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: February 12, 1998
SAVOIR TECHNOLOGY GROUP, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-11560 94-2414428
- ---------------------------- ------------------ ----------------------
(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.
On February 12, 1998, Savoir Technology Group, Inc. issued a press
release attached hereto as Exhibit 99.1 with respect to its financial results
for the year ended December 31, 1997. The press release, including Savoir
Technology Group, Inc.'s comparative unaudited statements of income for the
three - and twelve - month periods ended December 31, 1997, are incorporated
herein by reference.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Exhibits.
99.1 Press Release dated February 12, 1998.
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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: February 16, 1998
SAVOIR TECHNOLOGY GROUP, INC.
By /S/ JAMES W. DORST
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James W. Dorst
Chief Financial Officer
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
99.1 Press Release dated February 12, 1998.
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PRESS RELEASE
SAVOIR TECHNOLOGY GROUP--------------------------------------------------------
FOR IMMEDIATE RELEASE
FOR MORE INFORMATION CONTACT:
P. Scott Munro James W. Dorst
Chairman and CEO Chief Financial Officer
Savoir Technology Group, Inc. Savoir Technology Group, Inc.
408-341-4767 408-341-4745
[email protected] [email protected]
Sandra M. Salah
Vice President, Corporate Relations
Savoir Technology Group, Inc.
408-341-4712
[email protected]
SAVOIR TECHNOLOGY GROUP REPORTS
RECORD SALES AND PROFITS
Campbell, California, February 12, 1998 -- Savoir Technology Group, Inc.,
(NASDAQ National Market - SVTG), formerly known as Western Micro Technology,
Inc., a leading distributor of midrange computer systems, peripheral equipment,
and services, reported the highest quarterly and annual sales revenue in the
history of the Company, its highest ever quarterly profit and solid earnings for
the year. Savoir attributes the 207% increase in fourth quarter sales and 90%
increase in fourth quarter profits to a large strategic acquisition (Star
Management Services, Inc. ("SMS") on September 30, 1997) and successful results
from continued emphasis on high value-added distribution.
"Ending the year with record quarterly revenues and profits is a fitting reward
for all who were involved with the Company in 1997. It is a tangible sign that
the hard work everyone has contributed has paid off," said Scott Munro, Chairman
and CEO. Munro also remarked that, "1997 will be remembered as another great
year for Savoir, not just for the financial results, but also for other positive
events, including our acquisition of and new friendships with everyone at SMS
and the successful opening of two new warehouse and integration centers in
Northern and Southern California."
Savoir Technology Group reported net sales of $115,909,000 for the quarter ended
December 31, 1997, compared with $37,776,000 for the corresponding quarter one
year ago, resulting in a year-to-year 207% increase in sales for the fourth
quarter of 1997 as compared with 1996. Net income for the quarter was $1,593,000
or $0.19 per share compared to net income of $838,000 or $0.18 per share for the
comparable period one year ago.
Net sales for the twelve months ended December 31, 1997 were $237,884,000
compared to $131,697,000 for the same period a year ago, an increase of 81%. Net
income for the twelve-month period ending December 31, 1997 was $3,310,000 or
$0.55 per share compared to net income of $2,338,000 or $0.52 per share for the
same period in 1996.
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Savoir Technology Group is an operating company which provides its customers
computing solutions to succeed in the complex technology markets in which they
operate. Western Micro Technology, Inc. is a division of Savoir Technology
Group, Inc. and Business Partner Solutions, Inc. is a wholly owned subsidiary.
The Company provides strategic direction, corporate finance resources, and
acquisition expertise for the combined entities. Savoir additionally supports
its operating entities with a state-of-the-art information management system,
technical integration centers, and efficient logistical support to enable them
to deliver to and service a growing network of customers. For more information,
visit Savoir's web site at www.svtg.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.
###
Savoir Technology Group and the Savoir Technology Group logo are trademarks of
Savoir Technology Group, Inc. Western Micro Technology, Western Micro, and the
Western Micro logo are registered trademarks of Western Micro Technology, Inc.
Business Partner Solutions, BPS, and the Business Partner Solutions logo are
trademarks of Business Partner Solutions, 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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SAVOIR TECHNOLOGY GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net Sales $115,909 $ 37,776 $237,884 $131,697
Cost of goods sold 102,518 32,451 205,089 114,389
------------ ------------ ------------ ------------
Gross profit 13,391 5,325 32,795 17,308
------------ ------------ ------------ ------------
Gross profit as % of sales 11.55% 14.10% 13.79% 13.14%
Selling, general and administrative expenses 10,264 4,209 26,469 14,123
------------ ------------ ------------ ------------
Operating income 3,127 1,116 6,326 3,185
Interest expense (1,649) (302) (3,181) (978)
Other income 138 145 500 407
------------ ------------ ------------ ------------
Income before income tax 1,616 959 3,645 2,614
Provision for income taxes
23 121 335 276
------------ ------------ ------------ ------------
Net income $ 1,593 $ 838 $ 3,310 $ 2,338
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Net income per common share $ 0.19 $ 0.18 $ 0.55 $ 0.52
============ ============ ============ ============
Number of shares used in per share calculation 8,193 4,708 5,976 4,513
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</TABLE>
