STOCKREPORTS

Bell Microproducts Inc.

NASDAQ Symbol BELM

Recent Price 9.38 52 Wk Range 13.25 - 6.88

Yield Nil 12-Mo. P/E 9.8

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) NA Fair Value NA Risk MEDIUM Earn/Div Rank NR
Technical Evaluation: BEARISH since 10/96 Rel. Strength Rank (1 Lowest - 99 Highest) 8 Insider Activity NA

Business Profile 07-JUL-97

Over the past few years, this company has invested in all three of its standard product offerings -- contract manufacturing, semiconductor components and computer products -- in an effort to strengthen its range of value-added products. These products have been integrated into a suite of services designed to meet the increased outsourcing needs of its customers. The company expects second quarter earnings per share to be approximately 10-15% below the $0.22 reported for the same period last year. On a positive note, BELM anticipates cost efficiencies and increased throughput from the doubling of its Quadrus manufacturing capacity.

Operation Review 07-JUL-97

Sales in the first quarter of 1997 advanced 22%, year to year, reflecting increased unit sales and customer base expansion on higher demand for mass storage products. Gross margins narrowed slightly, and following a 14% increase in SG&A expenses and a 10% decrease in interest expense, pretax income was up 43%. After taxes at 42.0% in both periods, net income climbed to $2,381,000 ($0.27 a share, based on 6.1% more shares), from $1,663,000 ($0.20). Earnings in the second quarter are expected to be hurt by lower data storage product sales and higher contract manufacturing costs.

Stock Performance 18-JUL-97n

In the past 30 trading days, BELM's shares have declined 17%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 76,540 shares, compared with the 40-day moving average of 83,505 shares.

Key Stock Statistics

Fiscal Year Ending Dec. 31

Dividend Data: No cash dividends have been paid. BELM has said it intends to retain earnings for use in its business.

Business Summary 07-JUL-97

Bell Microproducts markets and distributes high-technology semiconductor and computer products to OEMs (original equipment manufacturers) and value-added resellers (VARs). It also provides value-added services such as component and subsystem testing services, systems integration and disk drive formatting and testing, packaging of electronic component kits to customer specifications, and supplying board-level products to customer specifications on a turnkey basis.

Semiconductor products, including memory, logic, microprocessor and peripheral and specialty components, are primarily advanced integrated circuits that are critical to the performance of customer products. The customer base consists primarily of small and medium-size OEMs, including makers of computer and office products, industrial equipment (i.e., machine tools, factory automation and robotic equipment), scientific and medical instruments, and telecommunications products. The company is an authorized distributor of IBM semiconductor and certain subsystem products, and was named a distributor by Sun Microsystems for Sun's SPARC microprocessors, chipsets, modules and boards.

Computer products include disk drives and imaging products and solutions, networking products, desktop, notebook and pen-based computers and value-added products. BELM sells floppy, hard and optical disk and tape drives to a wide range of customers, including industrial OEMs (i.e., makers of computer, office, medical and telecommunications products) and integrators and manufacturers of computers based on the UNIX, DOS and MAC operating systems. The company is a nationwide industrial disk drive distributor for Seagate Technology, and is also a national distributor for Cypress Semiconductor.

In February 1997, the company signed an agreement with CMD Technology (CMD) to distribute CMD's high-end RAID controller and storage technology products with the company's own custom solutions. The agreement will help Bell provide its customers complete flexibility as they design RAID solutions for database storage requirements.

Important Developments

Jul. '97 The company said it expects second quarter revenues to be slightly above the $113 million reported for the second quarter of 1996, and earnings per share to be approximately 10-15% below the $0.22 reported for the same period last year. Bell attributed the shortfall to a sales decline in data storage products and increased costs from its contract manufacturing businesses, which opened a new facility in April 1997.

Capitalization

Long Term Debt: $54,105,000 (3/97); incl. $4,905,000 of cap. lease obligs.

Curr. Ratio	3.0	4.0	1.9	1.5	1.4	1.6	NA	NA	NA	NA
% LT Debt of Cap.	41.7	7.3	9.7	5.8	1.3	1.1	Nil	Nil	Nil	NA
% Net Inc.of Revs.	1.6	1.2	2.0	1.6	0.8	0.4	NM	1.6	2.8	NA
% Ret. on Assets	4.7	2.9	4.9	2.9	2.6	1.0	NM	6.6	NA	NA
% Ret. on Equity	11.8	6.2	11.6	20.6	8.0	2.4	NM	12.1	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--1941 Ringwood Ave., San Jose, CA 95131-1721. Tel--(408) 451-9400. Web Site--http://www.bellmicro.com. Chrmn, Pres & CEO--W. D. Bell. VP-Fin, CFO & Secy--R. E. Canessa. Dirs--J. H. Beedle, W. D. Bell, G. A. Campbell, E. L. Gelbach, G. E. Penisten. Transfer Agent & Registrar--Chemical Trust Co., San Francisco. Incorporated--in California in 1987. Empl-- 650. S&P Analyst: P.D.W.

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997