Bell Micro Reports Prelims

SAN JOSE, Calif. -- Bell Microproducts Inc.(NASDAQ:BELM) announced preliminary Q1 2007 revenue in a range of $990million to $1.01 billion, an increase of 14% to 16% from Q1 2006 revenue of$867 million.

The Company's European operations posted solid revenue growth ofapproximately 13% and represented roughly 44% of the Company's total firstquarter revenue. In Latin America, revenues increased approximately 14% andrepresented 14% of total revenue in the quarter. North American revenueincreased more than 20% and generated approximately 42% of the quarter'srevenue.

The Solutions category of product and services sales grew 27% to 53% oftotal sales in the first quarter, as compared to 48% in Q1 2006, drivenprimarily by strong computer platform and storage systems sales and theacquisition of ProSys. The Components and Peripherals category grewapproximately 6% and represented 47% of sales in the first quarter, ascompared to 52% in Q1 2006. Disk drive revenue increased approximately 20%year over year, increased slightly from Q4 2006 levels, and representedapproximately 30% of total revenue.

Commenting on the preliminary Q1 results, W. Donald Bell, President andChief Executive Officer of Bell Microproducts, said, "We are pleased withour strong revenue growth again this quarter. Our international businessesin Europe and Latin America performed well in the first quarter and bothgenerated double digit revenue growth. In our North American operations, weexperienced substantial revenue growth in our higher margin Industrial andEnterprise sales channels. This was partially offset by revenue decreases inour US commercial sales channel as we continue to focus on more profitableproducts and customers. In its second quarter of results as part of BellMicroproducts, ProSys Information Systems generated revenue in line with ourexpectations. Our solid start to the new year gives us confidence that weare well positioned for continued growth for the balance of 2007 andbeyond."

Bell Microproducts