SAN JOSE, Calif., May 3 /PRNewswire/ -- Alec Glover, president and CEO of
Hello Direct, Inc. (Nasdaq: HELO), highlighted the success of his Company's
recent channel and product development initiatives at THE RED CHIP REVIEW
Investor Conference in San Francisco last Friday.
"For over a decade, Hello Direct has been the leader in the development
and direct marketing of telephony products," said Glover. "Nearly two years
ago, we initiated a profit focused growth strategy that optimized our product
line and emphasized investment in our most promising market opportunities.
That has led to nine consecutive quarters of record year-on-year sales and
profit improvement."
Hello Direct recently reported financial results for the quarter ended
March 31, 1999. Net sales for the quarter were a record $19.5 million, up
8.6 percent over the same period in the prior year. Net income rose 47.8
percent over the same period last year to $891,000 or $0.17 per share.
"A key element of our strategic plan is to expand the non-catalog sales
channels, specifically outbound telemarketing to corporate accounts and our
Internet site," said Glover. "We've successfully expanded our corporate
account sales team, and that channel now accounts for 35 percent of total net
sales. Our web site is our fastest-growing channel, accounting for nearly 10
percent of our revenue, up from less than five percent a year ago. With our
recent acquisition of PhoneZone.com, the leading Web buyer's guide for
telecommunications products and services, we have the ability to create the
pre-eminent Internet marketplace."
Glover also described Hello Direct's strategic commitment to increase
investment in R&D, and accelerate the introduction of new proprietary
products. "That strategy has clearly paid off, as evidenced by the strong
sales of new corded and wireless headsets, and our LineStein analog-to-digital
adapter. During the first quarter, we introduced the Ultralight(R) EX,
Solo(R) II, and Cordless(RM) XLT, and all three headsets experienced demand
beyond the company's original expectations. LineStein was introduced in April
1998, and last December was chosen by the editors of Telephony magazine as
'one of their favorite new products of 1998'," he said.
According to Glover, the Company recently received a patent on the smart
interface technology that is imbedded in LineStein, the SuperPro amplifier,
and the Cordless XLT. This exclusive technology developed by Hello Direct
enables both voice and data products to adapt themselves automatically to the
diverse, non-standard handset ports found on today's proprietary digital
telephones, without requiring the user to configure switches or purchases
phone-specific adapters. "This demonstrates our ability to develop industry
leading solutions, and encourages our further investment in the area of
equipment interface."
Glover told The Red Chip Review audience that Hello Direct's development
team is also focusing on exciting new headset applications, including computer
telephony integration and voice recognition.
THE RED CHIP REVIEW is the nation's leading source of information on
small-cap stocks.
Hello Direct was recently named by RED CHIP REVIEW as one of its "Top
Picks for 1999."
About Hello Direct, Inc.:
Hello Direct, Inc. (http://www.hellodirect.com) is the leading developer and
direct marketer of telephone productivity tools including headsets,
teleconferencing, wireless and related desktop products. Through its
distinctive catalogs, web site and outbound telemarketing programs, the
Company offers a broad selection of commercial-grade brand name, proprietary
and private label products at competitive prices that provide solutions to its
customers' evolving communication needs.
SOURCE Hello Direct, Inc.
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Related links:
http://www.hellodirect.com
CONTACT:
Dean "Kip" Witter III of Hello Direct,
408-363-6158; general information, Don Markley, or analysts, Reid
Cox, both of Financial Relations Board, 415-986-1591
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