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Praegitzer Industries, Inc. Reports Quarterly and Annual Revenues
PR Newswire - July 21, 1998 16:52
Revenue and Earnings Up Significantly From Last Year End
DALLAS, Ore., July 21 /PRNewswire/ -- Praegitzer Industries, Inc. (Nasdaq: PGTZ) today announced revenue for its fourth quarter and fiscal year ended June 30, 1998. For the fourth quarter ended June 30, 1998, revenue grew to $49.4 million, up from $45.4 million in the same period of 1997. Net income for the period was $15 thousand, significantly below fourth quarter 1997 net income of $1.7 million. Earnings per share in the fourth quarter were break-even on 12.8 million diluted shares, down from earnings per share of $0.14 on 12.4 million diluted shares in the fourth quarter of 1997. The Company has recently invested in additional manufacturing capacity that was underutilized for the period which was one of the main causes of the lower earnings for the quarter, as well as the overall industry softness, pricing pressure and postponed orders by the Company's major printed circuit board customers.
Net revenue for fiscal year 1998 increased 24% to $182.8 million compared to 1997 revenue of $147.9 million. The Company realized net income of $5.1 million or $0.40 per share, based on 12.7 million diluted shares outstanding. This compares to last year when the Company reported a net loss for the period of $8.3 million, or $0.68 per share on 12.2 million diluted shares outstanding which included one time non-cash charges related to purchased research and development, and impairment of goodwill. Excluding one-time charges, the Company realized net income of $3.3 million or $0.27 per share for the fiscal year 1997.
"Business conditions are quite different than we had planned at the beginning of our fiscal year," stated Matt Bergeron, President and Chief Operating Officer of Praegitzer Industries, Inc. "As a result, our investments in additional capacity and technology are not providing acceptable financial returns. We recognize this situation and are taking action by speeding up our strategic initiatives to reduce costs through supplier partnering and economies of scale, speeding up our productivity initiatives which focus on increasing sales dollars per employee, and improving our sales team's effectiveness." Bergeron continued, "We feel that our new sales initiatives led by Jim Buchanan, Senior Vice President of Sales and Marketing, will capture the market share needed for acceptable utilization rates and our operations and purchasing groups are up to the challenge of implementing the changes required to provide acceptable returns for our investors and shareholders."
Robert L. Praegitzer, Chief Executive Officer and Chairman, concluded by saying, "Although the present PCB market environment does not reflect our progress, we are committed to our aggressive growth strategy and we will continue to keep pace with this rapidly changing industry. In the last year we have landed several new accounts and have grown our customer base extensively. By offering our One Stop-Shopping(TM) model to our customers, they are able to take advantage of the best design expertise in the industry and we can significantly reduce their time and cost of getting to market when it comes to delivery."
Praegitzer Industries, Inc., founded in 1981, is a leading designer and fabricator of advanced printed circuit boards. Praegitzer has six fabrication facilities and 12 design centers serving customers in the business systems, computing, instrumentation, medical and telecommunications industries. Praegitzer prides itself on continually improving the quality of its products and services. It is a publicly traded company and employs more than 2,000 people. For more information on Praegitzer Industries, Inc., visit www.pii.com.
This press release includes forward-looking statements, including with respect to future booking levels, industry conditions, and the future level of business for Praegitzer Industries. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors set forth in the Company's SEC Form 10-K statement dated June 30, 1997. Factors that could cause results to differ materially from those set forth above include trends and developments in the electronics industry generally, which is subject to rapid technological change and product obsolescence, as well as economic cycles and recessionary periods, concentration of sales in a relatively small number of large customers, and intense competition in the printed circuit board industry, which the Company believes will increase.
PRAEGITZER INDUSTRIES, INC.
CONDENSED BALANCE SHEETS
(in thousands, except per share data)
June 30, 1998 June 30, 1997
ASSETS
Current assets $49,136 $34,512
Plant and equipment, net 88,826 40,036
Other assets 13,532 12,738
Total Assets $151,494 $87,286
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $29,840 $17,481
Other liabilities 4,261 2,379
Long-term debt 73,413 29,785
Stockholders' equity 43,980 37,641
Total Liabilities and Stockholders Equity $151,494 $87,286
PRAEGITZER INDUSTRIES, INC.
CONDENSED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Year Ended
June 30, June 30,
1998 1997 1998 1997
Sales $49,434 $45,405 $182,773 $147,947
Cost of Sales 41,922 36,728 148,487 122,013
Gross Profit 7,512 8,677 34,286 25,934
Selling, general
& administrative expenses 6,288 5,854 23,456 19,188
Impairment and in-process
technology expense -- -- -- 11,650
Income (loss) from operations 1,224 2,823 10,830 (4,904)
Interest expense 1,469 700 3,757 2,295
Other income (expense) 58 238 224 568
Income (loss) before
income taxes $(187) $2,361 $7,297 $(6,631)
Income taxes $(202) $625 $2,215 $1,670
Net Income (loss) $15 $1,736 $5,082 $(8,301)
Shares used in computing
basic net income per share 12,750 12,424 12,694 12,234
Basic Net Income (loss)
per share $0.00 $0.14 $0.40 $(0.68)
Shares used in computing
diluted net income per share 12,750 12,424 12,846 12,234
Diluted Net Income (loss)
per share $0.00 $0.14 $0.40 $(0.68)
SOURCE Praegitzer Industries, Inc.
/CONTACT: Bill Thale, Chief Financial Officer, 503-623-1000, ext. 1310,
or Gina O'Neill, Investor Relations, 503-623-1000, ext. 1298, both of
Praegitzer Industries, Inc./
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 111778/
/Web site: pii.com |
