They guided down 10-20 percent next two qtrs.
Wednesday January 17, 4:22 pm Eastern Time
Press Release
SOURCE: Photon Dynamics, Inc.
Photon Dynamics Reports Record First
Quarter Results; Revenues Surpass Record Levels
SAN JOSE, Calif., Jan. 17 /PRNewswire/ -- Photon Dynamics, Inc. (Nasdaq: PHTN - news) today reported
financial results for the first fiscal quarter of 2001. The results of prior periods have been restated to include the
financial statements of Image Processing Systems Inc. (IPS), which was acquired on December 20, 2000 in a
transaction accounted for as a pooling of interests.
For the first quarter of fiscal 2001, revenue increased 50 percent to $29.3 million compared with $19.5 million, as
restated, for the first quarter of fiscal 2000. Net income for the current quarter was $5.2 million, or $0.38 per
diluted share, compared to net income of $2.5 million, or $0.21 per diluted share, as restated, for the same
quarter a year ago, excluding non-recurring acquisition expenses in both quarters. Including the effect of
non-recurring acquisition expenses, net income for the first quarter of fiscal 2001 was $2.8 million, or $0.21 per
diluted share, compared to net income of $1.6 million, or $0.14 per diluted share.
Bookings for the first quarter of fiscal 2001 exceeded $22 million. As a result, the company posted a backlog of
over $46 million. Gross margins were 46 percent in the first quarter of fiscal 2001 as compared with 48 percent
from the fourth quarter of fiscal 2000 and 48 percent in the comparable first quarter of fiscal 2000. Gross margins
fluctuate on a quarterly basis due to production volume and product mix, among other factors. The company's
balance sheet as of December 31, 2000 reflects $105 million in cash and related investments, $127 million in
working capital and $135 million in shareholders'equity.
``I am pleased with our financial performance this quarter. Not only did we achieve record revenue, we also
received an order and letter of intent (LOI) -- the largest ever received by Photon Dynamics -- from a major
liquid crystal display (LCD) manufacturer,'' stated Mr. Sollitto, President and CEO of Photon Dynamics, Inc.
Although the flat panel display (FPD) bookings have slowed due to overall macro-economic conditions, our
acquisition strategy has maintained our overall targets as planned, with nearly 42 percent of our revenue this
quarter coming from our electronics business and our recent IPS acquisition.
``Our FPD customers have recently indicated a delay in their investments which leads us to take a conservative
approach for the second half of the fiscal year. Nevertheless, we continue to be cautiously optimistic in our
electronics business and our new cathode ray tube (CRT) and glass business. Our geographic and product
diversification strategy, with our yield management solutions, continues to be an integral part of our future growth,''
concluded Mr. Sollitto.
Photon Dynamics is exhibiting its yield management solutions for the electronics industry at APEX in San Diego,
January 16-18, 2001. The company also will be presenting at the SEMInvest Conference in New York, March
19-21, 2001 and then at the USDC Conference in New York on April 24, 2001.
Earnings Conference Call
An earnings conference call is scheduled for 1:30 pm PST, January 17, 2001. The dial-in number for the
conference call is (888) 868-9080 or (973) 321-2000. A replay of the call will be available on the company's
website and by phone for ten days at (888) 298-2157 or (402) 220-9159. For future earnings announcements
and conference call information, please refer to our website regularly.
About Photon Dynamics Inc.
Photon Dynamics is a leading global supplier of integrated yield management solutions for the display, electronics
and other selected markets. Founded in 1986, the company currently has approximately 362 employees with
sales offices and customer support services in Aliso Viejo, Calif.; Beijing, China; Eindhoven, The Netherlands;
Hsinchu and Taipei, Taiwan; Markham, Ontario, Canada; San Jose, Calif.; Seoul, Korea; and Tokyo, Japan. The
company has been issued 47 patents and has 77 patent applications pending worldwide. For more information
about Photon Dynamics, 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 only as of the date of this presentation and involve a number of uncertainties and risks.
Such uncertainties and risks include, but are not limited to, risks related to the growth in the flat panel display
(FPD), electronics, glass, and cathode ray tube (CRT) markets, market acceptance of the 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, 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 expectations. For further information, refer to Photon Dynamics' most recent annual report filed
on Form 10-K and the company's registration statement on Form S-3 and Form 8-K as filed with the Securities
and Exchange Commission. Photon Dynamics undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new developments or otherwise.
Photon Dynamics, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
December 31, September 30,
2000 2000
Assets
Current assets:
Cash, cash equivalents and investments $104,955 $102,726
Accounts receivable, net 28,543 24,828
Inventories 14,819 16,523
Other current assets 1,775 2,510
Total current assets 150,092 146,587
Property and equipment, net 6,113 4,111
Other assets 1,936 2,056
Total assets $158,141 $152,754
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $6,937 $6,622
Other current liabilities 15,107 12,039
Deferred revenue and customer deposits 854 1,884
Total current liabilities 22,898 20,545
Other liabilities 409 409
Shareholders' equity:
Common stock 159,981 159,723
Accumulated deficit (25,090) (27,926)
Accumulated other comprehensive income (57) 3
Total shareholders' equity 134,834 131,800
Total liabilities and shareholders' equity $158,141 $152,754
Photon Dynamics, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended December 31,
2000 1999
Revenue $29,282 $19,483
Cost of revenue 15,790 10,160
Gross margin 13,492 9,323
Operating expenses:
Research and development 4,499 2,742
Selling, general and administrative 4,994 3,718
Non-recurring acquisition expenses 2,325 860
Total operating expenses 11,818 7,320
Operating income 1,674 2,003
Interest income 1,747 116
Interest expense and other (67) (115)
Income before income taxes 3,354 2,004
Provision for income taxes 518 390
Net income $2,836 $1,614
Basic earnings per share $0.22 $ 0.15
Diluted earnings per share $0.21 $0.14
Shares used in computing basic
earnings per share 12,965 10,548
Shares used in computing diluted
earnings per share 13,614 11,657 |
