Microsoft Word 10.0.2627; 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 17, 2004 - Manchester Technologies Inc. (NASDAQ
NM: MANC), today announced financial results for its third fiscal quarter and
nine months ended April 30, 2004.
On May 28, 2004, the Company sold its end-user information technology
fulfillment and professional services business to ePlus, inc., a leading
provider of Enterprise Cost Management, in an all cash transaction. The results
of operations for the end-user information technology fulfillment and
professional services business have been recorded as discontinued operations on
the accompanying condensed consolidated statements of operations.
Revenue from continuing operations for the quarter were $42.4 million as
compared with $36.5 million for the comparable quarter last year. Income from
continuing operations for the quarter was $432,000 or $0.05 per diluted share as
compared with $316,000 or $0.04 per diluted share reported a year ago. Weighted
average common shares outstanding used for the computation of diluted earnings
per share were 8,533,000 and 7,990,000, respectively.
Revenue from continuing operations for the nine months were $132.9 million
as compared with $123.6 million for the first nine months of last year. Income
from continuing operations for the nine months was $2.0 million or $0.24 per
diluted share as compared with $2.8 million or $0.35 per diluted share reported
a year ago.
Barry R. Steinberg, President and CEO of Manchester Technologies, Inc.,
stated, "As a result of the sale of our end-user IT product and service business
on May 28, 2004, we are now better positioned to concentrate our efforts on our
display solutions business. The display technology market is expected to
continue to grow and we remain a dominant player in this market. Revenues from
the sales of display solutions increased 21% as compared to the third quarter of
last year and 17% as compared to the first nine months of last year."
The Company ended the quarter with cash and cash equivalents of $13.2
million, working capital of $35.3 million, total assets of $94.1 million and
shareholders' equity of $44.9 million.
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MANCHESTER TECHNOLOGIES, INC.
Page 2
About Manchester Technologies, Inc.
Manchester Technologies, Inc. is a single-source solutions provider specializing
in display technology, and prior to the sale of its end-user IT product and
services business, hardware and software procurement, custom networking,
security, IP telephony, remote management, application development/e-commerce,
storage, enterprise and Internet solutions. 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-
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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,
2004 2003 2004 2003
---- ---- ---- ----
Revenue $42,448 $36,533 $132,943 $123,636
Cost of Revenue 38,509 33,137 119,712 110,432
------ ------ ------- -------
Gross profit 3,939 3,396 13,231 13,204
Selling, general and
administrative expenses 3,149 2,847 9,735 8,657
----- ----- ----- -----
Income from operations 790 549 3,496 4,547
Interest and other income (expense), net (70) (22) (166) 146
---- --- ---- ---
Income from continuing operations
before income taxes 720 527 3,330 4,693
Income tax provision 288 211 1,312 1,877
---- --- ----- -----
Income from continuing operations 432 316 2,018 2,816
---- --- ----- -----
Discontinued operations
Loss from operations of
discontinued component (714) (484) (2,314) (4,594)
Income tax benefit 285 194 905 1,837
----- --- --- -----
Loss on discontinued operations (429) (290) (1,409) (2,757)
----- ----- ------- -------
Net income $ 3 $ 26 $ 609 $ 59
==== ====== ======= ======
Income per share from continuing operations
Basic $0.05 $0.04 $0.25 $0.35
==== ==== ==== ====
Diluted $0.05 $0.04 $0.24 $0.35
==== ==== ==== ====
Loss per share from discontinued operations
Basic $(0.05) $(0.04) $(0.18) $(0.35)
===== ===== ===== =====
Diluted $(0.05) $(0.04) $(0.17) $(0.35)
==== ===== ===== =====
Net income per share
Basic $0.00 $0.00 $0.08 $0.01
==== ==== ==== ====
Diluted $0.00 $0.00 $0.07 $0.01
==== ==== ==== ====
Weighted average
shares outstanding
Basic 8,070 7,990 8,017 7,990
===== ===== ===== =====
Diluted 8,533 7,990 8,364 7,990
===== ===== ===== =====
- More Tables To Follow -
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Manchester Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands except per share amounts)
April 30, 2004 July 31, 2003
(Unaudited) -------------
-----------
Assets
Current assets:
Cash and cash equivalents $13,241 $ 8,553
Accounts receivable, net 33,297 35,117
Inventory 25,805 9,605
Deferred income taxes 603 603
Prepaid taxes 42 1,704
Prepaid expenses and other current assets 703 709
Assets held for sale 2,881 -
--------- ----------
Total current assets 76,572 56,291
Property and equipment, net 12,894 13,985
Goodwill, net 3,735 6,439
Deferred income taxes 757 757
Other assets 134 278
---- ---
Total assets $94,092 $77,750
====== ======
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued expenses $40,992 $24,752
Deferred service contract revenue - 666
Current portion of capital lease obligations 237 212
------- ---------
Total current liabilities 41,229 25,630
Deferred compensation payable 263 263
Capital lease obligations, net of current portion 7,749 7,923
----- --------
Total liabilities 49,241 33,816
------ -------
Shareholders' equity:
Preferred stock, $.01 par value; 5,000 shares
authorized, none issued - -
Common stock, $.01 par value; 25,000 shares authorized,
8,071 and 7,990 shares issued and outstanding 81 80
Additional paid-in capital 19,249 18,942
Deferred compensation (13) (13)
Retained earnings 25,534 24,925
------ ------
Total shareholders' equity 44,851 43,934
------ ------
Total liabilities and shareholders' equity $94,092 $77,750
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