Attention Business/Financial Editors:
''JDS FITEL ANNOUNCES FOURTH QUARTER AND FISCAL 1998 YEAR END RESULTS''
NEPEAN, Ontario July 22 /CNW/ - JDS FITEL Inc. (TSE:JDS) today announced
consolidated financial results for its fourth quarter and fiscal year ended
May 31, 1998.
Revenues for the year ended May 31, 1998 were $227.2 million, up 98% from
the $115.0 million achieved for the year ended May 31, 1997. Net income for
the year of $47.6 million ($0.64 per share) represented a 112% increase over
the net income of $22.5 million ($0.31 per share) for the year ended May 31,
1997.
Revenues for the fourth quarter of fiscal 1998 were $66.9 million, up 65%
from the $40.6 million achieved in the same quarter last year. Net income for
the fourth quarter of $13.9 million ($0.18 per share) represented a 66%
increase over the $8.3 million ($0.12 per share) for the fourth quarter of
fiscal 1997.
The growth in sales in all three product areas continued to be driven by
the increasing global demand for transmission capacity. The Component and
Modules product area showed strong growth accounting for $147.9 million in
revenues for fiscal 1998, up 111% from the $70.0 million for the same
period in fiscal 1997. The Instruments product area also showed strong growth
accounting for $47.4 million in revenues in fiscal 1998, up 111% from the
$22.4 million for the same period a year earlier. The Interconnect (Resale)
product area also grew accounting for $31.8 million in revenues in fiscal
1998, up 41% from $22.5 million for the same period in fiscal 1997.
The geographic distribution of sales (based on invoicing address) in
fiscal 1998 was similar to fiscal 1997. The United States continued to be the
primary market for JDS FITEL products, with sales in this region accounting
for 74% of total sales in fiscal 1998. Europe remained consistent at 15% of
total sales followed by Asia Pacific at 7%, Canada at 3% and Other at 1%.
Jozef Straus, President and CEO commented:
''We are extremely pleased with our record performance for the fourth
quarter and fiscal year ended May 31, 1998. Our growth over the last fiscal
year demonstrates the commitment and dedication of our employees in pursuing
the tremendous opportunities created by the continuing growth in the fiber
optic communications market. In particular, our results demonstrate our
ability to deliver the right products with the right technology at a time when
the telecommunications industry is evolving very rapidly to meet the demands
for increased network capacity and flexibility.
As the market evolves, our success will continue to be defined by our
access to a broad range of key technologies to develop and deliver the right
solutions at the right time. With this in mind, fiscal 1998 was characterized
by many corporate initiatives to support our leadership position in the
industry including: the acquisition of an equity interest in IOT and FITEL-PMX
to broaden our technology base; the commencement of construction of a new
campus facility to enhance our manufacturing and R&D capabilities; and a $118
million equity offering to increase our access to enabling products and
technologies. Our strategy going forward will continue to emphasize the
breadth of our product portfolio, the depth of our technology base, and the
strength and flexibility of our manufacturing infrastructure.
As we look forward to the opportunities that lie ahead in this very
dynamic industry, we will continue to focus on our strong commitment to
innovation and market driven product development to enhance our leading market
position.''
JDS FITEL is a Canadian high technology company that manufactures and
distributes a broad range of products for the growing fiberoptic
communications market. The Company executes its business strategy through its
advanced design capabilities, proprietary manufacturing tools and processes
and, in particular, its early participation in advancing market and technology
trends.
JDS FITEL's shares are listed on The Toronto Stock Exchange under the
symbol JDS.
Jozef Straus, Ph.D. M. Zita Cobb
President and CEO Chief Financial Officer
JDS FITEL Inc.
CONSOLIDATED BALANCE SHEET
(in thousands of Canadian dollars)
------------------------------------------------------------------------
May 31 May 31
1998 1997
------------------------------------------------------------------------
(Audited) (Audited)
ASSETS
Current assets
Cash and short-term investments $186,484 $56,057
Accounts receivable 38,469 24,788
Inventories 29,620 10,939
Prepaid expenses and other receivables 2,181 1,345
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256,754 93,129
Capital assets 53,309 22,715
Equity investment 6,827 -
Goodwill 788 498
Deferred income taxes 1,255 833
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$318,933 $117,175
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------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $39,249 $16,327
Income taxes payable 12,412 4,806
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51,661 21,133
------------------------------------------------------------------------
Non controlling interest 564 -
------------------------------------------------------------------------
52,225 21,133
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SHAREHOLDERS' EQUITY
Capital stock 167,998 44,967
Retained earnings 98,710 51,075
------------------------------------------------------------------------
266,708 96,042
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$318,933 $117,175
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JDS FITEL Inc.
CONSOLIDATED STATEMENT OF INCOME
(in thousands of Canadian dollars, except per share amounts)
Quarter ended Year ended
(Unaudited) (Audited)
------------------------------------------------------------------------
May 31 May 31 May 31 May 31
1998 1997 1998 1997
------------------------------------------------------------------------
Sales $66,867 $40,578 $227,212 $114,970
Cost of goods sold 32,085 18,568 109,035 53,689
------------------------------------------------------------------------
Gross profit 34,782 22,010 118,177 61,281
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Operating expenses
Selling, general and
administrative 8,731 6,909 30,469 19,479
Research and development 6,073 2,010 17,365 7,628
------------------------------------------------------------------------
Total operating expenses 14,804 8,919 47,834 27,107
------------------------------------------------------------------------
Income before investment
income, and income taxes 19,978 13,091 70,343 34,174
Investment income 2,020 315 5,269 1,505
------------------------------------------------------------------------
Income before income
taxes 21,998 13,406 75,612 35,679
Provision for income
taxes 8,140 5,080 27,977 13,220
------------------------------------------------------------------------
Net income for the
period $13,858 $8,326 $47,635 $22,459
------------------------------------------------------------------------
------------------------------------------------------------------------
Weighted average number
of shares (in thousands) 76,875 71,832 74,587 71,775
------------------------------------------------------------------------
------------------------------------------------------------------------
Earnings per share $0.18 $0.12 $0.64 $0.31
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Fully diluted
earnings per share $0.17 $0.11 $0.62 $0.30
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JDS FITEL Inc.
CONSOLIDATED STATEMENT OF CHANGES
IN FINANCIAL POSITION
(in thousands of Canadian dollars)
Quarter ended Year ended
(Unaudited) (Audited)
------------------------------------------------------------------------
May 31 May 31 May 31 May 31
1998 1997 1998 1997
------------------------------------------------------------------------
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income for the
period $13,858 $8,326 $47,635 $22,459
Operating items not
requiring cash
Depreciation and
amortization 2,134 991 7,628 3,224
Loss from equity
investment 75 - 23 -
Deferred income taxes 994 117 (422) 304
------------------------------------------------------------------------
17,061 9,434 54,864 25,987
Net change in non-cash
working capital balances
related to operations 7,233 4,663 (6,386) (4,162)
------------------------------------------------------------------------
Cash provided by
operating activities 24,294 14,097 48,478 21,825
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INVESTING ACTIVITIES
Acquisition of
subsidiary (1,761) - (1,761) -
Non controlling interest 564 - 564 -
Equity investment - - (6,850) -
Land and construction
in progress (8,292) - (14,925) -
Other capital assets
and goodwill (4,932) (2,261) (21,826) (7,628)
-------------------------------------------------------------------------
Cash used in investing
activities (14,421) (2,261) (44,798) (7,628)
------------------------------------------------------------------------
FINANCING ACTIVITIES
Construction in
progress payable 3,716 - 3,716 -
Issue of common shares 1,591 427 123,031 427
------------------------------------------------------------------------
Cash provided by financing
activities 5,307 427 126,747 427
------------------------------------------------------------------------
Net increase (decrease)
in cash during the
period 15,180 12,263 130,427 14,624
Cash and short-term
investments, beginning
of period 171,304 43,794 56,057 41,433
------------------------------------------------------------------------
Cash and short-term
investments, end of
period $186,484 $56,057 $186,484 $56,057
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-30-
For further information: Marc Ren‚ de Cotret, JDS FITEL Inc., 570 West
Hunt Club Road, Nepean, Ontario, K2G 5W8, Telephone: (613) 727-1304, Ext.
1203, Facsimile: (613) 727-1852, E-mail: investor_relations@jdsfitel.com |
