SAN JOSE, Calif., Oct. 26 /PRNewswire/ -- SDL, Inc. (NASDAQ:SDLI) today
announced quarterly revenues and earnings for the quarter ended September 30,
1998.
For the third quarter ended September 30, 1998, SDL reported revenues of
$25.6 million compared to revenues of $24 million in the third quarter of
1997. Third quarter 1998 net income was a record $3.1 million or $0.21 per
share on a diluted basis. This was an increase of 26 percent compared to a
net income of $2.5 million or $0.17 per share on a diluted basis for the third
quarter of 1997. Diluted earnings per share for the third quarter of 1998
were computed based on 14.7 million shares, compared to 14.4 million shares
for the third quarter of 1997.
For the third quarter, the company's gross margins reached 36.1 percent.
This compares to gross margins of 31.8 percent for the same quarter in 1997
and 34.5 percent for the second quarter of 1998.
For the nine months ended September 30, 1998, SDL reported record revenues
of $76.7 million up 15 percent, compared to revenues of $66.5 million for the
first nine months of 1997. Net income for the same period was a record
$8.7 million or $0.59 per share on a diluted basis, compared to a net loss of
$26.5 million or $1.97 per share in the first nine months of 1997. Diluted
earnings per share for the first nine months of 1998 were computed based on
14.6 million shares, compared to 13.4 million shares for the first nine months
of 1997.
Third quarter revenue was down one percent sequentially from the record
$25.8 million recorded in the second quarter of 1998 as strong growth in
revenue from dense wavelength division multiplexing (DWDM) products was offset
by a reduction in U.S. government revenue. Net income increased by seven
percent over net income for the second quarter of 1998 due to higher gross
margins.
"We are very pleased with our results this quarter," said Donald R.
Scifres, Chairman and Chief Executive Officer. "We improved our revenue mix,
benefited from better yields from the new wafer fab, and as a result, we
increased gross margins and reported record net income for the quarter."
"We are very encouraged by the increased demand for our DWDM products,"
Scifres continued. "For the first nine months of 1998, DWDM product growth
increased 95 percent over the comparable period last year as we capitalized on
this demand with an expanded and diversified DWDM customer base. In addition
to our more than one dozen existing telecommunications and cable TV customers
taking products at a rate of over $1 million per year, we recently received
our first three contracts for 980 nm lasers for use in undersea DWDM systems.
One of these contracts is for production with shipments beginning in Q4 1998,
and two are for qualification testing which we began during the third
quarter."
Scifres went on to say, "Because of the growth in our DWDM product lines,
we are announcing today a major expansion of our SDL Optics manufacturing
facilities in Victoria, British Columbia. These facilities provide advanced
packaging and assembly for our DWDM fiber optic-based product lines. The
33,000 square foot facility expands our SDL Optics manufacturing floor space
by over 100 percent. It is expected to be operational by October 1999. We
believe this new facility will be a key element in continuing our success in
the DWDM marketplace."
SDL designs, manufactures and markets semiconductor optoelectronic
integrated circuits, semiconductor lasers, fiber optic related products and
optoelectronic based systems. The company's products are used in a diversity
of markets such as telecommunications, cable television, dense wavelength
division multiplexing, satellite communications, printing, medical and
materials processing markets. |
