MANC Manchester Technologies (MM)

Manchester Technologies, Inc. Announces Fiscal First Quarter Results HAUPPAUGE, N.Y., Dec. 11 /PRNewswire-FirstCall/ -- Manchester Technologies, Inc. , a leading computer and network solutions provider and display technology distributor, today announced financial results for its first fiscal quarter ended October 31, 2003. Revenue for the quarter was $74.7 million as compared with $68.3 million for the comparable quarter last year. Earnings for the quarter were $311,000 or $0.04 per diluted share as compared with $158,000 or $0.02 per diluted share reported a year ago. Weighted average common shares outstanding used for the computation of diluted earnings per share were 8,251,000 and 7,991,000, respectively. Barry R. Steinberg, President and CEO of Manchester Technologies, Inc., stated "We are pleased that we were able to return to profitability in our first quarter of fiscal 2004. We are seeing an increase in IT spending, although the increase has not been continuous. Revenues for the quarter increased as compared to last year. In particular, our service revenues increased by 19% as compared to last year and revenues from our Electrograph subsidiary increased by 23% as compared to last year, with demand for display technology solutions remaining strong. Pricing pressure and competition continue to affect our gross margins and our gross margin percentage decreased as compared to last year. However, on a sequential basis, our gross margin percentage has remained consistent." "We remain committed to our strategy of providing business solutions, services, product fulfillment and display technologies that meet all of our customers' needs." The Company ended the quarter with cash and cash equivalents of $10.7 million, working capital of $31.1 million, total assets of $77.0 million and shareholders' equity of $44.2 million. About Manchester Technologies, Inc. Manchester Technologies, Inc. is a single-source solutions provider specializing in hardware and software procurement, display technology, custom networking, security, IP telephony, remote management, application development/e-commerce, storage, enterprise and Internet solutions. Manchester offers its customers single-source solutions customized to their information systems needs by integrating its analysis, design and implementation services with hardware, software, networking products and peripherals from leading vendors. In addition, Manchester offers a complete line of products and peripherals for customers' display technology requirements. More information about the Company can be obtained by visiting the Company's website located at http://www.e-manchester.com/ Statement Under the Private Securities Litigation Reform Act This press release includes information that may constitute forward- looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact, including, without limitation, those with respect to Manchester Technologies, Inc.'s objectives, plans and strategies set forth herein and those preceded by or that include the words "believes," "intends," "expects," "will," "plans," "anticipates," or similar expressions, are forward-looking statements. These forward-looking statements speak only as of the date of this press release. Manchester's actual results may differ materially from the results discussed herein as a result of a number of unknown factors, including, without limitation, there being no assurance that Manchester will be successful in its efforts to focus on higher-margin products and services, in identifying suitable acquisition candidates and in integrating acquired companies, or in attracting and retaining highly skilled technical personnel and sales representatives necessary to implement its growth strategies, or that Manchester will not be adversely affected by continued intense competition in the computer industry, continued deterioration in average selling prices of personal computers and display technologies, a decrease in the growth of the display technology market, a lack of product availability, deterioration in relationships with major manufacturers, a loss or decline in sales to any of its major customers, or any of the other risks set forth in Manchester's Annual Report on Form 10-K for the year ended July 31, 2003, and those set forth from time to time in Manchester's other filings with the Securities and Exchange Commission. Manchester assumes no obligation to update any of the information referenced in this press release. These documents are available through the Company, or through the Securities and Exchange Commission's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at http://www.sec.gov/. Manchester Technologies, Inc. and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (Unaudited) Three months ended October 31, October 31, 2003 2002 Revenue Products $70,452 $64,715 Services 4,248 3,570 74,700 68,285 Cost of revenue Products 62,726 56,918 Services 3,078 2,403 65,804 59,321 Gross profit 8,896 8,964 Selling, general and administrative expenses 8,290 8,840 Income from operations 606 124 Interest and other income (expense), net (87) 140 Income before income taxes 519 264 Income tax provision 208 106 Net income $311 $158 Net income per share Basic $0.04 $0.02 Diluted $0.04 $0.02 Weighted average shares outstanding Basic 7,990 7,990 Diluted 8,251 7,991 Manchester Technologies, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) October 31, 2003 July 31, 2003 (Unaudited) Assets Current assets: Cash and cash equivalents $ 10,667 $ 8,553 Accounts receivable, net 33,671 35,117 Inventory 8,916 9,605 Deferred income taxes 603 603 Prepaid income taxes 1,404 1,704 Prepaid expenses and other current assets 429 709 Total current assets 55,690 56,291 Property and equipment, net 13,891 13,985 Goodwill, net 6,439 6,439 Deferred income taxes 757 757 Other assets 227 278 Total assets $77,004 $77,750 Liabilities and shareholders' equity Current liabilities: Accounts payable and accrued expenses $23,610 $24,752 Deferred service contract revenue 802 666 Current portion of capital lease obligations 220 212 Total current liabilities 24,632 25,630 Deferred compensation payable 263 263 Capital lease obligations, net of current portion 7,864 7,923 Total liabilities 32,759 33,816 Shareholders' equity: Preferred stock, $.01 par value; 5,000 shares authorized, none issued - - Common stock, $.01 par value; 25,000 shares authorized, 7,990 issued and outstanding 80 80 Additional paid-in capital 18,942 18,942 Deferred compensation (13) (13) Retained earnings 25,236 24,925 Total shareholders' equity 44,245 43,934 Total liabilities and shareholders' equity $77,004 $77,750 CONTACT: Elan Yaish Chief Financial Officer Telephone: (631) 951-7060 Fax: (631) 951-7639 email: DATASOURCE: Manchester Technologies, Inc. CONTACT: Elan Yaish, Chief Financial Officer of Manchester Technologies, Inc., +1-631-951-7060, Fax - +1-631-951-7639, Web site: http://www.e-manchester.com/

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