EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT: Elan Yaish
Chief Financial Officer
Telephone: (631) 951-7060
Fax: (631) 951-7639
email: eyaish@mecnet.com
MANCHESTER TECHNOLOGIES, INC. ANNOUNCES FISCAL THIRD QUARTER RESULTS
HAUPPAUGE, NEW YORK - June 11, 2003- Manchester Technologies Inc. (NASDAQ
NM: MANC), a leading computer and network solutions provider, today announced
financial results for its third fiscal quarter and nine months ended April 30,
2003.
Revenues for the quarter were $63.9 million as compared with $65.1 million
for the comparable quarter last year. Earnings for the quarter were $26,000 or
$0.00 per diluted share as compared with $364,000 or $0.05 per diluted share
reported a year ago. Weighted average common shares outstanding used for the
computation of diluted earnings per share were 7,990,000 and 7,992,000,
respectively.
Revenues for the nine months were $212.8 million as compared with $194.8
million for the first nine months of last year. Earnings for the nine months
were $59,000 or $0.01 per diluted share as compared with $901,000 or $0.11 per
diluted share reported a year ago.
Barry R. Steinberg, President and CEO of Manchester Technologies, Inc.,
stated, "We are pleased that we were able to return to profitability in our
third quarter. Our results continue to reflect the different dynamics that are
currently impacting our business and the markets we serve. As a result of the
ongoing economic slowdown and decline in spending in the technology industry,
our revenues decreased during the third quarter of fiscal 2003 as compared to
the third quarter last year and sequentially. However, our service revenues
increased by 12% as compared to last year and revenues from our Electrograph
subsidiary continue to grow as demand for their display technology solutions
remains strong. However, competition, pricing pressure and economic and market
forces continue to affect us, resulting in a decrease in our gross margins."
"Nevertheless, our healthy cash position and strong balance sheet should
enable us to withstand the current business and industry cycles and allow us to
continue focusing on our strategy of providing business solutions, services,
product fulfillment and display technologies that meet all of our customers'
needs."
The Company ended the quarter with cash and cash equivalents of $10.9
million, working capital of $31.0 million, total assets of $80.7 million and
shareholders' equity of $46.6 million.
About Manchester Technologies, Inc.
Manchester Technologies, Inc. is a single-source solutions provider
specializing in hardware and software procurement, custom networking, storage,
display technology and enterprise and Internet solutions. Manchester
MANCHESTER TECHNOLOGIES, INC.
Page 2
engineers provide answers to companies' MIS needs by combining comprehensive
analysis, design and integration services with a complete line of competitively
priced products and peripherals from the industry's leading vendors. 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
decreases in technology related spending, continued intense competition in the
computer industry, continued deterioration in average selling prices, 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, 2002, 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 www.sec.gov.
- Tables Follow-
Manchester Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Unaudited
Three months ended April 30, Nine months ended April 30,
2003 2002 2003 2002
---- ---- ---- ----
Revenue
Products $60,083 $61,678 $199,081 $185,837
Services 3,861 3,453 13,690 8,959
----- ----- ------ -----
63,944 65,131 212,771 194,796
------ ------ ------- -------
Cost of revenue
Products 53,703 53,391 177,600 160,470
Services 2,968 2,699 10,459 6,724
----- ----- ------ -----
56,671 56,090 188,059 167,194
------ ------ ------- -------
Gross profit 7,273 9,041 24,712 27,602
Selling, general and
administrative expenses 7,208 8,480 24,759 26,269
----- ----- ------ ------
Income (loss) from operations 65 561 (47) 1,333
Interest and other income (expense), net (22) 40 146 162
--- -- --- ---
Income before income taxes 43 601 99 1,495
Income tax provision 17 237 40 594
-- --- -- ---
Net income $26 $364 $59 $901
== === == ===
Net income per share
Basic $0.00 $0.05 $0.01 $0.11
===== ===== ===== =====
Diluted $0.00 $0.05 $0.01 $0.11
===== ===== ===== =====
Weighted average
shares outstanding
Basic 7,990 7,990 7,990 7,990
===== ===== ===== =====
Diluted 7,990 7,992 7,990 7,991
===== ===== ===== =====
- More Tables To Follow -
Manchester Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands except per share amounts)
April 30, 2003 July 31, 2002
(Unaudited) -------------
-----------
Assets:
Cash and cash equivalents $10,850 $ 8,963
Accounts receivable, net 29,314 32,561
Inventory 14,795 11,165
Deferred income taxes 403 403
Prepaid income taxes 720 426
Prepaid expenses and other current assets 851 526
------ --------
Total current assets 56,933 54,044
Property and equipment, net 14,528 7,012
Goodwill, net 8,311 8,311
Deferred income taxes 803 803
Other assets 144 491
------ -------
Total assets $80,719 $70,661
====== ======
Liabilities:
Accounts payable and accrued expenses $25,156 $23,078
Deferred service contract revenue 605 868
Current portion of capital lease obligations 204 -
------ -----
Total current liabilities 25,965 23,946
Deferred compensation payable 203 203
Capital lease obligations, net of current portion 7,980 -
------- -----
Total liabilities 34,148 24,149
------ ------
Shareholders' equity:
Preferred stock, $.01 par value; 5,000 shares
authorized, none issued - -
Common stock, $.01 par value; 25,000 shares authorized,
7,990 and 7,990 issued and outstanding 80 80
Additional paid-in capital 18,942 18,942
Deferred compensation (23) (23)
Retained earnings 27,572 27,513
------ ------
Total shareholders' equity 46,571 46,512
------ ------
Total liabilities and shareholders' equity $80,719 $70,661
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