AESP, Inc
Reports Three and Nine Months 2002 Results
Miami, Florida, November 12, 2002- AESP, Inc (NASDAQ: AESP ) today announced its results of operations for the three and nine months ended September 30, 2002. Sales for the first nine months of 2002 were $21.2 million, an increase of $41,000 or 0.2%, compared with sales of $21.1 million for the same period last year. Sales for the third quarter of 2002 were $6.9 million, an increase of $482,000 or approximately 7.5%, compared with sales of $6.4 million for the same period in 2001.
The Company’s net loss for the three and nine months of 2002 was $710,000 (a loss of $0.15 per diluted share) and $1.4 million (a loss of $0.31 per diluted share), respectively, compared to $787,000 (a loss of $0.18 per diluted share) and $1.9 million (a loss of $0.50 per diluted share), respectively, for the three and nine months ended September 30, 2001.
Slav Stein, the Company’s President, stated: “The third quarter was very challenging for the Company. Our results reflect the continued slowdown of the economy worldwide, increased competition, and the absence of any significant improvement in the telecommunication and datacom sectors. While we believe that the economy will improve during the 2003 fiscal year, that recovery has not yet occurred."
Mr. Stein continued, “We are continuing our efforts to focus on key areas that will improve our profitability and sales. Despite tough economic times, we continue to invest in strategically important new product development and marketing. In that regard, we recently introduced our new product line for our Signamax division, which included the latest developments in high speed networking equipment. We exhibited our products at the largest computer/networking show in Italy in October and received a positive response from several potential new customers. We are also continuing to take steps to streamline our operations and reduce our expenses. In that regard, we are in the process of closing down our unprofitable manufacturing facility in Pennsylvania and moving this production to our suppliers in the Far East and to our North Miami facility. By taking these steps and continuing to control our costs, we believe that we will position our Company for future sales growth as the economy improves."
AESP, Inc. designs, manufactures, markets and distributes network connectivity products under the brand name Signamax Connectivity Systems as well as customized solutions for original equipment manufacturers worldwide. The Company offers a complete line of active networking and premise cabling products for copper and fiber optic based networks, as well as computer connectivity products.
Safe Harbor Disclosure under the 1995 Securities Litigation Reform Act.
This news release contains forward-looking statements,
which involve risks and uncertainties. The Company’s actual future results could
differ materially from the results anticipated herein. For information regarding
factors that could impact the Company’s future performance, see the Company’s
future filings with the U.S. Securities and Exchange Commission, including its
Annual Report on Form 10-K for 2001.
Signamax is a trademark of AESP, Inc. in the United States and/or other
countries.
For further information, please contact:
Slav Stein, President & CEO
Roman Briskin, Executive Vice President
Roy D. Rafalco, Chief Financial Officer
AESP, Inc.
1810 NE 144 Street
North Miami, Florida 33131
(305) 944-7710