For Immediate Release: April 20, 1994
American Power Conversion Corporation today announced record first quarter sales and earnings for the quarter ended March 31, 1994.
Sales for the first quarter of 1994 were $74.6 million, up 55 percent from $48.1 million for the first quarter of 1993. Earnings for the first quarter of 1994 were $13.6 million ($.15 per share), up 65 percent from $8.2 million ($.09 per share) in the first quarter of 1993.
Rodger B. Dowdell Jr., President and Chief Executive Officer, linked APC's record results to strong demand for the Company's products in domestic and international markets.
"Users and managers are becoming more aware of, and sensitive to, the data loss and hardware damage which can be caused by power problems," said Dowdell, who noted that the Company's core markets, including computer networking, internetworking equipment, and point of sale (POS) devices, continue to experience growth.
"As we enter the spring thunderstorm season and subsequent heightened power problems," he said, "this quarter's results again demonstrate that users concerned with buying the most reliable protection continue to chose APC."
"While power-induced downtime is becoming increasingly likely as network segments multiply and new operating systems gain ground, the yardstick measuring those likely to be affected is also growing increasingly long, now starting in the home and extending to the mission-critical datacenter," said Dowdell.
Dowdell pointed out that service providers, computer manufacturers, and even many utility companies themselves are increasingly recommending power protection to their customers.
In this spirit, the Company has extended its current marketing relationship with Digital Equipment Corporation to strengthen ties to corporate customers. As part of this program, APC has committed to develop and support its PowerChute UPS management software for the Alpha platform. Operating systems supported will include Windows NT, OSF/1 and Open VMS. Furthermore, APC will provide advanced sales support and training to Digital for all APC products.
Digital will also begin selling APC's Matrix-UPS, designed to address the current rightsizing trend of today's computing environments. The product is specifically designed to support datacenters of large corporate end users.
To deliver an advanced level of support to APC and Digital customers, Digital Multivendor Customer Services has also been contracted as a service provider for all APC products, dramatically extending the reach of APC's service programs.
During the quarter, the Company also experienced heightened sales activity in Latin America, Asia and the Pacific Rim, highlighted by an initial OEM order from one of Japan's largest computer manufacturers.
The Company's product introductions during the quarter included the Back-UPS EC Series, cost-effective protection for German markets, Share-UPS, a UPS sharing device for multiple operating system environments, and Back-UPS Pro, cost-effective UPS protection with Automatic Voltage Regulation (AVR).
Dowdell said the Company's products continue to win acclaim both domestically and abroad during the quarter.
"The Company's focus on reliability has resulted in more awards than all other UPS vendors combined," said Dowdell. "These independent testaments are important for domestic and international customers alike."
In the U.S., APC was awarded its fifth consecutive LAN Times "Readers Choice Award". The magazine credited two companies with "landslide" victories...APC and Novell. In a recent issue of Teleconnect, editors praised the Matrix-UPS for its modular, "environmentally-smart" design.
In Germany, Matrix-UPS was selected "Editors Choice" by Networks & Communications while LANline noted the Smart-UPS as a preferred network solution.
In France, APC's Smart-UPS was chosen as the "Best Solution for Networking" by LeMonde Informatique, and "Editors Choice" by L'info PC.
Dowdell also added that the Company formally begun establishing operations in its Galway, Ireland facility. The Company also began hiring manufacturing and support personnel during the first quarter and expects manufacturing to be underway by the third quarter of 1994. This plant will provide manufacturing and technical support to better service the Company's markets in Europe, the Middle East and Africa.
American Power Conversion (NASDAQ:APCC) is the market share leader in Uninterruptible Power Supplies (UPS) and software for networks and similar mission-critical applications. Product lines include the Back-UPS, Smart-UPS, Matrix-UPS, Line-R power conditioners, PowerChute software, PowerNet SNMP adapters and software, SurgeArrest surge suppressors and PowerManager Power Director.