Tuesday October 24, 4:42 pm Eastern Time
Press Release
SOURCE: Photon Dynamics, Inc.
Photon Dynamics Reports
Outstanding Fourth Quarter and Fiscal Year Results
Revenues and Profits Surpass Record Levels
SAN JOSE, Calif., Oct. 24 /PRNewswire/ -- Photon Dynamics, Inc. (Nasdaq: PHTN -
news) today reported record financial results for the fourth quarter and fiscal year ended
September 30, 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 interests.
For the fourth quarter of fiscal 2000, revenues increased to $24.1 million compared with
$22.1 million for the third quarter and $14.9 million, as restated, for the fourth quarter of fiscal
1999. Net income for the quarter was $5.3 million, or $0.42 per diluted share, compared to
net income of $4.5 million, or $0.36 per diluted share for the third quarter, and net income of
$2.0 million, or $0.19 per diluted share, as restated, for the same period a year ago.
``Fiscal 2000 was an outstanding year for Photon Dynamics with accomplishments in every
performance category. We exceeded our strategic growth targets and positioned ourselves
well for the continued growth in the flat panel display and printed circuit board assembly
markets,'' stated Vincent Sollitto, President and CEO. ``Our fourth quarter results were truly
exceptional with records in revenue, earnings, gross margin and cash growth.''
For the year ended fiscal 2000, revenues increased 81 percent to $82.2 million from $45.4
million in the prior fiscal year. Net income for the fiscal year rose to $15.6 million, or $1.31
per diluted share, excluding non-recurring acquisition expenses, compared to net income of
$2.3 million, or $0.23 per share, as restated, for the same period a year ago. Including the
effect of non-recurring acquisition costs, net income for fiscal year 2000 was $14.8 million, or
$1.23 per diluted share.
Bookings for the fourth quarter exceeded $22 million. As a result, the company posted a
backlog of over $45 million. Gross margins improved to 49 percent in the fourth quarter of
fiscal 2000 from 48 percent in the third quarter and 47 percent in the comparable quarter of
1999. Gross margins fluctuate on a quarterly basis due to production volume and product
mix, among other factors.
``As projected, bookings activity in the flat panel market slowed this quarter after ramping for
eight consecutive quarters. Nevertheless, request for quote (RFQ) activity rose again in
September, indicating that manufacturers currently intend to continue their investments well
into 2001,'' Sollitto commented.
As a result of the follow-on public offering in the second quarter and the financial results for
the fiscal year, the company's balance sheet as of September 30, 2000 reflects $101 million in
cash and related investments, $123 million in working capital and $127 million in
shareholders' equity.
Earnings Conference Call
An earnings conference call is scheduled for Tuesday, October 24th, 2000 at 2:00 p.m. PST
after the close of market. The dial-in number for the conference call is 800-865-4460 or
973-321-2000. A replay will be available until 1/17/2001. The replay number is
888-344-3254 or 402-998-0206. No passcode is required. The replay can also be heard on
the company's website at www.photondynamics.com under the investor relations section.
About Photon Dynamics Inc.
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 230 employees with
sales offices and customer support services in Aliso Viejo, CA, Hsinchu, Taiwan, San Jose,
CA, Seoul, Korea and Tokyo, Japan. The company has been issued 40 patents for flat panel
display test and inspection technologies and has 41 patent applications pending. For more
information about Photon Dynamics, visit the company's web site at
www.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 combined company's products, the 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 and shipment of our products, fluctuations in
foreign exchange rates, and the introduction of competing products having technological
and/or pricing advantages. As a result, Photon Dynamics' and the combined company's
operating results may fluctuate, especially when measured on a quarterly basis, and actual
results may differ substantially from such expectations. For further information, refer to the
Photon Dynamics' Form 10-KSB and Forms 10-QSB as filed with the Securities and
Exchange Commission.
For further information please contact Bruce P. Delmore, Vice President, Marketing, Strategy
and Business Development, of Photon Dynamics, Inc., 408-226-9900,
bruce.delmore@photondynamics.com; or Mike Kilroy of Hilary Kaye Associates, Inc.,
714-426-0444, mkilroy@hkamarcom.com, for Photon Dynamics, Inc.
Photon Dynamics, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
September 30, September 30,
2000 1999
Assets
Current assets:
Cash, cash equivalents and investments $ 101,392 $ 8,026
Accounts receivable, net 22,478 13,630
Interest receivable 584 0
Inventories 13,090 7,112
Other current assets 791 714
Total current assets 138,335 29,482
Property and equipment, net 2,568 1,817
Other assets 1,354 768
Total assets $ 142,257 $ 32,067
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 5,289 $ 2,831
Other current liabilities 9,982 5,230
Income taxes payable 285 305
Deferred revenue 146 655
Total current liabilities 15,702 9,021
Long-term debt -- --
Shareholders' equity:
Common stock 134,728 45,972
Accumulated deficit (8,176) (22,929)
Accumulated other comprehensive income 3 3
Total shareholders' equity 126,555 23,046
Total liabilities and shareholders'
equity $ 142,257 $ 32,067
Photon Dynamics, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Fiscal Year Ended
September 30, September 30,
2000 1999 2000 1999
Revenue $ 24,105 $ 14,901 $ 82,234 $ 45,431
Cost of revenue 12,371 7,968 43,336 25,573
Gross margin 11,734 6,933 38,898 19,858
Operating expenses:
Research and development 3,756 1,640 11,774 5,943
Selling, general and
administrative 3,176 3,066 12,448 11,140
Non-recurring
acquisition charges -- -- 860 --
Total operating expenses 6,932 4,706 25,082 17,083
Operating income 4,802 2,227 13,816 2,775
Interest income 1,698 107 4,332 305
Interest expense and other (50) (40) (157) (134)
Income before income taxes 6,450 2,294 17,991 2,946
Provision for income taxes 1,118 290 3,238 673
Net income $ 5,332 $ 2,004 $ 14,753 $ 2,273
Basic earnings per
share Diluted net
income (loss) per share: $ 0.45 $ 0.21 $ 1.35 $ 0.24
Diluted earnings per
share Diluted net
income (loss) per share: $ 0.42 $ 0.19 $ 1.23 $ 0.23
Shares used in
computing basic
earnings per share 11,765 9,530 10,941 9,282
Shares used in
computing diluted
earnings per share 12,608 10,423 11,958 9,935
SOURCE: Photon Dynamics, Inc. |
