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ACT Networks Reports Rise in Quarter's Net Sales

August 13, 1996|BARBARA MURPHY

ACT Networks of Camarillo reported that net sales for the fourth quarter that ended June 30 increased about 59%--to $9.1 million from $5.7 million for the same period a year earlier.

Net income for the fourth quarter of fiscal year 1996 increased 34% to $745,000, up from $558,000 for fourth quarter 1995. Net income per share was 9 cents, the same figure as in the previous year.

The number of weighted average shares was 35% higher than a year ago, due primarily to the completion of the company's secondary public offering in June.

Martin Shum, chairman and chief executive officer of the computer technology company, said he believes the earnings growth demonstrates increased demand for ACT's products and services.

"Our secondary public offering . . . increased our cash position and greatly strengthened our balance sheet," Shum said.

Net sales for the fiscal year that ended June 30 increased about 38% to $28.4 million, from $20.5 million for fiscal 1995. However, the fiscal 1996 net loss was $5.7 million, or 78 cents per share, compared to net income of $1.26 million, or 24 cents per share, for fiscal 1995.

During fiscal 1996, the company incurred pre-tax costs of $5.6 million related to its acquisition of Presticom in November. The company also recorded an inventory reserve of $700,000. Combined, the charges had an after-tax impact of 86 cents per share.

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