QC Optics Reports 159 Percent Increase in Fourth Quarter Net
Income
Tuesday, February 24, 1998 08:50 AM
> WILMINGTON, Mass.--(BUSINESS WIRE)--Feb. 24, 1998--QC Optics, Inc.
(AMEX:OPC, OPC.WS) today announced that net income for the fourth quarter ended December
31, 1997 rose 159 percent to $887,050, or $.27 per share, from $342,689, or $.12 per share, for
the same period last year. Net sales for the quarter increased 71.6 percent to a record $5,117,020
from $2,981,513 for the fourth quarter of 1996.
For the year ended December 31, 1997, net income was $245,296, or $.08 per share, versus a net
loss of $206,855, or $.09 per share, for 1996. Net sales for 1997 were $10,091,834 versus
$13,577,104 last year. Included in the 1996 results was a one-time, non-cash management buyout
charge of $1,701,000.
According to Eric T. Chase, president and chief executive officer, QC Optics' record fourth quarter
revenue was primarily the result of DISKAN(R) inspection systems being delivered for use by
customers to inspect 100 percent of disks during production, instead of on a lot sample basis, as
was previously the case. "This significantly increases the potential market for this product family and
resulted in record DISKAN(R) shipments for the year," Chase said.
"Our backlog at December 31, 1997 increased to more than $6 million from $740,256 at
December 31, 1996," he added. "With the majority of the equipment scheduled to ship during the
first half of 1998, we expect early 1998 to compare favorably to the same period a year ago."
Chase also noted that the company experienced an improvement in orders for its semiconductor
products during the fourth quarter, a trend that is expected to continue into 1998.
QC Optics, Inc. designs, manufactures and markets laser based defect detection systems for the
semiconductor, flat panel display and computer hard disk markets. The company's systems combine
automatic handling, cleanroom capability and computer control with reliable laser based technology
to provide high quality inspection capabilities with the goal of producing increased yields for its
customers. The company's customers include many of the world's largest leading semiconductor and
computer hard disk manufacturers. Currently, QC Optics has over 250 systems installed in 16
countries.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward looking statements regarding anticipated increases in revenues,
marketing of products, market share and other matters. These statements, in addition to statements
made in conjunction with the words "anticipate", "expect", "believe", "intend", "seek" and similar
expressions, are forward-looking statements. These statements involve a number of risks and
uncertainties, including, but not limited to, the impact of competitive products and pricing, product
demand and market acceptance, new product development, availability of raw materials,
fluctuations in operating results and other risks detailed from time to time in the company's filings
with the Securities and Exchange Commission.
QC Optics, Inc.
Statements of Income (a)
Three Months Ended Year Ended
December 31 December 31
1997 1996 1997 1996
(Unaudited)
Net sales 5,117,020 2,981,513 10,091,834 13,577,104
Cost of sales 2,430,273 1,124,239 4,786,110 5,900,121
Gross profit 2,686,747 1,857,274 5,305,724 7,676,983
Gross profit percent 52.5% 62.3% 52.6% 56.5%
Operating expenses:
Selling, general and
administrative
expenses 942,209 924,976 3,785,536 3,824,002
Engineering expenses 334,625 388,319 1,316,469 1,404,850
Management buyout charge 0 0 0 1,701,000
Total operating
expenses 1,276,834 1,313,295 5,102,005 6,929,852
Operating income 1,409,913 543,979 203,719 747,131
Operating income
without Management
Buyout Charge 1,409,913 543,979 203,719 2,448,131
Interest income
(expense), (net) 42,737 12,166 188,477 (107,786)
Provision for income
taxes (565,600) (213,456) (146,900) (846,200)
Net income (loss) 887,050 342,689 245,296 (206,855)
Net income
without Management
Buyout Charge 887,050 342,689 245,296 1,494,145
Net income (loss) per share $0.27 $0.12 $0.08 ($0.09)
Net income per share
without Management
Buyout Charge $0.27 $0.12 $0.08 $0.64
Shares used in per share
computations 3,254,410 2,947,203 3,245,478 2,349,301
(a) The company has implemented Statement of Financial Accounting Standards No. 128 -
Earnings Per Share (EPS) which requires presentation of both basic and diluted EPS. The financial
information presented herein has been prepared based on the new standard and all per share
amounts are the diluted EPS, which happen to be the same as basic EPS.
QC Optics, Inc.
Condensed Balance Sheets
Financial Position As Of: 12/31/97 12/31/96
Cash and cash equivalents $3,766,534 $5,022,772
Trade receivables 2,509,002 1,884,694
Inventories 4,025,428 3,383,060
Other current assets 76,974 69,597
Total current assets 10,377,938 10,360,123
Property and equipment (net) 227,719 119,854
Other assets 432,424 232,943
Total assets $11,038,081 $10,712,920
Current liabilities $2,770,491 $2,690,626
Long-term debt 0 0
Total liabilities 2,770,491 2,690,626
Stockholders' equity 8,267,590 8,022,294
Total liabilities and equity $11,038,081 $10,712,920
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