Advanced Marketing Services Preliminary Quarterly Results to Fall Below Analyst Expectations for Q3 of Fiscal 2003

Search Blogs that Mention this News Release

Click this link to view linked Bookmarking Services

Click this link to view linked Blogging Services

Advanced Marketing Services Preliminary Quarterly Results to Fall Below Analyst Expectations for Q3 of Fiscal 2003

    SAN DIEGO, Jan. 15 /PRNewswire-FirstCall/ -- Advanced Marketing Services,
Inc. (NYSE: MKT), a leading global provider of customized services to book
retailers and publishers, announced today that projected earnings for its
third quarter of fiscal year 2003, ended December 28, 2002, are expected to
fall below investment analysts' current mean estimates of $0.72 per share.
    The Company estimates that third quarter net income per share may range
between $0.42 and $0.45 per share.
    "Approximately half of the anticipated shortfall is attributable to
lackluster retail sales during the weakest Christmas selling season in over a
decade.  The balance of the shortfall was a result of increased costs
associated with the ongoing implementation of our two new enterprise computing
systems necessary for the growth of our business and to higher freight and
labor costs necessary to maintain our high level of service to customers
affected by those system implementations," explained Michael M. Nicita,
president and chief executive officer.
    "We continue to take corrective action to bring our systems-related costs
back in line and are seeing weekly reductions in those costs.  However, we do
not anticipate our full conversion to the new systems being completed before
the second quarter of fiscal 2004, ending in September 2003," Nicita added.
"We are reviewing all available cost reductions to better respond to the soft
retail book market and we do not anticipate continuing to incur the
substantial added systems-related freight and labor costs we absorbed during
the third quarter.  As these preliminary results are analyzed, we will be
better able to discuss these items with more precision and in more detail in
our third quarter earnings conference call next week."
    Advanced Marketing Services will release the third quarter fiscal year
2003 earnings results before the market opens on January 23, 2003.  The third
quarter fiscal year 2003 earnings conference call is scheduled for 11:30 a.m.
EST that same day.

    Headquartered in San Diego, Calif., Advanced Marketing Services (AMS) is a
leading global provider of customized wholesaling, distribution and custom
publishing services to the book industry.  The Company provides a full range
value-added services that provide AMS customers with book buying advice and
expert supply chain management, including advertising and promotional support,
to ensure the success of their book programs.  AMS's proprietary Vendor
Managed Inventory (VMI) software is a unique tool that allows its book
specialists to efficiently and effectively manage global book distribution
systems for the benefit of its warehouse clubs and book store customers.  AMS
has extensive operations in the U.S., Canada, Mexico, Singapore, the United
Kingdom and Australia and employs approximately 1,100 people worldwide.
    Recent press releases on Advanced Marketing Services, Inc. are available
on both the Company's Website, http://www.advmkt.com , and on PR Newswire,
http://www.prnewswire.com.

    Forward-looking statements in this news release are made under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical fact are forward-looking
statements that involve risks and uncertainties.  Certain important factors
could cause results to differ materially from those anticipated by the
forward-looking statements including factors discussed from time to time in
reports filed by the Company with the Securities and Exchange Commission.

    For further information, please contact:  investors, Chuck Williams,
Director of Investor Relations of Advanced Marketing Services, Inc.,
+1-858-450-3545, chuckw@advmkt.com; or media, Greg McQuerter, or Tina Wilmott,
twilmott@mcquerter.com, both of The McQuerter Group, +1-858-450-0030,
ext. 140, for Advanced Marketing Services, Inc.

SOURCE Advanced Marketing Services, Inc.

http://www.advmkt.com
CONTACT:
investors, Chuck Williams, Director of
Investor Relations of Advanced Marketing Services, Inc.,
+1-858-450-3545, chuckw@advmkt.com; or media, Greg McQuerter, or
Tina Wilmott, twilmott@mcquerter.com, both of The McQuerter
Group, +1-858-450-0030, ext. 140, for Advanced Marketing
Services, Inc.