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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 FIRST QUARTER RESULTS
HAUPPAUGE, NEW YORK - December 11, 2003 - Manchester Technologies Inc.
(NASDAQ NM: MANC), a leading computer and network solutions provider and display
technology distributor, today announced financial results for its first fiscal
quarter ended October 31, 2003.
Revenue for the quarter was $74.7 million as compared with $68.3 million
for the comparable quarter last year. Earnings for the quarter were $311,000 or
$0.04 per diluted share as compared with $158,000 or $0.02 per diluted share
reported a year ago. Weighted average common shares outstanding used for the
computation of diluted earnings per share were 8,251,000 and 7,991,000,
respectively.
Barry R. Steinberg, President and CEO of Manchester Technologies, Inc.,
stated "We are pleased that we were able to return to profitability in our first
quarter of fiscal 2004. We are seeing an increase in IT spending, although the
increase has not been continuous. Revenues for the quarter increased as compared
to last year. In particular, our service revenues increased by 19% as compared
to last year and revenues from our Electrograph subsidiary increased by 23% as
compared to last year, with demand for display technology solutions remaining
strong. Pricing pressure and competition continue to affect our gross margins
and our gross margin percentage decreased as compared to last year. However, on
a sequential basis, our gross margin percentage has remained consistent."
"We remain committed to 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 $10.7
million, working capital of $31.1 million, total assets of $77.0 million and
shareholders' equity of $44.2 million.
- more -
MANCHESTER TECHNOLOGIES, INC.
Page 2
About Manchester Technologies, Inc.
Manchester Technologies, Inc. is a single-source solutions provider specializing
in hardware and software procurement, display technology, custom networking,
security, IP telephony, remote management, application development/e-commerce,
storage, enterprise and Internet solutions. Manchester offers its customers
single-source solutions customized to their information systems needs by
integrating its analysis, design and implementation services with hardware,
software, networking products and peripherals from leading vendors. In addition,
Manchester offers a complete line of products and peripherals for customers'
display technology requirements. 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
intense competition in the computer industry, continued deterioration in average
selling prices of personal computers and display technologies, a decrease in the
growth of the display technology market, 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, 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
www.sec.gov.
- Tables Follow-
Manchester Technologies, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(Unaudited)
Three months ended
October 31, October 31,
2003 2002
---- ----
Revenue
Products $70,452 $64,715
Services 4,248 3,570
-------- -------
74,700 68,285
------- ------
Cost of revenue
Products 62,726 56,918
Services 3,078 2,403
-------- -------
65,804 59,321
------- ------
Gross profit 8,896 8,964
Selling, general and administrative expenses 8,290 8,840
-------- -------
Income from operations 606 124
Interest and other income (expense), net (87) 140
---------- -------
Income before income taxes 519 264
Income tax provision 208 106
-------- -------
Net income $ 311 $ 158
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Net income per share
Basic $ 0.04 $0.02
======= =====
Diluted $ 0.04 $0.02
======= =====
Weighted average shares outstanding
Basic 7,990 7,990
======= =====
Diluted 8,251 7,991
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- More Tables To Follow -
Manchester Technologies, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
October 31, 2003 July 31, 2003
(Unaudited) -------------
-----------
Assets
Current assets:
Cash and cash equivalents $ 10,667 $ 8,553
Accounts receivable, net 33,671 35,117
Inventory 8,916 9,605
Deferred income taxes 603 603
Prepaid income taxes 1,404 1,704
Prepaid expenses and other current assets 429 709
--------- --------
Total current assets 55,690 56,291
Property and equipment, net 13,891 13,985
Goodwill, net 6,439 6,439
Deferred income taxes 757 757
Other assets 227 278
--------- --------
Total assets $77,004 $77,750
======= ======
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued expenses $23,610 $24,752
Deferred service contract revenue 802 666
Current portion of capital lease obligations 220 212
--------- ---------
Total current liabilities 24,632 25,630
Deferred compensation payable 263 263
Capital lease obligations, net of current portion 7,864 7,923
-------- --------
Total liabilities 32,759 33,816
------- -------
Shareholders' equity:
Preferred stock, $.01 par value; 5,000 shares
authorized, none issued - -
Common stock, $.01 par value; 25,000 shares
authorized, 7,990 issued and outstanding 80 80
Additional paid-in capital 18,942 18,942
Deferred compensation (13) (13)
Retained earnings 25,236 24,925
------- ------
Total shareholders' equity 44,245 43,934
------- ------
Total liabilities and shareholders' equity $77,004 $77,750
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