biz.yahoo.com
Part 1:
Wednesday April 29, 6:25 pm Eastern Time
Company Press Release
SOURCE: Cannondale Corporation
Cannondale Corporation Announces Earnings
and Revenue For the Third Quarter of Fiscal 1998
BETHEL, Conn., April 29 /PRNewswire/ -- Cannondale Corporation
(Nasdaq: BIKE - news) today announced results for the third quarter and
first nine months of fiscal 1998, the period ended March 28, 1998.
For the three months ended March 28, 1998, net sales were $45,305,000, a
6% decrease from the $48,229,000 recorded for the same period last year.
The decrease in sales for the quarter was primarily a result of domestic
dealer inventory realignment and bad weather in the United States.
Net income for the third quarter of fiscal 1998 was $3,186,000, a
$2,366,000, or 43% decrease from the $5,552,000 recorded during the
prior-year period. Diluted earnings per share were 37 cents for the third
quarter, a decrease of 40% compared to 62 cents recorded for the same
period last year. In addition to the impact of lower sales, earnings were also
negatively affected by lower margins due to product mix and the continued
strength of the U.S. dollar which increased the cost of dollar-denominated
purchases by Cannondale's foreign subsidiaries.
For the nine months ended March 28, 1998, net sales were $127,315,000, a
6% increase over the $120,403,000 recorded for the same period last year.
The increase in sales for the first nine months of fiscal 1998 was primarily
a result of strong international demand for Cannondale products.
Net income for the first nine months of fiscal 1998 was $7,699,000, a
$1,495,000, or 16% decrease from the $9,194,000 recorded during the
prior-year period. Diluted earnings per share were 87 cents for the first
nine months of fiscal 1998, a decrease of 16% compared to $1.03 recorded
for the same period last year.
Despite the effect of dealer inventory realignment on the Company's
financial results in the third quarter of fiscal 1998, interest in the
Cannondale brand at the consumer level continued to be strong
throughout the third quarter. In March the Cannondale web site (
cannondale.com ) received a record 5.8 million hits, a 43%
increase over the previous record that had been set the prior month. The
Company also enjoyed considerable exposure in cycling enthusiast
magazines in the third quarter, including a favorable review of its flagship
Super V Raven full-suspension model in Mountain Bike Action.
''Cannondale did a bang-up job on the Raven,'' concluded the magazine's
editors in its January issue. ''Its handling is quick enough to make it a gem
in the woods and it has great manners at speed. Take the Raven out for a
four-hour jaunt in the mountains and you will come back all smiles.'' In
March, the Raven received additional recognition when it received an
''Excellence In Computer-Aided Design'' award as part of Design News
magazine's prestigious annual engineering awards.
Favorable exposure also resulted from the Volvo/Cannondale team's
dominance of the 1998 racing season's first major competition.
Volvo/Cannondale riders Cadel Evans and Alison Sydor won the overall
men's and women's titles, respectively, at the Sea Otter Classic in
Monterey, California, in March. Finally, the Company's announcement in
February that it will enter the off-road motorcycle market garnered
widespread notice in both cycling and motorcycle enthusiast publications.
Cannondale Corporation is the world's leading manufacturer of
high-performance aluminum bicycles. The Company's bicycles and
bicycle accessories, which include clothing, packs and bags, HeadShok
suspension forks and CODA components, are marketed under the
Cannondale brand name and ''Handmade in USA'' logo, and are sold in
the U.S. and in more than 60 foreign countries.
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