Alpha Technologies Group Fiscal 2004 Third Quarter Revenue Increased 25%

LOS ANGELES—(BUSINESS WIRE)—Sept. 13, 2004— Alpha Technologies Group, Inc. (NASDAQ: ATGI) today announced financial results for the third quarter and first nine months of fiscal 2004.

For the three months ended July 25, 2004, revenue increased 25% to $14,548,000 from $11,658,000 for the third quarter of fiscal 2003. Operating income increased to $230,000. This compares to an operating loss for last year's third quarter of $13,716,000, which included non-cash charges for the impairment of goodwill and other intangible assets that totaled $13,303,000. The Company reported a loss of $213,000, or $0.03 per share, for this year's third quarter, compared to a loss of $13,871,000, or $1.95 per share, for the same quarter last year.

For the nine months ended July 25, 2004, revenue increased 16% to $40,983,000 from $35,288,000 for the same period of fiscal 2003. Operating income was $337,000 for the first nine months of fiscal 2004. This compares to an operating loss of $14,058,000 for the same period a year ago, which included the non-cash impairment charges mentioned above. The loss for this year's first nine months was $1,040,000, or $0.15 per share. This compares to a loss of $14,692,000, or $2.07 per share, for the first nine months of fiscal 2003.

CEO Larry Butler said, "Revenue and operating income have now increased for three consecutive quarters. Also encouraging is that gross margin for this year's third quarter improved to 13% from 10% for the same period last year. New orders booked during the third quarter were ahead of prior year and comparable to second quarter bookings. We remain focused on keeping our costs under control and paying down our debt as rapidly as possible."

Butler noted that Alpha had an excess cash flow payment of $895,000 due to its lenders on September 22, 2004. As a result of the tightening of credit terms from its aluminum suppliers, Alpha does not have cash available to make such payment. It has requested that the lenders waive such payment. To date, the lenders have agreed to forebear for the balance of the calendar year from enforcing any rights or remedies arising from such non-payment. Consequently, all of the Company's debt has been classified as current in the fiscal 2004 third quarter financial statements. Butler said that the Company is in discussions with its lenders regarding a restructuring of its loan agreement, and expects that an amended loan agreement will be reached on a timely basis.

Non-GAAP Financial Measures

EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter of fiscal 2004 was approximately $903,000. For the first nine months of fiscal 2004, EBITDA was approximately $2,443,000.

The following table reconciles GAAP to non-GAAP financial measures:
                            (In Thousands)

                                   Three Months       Nine Months
                                      Ended              Ended
                                 July 25, July 27,  July 25, July 27,
                                  2004      2003     2004      2003

Net Loss                           $(213) $(13,871) $(1,040) $(14,692)
Add (deduct):
   Depreciation and amortization     673       811    2,103     2,508
   Interest expense                  443       494    1,380     1,525
   Credit for income taxes            --      (336)      --      (883)
EBITDA                              $903  $(12,902)  $2,443  $(11,542)

We have included the discussion of EBITDA in this press release as a "non-GAAP financial measure," which is a measure of our historical performance that is different from measures calculated and presented in accordance with GAAP. Management and the Company's lenders use EBITDA to determine compliance with its debt covenants, and Management uses it as an important measure in evaluating and forecasting the Company's performance.

Conference Call

Alpha has scheduled a conference call today at 11:00 a.m. ET. A simultaneous webcast may be accessed from the News link at A replay will be available after 1:00 p.m. ET at this same internet address. For a telephone replay, dial (800) 633-8284, reservation #21206738 after 1:00 p.m. ET.

About Alpha Technologies Group

Alpha Technologies Group (, Inc. is engaged in the manufacture, fabrication and sale of thermal management and non-thermal fabricated products and aluminum extrusions. The Company is one of the leading manufacturers of thermal management products in the United States. Thermal management products, principally heat sinks, dissipate unwanted heat generated by electronic components. The Company's thermal management products serve the automotive, telecommunication, industrial controls, transportation, power supply, factory automation, consumer electronics, aerospace, defense, microprocessor, and computer industries. The Company also sells non-thermal fabricated products and aluminum extrusions to various industries including the construction, sporting goods and other leisure activity markets.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, excess or shortage of production capacity, compliance with covenants in the Company's loan documents, ability to meet principal payments under those loan documents and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances which may take place after the date of this release.
                (In Thousands, Except Per Share Data)

                                   Three Months       Nine Months
                                      Ended              Ended
                                 July 25, July 27,  July 25, July 27,
                                                                  2004            2003          2004            2003

          Fabricated  products                  $10,531        $9,106    $30,746      $27,885
          Extruded  products                          4,017          2,552      10,237          7,403
                    Total  sales                          14,548        11,658      40,983        35,288

COST  OF  SALES                                          12,678        10,465      35,933        31,425
          Gross  profit                                    1,870          1,193        5,050          3,863

          Research  and  development                108                97            334              292
          Selling,  general  and
            administrative                              1,532          1,509        4,379          4,326
          Impairment  of  goodwill                      --        12,980              --        12,980
          Impairment  of  other
            intangible  asset                                --              323              --              323
                    Total  operating
                      expenses                                1,640        14,909        4,713        17,921

OPERATING  (LOSS)  INCOME                            230      (13,716)          337      (14,058)

INTEREST  EXPENSE                                        (443)          (494)    (1,380)      (1,525)

OTHER  INCOME,  net                                          --                  3                3                  8

  TAXES                                                            (213)    (14,207)    (1,040)    (15,575)

BENEFIT    FOR  INCOME  TAXES                          --            (336)            --            (883)

NET  LOSS                                                      $(213)  $(13,871)  $(1,040)  $(14,692)

          BASIC  AND  DILUTED                        $(0.03)      $(1.95)    $(0.15)      $(2.07)

          BASIC  AND  DILUTED                          7,110          7,110        7,110          7,110

                                        ALPHA  TECHNOLOGIES  GROUP,  INC.
                                CONDENSED  CONSOLIDATED  BALANCE  SHEETS
                            (In  Thousands,  Except  Share-Related  Data)

                                                                                            July  25,        October  26,
ASSETS                                                                                  2004                    2003

    Cash  and  cash  equivalents                                                $775                $1,677
    Accounts  receivable,  net                                                6,948                  5,745
    Inventories,  net                                                                6,554                  6,553
    Prepaid  expenses                                                                1,623                  1,364
          Total  current  assets                                                15,900                15,339

PROPERTY  AND  EQUIPMENT,  net                                            10,250                12,103
DEFERRED  INCOME  TAXES                                                          9,995                10,046
OTHER  ASSETS,  net                                                                      429                      807

                    TOTAL  ASSETS                                                    $36,574              $38,295


    Accounts  payable                                                              $3,610                $3,486
    Accrued  compensation  and  related  benefits                  829                      612
    Other  accrued  expenses                                                        373                      716
    Current  portion  of  long-term  debt                            21,600                  1,000

          Total  current  liabilities                                      26,412                  5,814

REVOLVING  CREDIT  FACILITY                                                        --                  3,200
LONG-TERM  DEBT,  Net  of  current  portion                              --                18,150
OTHER  LONG-TERM  LIABILITIES                                                  464                      470

                    TOTAL  LIABILITIES                                            26,876                27,634

    Preferred  stock,  $100  par  value;  180,000
      shares  authorized;  no  shares  issued  or
      outstanding                                                                              --                        --
    Common  stock,  $.03  par  value;  17,000,000
      shares  authorized;  8,529,826  shares  
      issued  at  July  25,  2004  and  October  
      26,  2003                                                                                  256                      256
    Additional  paid-in  capital                                          47,504                47,504
    Accumulated  deficit                                                      (32,168)            (31,128)
    Accumulated  other  comprehensive  (loss)                          --                      (77)
    Treasury  stock,  at  cost  (1,419,490  common
      shares  at  July  25,  2004  and  October  26,
      2003)                                                                                  (5,894)              (5,894)

                    TOTAL  STOCKHOLDERS'  EQUITY                            9,698                10,661

                    TOTAL  LIABILITIES  AND
                      STOCKHOLDERS'  EQUITY                                  $36,574              $38,295

1 | 2  Next Page »

Review Article Be the first to review this article

 True Circuits: Ultra PLL

Featured Video
Latest Blog Posts
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
Automation of the UVM Register Abstraction Layer
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
Virtual 2020 CEO Outlook Set for June 17
Colin WallsEmbedded Software
by Colin Walls
Multiple constructors in C++
Senior Layout Engineer for EDA Careers at EAST COAST, California
Senior Application Engineer Formal Verification for EDA Careers at San Jose and Austin, California
Software Engineer for EDA Careers at RTP, North Carolina
Senior Analog Design Engineers #5337 for EDA Careers at EAST COAST, California
Upcoming Events
Sensors Expo & Conference at McEnery Convention Center 150 W. San Carlos Street SAN JOSE CA - Jun 22 - 24, 2020
Nanotech 2020 Conference and Expo at National Harbor MD - Jun 29 - 1, 2020
IEEE Computer Society Annual Symposium on VLSI (ISVLSI) 2020 at Limassol Hotel, Amathus Area, Pareklisia Cyprus - Jul 6 - 8, 2020
57th Design Automation Conference 2020 at San Francisco CA - Jul 19 - 23, 2020

© 2020 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise