View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
February 9, 2000

Applied Innovation Inc Announces Fourth Quarter and Year End Results

COMPANY PRESS RELEASE: Applied Innovation Inc today announced operating results for the fourth quarter and year ended December 31, 1999.Sales for the fourth quarter ended December 31, 1999 increased 8% to $14,368,000 from $13,306,000 the prior year.

By CBR Staff Writer

Net income for the quarter was $2,547,000, or $0.16 per diluted share, compared to pro forma net income of $2,739,000, or $0.17 per diluted share, excluding a one-time reversal of third-party sales expenses, net of tax effects, in fourth quarter 1998. Including this item, the Company reported $3,526,000, or $0.22 per diluted share, in fourth quarter 1998.

Net sales for the year ended December 31, 1999 were $49,524,000, a decrease of 8% from 1998 net sales of $53,628,000. Net income for 1999 was $7,005,000, representing an all-time high of $0.45 diluted earnings per share. Net income increased 203% over 1998 net income of $2,310,000, or $0.14 diluted earnings per share. Net income for 1998 includes R&D expenses and a non-recurring charge related to the Company’s Access Products Group, which was terminated in September 1998.

The Company had $3.6 million of backlog at December 31, 1999, an all-time high, comprising orders for the recently introduced AIscout product, a large order from a new competitive local exchange carrier customer for the Company’s AIMÔ product, other product orders, and work to be performed under service agreements. Backlog increased 20% over prior year backlog of $3.0 million.

Gross profit for the year ended December 31, 1999 was $28,606,000, or 58% of net sales, compared to $31,391,000, or 59% of net sales for the year ended December 31, 1998. Gross profit for the fourth quarter of 1999 was $7,780,000, or 54% of net sales, compared to $8,044,000, or 60% of net sales for the same period last year. The decreased gross profit percentage for the 1999 fourth quarter and year was largely a result of the introduction of new products that began shipping in the fourth quarter of 1999. The relatively low volumes for such products early in the production cycle contribute to higher per unit production costs. Additionally, the Company continues to face competitive pricing pressure.

Research and development expenses for the year ended December 31, 1999 were $7,479,000, or 15% of net sales. R&D expenses for 1998 were $11,980,000, of which $6,263,000 was related to the terminated Access Products Group. R&D expenses for the fourth quarter ended December 31, 1999 were $2,036,000, or 14% of net sales, compared to $1,509,000, or 11% of net sales for the corresponding quarter last year.

Selling, general and administrative expenses for the year ended December 31, 1999 were $11,965,000, or 24% of net sales, compared to $14,428,000, or 27% of net sales, for the same period of the prior year. SG&A expenses for the 1999 fourth quarter were $2,880,000, or 20% of net sales, compared to $3,035,000, or 23% of net sales, for fourth quarter 1998.

The effective income tax rate for the year ended December 31, 1999 was 31% compared to 19% for the prior year. The increase in the effective rate is primarily due to the relative impact of research and experimentation tax credits in each of the years.

Content from our partners
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester
Infosecurity Europe 2024: Rethink the power of infosecurity

On October 21, 1999, the Board of Directors approved a one-year extension of the Company’s 1,000,000 share stock repurchase program originally adopted in October 1998. Under this program, the Company has repurchased 448,000 shares through December 31, 1999, at an average per share price of $3.72.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU