Tuesday May 18, 4:16 pm Eastern Time
Company Press Release
CMC Industries, Inc. Announces Third Quarter Fiscal 1999 Results
SANTA CLARA, Calif.--(BUSINESS WIRE)--May 18, 1999--CMC Industries, Inc. (Nasdaq: CMCI - news)
today announced its operating results for the third quarter of fiscal 1999 ended April 30, 1999.
For the third quarter, the Company's net sales were $58,677,000, as compared to net sales of
$58,565,000 for the same period of the prior year. Net income for the third quarter of 1999
was a loss of $572,000, or $0.07 loss per diluted share, as compared to a net gain of $580,000,
or $0.07 per diluted share, for the third quarter of fiscal 1998.
On May 10, 1999, the Company announced its definitive merger agreement with ACT Manufacturing,
Inc. (Nasdaq: ACTM - news).
''We are excited about the merger with ACT, as well as the direction in which our business is
headed,'' commented Matthew Landa, President & CEO of CMC. ''The last few quarters have been a
transitional period for CMC, as we have brought our Mexico facility on-line and to volume
production. The simultaneous investment necessary to establish a new facility and start up a
large number of new customer programs has depressed our earnings over the past few quarters.
And while this was exacerbated by some delays in the start-up of certain of these new programs,
we now enter our fourth quarter with the largest backlog we have experienced in nearly two years.
''In addition, customer reaction to the merger announcement has been . We believe the the
combination of CMC and ACT will allow for additional growth in our existing customer base
and the opportunity to accelerate new customer wins for the combined company,'' Mr. Landa concluded.
Headquartered in Santa Clara, California, CMC Industries is a leading provider of electronics
manufacturing services to original equipment manufacturers in the telecommunications, computer
and electronics industries. The Company has operations in Corinth, Mississippi: Santa Clara,
California; Hermosillo, Mexico; Huntsville, Alabama and Taipei, Taiwan. For further company
information, visit CMC's home page at http//www.cmcindustries.com.
The matters set forth in this news release may contain forward looking statements. Actual results
may differ materially from those described herein and are dependent on certain risks and
uncertainties including, but not limited to, the timing and magnitude of orders from customers
with projects currently in development as well as continued orders and growth in orders from
customers already in volume production, the ability of the Company to accurately forecast the
timing and magnitude of future customer orders and appropriately adjust its expenditures in
respect thereof, changes in customer mix and volume, competition, component availability,
inventory obsolescence, business conditions in the general economy as well as the industries
in which the Company and the Company's customers compete and other risk factors such as those
detailed in the Company's filings with the Securities and Exchange Commission.
CMC Industries, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
UNAUDITED
Three Months Ended Nine Months Ended
April 30, April 30,
--------------------------------------------
1999 1998 1999 1998
--------- ----------- --------- --------
Net sales $ 58,677 $ 58,565 $ 206,991 $ 237,612
Cost of sales 56,405 54,596 200,538 222,580
--------- --------- --------- ---------
Gross profit 2,272 3,969 6,453 15,032
Selling, general
and administrative
expenses 2,907 2,731 9,354 9,012
--------- --------- --------- ---------
Operating income (635) 1,238 (2,901) 6,020
Interest expense, net 280 311 1,114 1,063
--------- --------- --------- ---------
Income before income
taxes (915) 927 (4,015) 4,957
Provision for income
taxes (343) 347 (1,506) 1,858
--------- --------- --------- ---------
Net income $ (572) $ 580 $ (2,509) $ 3,099
========= ========= ========= =========
Net income per common
share
Basic $ (0.07) $ 0.08 $ (0.33) $ 0.44
Diluted $ (0.07) $ 0.08 $ (0.33) $ 0.41
Weighted average
shares outstanding
Basic 7,657 7,440 7,606 7,104
Diluted 7,657 7,724 7,606 7,495
See notes to unaudited condensed consolidated financial statements.
CMC Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
April 30, July 31,
1999 1998
Unaudited (1)
ASSETS
Current assets
Cash and cash equivalents $ 5,260 $ 5,281
Accounts and notes receivable, net 26,002 36,960
Inventories 30,838 20,275
Other current assets 1,499 2,000
------- -------
Total current assets 63,599 64,516
Plant and equipment, net 19,276 18,790
Other assets 11,130 11,299
------- -------
$94,005 $94,605
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt $11,566 $20,257
Accounts payable and other current
liabilities 36,416 28,666
------- -------
Total current liabilities 47,982 48,923
Long-term debt and other noncurrent
liabilities 5,911 3,737
------- -------
Total liabilities 53,893 52,660
Stockholders' equity 40,112 41,945
------- -------
$94,005 $94,605
======= =======
(1) Condensed from audited consolidated financial statements.
Contact:
CMC Industries, Inc.
Andrew Moley, 408/982-9999
or
Morgen-Walke Associates, Inc.
Jim Byers, Carolyn Bass, 415/296-7383
Patricia Walsh, Mark Owen, 212/850-5698 |
