SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: July 24, 1997
WESTERN MICRO TECHNOLOGY, INC.
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(Exact name of registrant as specified in its charter)
California 0-11560 94-2414428
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
254 East Hacienda Avenue, Campbell, CA 95008
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(Address of principal executive offices) (Zip Code)
(408) 379-0177
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(Registrant's telephone number,
including area code)
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Item 5. Other Events.
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On July 24, 1997, Western Micro Technology, Inc. issued a press
release attached hereto as Exhibit 99.1 with respect to its financial results
for the quarter ended June 30, 1997. The press release, including Western Micro
Technology, Inc.'s comparative unaudited statements of income for the three -
and nine - month periods ended June 30, 1997, are incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
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(a) Exhibits.
99.1 Press Release dated July 24, 1997.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: July 24, 1997
WESTERN MICRO TECHNOLOGY, INC.
By /s/ James W. Dorst
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James W. Dorst
Chief Financial Officer
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EXHIBIT INDEX
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Exhibit No. Description
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99.1 Press Release dated July 24, 1997.
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PRESS RELEASE
WESTERN MICRO-------------------------------------------------------------------
For more information contact:
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P. Scott Munro James W. Dorst
President and CEO Chief Financial Officer
Western Micro Technology, Inc. Western Micro Technology, Inc.
408-341-4767 408-341-4745
[email protected] [email protected]
Sandra M. Salah
Vice President, Corporate Relations
Western Micro Technology, Inc.
408-341-4712
[email protected]
WESTERN MICRO TECHNOLOGY REPORTS
SECOND QUARTER SALES AND PROFITS
Campbell, California, July 24, 1997 -- Western Micro Technology, Inc. (Nasdaq
National Market - WSTM), a leading distributor of computer systems, peripheral
equipment, software and attendant services, reported a 23% increase in sales to
a record quarterly revenue amount of $39,886,000 and a profitable second
quarter.
As previously announced on July 16, 1997, second quarter profits did not meet
Company expectations. Western Micro attributes the shortfall to unusual events
that occurred during the quarter including: the consolidation of the Company's
operations in Southern California into a single facility, the move of the
Western Micro's main warehouse and integration operations to a larger building
in Fremont, California, senior management resource dilution due to significant
acquisition related activities and a delay in completing an anticipated private
equity financing.
"To complete a record sales quarter with lower than anticipated profits is
bittersweet," said Scott Munro, President and CEO. "We believe the earnings
disappointment is related to factors unique to the second quarter and this
temporary set-back should not impede our future growth and acquisition plans,"
continued Mr. Munro.
Western Micro reported net sales of $39,886,000 for the quarter ended June 30,
1997, compared with $32,365,000 for the corresponding quarter one year ago,
resulting in a year-to-year 23% increase in sales for the second quarter of 1997
as compared with 1996. Net income for the quarter was $407,000 or $0.08 per
share compared to net income of $486,000 or $0.11 per share for the comparable
period one year ago.
Net sales for the six months ended June 30, 1997 were $75,836,000 compared to
$59,981,000 for the same period a year ago, an increase of 26%. Net income for
the six month period ending June 30, 1997 was $950,000 or $0.19 per share
compared to net income of $857,000 or $0.19 per share for the same period in
1996.
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Western Micro Technology is an innovative, value-added distributor providing
solutions, sales and services to VARs, System Integrators and OEMs. Western
Micro excels as the distributor of choice of the sophisticated, high-level VARs
who insist on working with the best products supported by top-notch technical
and marketing professionals. Leading manufacturers such as IBM, NCR, Data
General, Unisys and SCO have established strong business relationships with
Western Micro. In turn, Western Micro provides its customers with the dedicated
sales, marketing, financial and technical capabilities necessary to support
these world class product lines. For further information, visit our web site at
www.westernmicro.com.
When included in this Press Release, the words "expects", "intends",
"anticipates", "plans", "projects", and "estimates", and analogous or similar
expressions are intended to identify forward-looking statements. Such statements
are inherently subject to a variety of risks and uncertainties that could cause
actual results to differ materially from those reflected in such forward-looking
statements. These forward-looking statements speak only as of the date of this
Press Release. The Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statement
contained herein to reflect any changes in the Company's expectations with
regard thereto or any change in events, conditions, or circumstances on which
any such statement is based.
The Securities which may be offered in connection with the above-referenced
private equity financing will not be and have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements.
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Western Micro Technology, Western Micro, and the Western Micro logo are
registered trademarks of Western Micro Technology, Inc. All other company and/or
product names are respective property of their prospective holders and should be
treated as such.
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<TABLE>
Western Micro Technology, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
Unaudited
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Net Sales $ 39,886 $ 32,365 $ 75,836 $ 59,981
Cost of goods sold 33,293 28,459 63,274 52,495
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Gross profit 6,593 3,906 12,562 7,486
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Gross profit as % of sales 16.53% 12.07% 16.56% 12.48%
Selling, general and administrative expenses 5,709 3,269 10,603 6,260
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Operating income 884 637 1,959 1,226
Interest expense (496) (197) (928) (434)
Other income 140 106 231 159
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Income before income tax 528 546 1,262 951
Provision for income taxes 121 60 312 94
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Net income $ 407 $ 486 $ 950 $ 857
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Net income per common share $ 0.08 $ 0.11 $ 0.19 $ 0.19
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Number of shares used in per share
calculation 5,240 4,529 5,106 4,443
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</TABLE>
