Bell Microproducts Announces Preliminary Second Quarter Revenue Range of $930 Million to $945 Million



    
    20% Increase from Second Quarter of 2006
    

    SAN JOSE, Calif., Aug. 2 /CNW/ -- Bell Microproducts Inc. (Nasdaq:   BELM)
announced preliminary revenue for the second quarter of 2007 in a range of
$930 million to $945 million, an increase of approximately 20% from revenue of
$777 million for the second quarter of 2006.
    North American revenue increased 31% in the second quarter of 2007
compared to the second quarter of 2006 and generated approximately 44% of
total revenue for the quarter.  Excluding the acquisition of ProSys
Information Systems, North American revenue increased 3% in the second quarter
of 2007 compared to the second quarter of 2006.  Latin America revenues
increased approximately 18% year-over-year and represented 14% of total
revenue for the quarter.  The Company's European operations posted
year-over-year revenue growth of approximately 13% and represented
approximately 42% of total revenue for the quarter.  Excluding the positive
impact of foreign currency translation, European revenue increased 4% from the
second quarter of 2006.
    The Solutions category of product and services sales grew 27% to
represent 55% of total sales in the second quarter of 2007 compared to 53% in
the second quarter of 2006, driven primarily by strong storage systems sales
and the acquisition of ProSys.  The Components and Peripherals category grew
approximately 14% and represented 45% of sales in the second quarter of 2007
compared to 47% in the second quarter of 2006.  Disk drive revenue increased
approximately 17% year-over-year, and represented approximately 27% of total
revenue in the second quarter of 2007.
    Commenting on the preliminary second quarter of 2007 results, W. Donald
Bell, President and Chief Executive Officer of Bell Microproducts, said, "We
have continued to grow our business and achieved year-over-year revenue growth
again this quarter.  We generated what we expect to be the highest second
quarter revenue in the company's history, despite the expected seasonal
slowdown in certain markets from the first quarter of the year.  In our North
American operations, we experienced substantial revenue growth in our higher
margin Industrial group.  This was again partially offset by lower sales in
our U.S. commercial sales channel as we continue to focus on more profitable
products and customers.  Our Latin America revenue growth was driven by our
in-country operations as well as our export business from Miami.  Our European
growth was driven by double digit growth in most Solutions product categories,
offset somewhat by a decline from first quarter in disk drives and in lower
margin software sales.  In its third quarter of results as part of Bell
Microproducts, ProSys Information Systems had another solid quarter, and
generated revenue in line with our expectations."
    At the end of the quarter, the Company provided additional information to
NASDAQ to support its request for an extension of time required to complete
its required filings with the SEC.  During the quarter the Company also
received waivers from its lenders through September 30, 2007 relating to the
filing of financial reports with the SEC and the provision of audited
financial reports to the lenders.
    The Company is unable at this time to provide additional quantitative
information regarding its results for the second quarter of 2007 until the
previously announced restatement of its financial statements for certain prior
periods, and the related audit and reviews have been completed.  A special
committee of the board of directors was appointed to conduct an evaluation of
the Company's stock option practices with the assistance of independent
counsel and independent accounting consultants.  As previously announced, the
special committee concluded that available evidence does not adequately
support the Company's use of some stock option grant dates for financial
accounting purposes.  Although the formal investigation has been completed,
the detailed accounting and related tax impacts have not been determined.
    
    About Bell Microproducts
    
    Bell Microproducts is an international, value-added distributor of a wide
range of high-tech products, solutions and services, including storage
systems, servers, software, computer components and peripherals, as well as
maintenance and professional services.  An industry-recognized specialist in
storage products, this Fortune 1000 company is one of the world's largest
storage-centric value-added distributors.
    Bell Microproducts is uniquely qualified with deep technical and
application expertise to service a broad range of information technology
needs.  From design to deployment, its products are available at any level of
integration, from components to subsystem assemblies and fully-integrated,
tested and certified system solutions.  More information can be found in the
Company's SEC filings, or by visiting the Bell Microproducts Web site at
http://www.bellmicro.com.
    
    Safe Harbor Statement
    
    This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.  These forward-looking
statements are based on the current opinions and estimates of management, and
speak only as of the date on which they are made.  Such forward-looking
statements, include, but are not limited to, management's expectations
regarding the Company's second quarter operating results and continued growth
in 2007 and the results of the review of the Company's historical stock option
grants. Actual results could differ materially from such statements as a
result of many risks and uncertainties, including:  required adjustments to
prior period financial statements as a result of our restatement; the
magnitude of costs associated with our financial restatement and with our
stock option investigation; fluctuating demand for products in various
categories and geographies; competition; and potential difficulties with
integration of acquired businesses.  Investors should also take into account
the risks described in the Company's periodic reports filed with the
Securities and Exchange Commission when making investment decisions. Investors
are cautioned not to place undue reliance on these forward-looking statements,
and the Company undertakes no obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or
otherwise.




For further information:

For further information: Rob Damron, Investor Relations Representative
of  Bell Microproducts Inc., +1-414-224-1668, ir@bellmicro.com Web Site:
http://www.bellmicro.com

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BELL MICROPRODUCTS INC.

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