Amplicon Net Rises Despite Revenue Dip

By cutting costs and making profitable investments, Amplicon Inc. was able to report a 22% increase in earnings for its latest fiscal year, even though revenue was down 16%.

The company, based in Santa Ana, borrows from banks to acquire computer equipment, which it then leases to corporations. It leases and sells mid-range computers, peripherals and other high-tech equipment.

Amplicon reported earnings of $9.1 million, or $1.57 a share, for its 1992 fiscal year, which ended June 30. That compared with a profit of $7.4 million, or $1.26 a share, for the previous year.

Revenue was down to $130.44 million for the most recent year, compared with $155.7 million for fiscal 1991.

S. Leslie Jewett, the company’s vice president of finance, said revenue dipped because of the recession and a reorganization of the sales department during the first two quarters. Revenue rose 30% from the third quarter to the fourth.

For its fourth fiscal quarter, Amplicon posted a profit of $2.5 million, or 43 cents a share. Revenue was up 6% to $38.7 million.

Earnings were up, Jewett said, because the company is now realizing profit on equipment it leased in 1988, during better economic times. Generally, Amplicon leases equipment for four years at a rate that underestimates its worth. When the lease is up, Jewett said, Amplicon owns equipment that is worth more than the book value. The company then sells it or re-leases it at a profit.

Amplicon: One up, one down Amplicon Inc. in Santa Ana reported a 22% increase in profit for its latest fiscal year, which ended June 30. Revenue, however, fell 16% In millions of dollars Net earnings: ‘92: $9.1 Revenues: ‘92: $130.4 Source: Amplicon Inc.