Bell Microproducts Releases Preliminary First Quarter Results

Apr 03, 2001, 01:00 ET from Bell Microproducts, Inc.

    SAN JOSE, Calif., April 3 /PRNewswire/ --
 Bell Microproducts Inc. (Nasdaq:   BELM) today announced that preliminary sales
 for the first quarter ended March 31, 2001 are expected to be approximately
 $530 million, with earnings per share of approximately $0.01 per share.  The
 company expects to report final results on approximately April 18, 2001.
     "We expect our first quarter revenues to be in a range of approximately
 $530 million, up 45% over last year's first quarter revenues of $366 million,
 and down 3% as compared to our fourth quarter 2000 sales of $544 million.
 Diluted earnings per share for the first quarter are expected to be about
 $0.01, versus $0.21 in the first quarter of 2000 and $0.30 in the fourth
 quarter of 2000," said Donald Bell, President and Chief Executive Officer of
 Bell Microproducts.
     "In our fourth quarter 2000 earnings press release in early February we
 discussed the softening demand in the market for electronic components,
 particularly in the higher-margin North American industrial OEM market where
 we sell disk drives and semiconductors," said Bell.  "The weakness has since
 increased as the industry over-inventory situation has impacted demand for
 semiconductors, disk drives and related components in North America.  As a
 result, we experienced an unfavorable shift in our margin mix, and a decline
 in gross profit margins in our commercial sales in North America," added Bell.
 "Sales of storage solutions products increased during the quarter.
 Latin American sales were up sequentially with a decrease in gross profit
 margins.  United Kingdom sales grew sequentially with relatively flat gross
 profit margins," further said Bell.
     "Our first quarter profitability was also impacted by strategic
 investments related to the opening of sales locations in five countries on the
 European continent.  The new locations form the basis for a significantly
 increased revenue opportunity in Europe," commented Bell.  "The company has
 also increased staffing by approximately 50 people at its new Corporate
 Technology Center located in Montgomery, Alabama.  The increased staffing
 further impacted first quarter profitability.  Longer-term, the company
 expects the Center to yield economies of scale that should result in
 productivity and cost benefits," added Bell.
     "We are optimistic with regard to our strategic initiatives, and we
 believe that our strengthened management team, our expanding line card, our
 increased geographic coverage, and our thrust in storage systems and solutions
 will serve us well in the future," commented Bell.  "At this time, we believe
 Bell Microproducts should be able to improve its financial performance
 throughout the balance of 2001, even though market conditions are generally
 projected to remain difficult.  As we take actions to contain costs, and as
 our strategic initiatives begin yielding results, we expect to achieve an
 improvement in our gross profit margins," concluded Bell.
 
     About Bell Microproducts
     Bell Microproducts is an international, value-added provider of a wide
 range of high-technology products, solutions, and services to the industrial
 and commercial markets.  The company's offering includes semiconductors,
 computer platforms, peripherals, and storage products of various types
 including desktop, high-end computer and storage subsystems, fibre channel
 connectivity products, RAID, NAS and SAN storage systems and back-up products.
 Bell Microproducts is an industry-recognized specialist in storage products
 and is one of the world's largest storage-centric value-added distributors.
     The company's products are available at any level of integration, from
 components to subsystem assemblies and fully-integrated, tested and certified
 system solutions.  The company adds value with a broad range of services
 including testing, software loading, kitting, mass storage system integration,
 and computer system integration.  Trained and certified technical personnel
 complete each of these processes at Bell Microproducts' ISO 9002 facilities.
 Bell Microproducts markets and distributes more than 150 brand name product
 lines, as well as its own BellStor storage and Trademark(R) computer brands,
 to original equipment manufacturers (OEMs), contract electronic manufacturing
 services (EMS) customers, value-added resellers (VARs) and system integrators
 in the Americas and Europe.  More information can be found in the company's
 SEC filings, or by visiting the Bell Microproducts Web site at
 www.bellmicro.com.
 
     Safe Harbor Statement
     This release may contain forward-looking statements within the meaning of
 the Private Securities Litigation Reform Act of 1995.  Such forward-looking
 statements, which reflect the Company's current views of future events and
 financial performance, involve known and unknown risks and uncertainties which
 could cause actual results or facts to differ materially from such statements
 for a variety of reasons including, but not limited to:  the ability to
 successfully integrate the operations of recent acquisitions, industry
 conditions, changes in product supply, pricing, and customer demand,
 competition, other vagaries in the computer and electronic components markets,
 changes in relationships with key suppliers, foreign currency fluctuations and
 the other risks described from time to time in the Company's reports to the
 Securities and Exchange Commission (including the company's Annual Report on
 Form 10-K).  Investors should take such risks into account when making
 investment decisions.  Shareholders and other readers are cautioned not to
 place undue reliance on these forward-looking statements, which speak only as
 of the date on which they are made.  The company undertakes no obligation to
 update publicly or revise any forward-looking statements.
 
 

SOURCE Bell Microproducts, Inc.
    SAN JOSE, Calif., April 3 /PRNewswire/ --
 Bell Microproducts Inc. (Nasdaq:   BELM) today announced that preliminary sales
 for the first quarter ended March 31, 2001 are expected to be approximately
 $530 million, with earnings per share of approximately $0.01 per share.  The
 company expects to report final results on approximately April 18, 2001.
     "We expect our first quarter revenues to be in a range of approximately
 $530 million, up 45% over last year's first quarter revenues of $366 million,
 and down 3% as compared to our fourth quarter 2000 sales of $544 million.
 Diluted earnings per share for the first quarter are expected to be about
 $0.01, versus $0.21 in the first quarter of 2000 and $0.30 in the fourth
 quarter of 2000," said Donald Bell, President and Chief Executive Officer of
 Bell Microproducts.
     "In our fourth quarter 2000 earnings press release in early February we
 discussed the softening demand in the market for electronic components,
 particularly in the higher-margin North American industrial OEM market where
 we sell disk drives and semiconductors," said Bell.  "The weakness has since
 increased as the industry over-inventory situation has impacted demand for
 semiconductors, disk drives and related components in North America.  As a
 result, we experienced an unfavorable shift in our margin mix, and a decline
 in gross profit margins in our commercial sales in North America," added Bell.
 "Sales of storage solutions products increased during the quarter.
 Latin American sales were up sequentially with a decrease in gross profit
 margins.  United Kingdom sales grew sequentially with relatively flat gross
 profit margins," further said Bell.
     "Our first quarter profitability was also impacted by strategic
 investments related to the opening of sales locations in five countries on the
 European continent.  The new locations form the basis for a significantly
 increased revenue opportunity in Europe," commented Bell.  "The company has
 also increased staffing by approximately 50 people at its new Corporate
 Technology Center located in Montgomery, Alabama.  The increased staffing
 further impacted first quarter profitability.  Longer-term, the company
 expects the Center to yield economies of scale that should result in
 productivity and cost benefits," added Bell.
     "We are optimistic with regard to our strategic initiatives, and we
 believe that our strengthened management team, our expanding line card, our
 increased geographic coverage, and our thrust in storage systems and solutions
 will serve us well in the future," commented Bell.  "At this time, we believe
 Bell Microproducts should be able to improve its financial performance
 throughout the balance of 2001, even though market conditions are generally
 projected to remain difficult.  As we take actions to contain costs, and as
 our strategic initiatives begin yielding results, we expect to achieve an
 improvement in our gross profit margins," concluded Bell.
 
     About Bell Microproducts
     Bell Microproducts is an international, value-added provider of a wide
 range of high-technology products, solutions, and services to the industrial
 and commercial markets.  The company's offering includes semiconductors,
 computer platforms, peripherals, and storage products of various types
 including desktop, high-end computer and storage subsystems, fibre channel
 connectivity products, RAID, NAS and SAN storage systems and back-up products.
 Bell Microproducts is an industry-recognized specialist in storage products
 and is one of the world's largest storage-centric value-added distributors.
     The company's products are available at any level of integration, from
 components to subsystem assemblies and fully-integrated, tested and certified
 system solutions.  The company adds value with a broad range of services
 including testing, software loading, kitting, mass storage system integration,
 and computer system integration.  Trained and certified technical personnel
 complete each of these processes at Bell Microproducts' ISO 9002 facilities.
 Bell Microproducts markets and distributes more than 150 brand name product
 lines, as well as its own BellStor storage and Trademark(R) computer brands,
 to original equipment manufacturers (OEMs), contract electronic manufacturing
 services (EMS) customers, value-added resellers (VARs) and system integrators
 in the Americas and Europe.  More information can be found in the company's
 SEC filings, or by visiting the Bell Microproducts Web site at
 www.bellmicro.com.
 
     Safe Harbor Statement
     This release may contain forward-looking statements within the meaning of
 the Private Securities Litigation Reform Act of 1995.  Such forward-looking
 statements, which reflect the Company's current views of future events and
 financial performance, involve known and unknown risks and uncertainties which
 could cause actual results or facts to differ materially from such statements
 for a variety of reasons including, but not limited to:  the ability to
 successfully integrate the operations of recent acquisitions, industry
 conditions, changes in product supply, pricing, and customer demand,
 competition, other vagaries in the computer and electronic components markets,
 changes in relationships with key suppliers, foreign currency fluctuations and
 the other risks described from time to time in the Company's reports to the
 Securities and Exchange Commission (including the company's Annual Report on
 Form 10-K).  Investors should take such risks into account when making
 investment decisions.  Shareholders and other readers are cautioned not to
 place undue reliance on these forward-looking statements, which speak only as
 of the date on which they are made.  The company undertakes no obligation to
 update publicly or revise any forward-looking statements.
 
 SOURCE  Bell Microproducts, Inc.