Pioneer-Standard Bests 1Q Forecast

Pioneer-Standard Electronics

Thomson Financial/First Call had projected a loss of 5 cents per share.

Revenue fell 17 percent to $496 million from $595 million in the same quarter last year. The Computer Systems Division, which includes distributor KeyLink Systems, generated 55 percent of sales. The Industrial Electronics Division accounted for the remainder.

"We have been very successful in achieving profitability in the last three quarters, excluding special charges, despite significantly lower revenues," said Arthur Rhein, Pioneer-Standard president and CEO, in a statement. "We are effectively managing our expenses and working capital in an extremely difficult environment while maintaining our share and strengthening our competitive position in the marketplace."

The Cleveland-based distributor expects second-quarter revenue to fall 10 percent to 15 percent from the year-ago quarter and be flat sequentially. Pioneer-Standard expects earnings to break even in the quarter. Thomson Financial/First Call had projected earnings of 1 cent per share.

Shares of Pioneer-Standard were trading at $10.15 Thursday morning, up 60 cents, or 6 percent.