Advanced Electronic Support Products, Inc
Reports Results of Operations for the First Three Months of 2002

 

Miami, Florida, May 15, 2002 - Advanced Electronic Support Products, Inc (NASDAQ: AESP ) today announced its results of operations for the three months ended March 31, 2002. Sales for the first three months of 2002 were $7.5 million, a decrease of $725,000 compared to sales of $8.2 million for the same period last year. The Company’s net income for the 2002 three month period was $5,000 ($.00 per diluted share), compared to net income of $22,000 ( $.01 per diluted share) for the first three months of 2001.

Slav Stein, the Company’s President and Chief Executive Officer, stated: "We were very encouraged by our results for the first quarter. While our sales continued to be sluggish because of market conditions, we were able to achieve positive net income primarily through our efforts to control our expenses and increase our margins by focusing on our purchasing arrangements with our suppliers."

Mr. Stein continued, "We remain committed to our current strategic direction. We are continuing to develop the market for our Signamax networking division and we are continuing to roll out new products for this market. Our Advanced Electronic Manufacturing OEM division has increased order rates and bookings to date in 2002. Our European operations, which were hit hard by market conditions during the last year, continue to struggle; however, the results achieved by our recently acquired Intelek s.r.o and Lanse AS operations contributed very positively to our first quarter 2002 results. We are also continuing to look at other potential acquisitions in an effort to take advantage of market opportunities, although no arrangements have been reached to date."

The Company also announced that during the first quarter of 2002, the Company’s principals stockholders converted loans due to them from the Company aggregating $152,000 into 190,000 shares of the Company’s common stock (at $.80 per share, the fair market value of the common stock on the conversion date).

Advanced Electronic Support Products, 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 Advanced Electronic Support Products, 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

Advanced Electronic Support Products, Inc.
1810 NE 144 Street      (305) 944-7710
North Miami, Florida 33131