MANC Manchester Technologies (MM)

Manchester Technologies, Inc. Announces Fiscal Second Quarter Results HAUPPAUGE, N.Y., March 9 /PRNewswire-FirstCall/ -- Manchester Technologies Inc. , a leading computer and network solutions provider, today announced financial results for its second fiscal quarter and six months ended January 31, 2004. Revenue for the quarter was $79.8 million as compared with $80.5 million for the comparable quarter last year and $74.7 million in the first quarter of this fiscal year. The Company reported netincome for the quarter of $295,000 or $0.04 per diluted share as compared with a net loss of $125,000 or $0.02 per diluted share reported a year ago and net income of $311,000, or $0.04 per diluted share, for the first quarter of this fiscal year. Revenue for the six months ended January 31, 2004 was $154.5 million as compared with $148.8 million for the first six months of last year. Net income for the six months was $606,000 or $0.07 per diluted share as compared with $33,000 or $0.00 per dilutedshare reported a year ago. Barry R. Steinberg, President and CEO of Manchester Technologies, Inc., stated, "Our second quarter reflects the increase in technology spending resulting from the lack of capital spending over the past few years. Revenues for the quarter increased sequentially as compared to our first quarter of fiscal 2004 and were slightly lower as compared to last year. However, we are pleased that our service revenues increased by 11% as compared to the second quarter of last year and 14% as compared to the first half of last year. In addition, revenues from sales of display solutions increased by 8% as compared to the second quarter of last year and 15% as compared to the first half of last year. We continue focusing on our strategy of providing business solutions, services, product fulfillment and display technologies that meet all of our customer's needs." The Company ended the quarter with cash and cash equivalents of $3.9 million, working capital of $31.7 million, total assets of $80.0 million and shareholders' equity of $44.6 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 pressrelease. 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 forthe 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 OPERATIONS (in thousands, except per share amounts) (Unaudited) Three months ended Six months ended January 31, January 31, 2004 2003 2004 2003 Revenue Products $72,869 $74,283 $143,321 $138,998 Services 6,925 6,259 11,173 9,829 79,794 80,542 154,494 148,827 Cost of revenue Products 64,611 66,979 127,337 123,897 Services 5,634 5,088 8,712 7,491 70,245 72,067 136,049 131,388 Gross profit 9,549 8,475 18,445 17,439 Selling, general and administrative expenses 8,990 8,711 17,280 17,551 Income (loss) from operations 559 (236) 1,165 (112) Interest and other income (expense), net (68) 28 (155) 168 Income (loss) before income taxes 491 (208) 1,010 56 Income tax provision (benefit) 196 (83) 404 23 Net income (loss) $295 $(125) $606 $33 Net income (loss) per share Basic $0.04 $(0.02) $0.08 $0.00 Diluted $0.04 $(0.02) $0.07 $0.00 Weighted average shares outstanding Basic 7,990 7,990 7,990 7,990 Diluted 8,299 7,990 8,265 7,991 Manchester Technologies, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) January 31, 2004 July 31, 2003 (Unaudited) Assets Current assets: Cash and cash equivalents $3,866 $8,553 Accounts receivable, net 33,710 35,117 Inventory 18,352 9,605 Deferred income taxes 603 603 Prepaid taxes 1,832 1,704 Prepaid expenses and other current assets 703 709 Total current assets 59,066 56,291 Property and equipment, net 13,556 13,985 Goodwill, net 6,439 6,439 Deferred income taxes 757 757 Other assets 177 278 Total assets $79,995 $77,750 Liabilities and shareholders' equity Current liabilities: Accounts payable and accrued expenses $26,524 $24,752 Deferred service contract revenue 606 666 Current portion of capital lease obligations 228 212 Total current liabilities 27,358 25,630 Deferred compensation payable 263 263 Capital lease obligations, net of current portion 7,811 7,923 Total liabilities 35,432 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 18,965 18,942 Deferred compensation (13) (13) Retained earnings 25,531 24,925 Total shareholders' equity 44,563 43,934 Total liabilities and shareholders' equity $79,995 $77,750 DATASOURCE: Manchester Technologies, Inc. CONTACT: Elan Yaish, Chief Financial Officer of Manchester Technologies, Inc., +1-631-951-7060, or Fax - +1-631-951-7639, Web site: http://www.e-manchester.com/

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