Because the negotiations could lead to an acquisition transaction requiring management to participate in the transaction, MCSi’s Board of Directors has formed a special committee to evaluate the proposals. MCSi cannot predict whether any transaction can or will be negotiated, or if negotiated, what the terms of such a transaction may be.
For the three months ended March 31, 2001:
Earnings per share (diluted) rose 14%, to $0.32 compared to $0.28 for the three months ended March 31, 2000. Comparable growth in earnings per share for the first quarter was 23% (after excluding net income of the Azerty division which was sold in the third quarter of 2000).
Net sales for the first quarter of 2001 increased by 20%, to $244.5 million, versus $203.7 million in the prior year period. Comparable sales growth for the first quarter was 37% (after adjusting for the sale of the Azerty division which occurred in the third quarter of 2000).
Gross margins in the 2001 first quarter reached a level of 25.6%, a significant increase compared to gross margins of 22.5% for the 2000 first quarter. The increase in gross margins reflects a greater percentage of higher margin systems integration projects in the sales mix.
Operating income for the first quarter expanded by 28%, to $11.6 million, compared to $9.1 million for the same period in the prior year.
Net income grew by 14%, to $4.0 million from $3.5 million for the same period last year.
Systems integration sales increased to a record $94.4 million, or 39% of total sales, compared to $47.6 million, or 23% of total sales for the same period in the prior year.
The first quarter results reflect our ability to generate strong growth and a greater emphasis on integration services which contributed to a strong growth in revenue and gross margins, said Michael E. Peppel, Chairman, President and Chief Executive Officer of MCSi. We continue to deliver highly sophisticated solutions so that our customers are more efficient and gain a competitive advantage in their marketplaces, continued Mr. Peppel.
Our first quarter was also highlighted by the announcement of MCSi’s expansion into an exciting market, network operations command and control centers, through a strategic partnership with Evans Consoles, concluded Mr. Peppel.
Commenting on the Company’s performance, Ira H. Stanley, Vice President and Chief Financial Officer of MCSi stated, We remain focused on growing our business and its profit margins as evidenced by the Company’s key financial metrics. We are continually extending our market leadership in audio visual, broadcast and computer technology systems integration.
SOURCE: COMPANY PRESS RELEASE
