Black Box (BBOX) 8-K Black Box Corporation Reports Third Quarter and Ytd Fiscal 2005 Results

Exhibit 99.1

Contact:  Mike McAndrew
Chief Financial Officer
Black Box Corporation
(724) 873-6788
email: investors@blackbox.com

FOR IMMEDIATE RELEASE

BLACK BOX CORPORATION REPORTS THIRD QUARTER
AND YTD FISCAL 2005 RESULTS

-Declares 6¢ Quarterly Cash Dividend-

PITTSBURGH, PENNSYLVANIA, February 1, 2005 — Black Box Corporation (NASDAQ:BBOX) today reported for the third quarter ended January 1, 2005 diluted earnings per share of 52¢ compared to 66¢ last year. Net income for the third quarter was $9.2 million or 7.3% of revenues, compared to $12.2 million or 9.2% of revenues last year. On a sequential comparison basis, second quarter diluted earnings per share were 60¢ with corresponding net income of $10.6 million or 8.4% of revenues.

Total revenues for the third quarter were $127 million, down 5% from $133 million for the same period last year, and comparable to sequential second quarter revenues of $127 million.

Third quarter cash provided by operating activities was approximately $14 million or 148% of net income, compared to $16 million or 128% of net income for the same period last year. On a sequential comparison basis, second quarter cash provided by operating activities was $11 million. Black Box utilized its third quarter cash provided by operating activities of $14 million to make a dividend payment of $1 million, reduce debt by $12 million and increase cash on hand by $1 million.

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For the nine months ended January 1, 2005, diluted earnings per share were $1.66 compared to $1.90 for the same period last year, down 13%. Corresponding net income for the nine-month period was $30 million or 7.9% of revenues, compared to $36 million or 9.1% of revenues for the same period last year.

Total nine-month revenues were $378 million, down 3% from $391 million for the same period last year.

Cash provided by operating activities for the nine-month period was $34 million or 115% of net income, compared to $47 million or 130% of net income last year. Black Box utilized the nine-month cash provided by operating activities of $34 million, together with $7 million from other sources of cash, to make dividend payments of $3 million and repurchase $38 million of its Common Stock.

The Company’s 6-month order backlog was $54 million at January 1, 2005 compared to $55 million at the end of the second quarter.

Commenting on the third quarter results, Fred C. Young, Chief Executive Officer, said, “Tactically, total revenues of $127 million were comparable with our last sequential quarter. We would have liked to have delivered $2 to $3 million more top-line, particularly in our Hotline Services, to better match the current cost structure. This is affecting our short-term profits as we are striving to achieve a revenue lift in this specific area and support the recent Norstan merger over the next couple of quarters. In addition, our worldwide Sarbanes-Oxley 404 implementation costs in the quarter were $1.3 million or about 6 cents per share. The bulk of these costs should subside by the end of June 2005. Operating cash flow remained strong at approximately $14 million.

Strategically, we are very excited about the Norstan merger completed on January 25, 2005. This merger will increase our immediate revenues by almost 40%. Our goal over the next couple of years is to leverage this revenue such that we achieve a corresponding increase in profits and cash flow. Scott G. Christian, previously the CEO of Norstan, and his team will lead Black Box’s

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newest Voice Services Group based out of Minnetonka, MN (a suburb of Minneapolis). We are currently focused on integrating the two companies as quickly as possible. As part of this effort, we will incur some one-time charges in our fiscal fourth quarter ending March 31, 2005.

Through the success of this integration, our expectations remain high for significant incremental marketing, operational and financial benefits. Beginning with our new fiscal year as of April 1, 2005, we expect quarterly combined revenues to be in a range of $174 to $177 million, gross profit to be in the range of 39% to 40% of revenues and operating expenses to be in the range of 28% to 29% of revenues. Over time, we will look to increase our overall gross margins by 1% to 2% while reducing operating expenses by 1% to 2%.

In summary, our goals are straightforward: successfully execute the Norstan integration plan, drive organic growth by aggressively cross-selling all three of the Black Box Technical Services and selectively look for additional M&A opportunities that complement our overall long-term growth strategy.”

The Company also announced today that its Board of Directors has declared a quarterly cash dividend of 6¢ per share of common stock. The dividend was declared on all outstanding shares of Black Box’s common stock and will be payable on April 15, 2005 to stockholders of record at the close of business on March 31, 2005. Black Box will pay the dividend through its transfer agent, American Stock Transfer & Trust Company.

The Company will conduct a conference call beginning at 5:30 p.m. Eastern Standard Time today, February 1, 2005. Fred C. Young, Chief Executive Officer, will host the call. To participate in the call, please dial 612-332-0802 approximately 15 minutes prior to the starting time and ask to be connected to the Black Box Earnings Call. A replay of the conference call will be available for one week after the teleconference by dialing 320-365-3844 and using access code 764491.

Any forward-looking statements contained in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. These include levels of business activity and operating expenses,

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expenses relating to corporate compliance requirements, cash flows, global economic conditions and successful integration of the Norstan business. Additional risk factors are included in the Company’s Annual Report on Form 10-K. Any information which is not historical in nature constitutes such forward-looking statements and speaks only as of the date of this release.

Black Box is the world’s largest technical services company dedicated to designing, building and maintaining today’s complicated data and voice infrastructure systems. Black Box services 152,000 clients in 141 countries with 122 offices throughout the world. To learn more, visit the Black Box website at www.blackbox.com.

Black Box and the double diamond logo are registered trademarks of BB Technologies, Inc.

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BLACK BOX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

	Three months ended				Nine months ended
In thousands, except per share	January 1,		December 28,		January 1,		December 28,
Unaudited	2005		2003		2005		2003
Revenues	$	126,896	$	133,067	$	377,846	$	390,682
Cost of sales		75,878		78,426		222,633		228,719
Gross profit		51,018		54,641		155,213		161,963
Selling, general & administrative exp		36,762		34,953		107,886		104,474
Intangibles amortization		59		64		187		198
Operating income		14,197		19,624		47,140		57,291
Interest expense, net		519		498		1,436		1,358
Other expenses, net of income		46		75		93		91
Income before income taxes		13,632		19,051		45,611		55,842
Provision for income taxes		4,383		6,858		15,736		20,102
Net income	$	9,249	$	12,193	$	29,875	$	35,740
Basic earnings per common share	$	0.54	$	0.68	$	1.71	$	1.96
Diluted earnings per common share	$	0.52	$	0.66	$	1.66	$	1.90
Weighted average common shares		17,293		17,954		17,499		18,258
Weighted average common & common equivalent shares outstanding		17,694		18,571		17,949		18,792

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BLACK BOX CORPORATION
CONSOLIDATED BALANCE SHEETS

In thousands	January 1,			March 31,
Unaudited	2005			2004
Assets
Cash and cash equivalents	$	10,947		$	9,306
Accounts receivable, net		98,578			97,203
Inventories, net		43,229			40,162
Costs and estimated earnings in excess of billings on uncompleted contracts		18,369			13,763
Deferred tax asset		2,554			4,131
Other current assets		10,663			9,610
Total current assets		184,340			174,175
Property, plant and equipment, net		26,951			29,269
Goodwill, net		387,036			380,769
Intangibles, net		29,508			29,546
Other assets		3,317			2,530
Total assets	$	631,152		$	616,289
Liabilities
Current debt	$	216		$	1,061
Accounts payable		30,805			30,709
Billings in excess of costs and estimated earnings on uncompleted contracts		5,737			5,665
Accrued compensation and benefits		6,956			6,836
Other accrued expenses		16,636			16,778
Accrued income taxes		3,634			3,695
Total current liabilities		63,984			64,744
Long-term debt		40,451			35,177
Deferred taxes		11,248			11,050
Other liabilities		77			414
Stockholders’ Equity
Common stock		24			23
Additional paid-in capital		335,598			324,219
Retained earnings		429,606			402,675
Treasury stock, at cost		(277,470	)		(239,885	)
Accumulated other comprehensive gain		27,634			17,872
Total stockholders’ equity		515,392			504,904
Total liabilities and stockholders’ equity	$	631,152		$	616,289

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BLACK BOX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended						Nine Months Ended
In thousands	January 1,			December 28,			January 1,			December 28,
Unaudited	2005			2003			2005			2003
Operating Activities
Net income	$	9,249		$	12,193		$	29,875		$	35,740
Adjustments to reconcile net income to cash provided by operating activities:
Intangibles amortization		59			64			187			198
Depreciation		1,658			1,606			4,370			4,824
Gain on disposal of assets		—			—			—			(301	)
Deferred tax provision		1,237			3,526			1,775			2,274
Stock compensation expense		—			—			680			—
Changes in operating assets and liabilities:
Account receivable, net		(6,951	)		(2,073	)		1,153			3,929
Inventories, net		(314	)		(625	)		(2,412	)		(960	)
Other current assets		4,413			1,055			888			7,080
Accounts payable and accrued liabilities		4,336			(146	)		(2,111	)		(6,192	)
Net cash provided by operating activities	$	13,687		$	15,600		$	34,405		$	46,592
Investing Activities
Capital expenditures, net		(908	)	$	(435	)	$	(1,849	)	$	28
Payments related to acquisitions, net of cash acquired		(151	)		(252	)		(498	)		(1,261	)
Net cash used in investing activities	$	(1,059	)	$	(687	)	$	(2,347	)	$	(1,233	)
Financing Activities
(Repayments)/proceeds on borrowings, net	$	(11,940	)	$	(953	)	$	4,036		$	(2,959	)
Proceeds from exercise of options		1,625			3,229			7,310			6,014
Payment of dividends		(1,035	)		(913	)		(2,809	)		(2,737	)
Deferred financing costs		—			—			(235	)		—
Purchase of treasury stock		(11	)		(15,675	)		(37,585	)		(52,354	)
Net cash used in financing activities	$	(11,361	)	$	(14,312	)	$	(29,283	)	$	(52,036	)
Foreign currency exchange impact on cash	$	(33	)	$	901		$	(1,134	)	$	2,558
Net Increase/(decrease) in cash & cash equivalents	$	1,234		$	1,502		$	1,641		$	(4,119	)
Cash & cash equivalents at beginning of period		9,713			8,422			9,306			14,043
Cash & cash equivalents at end of period	$	10,947		$	9,924		$	10,947		$	9,924

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RECONCILIATIONS:

In addition to reported results under U.S. GAAP for the fiscal periods, the following financial highlights table also includes, where appropriate, a reconciliation of free cash flow (which is a non-GAAP measure), to the most directly comparable GAAP measure. All dollar amounts are in thousands.

A reconciliation of cash provided by operating activities to free cash flow is presented below:

	3Q05			3Q04			3Q05YTD			3Q04YTD
Cash provided by operating activities	$	13,687		$	15,600		$	34,405		$	46,592
Plus or (minus):
Net capital expenditures/disposals		(908	)		(435	)		(1,849	)		28
Proceeds from stock option exercises		1,625			3,229			7,310			6,014
Foreign currency exchange impact on cash		(33	)		901			(1,134	)		2,558
Free cash flow	$	14,371		$	19,295		$	38,732		$	55,192

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SUPPLEMENTAL INFORMATION:

Additionally, the following supplemental information is being provided for comparisons of third quarter ended January 1, 2005 reported results to this year’s second quarter and prior year’s third quarter. All dollar amounts are in thousands unless noted otherwise.

Information on revenues and operating income by geography is presented below.

	3Q05			2Q05			3Q04			3Q05YTD			3Q04YTD
Revenues:
North America	$	78,642		$	84,792		$	84,665		$	242,966		$	259,555
Europe		38,947			32,830			38,309			107,337			103,944
All Other		9,307			8,973			10,093			27,543			27,183
Total	$	126,896		$	126,595		$	133,067		$	377,846		$	390,682
Operating Income:
North America	$	8,345		$	10,835		$	10,900		$	27,090		$	34,595
% of North America revenues		10.6	%		12.8	%		12.9	%		11.1	%		13.3	%
Europe	$	4,016		$	3,697		$	6,325		$	13,365		$	16,278
% of Europe revenues		10.3	%		11.3	%		16.5	%		12.5	%		15.7	%
All Other	$	1,836		$	2,487		$	2,399		$	6,685		$	6,418
% of All Other revenues		19.7	%		27.7	%		23.8	%		24.3	%		23.6	%
Total	$	14,197		$	17,019		$	19,624		$	47,140		$	57,291
% of total revenues		11.2	%		13.4	%		14.7	%		12.5	%		14.7	%

Information on revenues and gross profit for hotline services, data services and voice services is presented below:

	3Q05			2Q05			3Q04			3Q05YTD			3Q04YTD
Revenues:
Hotline Services	$	57,267		$	56,972		$	61,538		$	172,091		$	176,508
Data Services		53,410			50,537			54,305			152,136			161,448
Voice Services		16,219			19,086			17,224			53,619			52,726
Total	$	126,896		$	126,595		$	133,067		$	377,846		$	390,682
Gross Profit:
Hotline Services	$	29,400		$	30,217		$	32,241		$	90,595		$	92,212
% of Hotline Services revenues		51.3	%		53.0	%		52.4	%		52.6	%		52.2	%
Data Services	$	16,149		$	15,366		$	16,267		$	46,011		$	51,404
% of Data Services revenues		30.2	%		30.4	%		30.0	%		30.2	%		31.8	%
Voice Services	$	5,469		$	6,732		$	6,133		$	18,607		$	18,347
% of Voice Services revenues		33.7	%		35.3	%		35.6	%		34.7	%		34.8	%
Total	$	51,018		$	52,315		$	54,641		$	155,213		$	161,963
% of total revenues		40.2	%		41.3	%		41.1	%		41.1	%		41.5	%

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Information on various balance sheet ratios, backlog and headcount is presented below. Dollar amounts are in millions.

	3Q05			2Q05			3Q04
Accounts Receivable:
Gross Accounts Receivable $	$	108.8		$	98.0		$	112.3
Reserve $ / %	$	10.2 /	9.4%	$	9.2 /	9.4%	$	11.7 /	10.4%
Net Accounts Receivable $	$	98.6		$	88.8		$	100.6
Net Days Sales Outstanding	64 days			57 days			64 days
Inventory:
Gross Inventory $	$	48.2		$	47.2		$	46.6
Reserve $ / %	$	5.0 /	10.4%	$	5.0 /	10.6%	$	4.4 /	9.4%
Net Inventory $	$	43.2		$	42.2		$	42.2
Net Inventory Turns		7.9	x		8.2	x		8.0	x
Six-Month Order Backlog	$	54		$	55		$	54
Team Members		2,538			2,624			2,928

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