2/20/2003 - SBE, Inc. (NASDAQ: SBEI), a leading supplier of high performance OEM network connectivity solutions, announced financial results for the first quarter ended January 31, 2003.
Net sales for the first quarter of 2003 were $1.9 million, compared with $1.3 million for the first quarter of fiscal 2002 and $1.1 million for the fourth quarter of fiscal 2002. The company reported net income of $91,000, or $0.02 per share (diluted), for the first quarter of 2003, compared to a net loss of $1.2 million, or $0.35 per share, for the same quarter last year.
Operating expenses decreased 44 percent in the first quarter of 2003 to $1.0 million, compared to $1.9 million in first quarter of 2002, as the company began to realize the full impact of the cost reduction programs it has undertaken over the past 18 months. Gross margin for the first quarter of 2003 was 61 percent, as compared to the 54 percent gross margin reported in the first quarter of 2002. The increase in gross margin was primarily due to more favorable component and manufacturing pricing in addition to a more favorable product mix.
William B. Heye, president and CEO, said "Our mix of sales produced good margins that, coupled with operating expense control, returned us to profitability. We entered the second quarter with an order backlog of $1.3 million that includes the HP end-of-life order of $0.8 million, compared to $0.3 million at the same point in time in 2002. During the quarter, we announced the release of our new Gigabit Ethernet LAN Adapter product line and quickly achieved two major design wins with these products, one of which was for an Ethernet--HyperTransport application. The addition of the LAN Adapter products gives us breadth in connectivity products to penetrate other market segments in addition to telecommunications," Heye concluded.
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. See the cautionary statement at the end of this press release for a summary of the risks associated with forward-looking statements and where to find more information on such risks.
"Assuming current market conditions continue, we expect our sales for the quarter ending April 30, 2003 to be similar to the first quarter. For the longer term, we are dependent on renewed spending by businesses on data and telecommunications products. We remain committed to taking the actions necessary to remain profitable in the near term while positioning for long-term growth," Heye said.
Conference Call Information
SBE's first quarter conference call will be held Wednesday February 19, 2003 at 11:00 am Eastern Time / 8:00 am Pacific Time. To access the call please dial (800) 603-7874 and enter code number 8432300, or visit www.sbei.com approximately 10 minutes prior to the start of the call.
A replay of SBE's quarterly conference call will be available for 24 hours. To access the replay, please dial (800) 642-1687 and enter code number 8432300. The replay can also be accessed via the company web site at www.sbei.com.
SBE provides high performance, standards-based products for a wide range of applied computing applications. Our broad offering of WAN and LAN adapters along with our HighWire family of communication controllers enable the delivery of cost-effective network connectivity interfaces across the full range of next generation networking systems.
SBE and the SBE logo are registered trademarks of SBE, Inc.
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