Exhibit 20.1
Friday November 2, 1:37 am Eastern Time
Press Release
SOURCE: AMX Corporation
AMX Corporation Names New CEO and Reports Second Quarter Earnings
RICHARDSON, Texas, Nov. 2 /PRNewswire/ -- AMX Corporation (Nasdaq: AMXC - news),
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the worldwide leader in advanced control system technology, today announced
Scott Miller, its Chairman, President, and CEO has resigned from all positions,
effective November 1, 2001. AMX's Board of Directors named Robert J. Carroll, a
Director of AMX since January 2001, Chairman, President and CEO to succeed
Miller effective immediately.
(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010611/DAM001LOGO
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http://www.newscom.com/cgi-bin/prnh/20011102/HSF007)
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Mr. Carroll has over thirty years' experience, including twenty-five years'
operational experience, with a wide variety of technology companies engaged in
software development and electronics manufacturing. Mr. Carroll served as a
consultant to the Company in early 2001. Since 1995, Mr. Carroll has provided
similar consulting services to other companies as a principal in Roscommon
Limited, which is a technology investment and consulting practice providing
specialized support in turnarounds, acquisitions and divestitures. From 1998 to
2001, Mr. Carroll served as Chairman and CEO of BEI Holdings, Inc., a holding
company with investments in companies that manufacture electronic and automation
products for the radio broadcast industry. Mr. Carroll has served in executive
management capacities in both public and private companies.
"Scott Miller has served AMX well since his return in February and remains an
icon in the industry. As Founder of AMX, Scott will always be the cornerstone of
our culture," said newly appointed Chief Executive Officer, Carroll. "I am
very pleased to join the AMX team. Our objectives in the future will focus on
strategic growth and improving our operational efficiencies and profitability. I
am very optimistic about our future."
Additionally, AMX reported 2002 second quarter financial results. Including one-
time charges of $8.2 million, the Company reported a net loss for the quarter of
$8.1 million, or $0.74 per share. As a result of current business and market
conditions, the Company recorded one-time non-cash charges which included
inventory related reserves of $3.2 million; additional accounts receivable
reserves of $0.5 million; the write-off of miscellaneous intangibles of
approximately $0.3 million; and a valuation allowance against deferred tax
assets of $4.2 million. Excluding one-time charges, the Company reported pro-
forma breakeven operating results on revenues of $23.0 million as compared to
$0.02 per share on revenues of $25.9 million in the year ago quarter.
Domestic Commercial revenue increased 11% in the second quarter as compared to
the year ago quarter. Overall Commercial revenue, which represents approximately
87% of total revenue and includes both domestic and international sales,
decreased 1% in the second quarter as compared to the year ago quarter.
Residential revenue for the second quarter of fiscal 2002 decreased 47%
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from the year ago period. Overall revenue decreased 11% to $23 million in the
second quarter of fiscal 2002 as compared to $25.9 million in the fiscal 2001
second quarter.
"We are disappointed with the one-time charges, however we believe these
charges were necessary as our new management team critically reviewed our
position with respect to current business and market conditions,'' said Jean
Nelson, Vice President and Chief Financial Officer. ``Our domestic Commercial
channel continued to show strong revenue growth despite a challenging economy.
Our international channels have been hit hard by economic conditions. We believe
our revenue decline in the residential channel has subsided."
Nelson continued, "Our margins have remained at 50%. However, we expect
improved margins in the near future as we move forward with our sourcing
strategy as well as other operational improvements. Due to revised fiscal 2002
revenue levels, which are currently expected to be in the range of $80 -- $90
million for fiscal 2002, we are aggressively looking at our cost structure and
to date have identified over $2 million in cost savings over the next 6 months
and firmly believe there are further cost saving opportunities. Our order rate
remains strong and we are continuing to work hard at exceeding our existing
revenue expectations."
For the six months ended September 30, 2001, total revenue decreased 5% to $44.7
million compared to $47.1 million in the comparative prior period. Domestic
Commercial revenue was $25.5 million, representing an increase of 13% compared
to $22.5 million for the six months ended September 30, 2000. Overall Commercial
revenue was up 4% as compared to the year ago period. Residential revenue was
$7.3 million, a 35% decrease from $11.2 million for the comparable period. For
the six months ended September 30, 2001, the Company reported a net loss of
$0.72 per share or $7.9 million. Excluding one-time charges, on a pro-forma
basis the Company reported net income of $0.3 million or $0.02 per share,
compared to a net loss of $0.5 million, or $0.05 per share in the year ago
period.
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 10:00 a.m.
Eastern Time today. The webcast may be accessed at
http://www.videonewswire.com/event.asp?id=1530. The call is open to the general
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public and is also available by dialing 800.540.0559. 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 888.567.0675 and enter the passcode
"AMX*". In addition, the call will be archived on the Company's website at
www.amx.com .
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AMX Corporation is the 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(TM). For more information about AMX, visit www.amx.com.
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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 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 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.
All trademarks and registered marks are the property of their respective
holders.
AMX Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for share and per share amounts)
Three Months Ended Six Months Ended
September 30 September 30
(Unaudited) (Unaudited)
2001 2000 2001 2000
Commercial sales $19,970 $20,103 $37,390 $35,843
Residential sales 3,036 5,761 7,339 11,225
Net sales 23,006 25,864 44,729 47,068
Cost of sales 13,978 12,746 24,649 22,560
Gross profit 9,028 13,118 20,080 24,508
Selling and marketing
expenses 8,264 7,613 15,360 15,569
Research and development
expenses 1,874 2,353 3,718 4,678
Restructuring costs (46) (203) (90) (222)
General and administrative
expenses 2,512 2,595 4,182 4,618
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Total operating expenses 12,604 12,358 23,170 24,643
Operating income (loss) (3,576) 760 (3,090) (135)
Interest expense 224 221 409 354
Other income (expense), net (96) (235) (87) (216)
Income (loss) before income
taxes (3,896) 304 (3,586) (705)
Income tax expense (benefit) 4,237 103 4,346 (239)
Net income (loss) $(8,133) $ 201 $(7,932) (466)
Basic income (loss) per share $(0.74) $0.02 $(0.72) (0.05)
Diluted income (loss) per share $(0.74) $0.02 $(0.72) (0.05)
Shares outstanding - basic 11,035,819 9,408,865 10,949,186 9,387,934
Shares outstanding - diluted 11,035,819 9,984,368 10,949,186 9,387,934
AMX Corporation
PRO-FORMA CONSOLIDATED STATEMENTS OF INCOME
EXCLUDING ONE TIME CHARGES
(In thousands, except for share and per share amounts)
Three Months Ended Six Months Ended
September 30 September 30
(Unaudited) (Unaudited)
2001 2000 2001 2000
Commercial sales $19,970 $20,103 $37,390 $35,843
Residential sales 3,036 5,761 7,339 11,225
Net sales 23,006 25,864 44,729 47,068
Cost of sales 11,601 12,746 22,272 22,560
Gross profit 11,405 13,118 22,457 24,508
Selling and marketing
expenses 7,395 7,613 14,540 15,569
Research and development
expenses 1,874 2,353 3,718 4,678
Restructuring costs (46) (203) (90) (222)
General and administrative
expenses 1,920 2,595 3,540 4,618
Total operating expenses 11,143 12,358 21,708 24,643
Operating income (loss) 262 760 749 (135)
Interest expense 224 221 409 354
Other income (expense), net 37 (235) 46 (216)
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Income (loss) before income taxes 75 304 386 (705)
Income tax expense (benefit) 26 103 135 (239)
Net income (loss) $ 49 $ 201 $ 251 $ (466)
Basic income (loss) per share $0.00 $0.02 $0.02 $(0.05)
Diluted income (loss) per share $0.00 $0.02 $0.02 $(0.05)
Shares outstanding - basic 11,035,819 9,408,865 10,949,186 9,387,934
Shares outstanding - diluted 11,072,987 9,984,368 11,036,812 9,387,934
AMX Corporation
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, March 31,
2001 2001
ASSETS
Current assets:
Cash and cash equivalents $ 821 $ 1,608
Receivables, net 14,604 12,604
Inventories 13,334 14,311
Prepaid expenses 2,013 1,783
Deferred income taxes -- 2,388
Total current assets 30,772 32,694
Property and equipment, at cost, net 9,741 10,387
Other assets 644 1,137
Deferred income taxes -- 1,944
Total assets $41,157 $46,162
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $13,443 $11,422
Current portion of long-term debt 882 1,054
Line of credit and notes payable 7,250 5,550
Other accrued expenses 4,979 5,773
Total current liabilities 26,554 23,799
Long-term debt, less current portion 1,546 1,965
Shareholders' equity:
Common stock 115 113
Additional paid-in capital 24,174 23,585
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Retained earnings (6,764) 1,168
Less treasury stock (4,468) (4,468)
Total shareholders' equity 13,057 20,398
Total liabilities and shareholders'
equity $41,157 $46,162
SOURCE: AMX Corporation
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