UNITED STATES
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
March 25, 1999
Date of Report (Date of earliest event reported)
InaCom Corp.
(Exact name of registrant as specified in its charter)
Delaware 0-16114 47-0681813
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
10810 Farnam Drive, Omaha Nebraska 68154
(Address of principal executive offices) (Zip Code)
(402) 758-3900
Registrant's telephone number, including area code
------------------------------------------------------
(Former name or former address, if changed since last report.)
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Item 5. OTHER EVENTS.
On March 25, 1999, InaCom Corp. ("InaCom"), announced its earnings
outlook for the first quarter ending March 27, 1999. A copy of the InaCom press
release dated March 25, 1999 is attached hereto as Exhibit 99.1 and incorporated
herein by reference.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
99.1 InaCom Press Release dated March 25, 1999.
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.
INACOM CORP.
March 25, 1999 /s/ David C. Guenthner
By:______________________
David C. Guenthner
Executive Vice President and
Chief Financial Officer
<PAGE>
INDEX TO EXHIBITS
Exhibit Description
99.1 InaCom Press Release dated March 25, 1999.
Exhibit 99.1
Inacom Announces Earnings Outlook for First Quarter
OMAHA, Neb.--(BUSINESS WIRE)--March 25, 1999--Inacom Corp. (NYSE: ICO) today
announced that the company's financial performance for the first quarter ending
March 27th will be impacted by recent industry trends, which have constrained
revenue growth and placed significant pressure on earnings. The company expects
first-quarter revenues will be in the range of $1.35 billion to $1.4 billion and
a loss per basic share in the range of $3.15 to $3.35, inclusive of the
previously announced Vanstar merger-related charges and other one-time costs to
address current market conditions. Operating results are expected to be a loss
in the range of 10 to 20 cents per basic share, exclusive of non-recurring
first-quarter costs that are not expected in future periods.
"While we expected the first quarter to be soft, the revenue slowdown occurring
in the marketplace has resulted in an operating performance below our
expectations," said Bill Fairfield, President and Chief Executive Officer of
Inacom Corp. "The revenue picture quickly changed and has been affected by
market confusion surrounding the "direct" model and what it means to Inacom. We
believe the "direct" approach will benefit Inacom and should make our business
less asset intensive and improve the return on our investment. Our increased
business with Dell customers confirms this notion. Unfortunately, the noise
level created by "direct" announcements has caused some clients to delay
deployment as they evaluate their alternatives."
Fairfield noted that an internal focus in late 1998 and early 1999 to complete
the Vanstar merger also affected revenue growth. The merger, which was completed
on February 17, is now beginning to show positive results.
"We are beginning to regain the momentum lost during the pre-merger phase," said
Fairfield. "Our sales teams are winning new business and expanding relationships
with existing clients. The integration of Vanstar is on track and we expect to
achieve annual savings of $150 million from combining the companies. We
recognize the significant changes occurring in the market and are evaluating our
business to realign our cost structure and strategically position Inacom to
compete effectively in 1999 and beyond. I am confident that we are taking the
right steps to create long-term value for our shareholders."
The company expects to announce 1999 first-quarter results the week of April
19th.
Inacom Corp. (NYSE: ICO) is a $6.9 billion, Fortune 500 technology services
leader. The company designs, implements and manages distributed technology
infrastructure solutions that optimize our clients' return on their IT
investments. Inacom's client portfolio includes more than 35 percent of Fortune
500 corporations. Inacom employs more than 12,000 people, including more than
7,500 technical professionals and is headquartered in Omaha, Nebraska.
This press release contains certain forward-looking statements regarding
revenues, margins, earnings, growth rates and certain business trends based on
certain assumptions and information currently available to management. Such
statements are subject to various risks and uncertainties, including those
described in the Company's 1998 10-K Report that could cause actual results to
differ materially from the results discussed herein.
