Product category:
UPSs
News Release from: American Power Conversion
Edited by the Electronicstalk Editorial
Team on 22 February 2002
American Power Conversion figures down
but bullish
American Power Conversion (APC) has reported financial results for the fourth quarter and full year ended 31st December 2001.
American Power Conversion (APC) has reported financial results for the fourth quarter and full year ended 31st December 2001 Revenues for the fourth quarter 2001 were $348.1 million, a decrease of 15% from $407.3 million for the fourth quarter 2000
This article was originally published on Electronicstalk on 16 Jul 2001 at 8.00am (UK)
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Net income for the fourth quarter 2001 was $30.9 million ($0.16 per share) down 20% versus $38.4 million ($0.20 per share) in the fourth quarter 2000.
Revenues for the twelve months ended 31st December 2001 were $1.43 billion, down 3% from $1.48 billion in 2000.
Net income for the year 2001 was $115.2 million ($0.59 per share) versus $165.7 million ($0.83 per share) in 2000.
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Excluding 2001 after-tax charges of $15.0 million ($0.08 per share) from the write-off of excess inventory and from headcount reductions, including costs associated with employment termination, facilities closings and asset impairment, full year 2001 net income was $130.2 million ($0.66 per share).
Excluding after-tax special charges of $34.0 million ($0.17 per share) associated with the partial write-off of fully paid-up patent licenses obtained by APC during 2000, net income for 2000 was $199.7 million ($1.00 per share).
"I am extremely pleased with the outstanding job the APC team did in such a challenging environment last year.
Our top line has outperformed the year-over-year declines much of the broad IT industry participants experienced and we have been able to remain profitable during a time when many others have not", said Rodger B Dowdell Jr, APC's president and CEO.
"We made some difficult trade-offs during the year, but we have stayed invested in programmes with a long-term focus helping us provide our customers with the industry's strongest and most innovative suite of power and availability solutions.
Furthermore, we ended the year with a very healthy balance sheet.
Cash, cash equivalents and short-term investments increased $65.5 million sequentially to $393.1 million in the fourth quarter and were at the highest level since the first quarter 2000".
The company's small systems business, which provides power protection, uninterruptible power supply (UPS) and management products for the PC, server and networking markets, represented approximately 83% of revenues in the fourth quarter and 82% for the full year.
Revenue for this segment was down 12% year-over-year in the fourth quarter 2001 and down 7% for the full year.
"Following a strong third quarter performance relative to the overall IT market, the small systems business exhibited a seasonal sequential revenue pattern in the fourth quarter and was down approximately 6% from the third quarter.
Competition in this space remains tight, but given our financial strength and market presence APC is uniquely positioned to be aggressive when necessary during these difficult economic times", said Dowdell.
"The large systems business continues to be challenging and the year-over-year comparison was quite difficult given that large systems' revenues reached their highest historical level in the fourth quarter 2000.
We have, however, begun to see our cost cutting measures take effect and gross margins in this segment increased sequentially more than 20 percentage points".
The large systems segment, consisting primarily of three-phase UPS, DC power systems and precision cooling products for data centres, facilities and communication applications, represented approximately 14% of revenues in the fourth quarter and 15% for the full year.
The large systems segment revenue was down 30% year-over-year for the fourth quarter and up 9% for the full year.
On a geographic basis, revenues in the Americas (North and Latin America) were down 19% on a year-over-year basis in the fourth quarter and represented 50% of revenues for the company.
For the full year, revenues in the Americas were down 2% and made up 58% of total revenues.
Europe, the Middle East and Africa (EMEA) revenue declined 12% year-over-year for the quarter and made up 32% of revenues.
For the full year, EMEA revenue was down 6% and EMEA was 26% of the total.
Finally, Asia revenue was down 6% in the fourth quarter versus the fourth quarter 2000 and made up 18% of total company quarterly revenues.
For the full year, revenues in Asia were down 2% and represented 16% of the total.
On a constant currency basis, EMEA revenue was down 13% in the fourth quarter and down 5% for the full year.
Additionally, revenues in Asia were flat in the fourth quarter and up 4% for the full year 2001 in constant currency.
"While the prospects for a near term economic recovery remain unclear, we cannot sit idly by waiting for it to arrive.
Our 2002 plan calls for APC to become increasingly aggressive in the market through pricing, innovation and a heightened competitive focus.
Additionally, we will continue to uncompromisingly work to increase productivity and efficiency", explained Dowdell.
"These actions place APC in an extremely strong competitive position and we are well positioned to capitalise on an economic recovery when it occurs".
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