8 million for the first six months of last year.  Net income for the
six months was $606,000 or $0.07 per diluted share as compared with $33,000 or
$0.00 per dilutedshare reported a year ago.

Barry R. Steinberg, President and CEO of Manchester Technologies, Inc., stated,
"Our second quarter reflects the increase in technology spending resulting from
the lack of capital spending over the past few years.  Revenues for the quarter
increased sequentially as compared to our first quarter of fiscal 2004 and were
slightly lower as compared to last year.  However, we are pleased that our
service revenues increased by 11% as compared to the second quarter of last year
and 14% as compared to the first half of last year.  In addition, revenues from
sales of display solutions increased by 8% as compared to the second quarter of
last year and 15% as compared to the first half of last year. We continue
focusing on our strategy of providing business solutions, services, product
fulfillment and display technologies that meet all of our customer's needs."

The Company ended the quarter with cash and cash equivalents of $3.9 million,
working capital of $31.7 million, total assets of $80.0 million and
shareholders' equity of $44.6 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 pressrelease. 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 forthe 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 OPERATIONS
                 (in thousands, except per share amounts)
                               (Unaudited)

                              Three months ended         Six months ended
                         January 31,               January 31,
                               2004         2003         2004         2003
  Revenue
    Products                 $72,869      $74,283     $143,321     $138,998
    Services                   6,925        6,259       11,173        9,829

                              79,794       80,542      154,494      148,827
  Cost of revenue
    Products                  64,611       66,979      127,337      123,897
    Services                   5,634        5,088  8,712        7,491
                              70,245       72,067      136,049      131,388

  Gross profit                 9,549        8,475       18,445       17,439

  Selling, general and
   administrative expenses     8,990        8,711  17,280       17,551

    Income (loss) from
     operations                  559         (236)       1,165         (112)


  Interest and other
   income (expense), net         (68)          28         (155)         168

    Income (loss) before
  income taxes                491         (208)       1,010           56

  Income tax provision
   (benefit)                     196          (83)         404           23

    Net income (loss)           $295        $(125)        $606          $33

 Net income (loss)
   per share
    Basic                      $0.04       $(0.02)       $0.08        $0.00

    Diluted                    $0.04       $(0.02)       $0.07        $0.00

  Weighted average
  shares outstanding
    Basic                  7,990        7,990        7,990        7,990

    Diluted                    8,299        7,990        8,265        7,991


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


                                            January 31, 2004   July 31, 2003
                                               (Unaudited)
  Assets
  Current assets:
    Cash and cash equivalents         $3,866         $8,553
    Accounts receivable, net                        33,710         35,117
    Inventory                                       18,352          9,605
    Deferred income taxes                              603           603
    Prepaid taxes                                    1,832          1,704
    Prepaid expenses and other current assets          703            709

      Total current assets                          59,066         56,291

  Property and equipment, net                       13,556         13,985
  Goodwill, net                                      6,439          6,439
  Deferred income taxes                                757            757
  Other assets                                         177            278
  Total assets                                     $79,995        $77,750

  Liabilities and shareholders' equity
  Current liabilities:
    Accounts payable and accrued expenses          $26,524        $24,752
    Deferred service contract revenue                  606            666
    Current portion of capital lease obligations       228            212

      Total current liabilities                     27,358         25,630

  Deferred compensation payable                     263            263
  Capital lease obligations, net of
   current portion                                   7,811          7,923

      Total liabilities                             35,432         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     18,965         18,942
    Deferred compensation                              (13)           (13)
    Retained earnings                               25,531         24,925

      Total shareholders' equity                    44,563      43,934

      Total liabilities and shareholders' equity   $79,995        $77,750


DATASOURCE: Manchester Technologies, Inc.



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

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



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

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