Q3 Press Release
Wednesday October 22 6:34 PM EDT
Company Press Release
ACT Manufacturing, Inc. Announces 1997 Third Quarter and Nine Month Results
HUDSON, Mass., Oct. 22 /PRNewswire/ -- ACT Manufacturing, Inc.
(Nasdaq:ACTM) today announced results for the third quarter of 1997.
For the three months ended September 30, 1997, revenue decreased 2
percent to $62,306,000 compared with $63,893,000 for the same period
in 1996. Net loss for the quarter was $620,000, compared with net
income of $2,967,000 for the third quarter of 1996. The Company had a
loss of $0.07 per share for the third quarter of 1997, compared with
net earnings of $0.33 per share for the same period in 1996.
For the nine months ended September 30, 1997, revenue increased 31
percent to $204,919,000 compared with $156,563,000 for the 1996
nine month period. Net income for the nine months ended September 30,
1997 was $6,373,000, a decrease of 7 percent from net income of
$6,842,000 for the 1996 nine month period. The Company realized net
earnings of $0.69 per share for the first nine months of 1997, compared
with net earnings of $0.76 per share for the same period last year.
John A. Pino, President and Chief Executive Officer, said, ''We are
very disappointed with the results of the Company's operations this
quarter. As expected, we saw a decrease in third quarter revenue year-
over-year and compared to the second quarter of 1997. As we have
previously discussed, the decline in sales is principally due to a
softness in demand from several major customers resulting in the
conversion of fewer forecasted orders than anticipated, as well as
over $10 million of orders and commitments anticipated to ship prior
to the end of the quarter that were received too late for configuration
and completion. Additionally, there was some weakness in the
development of new business opportunities that were expected to
generate greater revenue during the quarter.''
Mr. Pino went on to say, ''We have and will continue to take the
appropriate management actions to reduce costs, balance resources, and
restructure the organization to meet the needs of our customers. We
expect to return to a profitable level of operations in the fourth
quarter of 1997 and to historical levels of profitability in 1998. We
are continuing our strategy of diversification of customers, markets,
and geography, and remain excited about the future and look forward to
the continued addition of new customers as well as the expansion of
business with our existing customers.''
This press release contains forward-looking statements subject to
risks and uncertainties that could cause actual results to differ
materially from those anticipated, including statements concerning
expected earnings and revenues and future customer shipments. Those
risks and uncertainties include, among others: future customer demand;
the Company's ability to timely complete, configure and ship products;
and changes, reductions, delays or cancellation of customer orders. In
addition, the Company's business and results of operations are subject
to numerous additional risks and uncertainties, including the short-
term nature of customer orders, customers' announcement and
introduction of new products or new generations of products,
evolutions in the life cycles of customers' products, effectiveness in
managing manufacturing processes, inventory obsolescence, currency
exchange rate movements, competition in the electronics manufacturing
services market, trends in the electronics industry and changes or
anticipated changes in economic conditions. For a more detailed
discussion of the risks and uncertainties of the Company's business,
please refer to the Company's periodic reports and registration
statements filed with the Securities and Exchange Commission,
including the Company's annual report on Form 10-K for the period
ended December 31, 1996 and quarterly report on Form 10-Q for the
period ended June 30, 1997.
ACT Manufacturing, Inc., headquartered in Hudson, Massachusetts,
provides value added electronics manufacturing services for original
equipment manufacturers (''OEMs'') in the networking, computer,
telecommunications, industrial and medical equipment markets. The
Company provides OEMs with complex printed circuit board (''PCB'')
assembly primarily utilizing advanced surface mount technology
(''SMT''), mechanical and molded cable and harness assembly, electro-
mechanical sub-assembly, and total system assembly and integration.
For more information on ACT Manufacturing, via fax at no
charge, please dial 1-800-PRO-INFO and enter ticker ACTM.
ACT MANUFACTURING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
Unaudited
Three Months Ended
September 30,
1997 1996
Net sales $62,306 $63,893
Cost of goods sold 58,916 55,785
Gross profit 3,390 8,108
Selling, general and
administrative expenses 3,915 2,719
Operating income/(loss) (525) 5,389
Interest and other expense, net 507 443
Income/(loss) before provision
for income taxes (1,032) 4,946
Provision/(credit) for
income taxes (412) 1,979
Net income/(loss) $(620) $2,967
Net income/(loss) per common share $(.07) $.33
Weighted average shares
outstanding 9,049,613 9,043,743
Unaudited
Nine Months Ended
September 30,
1997 1996
Net sales $204,919 $156,563
Cost of goods sold 182,992 137,159
Gross profit 21,927 19,404
Selling, general and administrative
expenses 9,728 7,185
Operating income 12,199 12,219
Interest and other expense, net 1,577 815
Income before provision for
income taxes 10,622 11,404
Provision for income taxes 4,249 4,562
Net income $6,373 $6,842
Net income per common share $.69 $.76
Weighted average shares
outstanding 9,175,430 9,011,100
ACT MANUFACTURING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Unaudited
ASSETS September 30, 1997 December 31, 1996
CURRENT ASSETS:
Cash and cash
equivalents $6,115 $5,054
Accounts receivable, net 49,456 41,475
Inventory 61,729 53,994
Deferred taxes 1,339 1,487
Prepaid expenses and
other assets 2,081 489
Total current assets 120,720 102,499
PROPERTY AND EQUIPMENT - net 7,638 4,635
OTHER ASSETS 6,952 461
TOTAL $135,310 $107,595
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of
long-term debt $379 $38
Accounts payable 34,303 26,154
Accrued expenses 3,824 5,216
Total current
liabilities 38,506 31,408
LONG-TERM DEBT - net of
current portion 37,616 29,055
STOCKHOLDERS' EQUITY
Common stock 91 88
Additional paid-in capital 38,927 33,201
Cumulative effect of
currency translation (46) --
Retained earnings 20,216 13,843
Total stockholders'
equity $59,188 $47,132
TOTAL $135,310 $107,595
SOURCE ACT Manufacturing, Inc. |
