16 percent increase at APC
American Power Conversion (APC) has published its financial results for the third quarter of 2005.
APC sales in July, August and September reached $ 512,3 million, a 16 percent increase over the same period in 2004.
“APC sales in key products continued to gain momentum in the third quarter. We achieved double-digit growth in all business lines and in all geographical areas. We are pleased with the results we have achieved in growing our business, particularly in the area of Network-Critical Physical Infrastructure (NCPI), ”said Rodger B. Dowdell Jr., APC President and CEO. “However, we are not satisfied with the business benefits we have achieved. Compared to the same period last year, due to pricing, product offering and higher operating costs in the logistics areas, our margin decreased, which we will definitely need to change in the future, ”added Rodger B. Dowdell Jr.
In the third quarter of 2005, the net profit calculated according to non-GAAP (Generally Accepted Accounting Principles) was 11 percent lower than in the same period of the previous year. Net income for the third quarter of 2004, on the other hand, included a net tax credit of approximately $ 20,8 million related to the income tax refund.
Geographically, APC has achieved revenue growth in all major regions. The U.S. region (North and South America) accounted for 52 percent of third-quarter revenue, up 19 percent from the same period last year and 4 percent from the previous quarter. The Europe, Middle East and Africa (EMEA) third-quarter revenue represents 29 percent of APC’s total quarterly revenue. The EMEA region grew 8 percent year-over-year and 6 percent quarter-over-quarter. Asia’s third-quarter revenue accounted for 19 percent of the company’s total quarterly revenue; and increased by 22 percent compared to the same period last year.
“While the quarter was somewhat disappointing, overall we are pleased with our performance and results. As we see the benefits of our investments, we intend to continue our investments in the future, but we are also developing ways to operate more cost-effectively and efficiently, ”Roger B. Dowell summed up APC’s business plans. “As part of our strategic investment to develop the company, we recently expanded our NCPI offering with the acquisition of NetBotz, Inc. This move also served to provide our customers with the most comprehensive and innovative product offering in the industry, ”added Rodger B. Dowdell Jr.
