For immediate release, April 24, 1995
* Management notes increasing opportunities as new operating systems pervade
FINANCIAL RESULTS SUMMARY
American Power Conversion Corporation, (APCC: NASDAQ) the worldwide market share leader in Uninterruptible Power Supplies (UPS) and software for networks and similar mission-critical applications, today announced record first quarter sales and earnings for the quarter ended March 31, 1995.
Sales for the first quarter of 1995 were $109.2 Million, up 46.3 percent from $74.6 Million for the first quarter of 1994. Earnings for the first quarter of 1995 were $18.2 Million ($.20 per share), up 34.6 percent from $13.5 Million ($.15 per share) in the first quarter of 1994.
Rodger B. Dowdell, President and CEO, attributed continued company growth to strong worldwide demand for UPS products and the continued growth of the Company's core markets.
"We were pleased with the improvement in gross margins from the fourth quarter, 1994," commented Dowdell, who credited improving manufacturing efficiencies in both the Company's Galway, Ireland and Fort Meyers, FL facilities for the increase. "While these new plants are still on the learning curve, we do feel operations in these facilities are heading toward more traditional levels of efficiency."
At the high end, Dowdell said that the strong growth of client server networks continue to bolster the Company's results. "First quarter shipments of PowerChute® software to support Windows NT significantly surpassed any previous shipment levels," commented Dowdell, citing Microsoft's recent approval of APC UPSes.
"A UPS is an important part of any deployment of Windows NT systems," said Mike Nash, Group Product Manager Business Systems Division, Microsoft. "APC's UPS products provide a strong solution." Furthermore, APC's PowerChute plus for Windows NT is currently the only UPS monitoring software that has been tested and approved by Microsoft.
Also during the quarter the readers of LAN Times completed voting in their "Reader Choice" awards, which APC won for the sixth consecutive year.
The magazine noted that two thirds of winners were repeat winners, and that "3Com, Novell, American Power Conversion and Cisco continue to win their respective categories by a wide margin."
Dowdell said the Company continues to be the best positioned to benefit from the strong growth of networking, from a small 8-node peer to peer network all the way through integrated data and telecommunications composing the "information superhighway."
For PC users, Dowdell said the Company continues to see strong return on its expansive advertising campaign to small office and home office users. In a recent survey by HomePC magazine, the percentage of readers who said they planned to buy UPS protection more than tripled since mid-1994.
"Moreover, the much anticipated Windows 95 launch will deliver true multitasking to millions of desktops," said Dowdell. "Users can open many applications at once, multiplying the risks of data loss or disruption, which are relatively smaller in older DOS-based systems."
In addition, Dowdell said the explosive growth of on-line services such as America OnLine and Compuserve, as well as the rise of thousands of independent Bulletin Board Systems (BBS) has provided another significant opportunity for the Company's products.
"These services demand 100% uptime and availability, making comprehensive power protection mandatory," said Dowdell. "From the user side, downloading files from these services can take hours. If the download process is interrupted, the file is lost but the user is still billed for connect time. For these users, UPS protection makes great economic sense. "
ENHANCED WORLDWIDE PRODUCT OFFERINGS
During the first quarter 1995, APC introduced a wide range of new power protection products for the worldwide markets.
The first quarter marked the introduction of several new additions to the company's innovative new Smart-UPS®, high performance power protection for advanced business networks, introduced last November.
"We have been pleased with both the sales and the market acceptance of the enhanced Smart-UPS," said Dowdell. "Following our strategy of obsoleting our own products before the competition does has again kept us ahead of all others in providing the best price/performance in the UPS industry."
Dowdell said the enhanced Smart-UPS have met with rave reviews. A LAN Magazine reviewer concluded: "Smart-UPS, PowerChute Plus, PowerNet® SNMP represent the best in power management tools... top performance, flexibility, high-quality implementation and documentation characterize the Smart-UPS and its options..."
The new enhanced Smart-UPS won a competitive review in Network Computing over domestic and its largest international competitor, Merlin Gerin. "Of all the UPSes tested, APC's Smart-UPS leads the charge... The Smart-UPS not only cuts the leading edge of power protection, its PowerChute plus software also delivers full management and control...[with] the best combination... of new and innovative features."
APC also introduced its first advanced UPS/Power management package tailored specifically for the IBM AS/400 environment, Control-UPS/400.
"The AS/400 business represents a significant installed base opportunity of mission critical applications, computer and servers for APC," added Dowdell. "The Control-UPS/400 will enhance APC's support for these applications in conjunction with APC's Matrix-UPS and large (>1250 VA) Smart-UPS."
"All in all, we believe our ability to offer comprehensive power protection solutions for any application, most operating systems, and any computer hardware has become one of our strengths and a strong differentiator, particularly for large corporate accounts," said Dowdell. "That said, we also believe the Company has good opportunities to expand its products offering at both the high and the low end, and we expect 1995 to be a busy year."
NEW VICE-PRESIDENT, SALES APPOINTED
Darrell Lucente, most recently Managing Director of APC Europe, will assume the title and duties of Vice-President of Sales. Lucente will assume the responsibilities of worldwide sales management from Asa Davis, who begins a medical leave of absence effective May 1, 1995. Davis will continue to offer consulting services to the company.
"I am very grateful for the opportunities and experiences APC has given me, and I look forward to seeing APC capitalize on the tremendous potential markets available to the Company," commented Asa Davis.
Lucente came to APC in 1989 from several years in the defense and electronics industry. His employment at APC began in the position of Northwest United States Regional Sales Manager. He held this position from 1989 to 1991. In 1991, he was named Managing Director of APC Europe and held that position until January, 1995. Since returning to corporate headquarters in early 1995, Lucente has served as Director of Worldwide Channel Management. He has been strategic in developing the company's worldwide channel management programs, including direct responsibility for the OEM and Mass Merchant/Retail channels. Lucente holds a BS in Mechanical Engineering from the University of Illinois.
"Darrell's recent responsibilities as Managing Director of APC Europe and Director of Worldwide Channel Management greatly enhance his capabilities in the role of VP, Sales. Under his leadership, APC Europe saw a 297 percent increase in revenues. This first hand international sales experience will be essential as APC moves forward on a global level," commented Dowdell.
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American Power Conversion (NASDAQ:APCC) is the worldwide market share leader in Uninterruptible Power Supplies (UPS) and software for networks and similar mission-critical applications. Product lines include the Back-UPS®, Back-UPS Pro, Smart-UPS®, Smart-UPS v/s, Matrix-UPS, Line-R® power conditioners, PowerChute® software, PowerNet® SNMP adapters and software, SurgeArrest® surge suppressors, PowerManager Power Center and ProtectNet® data line surge suppressors.
Contact APC for product information : 1 800 800 4APC
American Power Conversion is an affirmative action/ equal opportunity employer.
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