Earnings and financial performance looking awfully good.
Brew
Tuesday April 18, 4:01 pm Eastern Time
Company Press Release
SOURCE: Photon Dynamics, Inc.
Photon Dynamics Reports Record Second Quarter Results
Strong Order Growth Continues - Revenues Increase 86 Percent, Book-to-Bill Ratio Exceeds 1.5 for Quarter
SAN JOSE, Calif., April 18 /PRNewswire/ -- Photon Dynamics, Inc. (Nasdaq: PHTN - news) today reported record financial results for the second quarter ended March 31, 2000. The results of prior periods have been restated to include the financial statements of CR Technology, Inc. which was acquired on November 30, 1999 and accounted for as a pooling of interest.
For the second quarter of fiscal 2000, revenues rose 86 percent to $19.2 million compared with $10.3 million, as restated, for the second quarter of fiscal 1999. Net income for the quarter was $3.4 million, or $0.28 per diluted share, compared to net income of $0.3 million, or $0.03 per diluted share, as restated, for the same period a year ago.
``We are extremely pleased with the financial performance of the company in the second quarter,' stated Vincent Sollitto, President and CEO of Photon Dynamics, Inc. ``The demand for our systems continues to be strong, as we anticipate the successful introduction of two new products in the second half of the fiscal year. Moreover, we continue to add much needed staffing to support our customer needs and product introductions in a highly competitive market.
``Our yield management solutions continue to increase our customers' profitability by providing increased throughput and defect detection, while decreasing materials loss,' Mr. Sollitto added.
For the first six months of fiscal 2000, revenues increased by 114 percent to $36.0 million from $16.8 million. Net income for the period rose to $5.8 million, or $0.51 per share, excluding non-recurring acquisition expenses, compared to a net loss of $1.2 million, or $(0.13) per share, as restated, for the same period a year ago. Including the effect of non-recurring acquisition costs, net income for the first six months of fiscal 2000 was $4.9 million, or $0.43 per diluted share.
Strong order growth continued and bookings for the second quarter reached $29.4 million. As a result, the company posted a record backlog of $39.8 million at the end of the quarter and a book to bill ratio of over 1.5 for the quarter. Gross margins improved to 47 percent in the second quarter of fiscal 2000 from 43 percent in the comparable quarter of 1999. Gross margins fluctuate on a quarterly basis due to production volume and product mix, among other factors.
The company completed a public offering during the second quarter of fiscal 2000 in which 1,621,000 shares of common stock were sold for net proceeds of $83.6 million. As a result of the public offering and the financial results for the second quarter, the company's balance sheet as of March 31, 2000 reflects $98.8 million in cash and related investments, $109.8 million in working capital and $112.5 million in shareholders' equity.
On May 2, Vincent Sollitto, President and CEO, and Richard Dissly, CFO, will present at the USDC Investor Conference in New York. The company will be exhibiting at SID in Long Beach, Calif., May 15-18, and will also host a press conference luncheon on May 16 at 12:30 p.m. in the Press Room for invited press and industry analysts.
In addition, Vincent Sollitto will present an invited paper at SID on May 17 at 9:20 a.m. in Room 104B at the Long Beach Convention Center. The company will also attend and present at the annual CIBC World Markets' Annual Conference on May 24 at 11:45 a.m. in New York. For more information, please contact So-Yeon Jeong at 408-360-3033.
About Photon Dynamics
Photon Dynamics is a leading worldwide supplier of yield management solutions to the flat panel display, printed circuit board assembly and advanced semiconductor packaging industries. Founded in 1986, the company currently has approximately 184 employees with sales offices and customer support services in San Jose and Aliso Viejo, Calif., Japan, Korea and Taiwan. The company has been issued 35 U.S. patents for flat panel display test and inspection technologies and has 7 U.S. and foreign patent applications pending. For more information about Photon Dynamics, please visit the company's web site at photondynamics.com.
Safe Harbor Statement
To the extent that any of the statements contained herein are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, growth in the FPD market, market acceptance of the company's products, the timely development of new products, the enhancement of existing products, manufacturing delays, dependence on principal customers, competitive pricing pressures, product volume and mix, global economic conditions, and particularly economic conditions in Asia, dependence on international operations, availability of key components, timing of orders received, fluctuations in foreign exchange rates, and introduction of competing products having technological and/or pricing advantages. As a result, the company's operating results may fluctuate, especially when measured on a quarterly basis. For further information, refer to the company's 1999 Form 10-KSB and Forms 10-QSB as filed with the Securities and Exchange Commission. Actual results may differ materially from such expectations.
For more information contact So-Yeon Jeong, Investor Relations Manager, 408-360-3033, or Beth Popham, Communications Manager, 408-360-3103, both of Photon Dynamics.
SOURCE: Photon Dynamics, Inc.
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