SAN JOSE, Calif., Oct. 18 /PRNewswire/ -- Hello Direct, Inc.
(Nasdaq: HELO), a leading developer and business-to-business direct marketer
of desktop telephony and equipment interface products, today reported revenue
and income results for the third quarter ended September 30, 2000.
Net sales for the quarter were $23.9 million, an increase of 18 percent
over net sales of $20.2 million in the third quarter of 1999. Net income was
$907,000 or $0.17 per share (on 5,487,000 diluted shares outstanding), a
decrease of 13 percent versus net income of $1,045,000 or $0.20 per share (on
5,321,000 diluted shares outstanding), for the same quarter a year ago. The
Company also reported quarterly operating income of $1.5 million, unchanged
versus operating income of $1.5 million in the third quarter of last year.
Excluding a one-time write-off in the quarter related to the bankruptcy of a
catalog insert advertiser, net income would have been $1.1 million, or $0.20
per diluted share, 7 percent greater than that of the prior year, and
operating income would have been $1.8 million, an increase of 21 percent over
the third quarter of last year.
For the nine months ended September 30, 2000, net sales reached
$70.1 million, a 19 percent increase over net sales of $59.0 million in the
same period of the prior year. Net income for the nine months was
$3.2 million, or $0.59 per diluted share, an increase of 17 percent over net
income of $2.8 million, or $0.52 per diluted share, in the first nine months
of 1999. Excluding the one time write-off, nine-month net income would have
been $3.4 million, or $0.63 per diluted share, up 25 percent over net income
in the first nine months of 1999.
About Hello Direct, Inc.
Hello Direct, Inc. (Nasdaq: HELO) is a leading developer and business-to-
business direct marketer of desktop telephony and equipment interface
solutions, including headsets, teleconferencing, wireless, and related desktop
products. Through a combination of distinctive catalogs, outbound
telemarketing and Internet sales channels, the Company offers a broad
selection of commercial grade solutions to its customers' evolving
communications needs. For more information on Hello Direct, Inc., please
visit http://www.hellodirect.com , a leading online source of telecommunications
information, products and services.
HELLO DIRECT, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended
September 30, 2000 and 1999
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Net sales $23,901,000 $20,229,000 $70,140,000 $58,961,000
Cost of goods sold 11,391,000 9,015,000 32,848,000 26,682,000
Gross profit 12,510,000 11,214,000 37,292,000 32,279,000
Selling, general
and administrative
expenses 10,062,000 9,097,000 29,841,000 26,442,000
Product development
expenses 968,000 603,000 2,706,000 1,867,000
Operating income 1,480,000 1,514,000 4,745,000 3,970,000
Other income - net 32,000 153,000 642,000 563,000
Income before
income taxes 1,512,000 1,667,000 5,387,000 4,533,000
Income taxes 605,000 622,000 2,155,000 1,769,000
Net income $907,000 $1,045,000 $3,232,000 $2,764,000
Basic per share amounts:
Net income $0.17 $0.20 $0.61 $0.54
Weighted average
shares
outstanding 5,302,000 5,177,000 5,276,000 5,147,000
Diluted per share amounts:
Net income $0.17 $0.20 $0.59 $0.52
Weighted average
shares
outstanding 5,487,000 5,321,000 5,509,000 5,322,000
HELLO DIRECT, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets
September 30, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $593,000 $7,292,000
Trade accounts receivable,
less allowance for returns
and doubtful accounts. 12,594,000 9,186,000
Inventories 10,718,000 7,753,000
Deferred tax assets 1,316,000 874,000
Other current assets 2,466,000 1,904,000
Total current assets 27,687,000 27,009,000
Notes receivable 3,650,000 3,912,000
Property and equipment, net 13,541,000 10,055,000
Other non-current assets, net 1,676,000 1,600,000
Total assets $46,554,000 $42,576,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowing $1,500,000 $--
Accounts payable 5,125,000 6,340,000
Accrued expenses 1,857,000 2,553,000
Total current liabilities 8,482,000 8,893,000
Non-current liabilities 922,000 472,000
Total liabilities 9,404,000 9,365,000
Stockholders' equity:
Common stock 5,000 5,000
Additional paid-in capital 30,375,000 29,668,000
Notes receivable from stock sales (742,000) (742,000)
Retained earnings 8,835,000 5,603,000
Less treasury stock, at cost (1,323,000) (1,323,000)
Total stockholders' equity 37,150,000 33,211,000
Total liabilities and stockholders'
equity $46,554,000 $42,576,000
SOURCE Hello Direct, Inc.
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Related links:
http://www.hellodirect.com
CONTACT:
Kip Witter, Chief Financial Officer of Hello
Direct, Inc., 408-363-6158, or General, Christina Carrabino, or
Analysts, James Hoyne, both of The Financial Relations Board,
415-986-1591
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