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QC Optics' Third Quarter Revenues Increase 85%
Business Wire - November 03, 1998 08:12
WILMINGTON, Mass--(BUSINESS WIRE)--Nov. 3, 1998--QC Optics, Inc. (AMEX:OPC,
OPC.WS) today announced that net income for the third quarter ended September 30, 1998
was $278,742, or $0.09 per diluted share, compared with a net loss of $166,063, or $0.05 per
diluted share, for the third quarter of 1997. Revenues for the third quarter of 1998 rose 85
percent to $2,683,529 from $1,451,295 for the prior year's period.
For the nine-month period, revenues increased 78 percent to $8.8 million versus $4.9 million
for the same period in 1997. Net income for the first nine months of 1998 was $556,038, or
$0.17 per diluted share, versus a net loss of $641,754, or a per diluted share loss of $0.20, for
the first nine months of 1997.
"During the third quarter sequential net income improved on both an absolute basis and as a
percentage of sales," said Eric Chase, president and chief executive officer. "We accomplished
this sequential increase by improving gross margins and implementing cost reduction programs
in several areas. Our results during the first nine months of the year have been achieved in an
adverse market environment characterized by steep declines in capital expenditures in the
semiconductor and computer hard disk industries. We are using this downturn to expand our
market position, develop new products and improve the effectiveness of our organization."
"The industries we support are cyclical," Chase added. "Due to the continued downturn in
industry conditions, we anticipate lower revenue levels in the fourth quarter and do not expect
the Company to achieve break-even results for the quarter. However, we are continuing to
focus on containing costs and improving products and support to meet our customers' needs
when the upturn in business occurs."
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 300 systems installed in 16 countries.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward looking statements regarding future revenues, marketing of
products, market share, management's plans and objectives for future operations, downturns in
the semiconductor and computer hard disk industries and other matters. These statements, in
addition to statements made in conjunction with the words "anticipate", "expect", "believe",
"intend", "seek", "estimate" and similar expressions, are forward-looking statements that
involve a number of risks and uncertainties. Such statements are based on management's
current expectations and are subject to a number of factors and uncertainties that could cause
actual results to differ materially from those described in the 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, the cyclical nature
of the semiconductor and computer hard disk industries, the uncertainties concerning the Asian
markets and currencies 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
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1998 1997 1998 1997
Net sales $ 2,683,529 $ 1,451,295 $ 8,860,319 $ 4,974,814
Cost of sales 1,260,223 634,777 4,598,088 2,355,837
Gross profit 1,423,306 816,518 4,262,231 2,618,977
Gross profit percent 53.0% 56.3% 48.1% 52.6%
Operating expenses:
Selling, general
and administrative
expenses 720,559 836,787 2,567,441 2,843,327
Engineering
expenses 296,175 308,131 969,119 981,844
Total operating
expenses 1,016,734 1,144,918 3,536,560 3,825,171
Operating
income (loss) $ 406,572 ($ 328,400) $ 725,671 ($1,206,194)
Interest
income (net) 34,370 51,737 150,067 145,740
Provision (benefit)
for income taxes 162,200 (110,600) 319,700 (418,700)
Net income (loss) 278,742 (166,063) 556,038 (641,754)
Basic and
diluted net
income (loss)
per share $ 0.09 ($ 0.05) $ 0.17 ($ 0.20)
Diluted weighted
average common
and common
equivalent shares
outstanding 3,242,500 3,242,500 3,251,500 3,242,500
QC Optics, Inc.
Condensed Balance Sheets
9/30/98 12/31/97
(Unaudited)
Cash and cash equivalents $ 2,090,090 $ 3,766,534
Accounts receivable (net) 3,576,279 2,509,002
Inventory 4,014,261 4,025,428
Other current assets 58,029 76,974
Total current assets 9,738,659 10,377,938
Property and equipment (net) 189,001 227,719
Other assets 385,506 432,424
Total assets $10,313,166 $11,038,081
Current liabilities $ 1,489,538 $ 2,770,491
Long-term debt 0 0
Total liabilities 1,489,538 2,770,491
Stockholders' equity 8,823,628 8,267,590
Total liabilities and
stockholders' equity $10,313,166 $11,038,081
CONTACT: QC Optics, Inc.
Marcia Olson
Director, Corporate Relations
978/657-7007
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%QC-OPTICS OPC %MASSACHUSETTS %COMED %COMPUTERS %ELECTRONICS %EARNINGS
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