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Tuesday October 31, 8:50 am Eastern Time
Press Release
SOURCE: BEI Technologies, Inc.
BEI Technologies, Inc. Reports Record
Revenues and Earnings Per Share For
Fiscal 2000 Fourth Quarter and Year;
With EPS Up 76% Over Prior Year
SAN FRANCISCO, Calif., Oct. 31 /PRNewswire/ -- BEI Technologies, Inc. (Nasdaq: BEIQ - news)
reported that consolidated after-tax net income from continuing operations for the fiscal year ended
September 30, 2000 was $9,607,000 or $1.30 per share compared to earnings before extraordinary item
of $5,339,000 or $0.74 per share reported for fiscal 1999, a 76% gain in EPS. Net sales for fiscal 2000
increased 37.5% to $219.2 million compared to $159.4 million reported last year, according to Charles
Crocker, Chairman and Chief Executive Officer.
Crocker stated, ``Our continued revenue growth was a result of gains in commercial products sold to both
the automotive and industrial sectors. Automotive sales increased 97.3% to $107.5 million for fiscal 2000
compared to $54.5 million in fiscal 1999 reflecting continued worldwide demand for stability control
systems utilizing our GyroChip® yaw rate sensor. Sales to industrial customers also increased during the
year to $93.0 million from $85.8 million in fiscal year 1999, primarily due to actuator sales to the
semiconductor capital equipment industry. Government sales decreased $0.5 million to $18.7 million from
$19.2 million during fiscal 1999.''
FOURTH QUARTER RESULTS
For the fiscal 2000 fourth quarter ended September 30, 2000, consolidated after-tax net income from
continuing operations was $3,067,000 or $0.42 per share, compared with $1,956,000 or $0.27 per share
in fiscal 1999. Net sales increased to $61.0 million from $42.4 million in the comparable quarter last year.
Crocker continued, ``Sales of BEI's GyroChip sensors for the quarter rose to 434,000 units compared to
175,000 units in the fourth quarter last year. Gross margin decreased to 26.9% in the current quarter
compared to 28.9% in fiscal 1999 quarter four. Automotive margins improved due to volume and
production efficiencies, while government margins decreased due to lower volume and program cost
overruns booked in the current quarter. Also affecting current quarter margin was inventory obsolescence
recognized on some industrial product lines.''
Selling, general and administrative (SG&A) expenses as a percentage of net sales improved in the fourth
quarter of fiscal 2000 to 13.4% from 16.3% in the comparable quarter of fiscal 1999. Research and
development expense increased to 4.5% of net sales versus 3.3% in the fourth quarter of fiscal 1999
primarily due to spending incurred for technical advances in silicon microelectromechanical systems
(MEMS) and transferring engineering effort from manufacturing support in automotive GyroChip
production to further product enhancement.
The Company's financial condition continued to improve during fiscal 2000. The Company increased its
cash position to $12.3 million even while spending $7.6 million to buy back shares of its stock in the open
market. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $28.6
million. Inventory turnover increased and accounts receivable days sales outstanding improved compared to
the prior year as the Company made more progress in efficient utilization of assets.
Crocker concluded, ``Our fiscal year 2000 was one of exceptional accomplishments. We shipped in
excess of 1.3 million GyroChip units and upgraded capacity to ship up to 185,000 per month if demanded.
Our industrial business continued to grow by adding customers and new applications for our products. We
developed and demonstrated our new NCAPS (non-contact angular position sensor) technology. OpticNet
was created to develop and market products based on promising research unrelated to our main business,
and we made plans to dividend a substantial portion of the OpticNet stock to our shareholders. We
successfully repurchased shares in the open market at favorable prices and we began implementing plans to
improve market liquidity via a one-for-one stock dividend.''
BEI Technologies, Inc. is an established manufacturer of electronic sensors, motors, actuators and motion
control products used for factory and office automation, medical equipment, military, aviation and space
systems. In addition, sales to manufacturers of transportation equipment including automobiles, trucks and
off-road equipment have become a significant addition to the Company's business in recent years. The
Company's micromachined quartz yaw rate sensors are being used in advanced vehicle stability control
systems and a significant increase in the production of those sensors has been in progress since the middle
of 1998. BEI also manufactures electronic steering wheel position sensors, seat-memory modules, throttle
position and pressure sensors and other devices used in automotive systems. GyroChip is a registered
trademark of BEI Sensors & Systems Company, Inc.
Except for historical information, this news release may be deemed to contain forward-looking statements
that involve risks and uncertainties, including statements with respect to timely development, acceptance
and pricing of new products; impact of competitive products and price; the ability to manufacture products
in sufficient volume on an efficient and timely basis; general economic conditions as they affect the
Company's customers, as well as other risks detailed from time to time in the Company's reports to the
Securities and Exchange Commission, including the Company's Form 10-K Annual Report for fiscal 1999.
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
September 30, October 2,
2000 1999
(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $12,296 $3,181
Investments 7,252 6,467
Trade receivables, net 33,067 29,555
Inventories, net 31,084 31,036
Other current assets 7,863 7,193
Total current assets 91,562 77,432
Property, plant and equipment, net 36,010 35,122
Acquired technology 3,093 4,054
Goodwill 2,085 2,436
Other assets, net 5,538 4,316
$138,288 $123,360
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $18,926 $15,484
Accrued expenses and other liabilities 30,694 23,891
Current portion of long-term debt 120 120
Total current liabilities 49,740 39,495
Long-term debt, less current portion 36,628 36,705
Other liabilities 2,824 1,317
Stockholders' equity 49,096 45,843
$138,288 $123,360
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts)
Unaudited
Quarter Ended Twelve Months Ended
Sept 30, Oct 2, Sept 30, Oct 2,
2000 1999 2000 1999
Net sales $61,025 $42,438 $219,216 $159,403
Cost of sales 44,595 30,188 158,526 111,180
16,430 12,250 60,690 48,223
Selling, general and
administrative expenses 8,153 6,901 34,300 30,044
Research, development
and related expenses 2,767 1,417 8,897 6,605
Income from operations 5,510 3,932 17,493 11,574
Interest expense 638 708 2,644 2,974
Other income 171 33 968 360
Income before income taxes 5,043 3,257 15,817 8,960
Provision for income taxes 1,976 1,301 6,210 3,621
Income before
extraordinary item 3,067 1,956 9,607 5,339
Extraordinary item, net
of income taxes -- -- -- (326)
Net income $3,067 $1,956 $9,607 $5,013
Earnings per Common Share
Basic Earnings per Common Share
Income before
extraordinary item $0.45 $0.27 $1.36 $0.75
Loss from extraordinary
item, net of income taxes -- -- -- (0.05)
Net income per common share $0.45 $0.27 $1.36 $0.70
Weighted average
shares outstanding 6,877 7,180 7,057 7,158
Diluted Earnings per Common
and Common Equivalent Share
Income before
extraordinary item $0.42 $0.27 $1.30 $0.74
Loss from extraordinary
item, net of income taxes -- -- -- (0.05)
Net income per common and common
equivalent share $0.42 $0.27 $1.30 $0.69
Weighted average
shares outstanding 7,258 7,334 7,403 7,254
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Unaudited
Quarter Ended Twelve Months Ended
Sept 30, Oct 2, Sept 30, Oct 2,
2000 1999 2000 1999
Net income $3,067 $1,956 $9,607 $5,013
Adjustments to reconcile
net income to net cash
provided (used) by
operating activities:
Depreciation and Amortization 2,713 2,315 8,894 8,233
Other 46 819 5,099 (3,051)
Net cash provided by
operating activities 5,826 5,090 23,600 10,195
Net cash used in
investing activities (2,908) (3,691) (6,566) (10,587)
Net cash provided (used)
by financing activities (285) (2,154) (7,919) 16
Net increase (decrease) in
cash and cash equivalents 2,633 (755) 9,115 (376)
Cash and cash equivalents
at beginning of period 9,663 3,936 3,181 3,557
Cash and cash equivalents
at end of period $12,296 $3,181 $12,296 $3,181
For more information, contact: John LaBoskey, Senior Vice President-CFO of BEI Technologies, Inc.,
415-956-4477. |
