Exhibit 99.1
Arrow Electronics' Net Income Advances 59% over Prior Year; EPS Ahead of
Consensus
MELVILLE, N.Y.--(BUSINESS WIRE)--July 25, 2006--Arrow Electronics,
Inc. (NYSE:ARW) today reported second quarter 2006 net income of $92.8
million ($.76 per share on both a basic and diluted basis) on sales of
$3.44 billion, compared with net income of $58.4 million ($.50 and
$.48 per share on a basic and diluted basis, respectively) on sales of
$2.77 billion in the second quarter of 2005. The 24% increase in sales
year-over-year included 14% organic growth and 10% growth as a result
of acquisitions. The company's results for the second quarters of 2006
and 2005 include a number of items outlined below that impact their
comparability. A reconciliation of these items is provided under the
heading "Certain Non-GAAP Financial Information." Excluding those
items, net income for the quarter ended June 30, 2006 would have been
$94.7 million ($.78 and $.77 per share on a basic and diluted basis,
respectively) and net income for the quarter ended July 1, 2005 would
have been $65.4 million ($.56 and $.54 per share on a basic and
diluted basis, respectively). Included in the results for the second
quarter of 2006 is $3.7 million ($2.1 million net of related taxes or
$.02 per share on both a basic and diluted basis) related to the
expensing of stock options in accordance with the provisions of
Financial Accounting Standards Board Statement No. 123 (revised 2004),
"Share Based Payment" ("FASB Statement No. 123(R)"). No such charge
was recorded in 2005. Wall Street consensus, as reported by First
Call, was $.73 on a diluted basis.
Operating income in the second quarter of 2006 and 2005 was $163.1
million and $118.8 million, respectively. Excluding the items
impacting comparability included in the reconciliation provided under
the heading "Certain Non-GAAP Financial Information", second quarter
2006 operating income would have been $166.3 million, up 35% over last
year's $123.6 million. Operating income as a percentage of sales,
excluding the previously mentioned items, increased by 40 basis points
year-over-year.
"We once again had an excellent quarter as our ongoing
initiatives, coupled with favorable conditions in the marketplace, led
to record second quarter sales and earnings in excess of our
expectations. We also delivered our highest second quarter return on
invested capital in ten years," said William E. Mitchell, Chairman,
President and Chief Executive Officer. "We continue on our path of
consistent execution with 14 consecutive quarters of year-over-year
sales growth, and we are very proud of our progress in driving
operational excellence into all parts of our business."
Worldwide components sales of $2.76 billion increased 6%
sequentially and 27% over last year, while operating income increased
11% sequentially and 42% over last year. Sales on a pro forma basis,
including Ultra Source Technology Corp. in the second quarter of 2005,
increased 20% year-over-year. "Each of our components businesses
around the world achieved sequential growth and impressive
year-over-year increases in sales and operating income," stated Mr.
Mitchell. "In North America, sales reached their highest level since
the first quarter of 2001, while we drove operating expenses as a
percentage of sales down 150 basis points year-over-year. Sales in
Europe reached all-time highs while improving operating income almost
60% year-over-year, and Asia/Pacific sales broke records again with
significant improvements in profitability," added Mr. Mitchell.
Worldwide computer products sales increased 17% sequentially in
this seasonally strong quarter, and increased 14% year-over-year.
Sales for the Enterprise Computing Solutions business on a pro forma
basis, including DNSint.com AG in the second quarter of 2005,
decreased 2% year-over-year. "Our enterprise computing business
continued to demonstrate solid profitability and returns. Growth was
driven by strong performance in storage, industry standard servers,
and our European enterprise business, offset by weakness in the broad
proprietary server market and software in North America," said Mr.
Mitchell.
The company's results for the second quarter of 2006 and 2005
include the items outlined below that impact their comparability:
-- During the second quarter of 2006, the company recorded $3.1
million ($1.9 million net of related taxes or $.02 per share
on both a basic and diluted basis) of restructuring charges.
Included in the restructuring charges is approximately $2.4
million related to previously announced actions the company
has committed to take in an ongoing effort to improve its
operating efficiencies. These previously announced actions are
expected to generate annual cost savings of approximately $6
million beginning in 2007. The estimated restructuring charges
to be recorded over the next several quarters associated with
these actions total approximately $1 million.
-- During the second quarter of 2005, the company recorded
restructuring charges related to additional actions to better
optimize the use of its mainframe, reduce real estate costs,
be more efficient in its distribution centers, and to be more
productive in the amount of $4.8 million ($2.9 million net of
related taxes or $.02 per share on both a basic and diluted
basis).
-- During the second quarter of 2005, the company repurchased,
through a series of transactions, $80.8 million accreted value
of its zero coupon convertible debentures due in 2021, which
could have been put to the company in February 2006
("convertible debentures"). The related loss on the
repurchase, including the premium paid and the write-off of
related deferred financing costs, aggregated $1.7 million
($1.0 million net of related taxes or $.01 per share on both a
basic and diluted basis).
-- At July 1, 2005, the company determined that an
other-than-temporary decline in the fair value of an
investment occurred, and, accordingly, during the second
quarter of 2005, the company recorded a loss on the write-down
of an investment of $3.0 million ($.03 per share on both a
basic and diluted basis) in accordance with Financial
Accounting Standards Board Statement No. 115 and Emerging
Issues Task Force Issue No.03-1.
"We expect the components market to return to more normal, steady
conditions in the third quarter after having experienced an uptick in
demand over the last few quarters. Based upon the information known to
us today, we anticipate traditional seasonality for our businesses
next quarter, as markets remain rational and disciplined in all of the
regions in which we operate. In Asia/Pacific, we expect to see an
uptick in demand in preparation for the typical holiday build. Both
Europe, because of its extended holiday period, and Enterprise
Computing Solutions, due to typical third quarter seasonality, are
expected to see a drop off in activity levels. In North American
components, fewer shipping days may cause a corresponding drop in
sales," said Paul J. Reilly, Senior Vice President and Chief Financial
Officer. "We believe this will result in sales between $3.275 and
$3.425 billion for the upcoming quarter. We anticipate worldwide
components sales between $2.67 and $ 2.77 billion and sales for
worldwide computer products to be between $605 and $655 million.
Earnings per share on a diluted basis, including the impact of
expensing stock options in accordance with FASB Statement No. 123(R)
estimated at approximately $.02 per share, are expected to be in the
range of $.68 to $.72, excluding any charges. Excluding the impact of
restructuring and other charges, and the expensing of stock options,
diluted earnings per share for the third quarter are expected to
increase 35% to 42% from last year's third quarter," added Mr. Reilly.
SIX MONTH RESULTS
Arrow's net income for the first six months of 2006 was $174.3
million ($1.44 and $1.42 per share on a basic and diluted basis,
respectively) on sales of $6.63 billion, compared with net income of
$115.6 million ($.99 and $.96 per share on a basic and diluted basis,
respectively) on sales of $5.49 billion in the first six months of
2005. Included in the results for the first six months of 2006 is $6.2
million ($3.9 million net of related taxes or $.03 per share on both a
basic and diluted basis) related to the expensing of stock options in
accordance with the provisions of FASB Statement No. 123(R).
Net income for the first six months of 2006 includes restructuring
charges of $4.6 million ($2.8 million net of related taxes or $.02 per
share on both a basic and diluted basis) related to the aforementioned
actions to continue improving its operating efficiencies and a loss on
prepayment of debt of $2.6 million ($1.6 million net of related taxes
or $.01 per share on both a basic and diluted basis) on the redemption
of the total amount outstanding of $283.2 million principal amount
($156.4 million accreted value) of its convertible debentures and on
the repurchase of $4.1 million principal amount of its 7% Senior Notes
due in January 2007. Excluding these items, net income would have been
$178.7 million ($1.47 and $1.46 per share on a basic and diluted
basis, respectively) for the first six months of 2006.
Net income for the first six months of 2005 includes restructuring
charges of $8.9 million ($5.5 million net of related taxes or $.04 and
$.03 per share on a basic and diluted basis, respectively) and an
acquisition indemnification credit of $1.7 million ($1.3 million net
of related taxes or $.01 per share on a basic basis). Net income for
the first six months of 2005 also includes a loss on prepayment of
debt of $2.1 million ($1.2 million net of related taxes or $.01 per
share on both a basic and diluted basis) related to the repurchase of
$94.0 million accreted value of its convertible debentures and the
aforementioned loss on the write-down on an investment of $3.0 million
($.03 per share on both a basic and diluted basis). Excluding these
items, net income would have been $124.1 million ($1.06 and $1.03 per
share on a basic and diluted basis, respectively) for the first six
months of 2005.
Arrow Electronics is a major global provider of products, services
and solutions to industrial and commercial users of electronic
components and computer products. Headquartered in Melville, New York,
Arrow serves as a supply channel partner for nearly 600 suppliers and
more than 130,000 original equipment manufacturers, contract
manufacturers and commercial customers through a global network of
over 270 locations in 53 countries and territories.
Certain Non-GAAP Financial Information
In addition to disclosing results that are determined in
accordance with Generally Accepted Accounting Principles ("GAAP"), the
company provides certain non-GAAP financial information relating to
operating income, net income and net income per basic and diluted
share, each as adjusted for certain charges, credits and losses that
the company believes impact the comparability of its results of
operations. These charges, credits and losses arise out of the
company's efficiency enhancement initiatives, the company's
acquisitions of other companies, the prepayment of debt, and the
write-down of an investment. A reconciliation of the company's
non-GAAP financial information to GAAP is set forth in the table
below.
The company believes that such non-GAAP financial information is
useful to investors to assist in assessing and understanding the
company's operating performance and underlying trends in the company's
business because management considers the charges, credits and losses
referred to above to be outside the company's core operating results.
This non-GAAP financial information is among the primary indicators
management uses as a basis for evaluating the company's financial and
operating performance. In addition, the company's Board of Directors
may use this non-GAAP financial information in evaluating management
performance and setting management compensation.
The presentation of this additional non-GAAP financial information
is not meant to be considered in isolation or as a substitute for, or
alternative to, operating income, net income and net income per basic
and diluted share determined in accordance with GAAP. Analysis of
results and outlook on a non-GAAP basis should be used as a complement
to, and in conjunction with, data presented in accordance with GAAP.
ARROW ELECTRONICS, INC.
EARNINGS RECONCILIATION
(In thousands except per share data)
Three Months Ended Six Months Ended
-------------------- --------------------
June 30, July 1, June 30, July 1,
2006 2005 2006 2005
--------- --------- --------- ---------
Operating income, as
reported $163,141 $118,758 $312,374 $227,251
Restructuring charges 3,118 4,847 4,639 8,885
Acquisition
indemnification credit - - - (1,672)
--------- --------- --------- ---------
Operating income, as
adjusted $166,259 $123,605 $317,013 $234,464
--------- --------- --------- ---------
Net income, as reported $ 92,763 $ 58,449 $174,342 $115,640
Restructuring charges 1,894 2,925 2,814 5,458
Acquisition
indemnification credit - - - (1,267)
Loss on prepayment of debt - 1,035 1,558 1,247
Write-down of investment - 3,019 - 3,019
--------- --------- --------- ---------
Net income, as adjusted $ 94,657 $ 65,428 $178,714 $124,097
--------- --------- --------- ---------
Net income per basic share,
as reported $ .76 $ .50 $ 1.44 $ .99
Restructuring charges .02 .02 .02 .04
Acquisition
indemnification credit - - - (.01)
Loss on prepayment of debt - .01 .01 .01
Write-down of investment - .03 - .03
--------- --------- --------- ---------
Net income per basic share,
as adjusted $ .78 $ .56 $ 1.47 $ 1.06
--------- --------- --------- ---------
Net income per diluted
share, as reported* $ .76 $ .48 $ 1.42 $ .96
Restructuring charges .02 .02 .02 .03
Loss on prepayment of debt - .01 .01 .01
Write-down of investment - .03 - .03
--------- --------- --------- ---------
Net income per diluted
share, as adjusted $ .77 $ .54 $ 1.46 $ 1.03
--------- --------- --------- ---------
The sum of the components for basic and diluted net income per share,
as adjusted, may not agree to the totals, as presented, due to
rounding.
Effective January 1, 2006, the company adopted the provisions of
Financial Accounting Standards Board Statement No. 123 (revised
2004), "Share Based Payment" ("FASB Statement No. 123(R)"). The
company adopted the modified prospective transition method provided
for under FASB Statement No. 123(R) and, accordingly, has not
restated prior period amounts. As a result of adopting FASB
Statement No. 123(R), the company recorded a charge of $3,696 ($2,131
net of related taxes or $.02 per share on both a basic and diluted
basis) and $6,156 ($3,936 net of related taxes or $.03 per share on
both a basic and diluted basis) for the three and six months ended
June 30, 2006, respectively, related to the expensing of stock
options. The pre-tax compensation expense is included in selling,
general and administrative expenses.
*In computing net income per diluted share for the six months ended
June 30, 2006, net income was increased by $524 for interest (net of
taxes) related to the zero coupon convertible debentures
("convertible debentures") which are dilutive common stock
equivalents. In addition, the diluted average number of shares
outstanding for the six months ended June 30, 2006 includes 937
shares related to the convertible debentures.
In computing net income per diluted share for the three and six
months ended July 1, 2005, net income was increased by $1,553 and
$3,226, respectively, for interest (net of taxes) related to the
convertible debentures which are dilutive common stock equivalents.
In addition, the diluted average number of shares outstanding for
the three and six months ended July 1, 2005 includes 5,883 shares
and 6,195 shares, respectively, related to the convertible
debentures.
Information Relating to Forward-Looking Statements
- --------------------------------------------------
This report includes forward-looking statements that are subject
to numerous assumptions, risks and uncertainties which could cause
actual results or facts to differ materially from such statements for
a variety of reasons, including, but not limited to: industry
conditions, the company's ongoing planned implementation of its new
global financial system, changes in product supply, pricing and
customer demand, competition, other vagaries in the electronic
components and computer products markets, changes in relationships
with key suppliers, increased profit margin pressure, the effects of
additional actions taken to become more efficient or lower costs, and
the company's ability to generate additional cash flow. Shareholders
and other readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on which
they are made. The company undertakes no obligation to update publicly
or revise any of the forward-looking statements.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
Three Months Ended Six Months Ended
------------------------ ------------------------
June 30, July 1, June 30, July 1,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Sales $3,437,032 $2,767,547 $6,629,495 $5,494,418
----------- ----------- ----------- -----------
Costs and expenses:
Cost of products
sold 2,912,608 2,326,214 5,617,528 4,620,856
Selling, general
and
administrative
expenses 346,828 304,235 672,656 613,078
Depreciation and
amortization 11,337 13,493 22,298 26,020
Restructuring
charges 3,118 4,847 4,639 8,885
Acquisition
indemnification
credit - - - (1,672)
----------- ----------- ----------- -----------
3,273,891 2,648,789 6,317,121 5,267,167
----------- ----------- ----------- -----------
Operating income 163,141 118,758 312,374 227,251
Equity in earnings
of affiliated
companies 1,045 562 1,990 1,640
Loss on prepayment
of debt - 1,731 2,605 2,086
Write-down of
investment - 3,019 - 3,019
Interest expense,
net 23,993 24,375 47,962 48,475
----------- ----------- ----------- -----------
Income before
income taxes and
minority interest 140,193 90,195 263,797 175,311
Provision for
income taxes 47,084 31,627 88,737 59,371
----------- ----------- ----------- -----------
Income before
minority interest 93,109 58,568 175,060 115,940
Minority interest 346 119 718 300
----------- ----------- ----------- -----------
Net income $ 92,763 $ 58,449 $ 174,342 $ 115,640
----------- ----------- ----------- -----------
Net income per
share:
Basic $ .76 $ .50 $ 1.44 $ .99
----------- ----------- ----------- -----------
Diluted $ .76 $ .48 $ 1.42 $ .96
----------- ----------- ----------- -----------
Average number of shares
outstanding:
Basic 121,820 117,009 121,213 116,604
Diluted 122,551 124,241 123,020 124,136
This interim report is subject to independent audit at year-end.
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)
June 30, December 31,
2006 2005
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 329,849 $ 580,661
Accounts receivable, net 2,629,110 2,316,932
Inventories 1,830,840 1,494,982
Prepaid expenses and other assets 155,498 124,899
----------- -----------
Total current assets 4,945,297 4,517,474
----------- -----------
Property, plant and equipment at cost:
Land 42,042 41,855
Buildings and improvements 163,097 160,012
Machinery and equipment 457,540 426,239
----------- -----------
662,679 628,106
Less: accumulated depreciation and
amortization (415,058) (392,641)
----------- -----------
Property, plant and equipment, net 247,621 235,465
----------- -----------
Investments in affiliated companies 38,730 38,959
Cost in excess of net assets of companies
acquired 1,118,242 1,053,266
Other assets 195,521 199,753
----------- -----------
Total assets $6,545,411 $6,044,917
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,882,917 $1,628,568
Accrued expenses 470,342 434,644
Short-term borrowings, including current
portion of long-term debt 320,313 268,666
----------- -----------
Total current liabilities 2,673,572 2,331,878
----------- -----------
Long-term debt 960,276 1,138,981
----------- -----------
Other liabilities 208,177 201,172
----------- -----------
Shareholders' equity:
Common stock, par value $1:
Authorized - 160,000 shares in 2006 and 2005
Issued - 122,358 and 120,286 shares in 2006
and 2005, respectively 122,358 120,286
Capital in excess of par value 927,306 861,880
Retained earnings 1,573,757 1,399,415
Foreign currency translation adjustment 99,769 13,308
----------- -----------
2,723,190 2,394,889
Less: Treasury stock (235 and 272 shares in
2006 and 2005, respectively), at cost (6,282) (7,278)
Unamortized employee stock awards - (2,395)
Other (13,522) (12,330)
----------- -----------
Total shareholders' equity 2,703,386 2,372,886
----------- -----------
Total liabilities and shareholders' equity $6,545,411 $6,044,917
----------- -----------
This interim report is subject to independent audit at year-end.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
----------------------
June 30, July 1,
2006 2005
---------- ----------
Cash flows from operating activities:
Net income $ 92,763 $ 58,449
Adjustments to reconcile net income to net
cash provided by (used for) operations:
Depreciation and amortization 11,337 13,493
Accretion of discount on zero coupon
convertible debentures - 2,598
Amortization of deferred financing costs and
discount on notes 734 913
Amortization of restricted stock and
performance awards 2,494 965
Amortization of employee stock options 3,696 -
Excess tax benefits from stock-based
compensation arrangements (2,378) -
Equity in earnings of affiliated companies (1,045) (562)
Deferred income taxes (1,680) 1,690
Restructuring charges 1,894 2,925
Minority interest 346 119
Loss on prepayment of debt - 1,035
Write-down of investment - 3,019
Change in assets and liabilities, net of
effects of acquired businesses:
Accounts receivable (189,937) (155,324)
Inventories (155,771) 22,736
Prepaid expenses and other assets (1,191) 8,626
Accounts payable 149,115 132,586
Accrued expenses (11,299) (26,299)
Other 2,485 (3,908)
---------- ----------
Net cash provided by (used for) operating
activities (98,437) 63,061
---------- ----------
Cash flows from investing activities:
Acquisition of property, plant and equipment (14,454) 494
Cash consideration paid for acquired
businesses (1,317) (2,461)
Other 2,158 3,711
---------- ----------
Net cash provided by (used for) investing
activities (13,613) 1,744
---------- ----------
Cash flows from financing activities:
Change in short-term borrowings 34,692 4,998
Change in long-term debt (214) (1,450)
Repurchase of zero coupon convertible
debentures - (81,173)
Proceeds from exercise of stock options 23,021 23,618
Excess tax benefits from stock-based
compensation arrangements 2,378 -
---------- ----------
Net cash provided by (used for) financing
activities 59,877 (54,007)
---------- ----------
Effect of exchange rate changes on cash 1,846 (7,573)
---------- ----------
Net increase (decrease) in cash and cash
equivalents (50,327) 3,225
Cash and cash equivalents at beginning of
period 380,176 612,988
---------- ----------
Cash and cash equivalents at end of period $ 329,849 $ 616,213
---------- ----------
This interim report is subject to independent audit at year-end.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended
----------------------
June 30, July 1,
2006 2005
---------- ----------
Cash flows from operating activities:
Net income $ 174,342 $ 115,640
Adjustments to reconcile net income to net
cash provided by (used for) operations:
Depreciation and amortization 22,298 26,020
Accretion of discount on zero coupon
convertible debentures 876 5,395
Amortization of deferred financing costs and
discount on notes 1,632 1,885
Amortization of restricted stock and
performance awards 4,126 3,010
Amortization of employee stock options 6,156 -
Excess tax benefits from stock-based
compensation arrangements (6,431) -
Equity in earnings of affiliated companies (1,990) (1,640)
Deferred income taxes (2,595) 705
Restructuring charges 2,814 5,458
Loss on prepayment of debt 1,558 1,247
Minority interest 718 300
Acquisition indemnification credit - (1,267)
Write-down of investment - 3,019
Change in assets and liabilities, net of
effects of acquired businesses:
Accounts receivable (246,891) (207,839)
Inventories (302,379) 79,457
Prepaid expenses and other assets (23,162) (6,123)
Accounts payable 219,761 221,484
Accrued expenses 14,253 (30,513)
Other 4,068 (124)
---------- ----------
Net cash provided by (used for) operating
activities (130,846) 216,114
---------- ----------
Cash flows from investing activities:
Acquisition of property, plant and equipment (27,540) (4,564)
Cash consideration paid for acquired
businesses (19,460) (2,461)
Purchase of short-term investments - (230,456)
Proceeds from sale of short-term investments - 389,056
Other 3,083 3,711
---------- ----------
Net cash provided by (used for) investing
activities (43,917) 155,286
---------- ----------
Cash flows from financing activities:
Change in short-term borrowings 38,536 9,493
Change in long-term debt (15,724) (1,936)
Repurchase of senior notes (4,268) -
Repurchase of zero coupon convertible
debentures (156,330) (94,501)
Proceeds from exercise of stock options 53,118 35,563
Excess tax benefits from stock-based
compensation arrangements 6,431 -
---------- ----------
Net cash used for financing activities (78,237) (51,381)
---------- ----------
Effect of exchange rate changes on cash 2,188 (9,100)
---------- ----------
Net increase (decrease) in cash and cash
equivalents (250,812) 310,919
Cash and cash equivalents at beginning of
period 580,661 305,294
---------- ----------
Cash and cash equivalents at end of period $ 329,849 $ 616,213
---------- ----------
This interim report is subject to independent audit at year-end.
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
Three Months Ended Six Months Ended
------------------------ ------------------------
June 30, July 1, June 30, July 1,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Sales:
Components $2,757,058 $2,169,514 $5,365,967 $4,355,891
Computer products 679,974 598,033 1,263,528 1,138,527
----------- ----------- ----------- -----------
Consolidated $3,437,032 $2,767,547 $6,629,495 $5,494,418
----------- ----------- ----------- -----------
Operating income:
Components $ 163,766 $ 115,665 $ 310,949 $ 218,244
Computer products 29,833 30,558 53,839 59,410
Corporate (a) (30,458) (27,465) (52,414) (50,403)
----------- ----------- ----------- -----------
Consolidated $ 163,141 $ 118,758 $ 312,374 $ 227,251
----------- ----------- ----------- -----------
Effective January 1, 2006, the OEM Computing Solutions business,
which was previously included in the worldwide computer products
business, has been transitioned into the company's worldwide
components business to further leverage customer overlap and to take
advantage of greater opportunities for selling synergies. Prior period
segment data has been adjusted to conform with the current period
presentation.
(a)Includes restructuring charges of $3.1 million and $4.8 million for
the three months ended June 30, 2006 and July 1, 2005, respectively, and
$4.6 million and $8.9 million for the six months ended June 30, 2006 and
July 1, 2005, respectively. Also included is an acquisition indemnification
credit of $1.7 million for the six months ended July 1, 2005.
This interim report is subject to independent audit at year-end.
CONTACT: Ira M. Birns, 631-847-1657
Vice President & Treasurer
or
Paul J. Reilly, 631-847-1872
Senior Vice President & Chief Financial Officer
or
Media Contact:
Jacqueline F. Strayer, 631-847-2101
Vice President, Corporate Communications