Exhibit 99.1
[AMX LOGO]
FOR IMMEDIATE RELEASE
CONTACT:
Chris Apple
AMX Corporation
800.222.0193
chris.apple@amx.com
AMX CORPORATION REPORTS STRONG SECOND QUARTER
RESULTS; EARNINGS PER SHARE INCREASES 17PERCENT TO $0.14
RICHARDSON, TX – October 30, 2003—AMX Corporation (Nasdaq: AMXC), a worldwide leader in advanced control system technology, today announced its eighth consecutive profitable quarter. For the fiscal second quarter ended September 30, 2003, AMX reported net income of $1.7 million or $0.14 per diluted share on revenues of $22.3 million, compared to net income of $1.3 million or $0.12 per diluted share in the year ago quarter.
Total revenues of $22.3 million were up slightly from $22.2 million in the year ago quarter and up 15 percent from first quarter revenues of $19.3 million. Commercial revenue of $19.6 million, which represented approximately 88 percent of total revenue and includes both domestic and international sales, was down one percent from $19.7 million in the year ago quarter but was up 18 percent from the first quarter. Residential revenue increased six percent to $2.6 million from $2.5 million in the year ago quarter.
Commenting on AMX’s performance, Bob Carroll, President and Chief Executive Officer said, “We are pleased to report our strongest revenue quarter in the past eight quarters, and one of the most profitable quarters in the Company’s 21-year history. We are gaining a stronger foothold in the marketplace with our recent investments in research and development, and our customers are very enthusiastic about our new products. New product sales currently account for approximately one-third of our revenue, and should contribute to our growth as they are incorporated into upcoming projects.”
“During the quarter we made significant investments in research and development,” said Chris Apple, Vice President and Chief Financial Officer. “Research and development spending was up 13 percent over the year ago quarter and up eight percent sequentially. Strong profit margins continue to be a significant factor in our ability to report profitable results. Gross margins were 53.5 percent in the current quarter, up from 51.3 percent in the year ago quarter, reflecting improved margins on new products and the continuing benefit of our manufacturing outsourcing strategy.”
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“We continue to generate strong cash flows and a solid balance sheet,” said Apple. “Operating cash flows were $2.3 million for the quarter. Cash has increased from $6.2 million at June 30, 2003, to $7.4 million, while debt is down to $2.4 million from $3.0 million at June 30, 2003.”
“AMX is leading the industry with new and innovative control and automation solutions,” said Carroll. “We debuted three new product lines and over 40 new products in September at CEDIA EXPO 2003 in Indianapolis, which were all received with great enthusiasm from our dealers, distributors and consultants. The Modero™ was chosen as “Best User Interface” by CEDIA. The Modero™ also was recently named Product of the Year by EH Publishing, and earlier in the year received the coveted International Consumer Electronic Show (CES) Innovations 2003 Design & Engineering Showcase Award.”
Carroll added, “Also at CEDIA, we announced the acquisition of Media Access Solutions, a content storage, management and distribution company. Digital content and distribution is key to our long-term strategy, and the Media Access Solutions acquisition provides the foundation for future in-house development. This acquisition enhances our ability to provide convenient, innovative and easy-to-use multimedia solutions.”
For the three months ended September 30, 2003:
| | • | Income per diluted share was $0.14 compared to income per diluted share of $0.12 for the year ago quarter. |
| | • | Revenues were $22.3 million compared to $22.2 million for the year ago quarter. |
| | • | Gross margins were 53 percent compared to 51 percent in the year ago quarter. |
| | • | Operating expenses were up slightly to $10.2 million from $9.8 million in the year ago quarter. |
| | • | Operating income was $1.8 million as compared to operating income of $1.6 million in the year ago quarter. |
For the six months ended September 30, 2003:
| | • | Income per diluted share was $0.22 compared to income per diluted share of $0.16 for the year ago period. |
| | • | Revenues were $41.6 million compared to $42.4 million for the year ago period. |
| | • | Gross margins were 54 percent compared to 51 percent in the year ago period. |
| | • | Operating expenses were up slightly to $19.6 million from $19.4 million in the year ago period. |
| | • | Operating income was $2.7 million as compared to operating income of $2.3 million in the year ago period. |
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Webcast
In conjunction with the Second Quarter earnings release, the Company invites you to listen to its conference call via its webcast over the Internet at 11:00 a.m. Eastern Time, October 30. The webcast may be accessed athttp://www.firstcallevents.com/service/ajwz391729512gf12.html. The call is open to the general public and is also available by dialing (800) 362-0595. Please use conference call identification number “AMX” to access the live call. A replay of the conference call will also be available one to two hours after the end of the call. To access the replay, please dial (800) 753-4652 and enter the passcode “AMX.” In addition, the call will be archived on the Company’s website at www.amx.com.
About AMX Corporation
AMX CORPORATION is a worldwide leader in advanced control system technology targeting commercial and residential markets. AMX delivers convenient, easy-to-use solutions that incorporate advanced programming and network applications to simplify your life through technology. AMX’s strategy is to work with leading dealers and distributors to integrate its products with other electronic devices, while continuing to lead the industry in control technology. It’s your world. Take control.™ For more information about AMX, visit www.amx.com.
Forward-Looking Statements
Statements made in this press release that state the Company’s or management’s intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company’s actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include, our strategic alliances; the ability to develop distribution channels for new products; our dependence on suppliers, dealers and distributors; reliance on the functionality of systems or equipment, whether our own systems and equipment or those of our customers, dealers, distributors, or manufacturers; domestic and international economic conditions; the financial condition of our key customers and suppliers; the complexity of new products; ongoing research and development; our reliance on third party manufacturers; the ability to realize operating efficiencies; dependence on key personnel; the lack of an industry standard; reliance on others for technology; our ability to protect our intellectual property; the quick product life cycle; the resources necessary to compete; the possible effect of government regulations; possible liability for copyright violations on the Internet with the use of our products and other risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission. The forward-looking statements contained herein are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise. Accordingly, any forward-looking
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statements included herein do not purport to be predictions of future events or circumstances and may not be realized. Forward-looking statements contained herein include, but are not limited to, forecasts, projections and statements relating to product development and acceptance, inflation, future acquisitions and anticipated capital expenditures. All forecasts and projections in the report are based on management’s current expectations of the Company’s near term results, based on current information available pertaining to the Company, including the aforementioned risk factors. Actual results could differ materially. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
All trademarks and registered marks are the property of their respective holders.
[AMX LOGO]
AMX CORPORATION
Consolidated Statements of Operations
(In thousands, except for per share amounts)
| | | Three Months Ended September 30
(Unaudited)
| | | Six Months Ended September 30
(Unaudited)
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| | | 2003
| | | 2002
| | | 2003
| | | 2002
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Commercial sales | | $ | 19,647 | | | $ | 19,747 | | | $ | 36,338 | | | $ | 37,595 | |
Residential sales | | | 2,635 | | | | 2,479 | | | | 5,266 | | | | 4,827 | |
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Net sales | | | 22,282 | | | | 22,226 | | | | 41,604 | | | | 42,422 | |
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Cost of sales | | | 10,364 | | | | 10,830 | | | | 19,324 | | | | 20,799 | |
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Gross profit | | | 11,918 | | | | 11,396 | | | | 22,280 | | | | 21,623 | |
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Gross profit percentage | | | 53.5 | % | | | 51.3 | % | | | 53.6 | % | | | 51.0 | % |
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Selling and marketing expenses | | | 5,651 | | | | 5,208 | | | | 10,751 | | | | 10,770 | |
Research and development expenses | | | 2,761 | | | | 2,439 | | | | 5,310 | | | | 4,391 | |
General and administrative expenses | | | 1,752 | | | | 2,177 | | | | 3,567 | | | | 4,208 | |
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Total operating expenses | | | 10,164 | | | | 9,824 | | | | 19,628 | | | | 19,369 | |
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Operating income | | | 1,754 | | | | 1,572 | | | | 2,652 | | | | 2,254 | |
Interest expense | | | (29 | ) | | | (110 | ) | | | (72 | ) | | | (243 | ) |
Other income (expense), net | | | 33 | | | | (2 | ) | | | 122 | | | | 9 | |
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Income before income taxes | | | 1,758 | | | | 1,460 | | | | 2,702 | | | | 2,020 | |
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Income tax expense | | | 83 | | | | 142 | | | | 95 | | | | 212 | |
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Net income | | $ | 1,675 | | | $ | 1,318 | | | $ | 2,607 | | | $ | 1,808 | |
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Basic income per share | | $ | 0.15 | | | $ | 0.12 | | | $ | 0.23 | | | $ | 0.16 | |
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Diluted income per share | | $ | 0.14 | | | $ | 0.12 | | | $ | 0.22 | | | $ | 0.16 | |
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Shares outstanding—basic | | | 11,354 | | | | 11,132 | | | | 11,317 | | | | 11,110 | |
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Shares outstanding—diluted | | | 12,103 | | | | 11,135 | | | | 11,770 | | | | 11,113 | |
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[AMX LOGO]
AMX CORPORATION
Consolidated Balance Sheets
(Dollars in thousands)
| | | (Unaudited) September 30, 2003
| | | March 31, 2003
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ASSETS |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 7,392 | | | $ | 4,961 | |
Receivables, net | | | 9,630 | | | | 9,820 | |
Inventories | | | 7,442 | | | | 7,274 | |
Prepaid expenses and other | | | 1,324 | | | | 1,234 | |
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Total current assets | | | 25,788 | | | | 23,289 | |
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Furniture and equipment, at cost, net | | | 6,657 | | | | 6,899 | |
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Other assets | | | 963 | | | | 292 | |
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Total assets | | $ | 33,408 | | | $ | 30,480 | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 4,004 | | | $ | 3,167 | |
Current portion of long-term debt | | | 511 | | | | 766 | |
Line of credit | | | 1,900 | | | | 3,000 | |
Other accrued expenses | | | 4,706 | | | | 4,036 | |
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Total current liabilities | | | 11,121 | | | | 10,969 | |
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Long-term debt, less current portion | | | — | | | | 255 | |
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Other long-term liabilities | | | 237 | | | | 200 | |
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Shareholders’ equity: | | | | | | | | |
Common stock | | | 120 | | | | 117 | |
Additional paid-in capital | | | 24,945 | | | | 24,407 | |
Deferred Compensation | | | (154 | ) | | | — | |
Retained earnings (deficit) | | | 1,607 | | | | (1,000 | ) |
Less treasury stock | | | (4,468 | ) | | | (4,468 | ) |
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Total shareholders’ equity | | | 22,050 | | | | 19,056 | |
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Total liabilities and shareholders’ equity | | $ | 33,408 | | | $ | 30,480 | |
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