All American posts record results

Electronic News, Feb 23, 1998

Miami--All American Semiconductor posted record results for the fourth quarter and year ending in December 1997. In reporting its results last week, president/CEO Bruce Goldberg noted the Miami-based distributor had sales of $265.6 million and net income of $3.3 million for the year.

Sales grew 12 percent from the previous year, and net income showed a dramatic improvement from the prior year's $9.9 million net loss.

Mr. Goldberg attributed the turnaround to strategic changes made in 1996, including the discontinuation of selling computer products and restructuring customer service offerings. "We're focusing on the services we know remove costs from the customer," said Mr. Goldberg, adding that 1998 should be an interesting year.

He added "We are extremely pleased with our 1997 record performance which reflects increased sales in most territories and was accomplished without acquisitions or new branch openings. We are excited to have reached new records in sales, operating income and in our net income. The outstanding results of 1997 were achieved, in part, through the successful execution of the strategies implemented during the latter part of 1996 including our heightened focus on our core competencies as well as our cost control programs. Despite the recent turmoil in offshore markets, many industry analysts forecast continued growth for electronics for the years ahead. We have high expectations for additional contributions from our many new product offerings and our expanded service capabilities. We believe we are strategically well positioned within our industry and are optimistic that we will achieve more positive results in the future."

Net sales for the fourth quarter of 1997 was $65.5 million, a 16 percent increase over sales of $56.6 million for the same period of 1996. Income from continuing operations was $3.0 million for the fourth quarter of 1997 compared to $658,000 for the same period of 1996. Net income reached a record quarterly level of $1.2 million or $.06 per share for the quarter ended December 31, 1997, compared to a net loss of $2.2 million or $0.11 per share for the 1996 period. Included in the 1996 periods were restructuring and nonrecurring expenses and losses from discontinued operations which aggregated $179,000 and $8.3 million on an after-tax basis for the quarter and year ended December 31, 1996, respectively.