04/17/03
By BRIAN LAWSON
Times Business Writer shaskins@htimes.com
Huntsville-based Avocent Corp. announced plans Wednesday to spend $6 million to purchase a new headquarters building for its European operations in Ireland.
Avocent CEO John Cooper, whose appointment as chairman was also announced Wednesday, said the move to a larger building near Shannon Airport in Ireland will save money and reflects the company's commitment to its European customers.
Avocent, which makes products that allow a single computer operator to control multiple computers from a remote location, reported its sales of $71.2 million were a 15 percent improvement over the same period on 2002. The company saw its sales improve each quarter for the past year.
Avocent's earnings news drew the equivalent of raves on Wall Street Wednesday. The company's stock, traded on the Nasdaq exchange under the symbol AVCT, surged nearly $4 per share, closing at $28.68, a $3.80 gain.
Cooper said the company's digital computer products have given it an increased market share and the higher-end products also improved the company's profit margin.
Avocent reported net income of $13.7 million for the quarter or 29 cents per share, before figuring costs related to the 2000 merger of Huntsville-based Cybex Corp. and its rival, Washington-based Apex Inc. When merger and other costs are included, the company had net income of $8.2 million or 8 cents per share.
The profit numbers were an improvement over 2002's adjusted first quarter returns of $300,000 or 1 cent per share.
Cooper, who succeeded Steve Thornton as Avocent's CEO last March, will also succeed Thornton as the company's chairman.
Avocent expects to earn revenue between $71 million and $76 million in the second quarter.
