Manchester (NASDAQ:MANC)
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Manchester Technologies, Inc. Announces Fiscal Third Quarter
Results
HAUPPAUGE, N.Y., June 17 /PRNewswire-FirstCall/ -- Manchester Technologies,
Inc. (NASDAQ:MANC), today announced financial results for its third fiscal
quarter and nine months ended April 30, 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 on
the accompanying condensed consolidated statements of operations.
Revenue from continuing operations for the quarter was $42.4 million as
compared with $36.5 million for the comparable quarter last year. Income from
continuing operations for the quarter was $432,000 or $0.05 per diluted share
as compared with $316,000 or $0.04 per diluted share reported a year ago.
Weighted average common shares outstanding used for the computation of diluted
earnings per share were 8,533,000 and 7,990,000, respectively.
Revenue from continuing operations for the nine months was $132.9 million as
compared with $123.6 million for the first nine months of last year. Income
from continuing operations for the nine months was $2.0 million or $0.24 per
diluted share as compared with $2.8 million or $0.35 per diluted share reported
a year ago.
Barry R. Steinberg, President and CEO of Manchester Technologies, Inc., stated,
"As a result of the sale of our end-user IT product and service business on May
28, 2004, we are now better positioned to concentrate our efforts on our
display solutions business. The display technology market is expected to
continue to grow and we remain a dominant player in this market. Revenues from
the sales of display solutions increased 21% as compared to the third quarter
of last year and 17% as compared to the first nine months of last year."
The Company ended the quarter with cash and cash equivalents of $13.2 million,
working capital of $35.3 million, total assets of $94.1 million and
shareholders' equity of $44.9 million.
About Manchester Technologies, Inc.
Manchester Technologies, Inc. is a single-source solutions provider
specializing in display technology, and prior to the sale of its end-user IT
product and services business, hardware and software procurement, custom
networking, security, IP telephony, remote management, application
development/e-commerce, storage, enterprise and Internet solutions. 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 Operations
(in thousands, except per share amounts)
Unaudited
Three months ended Nine months ended
April 30, April 30,
2004 2003 2004 2003
Revenue $42,448 $36,533 $132,943 $123,636
Cost of Revenue 38,509 33,137 119,712 110,432
Gross profit 3,939 3,396 13,231 13,204
Selling, general and
administrative expenses 3,149 2,847 9,735 8,657
Income from operations 790 549 3,496 4,547
Interest and other
income (expense), net (70) (22) (166) 146
Income from continuing
operations before
income taxes 720 527 3,330 4,693
Income tax provision 288 211 1,312 1,877
Income from continuing
operations 432 316 2,018 2,816
Discontinued operations
Loss from operations of
discontinued component (714) (484) (2,314) (4,594)
Income tax benefit 285 194 905 1,837
Loss on discontinued
operations (429) (290) (1,409) (2,757)
Net income $3 $26 $609 $59
Income per share from
continuing operations
Basic $0.05 $0.04 $0.25 $0.35
Diluted $0.05 $0.04 $0.24 $0.35
Loss per share from
discontinued operations
Basic $(0.05) $(0.04) $(0.18) $(0.35)
Diluted $(0.05) $(0.04) $(0.17) $(0.35)
Net income per share
Basic $0.00 $0.00 $0.08 $0.01
Diluted $0.00 $0.00 $0.07 $0.01
Weighted average
shares outstanding
Basic 8,070 7,990 8,017 7,990
Diluted 8,533 7,990 8,364 7,990
Manchester Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands except per share amounts)
April 30, July 31,
2004 2003
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $13,241 $8,553
Accounts receivable, net 33,297 35,117
Inventory 25,805 9,605
Deferred income taxes 603 603
Prepaid taxes 42 1,704
Prepaid expenses and other current assets 703 709
Assets held for sale 2,881 --
Total current assets 76,572 56,291
Property and equipment, net 12,894 13,985
Goodwill, net 3,735 6,439
Deferred income taxes 757 757
Other assets 134 278
Total assets $94,092 $77,750
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued expenses $40,992 $24,752
Deferred service contract revenue -- 666
Current portion of capital lease obligations 237 212
Total current liabilities 41,229 25,630
Deferred compensation payable 263 263
Capital lease obligations, net of current portion 7,749 7,923
Total liabilities 49,241 33,816
Shareholders' equity:
Preferred stock, $.01 par value;
5,000 shares authorized, none issued -- --
Common stock, $.01 par value;
25,000 shares authorized, 8,071 and
7,990 shares issued and outstanding 81 80
Additional paid-in capital 19,249 18,942
Deferred compensation (13) (13)
Retained earnings 25,534 24,925
Total shareholders' equity 44,851 43,934
Total liabilities and shareholders' equity $94,092 $77,750
DATASOURCE: Manchester Technologies, Inc.
CONTACT: Elan Yaish, Chief Financial Officer of Manchester Technologies,
Inc., +1-631-951-7060, Fax: +1-631-951-7639, or
Web site: http://www.e-manchester.com/