Advanced
Electronic Support Products, Inc
Reports Three and Six Months 2001 Results
Miami, Florida,
August 10, 2001 - Advanced Electronic Support Products, Inc (NASDAQ: AESP and
AESPW) today announced its results of operations for the three and six
months ended June 30, 2001. Sales for the first six months of 2001 were $14.7
million, an increase of $902,000 or 6.5%, compared with sales of $13.8 million
for the same period last year. Sales for the second quarter of 2001 were $6.5
million, a decrease of $610,000 or
approximately 8.6%, compared with sales of $7.1 million for the same period in
2000. The Company’s net loss for the three and six months of 2001 was $1.2
million (a loss of $0.32 per diluted share) and $1.2 million (a loss of $0.31
per diluted share), respectively, compared to net income of $108,000 (a gain of
$0.04 per diluted share) and $408,000 (a gain of $0.11 per diluted share) for
the three and six months ended June 30, 2000.
Slav Stein, the Company’s President, stated:
“Our results primarily reflect the impact of the significant slow down
of the economy in the United States and Europe. Almost all of our customers have
recently experienced dramatic slowdowns in their sales to their customers, which
has obviously affected our sales. These factors have also caused increased
competition in our market sector, which has adversely affected our gross
margins. As a result of the
significant downturn in sales and gross margins that we have recently
experienced, we have decided to strengthen our inventory reserves, write-off
certain receivables and increase sales and bad debt allowances; and therefore,
our second quarter results reflect aggregate charges of approximately $735,000
relating to these items.
Mr.
Stein continued, “We are taking aggressive steps to implement an expense and
headcount reduction plan based upon the likelihood of a slow-growth environment
for the discernable future. We have
reduced our worldwide work force by 11% and we are continuing to examine our
operations to determine whether additional reductions will be required.
Given the current economic conditions, we must adjust our operating
structure to remain competitive and position ourselves to seek to be profitable
in this environment. We are also continuing to look at potential acquisitions.
We hope that by adapting in these harder times, we will be able to return to
profitability more quickly and to take advantage of market opportunities which
may be available to us in the interim.”
Advanced Electronic Support Products, Inc. designs, manufactures, markets and distributes network connectivity products under the brand name Signamax™ Connectivity Systems as well as customized solutions for original equipment manufacturers worldwide. The Company offers a complete line of active networking and premise cabling products for copper and fiber optic based networks, as well as computer connectivity products.
Safe
Harbor Disclosure under the 1995 Securities Litigation Reform Act.
This news release contains forward-looking statements, which involve risks and uncertainties. The Company’s actual future results could differ materially from the results anticipated herein. For information regarding factors that could impact the Company’s future performance, see the Company’s future filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-KSB for 2000.
Signamax is a
trademark of Advanced Electronic Support Products, Inc. in the United States
and/or other countries.
For further information, please contact:
Slav Stein, President & CEO
Roman Briskin, Executive Vice President
Roy D. Rafalco, Chief Financial Officer
Advanced Electronic
Support Products, Inc.
1810 NE 144 Street (305)
944-7710
North Miami, Florida 33131