STBI Systems Reports Q2 '97

This Press Release Courtesy of News Alert

RICHARDSON, Texas, May 19 /PRNewswire/ -- STB Systems, Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: STBI)") else Response.Write("(Nasdaq: STBI)") end if %>, a leading developer of multimedia accelerators and other multimedia subsystem products today announced revenues and earnings for the second quarter of the 1997 fiscal year. For the quarter ended April 30, 1997, net income was $2.4 million or $.49 per share on net sales of $48.7 million compared to net income of $1.35 million or $30 per share on net sales of $44.6 million for the second quarter of fiscal 1996. There were 4.9 million average shares outstanding for the fiscal 1997 second quarter, compared to 4.5 million average shares for same quarter of fiscal 1996. Revenues for the second quarter were $48.7 million, up $4.1 million or 9.2% over the second quarter of the 1996 fiscal year. During the second quarter, unit volume increased 9.4% over the immediately preceding quarter while revenues increased from $48.1 million in the first quarter of fiscal 1997 to $48.7 million in the second quarter. "STB had strong growth in unit volume and net income compared to the second quarter of a year ago," said William E. Ogle, STB's Chairman and Chief Executive Officer. "We were able to overcome seasonal weakness in the market and some pricing pressures in the commercial channel to have another successful quarter. Sales into our OEM customer base were particularly strong, and our Specialized Technology Group also performed exceptionally well," Ogle adds.

STB's sales in the OEM channel, and particularly to its four largest OEMcustomers, contributed significantly to the quarter's revenues. "Our manufacturing capabilities and engineering leadership allow STB to bring the latest digital video technologies to market first, enabling our OEM partners to do the same," said J. Shane Long, STB's Vice President of Sales and Marketing. "As a result, we continue to enjoy large volumes with the key players in the systems business," Long added. "Sales by STB's Specialized Technology Group set a record for the quarter resulting from a significant design win at a major OEM and the successful introduction of two new products" said Jim Hopkins, STB's Vice President of Strategic Marketing and Chief Financial Officer. "We also laid the groundwork for our entrance into new market segments that we hope will contribute to future growth," added Hopkins. The gross profit margin for the quarter improved to 24.2% compared to 18.8% posted during the second quarter of fiscal 1996, and up slightly from the 22.1% achieved during the previous quarter. The improvement in operating performance for the second quarter over the same quarter a year ago was attributable to several factors including higher gross profit margins resulting from economies of scale due to increased OEM unit volumes and increased operating efficiencies, increased sales and margins in the Specialized Technology Group and added margin contribution from STB's newly acquired subsidiary, Symmetric Simulation Systems. As previously announced, STB acquired all of the outstanding shares of Symmetric Simulation Systems during the second quarter. Symmetric designs and builds high-end 3D graphics acceleration technology used in applications such as computer-aided design, product visualization and multimedia authoring. Symmetric is a leading board designer and manufacturer of graphics boards based on 3Dlabs' chipset technology. During the quarter, the Velocity 3D was ranked the top multimedia accelerator in PC World's monthly "Top 10 Boards Review" and received its "Best Buy award" each month during the quarter. Also during the quarter, STB's LIGHTSPEED 128 continued to be recognized in PC World's "Top 10 Boards" in the February, March and April issues. Windows Magazine gave the Velocity 3D a four-star review in April and awarded the TV PCI its prestigious Recommended Product Award in May. In addition, STB's DVD Theater Upgrade Kit was given a four-star review by PC/Computing Magazine in their March issue.

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