Pioneer-Standard Beats 3Q Expectations

Expects to break even in 4Q

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Pioneer-Standard Electronics reported net income of $2.2 million, or 8 cents per share, for the fiscal third quarter ended Dec. 31, 2001, compared with net income of $13 million, or 40 cents per diluted share, reported for the third quarter last year.

Thomson Financial/First Call expected break-even results.

Revenue in the quarter fell 19 percent to $633.7 million, compared with $781.3 million for the same period last year.

The Computer Systems Division, which includes KeyLink Systems, generated 60 percent of sales. Computer Systems' revenue increased 25 percent sequentially, compared to 8 percent for the company as a whole.

"We have performed very well in a miserable market," said James Bayman, Pioneer-Standard chairman and CEO. "We are extremely pleased with the performance of our Computer Systems Division this quarter. In addition to exceeding our sales expectations, the division generated a 4.5 percent operating margin, exceeding our goal of 3 [percent to 4 percent for this division."

Pioneer-Standard expects fourth-quarter revenue to decline 25 percent to 30 percent, compared with last year. The distributor expects to break even or be slightly profitable in the March quarter.

Pioneer-Standard shares closed Wednesday at $12.30, down 2 cents per share.


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