Summary: CDT continued its track record of 27 consecutive quarters of year-over-year growth in sales and net income!
Wednesday May 27, 4:05 pm Eastern Time
Company Press Release
SOURCE: Cable Design Technologies Corporation
Cable Design Technologies (CDT) Reports Third Quarter Results
PITTSBURGH, May 27 /PRNewswire/ -- Cable Design Technologies Corporation (NYSE: CDT - news) today announced results for the third fiscal quarter ended April 30, 1998. Net sales increased $37.7 million, or 29.0% to a record $167.6 million versus $130.0 million for the same period last year, including $22.5 million of additional sales attributable to CDT's recently acquired operations. Operating income for the period was $19.9 million versus $15.5 million last year. Net income for the quarter increased 16.0% to $10.7 million ($0.34 per diluted share) versus $9.2 million ($0.30 per diluted share) a year ago.
For the first nine months of fiscal 1998, net sales were up 34.9% to a record $485.4 million versus $359.9 million last year, including $83.1 million in sales from the Company's newly acquired operations. Operating income for the period was $57.1 million versus $43.2 million last year. Net income for the first nine months increased 26.8% to $32.0 million ($1.02 per diluted share) versus $25.3 million ($0.82 per diluted share) a year ago.
With the third quarter of fiscal 1998, CDT continued its track record of 27 consecutive quarters of year-over-year growth in sales and net income, excluding non-recurring charges. Since fiscal 1992, excluding non-recurring charges, CDT has achieved a 5-year compound annual growth rate of 34% for sales, 51% for net income and 38% for earnings per share through the fiscal year ended July 31, 1997.
Results for the third quarter of fiscal 1998 reflect increased sales in all four of CDT's principal business groups with the addition of sales by its recent acquisitions. Sales attributable to the recent acquisitions primarily benefited the Automation & Process Control and Specialty Electronic Cable groups. Sales for the Network Products group were up 17% over the same period last year reflecting a 28% increase in North American sales of computer network cables, and sales for the Communications Cable group increased 20% over a year ago. Sales outside of North America for all product segments were $27.8 million versus $26.3 million for the third quarter of last year. The gross margin for the third quarter was 28.6% compared to 29.7% for the same quarter last year. Factors which contributed to the lower gross margin were the inclusion of the additional sales of the recently acquired businesses which collectively have a lower gross margin relative to the Company's previous gross margin, the mix effect of higher sales of the relatively lower gross margin Communications Cable products, and a lower gross margin for the Automation & Process Control group. The move of NORDX/CDT's IBDN structured wiring operations to a new facility in Montreal, completed in the third fiscal quarter of 1998, temporarily constrained capacity, and the gross margin for the Network Products group would have been greater except for the need for NORDX/CDT to outsource cable.
In commenting on results, Paul M. Olson, President and CEO, stated, ''We are extremely pleased with CDT's results in what was, as anticipated, a very challenging quarter. Our performance was initially hindered by slower than anticipated sales of networking products early in the quarter, however by March, sales momentum accelerated with the release of several pending network systems projects along with a mix shift to greater sales of Level 6 and 7 network cables compared to our second quarter 1998. In fact, our third fiscal quarter ended with one of the strongest months on record for CDT's networking products, a trend which appears to be continuing into the final quarter of fiscal 1998.''
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