Pomeroy Computer Resources Reports Earnings for the Fourth Quarter and Year

Pomeroy Computer Resources Reports Earnings for the Fourth Quarter and Year

HEBRON, Ky.–(BUSINESS WIRE)–Feb. 17, 1999–Pomeroy Computer Resources (Nasdaq:PMRY) today released its operating results for the fourth quarter and year ended January 5, 1999.

For the quarter, total net sales and revenues increased approximately 20% to $170.1 million from $142.1 million in the fourth quarter 1997. For the 1998 fiscal year, total net sales and revenues increased approximately 28% to $627.9 million from $491.4 million in fiscal 1997.

Net income for the fourth quarter, inclusive of a one time after tax charge of $681 thousand or $0.06 per diluted share, increased approximately 15% to $5.5 million, or $0.47 per diluted share from $4.8 million or $0.41 per diluted share in the comparable period of 1997. Fourth quarter 1998 results include an after tax charge of $681 thousand or $0.06 per diluted share related to the uncollectibility of certain vendor warranty claims. Exclusive of this charge, diluted earnings per share in the fourth quarter would have been $0.53. For the 1998 fiscal year, net income increased approximately 24% to $20.2 million, or $1.72 per diluted share from $16.3 million, or $1.44 per diluted share in fiscal 1997. Exclusive of the one time charge, diluted earnings per share in fiscal 1998 would have been $1.78.

Chief executive officer David B. Pomeroy, II noted, “We believe these results show tremendous confidence on the part of our customers whose demand for our products and services remained strong in the midst of declining average selling prices, Y2K questions and general industry unrest.”

This press release contains certain forward-looking statements regarding revenues, margin, earnings, growth rates and certain business trends based on certain assumptions and information currently available to management. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from the results discussed herein.

Pomeroy Computer Resources is one of the country’s five largest network integrators, as calculated by Network VAR magazine, and has more than 30 regional facilities in Kentucky, Iowa, Tennessee, Florida, Alabama, Indiana, North Carolina, Ohio, Oklahoma, Texas, West Virginia and South Carolina. -0-

SELECTED FINANCIAL DATA

(in thousands, except per share data)

Quarter Ended

—————————

January 5, January 5,

1999 1998

——— ———

Revenues $170,097 $142,136

Net income(1) $ 5,505 $ 4,846

Weighted shares:

Basic 11,513 11,359

Diluted 11,743 11,704

Net income per common share(1):

Basic $ 0.48 $ 0.43

Diluted $ 0.47 $ 0.41

Year Ended

—————————

January 5, January 5,

1999 1998

——— ———

Revenues $627,928 $491,448

Net income(1) $ 20,183 $ 16,313

Weighted shares:

Basic 11,466 11,052

Diluted 11,751 11,367

Net income per common share(1):

Basic $ 1.76 $ 1.48

Diluted $ 1.72 $ 1.44

(1) The fourth quarter and fiscal 1998 results include an after tax

charge of $681 thousand ($0.06 per diluted share) related to the

uncollectibility of certain vendor warranty claims. Exclusive of

this charge, diluted earnings per share in the fourth quarter and

fiscal 1998 would have been $0.53 and $1.78, respectively.

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