Manchester (NASDAQ:MANC)
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Manchester Technologies, Inc. Announces Further Financial Details
of ePlus Transaction
HAUPPAUGE, N.Y., July 19 /PRNewswire-FirstCall/ -- Manchester Technologies
Inc. (NASDAQ:MANC), today announced further financial details pertaining to its
sale, on May 28, 2004, of its IT fulfillment, professional services, and
enterprise software development and operations consulting business to ePlus,
inc.
In connection with this sale, Manchester anticipates that it will write down
the value of certain assets retained of the business sold to ePlus and record
certain costs, such as severance costs, associated with the sale, resulting in
estimated pre-tax one-time charges in the fourth quarter of fiscal 2004 of
between $5.5 million and $7.5 million (excluding a $1.5 million gain also
recognized on the transaction during the fourth quarter), or between $0.69 and
$0.94 per share. As a result of this charge and the financial results through
the date of sale of the operations that were sold, Manchester expects to
receive tax savings of between $3.5 million and $5.5 million to be used in the
course of its ongoing business. Realization of a portion of the tax savings
will be dependent on the Company achieving future taxable income which the
Company anticipates to achieve. The amount of the tax savings will be directly
dependent on the amount of the charge.
"We are pleased to have concluded the principal financial aspects of the sale
of our IT business to ePlus," said Barry R. Steinberg, Manchester's President
and Chief Executive Officer. "The tax savings we will realize from this
transaction will be an advantage to us as we continue our efforts to further
increase our display technology business."
Manchester Technologies, Inc., through its wholly owned Electrograph Systems,
Inc. subsidiary, is a leading distributor of display technology solutions and
plasma display monitors. Electrograph is a dominant player in the display
technology market, a market that the Company believes will continue to grow in
the years to come. Manchester also distributes computer hardware primarily to
dealers and system integrators. More information can be obtained by visiting
the Company's website located at http://www.e-manchester.com/ and
Electrograph's website located 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, those 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/.
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/
http://www.electrograph.com/