FOR IMMEDIATE RELEASE
AESP,
Inc. Reports Results for 2002
Miami, Florida, March 28, 2003- AESP, Inc (NASDAQ: AESP ) today announced its results
of operations for the fiscal year ended December 31, 2002.
Sales for the fiscal year ended December 31, 2002 were $29.7 million, compared with sales of $30.2
million for the fiscal year ended December 31, 2001. The net loss for fiscal 2002 was $2.3
million, compared to a net loss of $4.2 million for
fiscal 2001. The Company’s loss per common share and diluted loss per common share
were both $.49 for fiscal 2002. For fiscal 2001, the Company posted a loss per common
share and diluted loss per common share of $1.05.
Slav Stein, the Company’s President and CEO, stated: “2002 was another difficult and challenging
year for the Company. Our results reflect the continuing depressed state of the economy
worldwide, increased competition pushing sales prices lower and the lack of any
improvement in the telecommunication and datacom sectors.
While we believe that the economy will begin to show improvement during the
second half of 2003, that recovery is not yet apparent in the marketplace."
Mr. Stein continued, “We are continuing to allocate resources to
key areas that will improve our profitability and sales, while at the same time taking
steps to reduce our overhead. Despite these troubled economic times, we remain committed
to investment in promising new product development projects. We recently introduced
higher-performance Category 6 network infrastructure cabling systems products for our
Signamax division. We have received positive industry feedback on these new products at
several recent trade shows. We are also continuing our efforts to streamline our
operations and reduce our expenses. In that regard, we are in the final stages of closing
down our manufacturing facility in Pennsylvania and moving this production to our
suppliers in the Far East and to our North Miami facility. By continuing to strategically
expand our product line and reduce costs, we believe that we have positioned the Company
for sales growth and improved profitability as the economy improves."
The Company also announced that on
March 26, 2003, the Company's shareholders, at a special meeting, approved: (i) the
issuance of 230,000 shares of authorized but unissued common stock upon the conversion of
an equal number of shares of the Company's Series A preferred stock, (ii) the issuance of
three-year warrants to purchase up to 118,750 shares of the Company's common stock at an
exercise price of $1.10 per share to the selling agents in the December 2002 private
placement, and (iii) the issuance of up to 59,375 shares of the Company's common stock if
the Company does not timely satisfy its registration rights obligation in connection with
the December 2002 private placement.
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 2002.
Signamax is a trademark of
AESP, Inc. For product information, please link to www.signamax.com.
For further information, please contact:
Slav Stein, President & CEO
Roman Briskin, Executive Vice President
John F. Wilkens, Chief Financial Officer
AESP, Inc.
1810 NE 144 Street
North Miami, Florida 33131
(305) 944-7710