APC Announces Quarterly Earnings and Acquisition of ABL Electronics
American Power Conversion Corp. (APC, West Kingston, RI) has exceeded consensus quarterly earnings per share by 35 percent for the quarter ending April 2, 2000. The firm also announced the acquisition of privately held ABL Electronics Corp. (Hunt Valley, MD).
APC's net income for the first quarter increased to $7.1 million, or $0.24 per share, compared to $34.8 million, or $0.18 per share, in the first quarter of 1999. This marks 17 consecutive quarters that APC has met or exceeded consensus quarterly earnings per share. Sales for the first quarter were up 12 percent to $309.4 million, from $277.2 million for the same period a year ago. Revenues in Asia grew 43 percent, marking the sixth consecutive quarter of greater than 40-percent growth in that region.
"Despite the IT industry slowdown in first-quarter revenue growth rates, we are confident in the fundamental health of the underlying trends driving our business," stated APC President and CEO Rodger B. Dowdell, Jr. "Overall, we expect customary first-quarter-to-second-quarter sequential revenue growth of mid-to-high teens, excluding any incremental acquisition-related revenue, and we are not making any changes to our EPS guidance for the second quarter or the full year."
APC acquired ABL Electronics, which has satellite offices in Texas, California and Illinois, for $8.0 million, paid in a combination of cash and stock. ABL provides computer and network cables, switches, and other connectivity products. The acquired company will become part of APC's Consumer Network Solutions Group. APC expects the acquisition of ABL, coupled with its recent acquisition of Advance Power, to add approximately $12.0 to $14.0 million in incremental revenues to the company's second quarter.