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Scott Miller Resigns All Positions from AMXBoard Member Robert. J. Carroll Appointed Chairman, President and CEO, Company Reports Q2 Earnings (November 02, 2001)
Mr. Carroll has over thirty years' experience, including twenty-five years' operational experience, with a wide variety of technology companies engaged in software development and electronics manufacturing. Mr. Carroll served as a consultant to the Company in early 2001. Since 1995, Mr. Carroll has provided similar consulting services to other companies as a principal in Roscommon Limited, which is a technology investment and consulting practice providing specialized support in turnarounds, acquisitions and divestitures. From 1998 to 2001, Mr. Carroll served as Chairman and CEO of BEI Holdings, Inc., a holding company with investments in companies that manufacture electronic and automation products for the radio broadcast industry. Mr. Carroll has served in executive management capacities in both public and private companies.
"Scott Miller has served AMX well since his return in February and remains an icon in the industry. As Founder of AMX, Scott will always be the cornerstone of our culture," said newly appointed Chief Executive Officer, Carroll. "I am very pleased to join the AMX team. Our objectives in the future will focus on strategic growth and improving our operational efficiencies and profitability. I am very optimistic about our future."
Additionally, AMX reported 2002 second quarter financial results. Including one-time charges of $8.2 million, the Company reported a net loss for the quarter of $8.1 million, or $0.74 per share. As a result of current business and market conditions, the Company recorded one-time non-cash charges which included inventory related reserves of $3.2 million; additional accounts receivable reserves of $0.5 million; the write-off of miscellaneous intangibles of approximately $0.3 million; and a valuation allowance against deferred tax assets of $4.2 million. Excluding one-time charges, the Company reported pro-forma breakeven operating results on revenues of $23.0 million as compared to $0.02 per share on revenues of $25.9 million in the year ago quarter.
Domestic Commercial revenue increased 11% in the second quarter as compared to the year ago quarter. Overall Commercial revenue, which represents approximately 87% of total revenue and includes both domestic and international sales, decreased 1% in the second quarter as compared to the year ago quarter. Residential revenue for the second quarter of fiscal 2002 decreased 47% from the year ago period. Overall revenue decreased 11% to $23 million in the second quarter of fiscal 2002 as compared to $25.9 million in the fiscal 2001 second quarter.
"We are disappointed with the one-time charges, however we believe these charges were necessary as our new management team critically reviewed our position with respect to current business and market conditions," said Jean Nelson, Vice President and Chief Financial Officer. "Our domestic Commercial channel continued to show strong revenue growth despite a challenging economy. Our international channels have been hit hard by economic conditions. We believe our revenue decline in the residential channel has subsided."
Nelson continued, "Our margins have remained at 50%. However, we expect improved margins in the near future as we move forward with our sourcing strategy as well as other operational improvements. Due to revised fiscal 2002 revenue levels, which are currently expected to be in the range of $80 - $90 million for fiscal 2002, we are aggressively looking at our cost structure and to date have identified over $2 million in cost savings over the next 6 months and firmly believe there are further cost saving opportunities. Our order rate remains strong and we are continuing to work hard at exceeding our existing revenue expectations."
For the six months ended September 30, 2001, total revenue decreased 5% to $44.7 million compared to $47.1 million in the comparative prior period. Domestic Commercial revenue was $25.5 million, representing an increase of 13% compared to $22.5 million for the six months ended September 30, 2000. Overall Commercial revenue was up 4% as compared to the year ago period. Residential revenue was $7.3 million, a 35% decrease from $11.2 million for the comparable period. For the six months ended September 30, 2001, the Company reported a net loss of $0.72 per share or $7.9 million. Excluding one-time charges, on a pro-forma basis the Company reported net income of $0.3 million or $0.02 per share, compared to a net loss of $0.5 million, or $0.05 per share in the year ago period.
In conjunction with the Second Quarter earnings release, the Company invites you to listen to its conference call via its webcast over the Internet at 10:00 a.m. Eastern Time today. The webcast may be accessed at http://www.videonewswire.com/event.asp?id=1530. The call is open to the general public and is also available by dialing 800.540.0559. Please use conference call identification number "AMX*" to access the live call. A replay of the conference call will also be available one to two hours after the end of the call. To access the replay, please dial 888.567.0675 and enter the passcode "AMX*". In addition, the call will be archived on the Company's website at www.amx.com.
AMX CORPORATION is the worldwide leader in advanced control system technology targeting commercial and residential markets. AMX delivers convenient, easy-to-use solutions that incorporate advanced programming and network applications to simplify your life through technology. AMX's strategy is to work with leading dealers and distributors to integrate its products with other electronic devices, while continuing to lead the industry in control technology. It's your world. Take Control.Ô For more information about AMX, visit www.amx.com.
Related Keywords:AMX, AV
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