C-COR Announces Second Quarter
Results, Strong Earnings, Record Bookings
And Book-to-Bill of 1.5
Wednesday January 20, 8:03
am Eastern Time
Company Press Release
SOURCE: C-COR Electronics,
Inc.
STATE COLLEGE, Pa., Jan. 20 /PRNewswire/ -- C-COR
Electronics, Inc. (Nasdaq: CCBL - news) announced the financial
results for the second quarter of fiscal year 1999 ended December
25, 1998. For the quarter, C-COR reported earnings from
continuing operations of $1,882,000 or $.20 per diluted share on
net sales of $36,847,000. This compares to earnings from
continuing operations of $1,586,000 or $0.17 per diluted share on
net sales of $37,185,000 for the second quarter of fiscal year 1998.
A gain on the disposal of a discontinued business segment of
$16,000 (net of applicable income tax) was also reported for the
second quarter ended December 25, 1998. Total net income for the
quarter ended December 25, 1998, was $1,898,000 or $.20 per
diluted share. C-COR pre-announced on January 11, 1999, that the
company anticipated stronger than expected second quarter
earnings, based on First Call's analyst estimate of $.16 per share.
C-COR President and CEO David A. Woodle stated, ''We are very
pleased to report a strong second quarter. Net sales in the second
quarter of the current fiscal year were 11% over those of the first
quarter of the current fiscal year. In addition, record orders of
$55.3 million were booked in the second quarter of FY99, with
strength coming particularly from North America and Asia. This
surpasses the previous quarterly period record of $44.7 million
booked in the first quarter of FY95. Book-to-bill for the second
quarter of FY99 was 1.5, and the ending backlog was $42.3
million. We are encouraged by the domestic cable industry's
implementation of network upgrades to handle video, Internet/data
and telephony services now available for marketing to their
subscribers.''
Gross margin percentage in the second quarter of FY99 was
24.7%, an increase of approximately three percentage points from a
gross margin percentage of 21.7% in the second quarter of FY98
and an increase of nearly two percentage points from the gross
margin percentage reported in the first quarter of FY99. The
improvement was primarily attributable to favorable product mix,
as well as ongoing cost reduction and process improvement
efforts.
C-COR, founded over 45 years ago, designs and manufactures
robust, high- quality network distribution products for two-way
hybrid fiber/coax (HFC) networks. C-COR's headquarters is in
State College, Pennsylvania, with production facilities in State
College and Tipton, Pennsylvania; and Tijuana, Mexico. C-COR
maintains offices in Toronto, Canada; Almere, The Netherlands;
and Hong Kong. C-COR's common stock is listed in the Nasdaq
National Market under the symbol CCBL. C-COR's website is
c-cor.com. C-COR was named to Forbes Magazine's
200 Best Small Companies in America List (1998).
Some of the information presented in this announcement,
constitutes forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Although the
Company believes that its expectations are based on reasonable
assumptions within the bounds of its knowledge of its business and
operations, there can be no assurance that actual results will not
differ materially from its expectations. Factors which could cause
actual results to differ from expectations include the timing of
orders received from customers; the gain or loss of significant
customers; changes in the mix of products sold; changes in the
cost and availability of parts and supplies; fluctuations in warranty
costs; new product development activities; the Company's ability to
implement its strategies of product, service, and global market
expansion; economic conditions affecting domestic and
international markets; regulatory changes affecting the
telecommunications industry, in general, and the Company's
operations, in particular; competition and changes in domestic and
international demand for the Company's products; the Company's
ability to assess the risks of the year 2000 issue, with respect to its
operations, and resolve them in a timely manner; and other factors
which may impact operations and manufacturing. For additional
information concerning these and other important factors which
may cause the Company's actual results to differ materially from
expectations and underlying assumptions, please refer to the reports
filed by the Company with the Securities and Exchange
Commission.
Consolidated Statements of Operations
(unaudited, in thousands of dollars except share and per share amounts)
Thirteen Weeks Ended
Increase
December 25, December 26, (Decrease)
1998 1997 percent
NET SALES $36,847 $37,185 -1%
Cost of Sales 27,739 29,124 -5%
Sales and Administration 3,819 3,772 1%
Research and Product
Development Costs 2,356 1,690 39%
Other Expense 96 201 -52%
34,010 34,787 -2%
Income from continuing operations
before income taxes 2,837 2,398
Income tax expense 955 812
Income from continuing operations 1,882 1,586
DISCONTINUED OPERATIONS:
Gain on disposal of discontinued
business segment, less
applicable income tax expense 16 0
Net Income $1,898 $1,586
Net Income Per Share - (basic):
Continuing operations $0.21 $0.17
Discontinued operations
Gain on disposal $0.00 $0.00
Total $0.21 $0.17
Net income per share - (diluted):
Continuing operations $0.20 $0.17
Discontinued operations
Gain on disposal $0.00 $0.00
Total $0.20 $0.17
Weighted Average Number of
Common Shares Outstanding
Basic 9,106,000 9,148,000
Diluted 9,298,000 9,436,000
Consolidated Statements of Operations
(unaudited, in thousands of dollars except share and per share amounts)
Twenty-six Weeks Ended
Increase
December 25, December 26, (Decrease)
1998 1997 percent
NET SALES $70,063 $74,250 -6%
Cost of sales 53,364 57,597 -7%
Sales and administrative 7,247 7,327 -1%
Research and product development 4,418 3,463 28%
Other expense 110 573 -81%
65,139 68,960 -6%
Income from continuing operations
before income taxes 4,924 5,290
Income tax expense 1,661 1,823
Income from continuing operations 3,263 3,467
DISCONTINUED OPERATIONS:
Gain on disposal of discontinued
business segment, less
applicable income tax expense 304 0
Net Income $3,567 $3,467
Net income per share - (basic):
Continuing operations $0.36 $0.38
Discontinued operations
Gain on disposal $0.03 $0.00
Total $0.39 $0.38
Net income per share - (diluted):
Continuing operations $0.35 $0.37
Discontinued operations
Gain on disposal $0.03 $0.00
Total $0.38 $0.37
Weighted Average Number of
Common Shares Outstanding
Basic 9,136,000 9,143,000
Diluted 9,347,000 9,371,000
Consolidated Balance Sheets
(in thousands of dollars)
December 25, June 26,
1998 1998
(Unaudited) (Note)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $210 $2,313
Marketable securities 399 356
Receivables 22,541 19,404
Inventories 18,700 17,375
Deferred taxes 3,060 2,797
Property held for sale, net 1,281 0
Other 2,403 2,468
Net noncurrent assets
of discontinued operations 6 0
TOTAL CURRENT ASSETS 48,600 44,713
PROPERTY, PLANT, AND EQUIPMENT, NET 24,969 27,751
INVESTMENT 5,000 0
INTANGIBLE ASSETS,
NET OF ACCUMULATED AMORTIZATION 1,281 1,295
OTHER LONG-TERM ASSETS 2,134 1,759
TOTAL $81,984 $75,518
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $8,769 $5,784
Accrued liabilities 8,923 10,245
Line-of-credit 4,012 0
Current portion of long-term debt 757 854
Net current liabilities of
discontinued operations 0 517
TOTAL CURRENT LIABILITIES 22,461 17,400
LONG-TERM DEBT, less current portion 4,012 5,513
DEFERRED TAXES 1,254 1,374
OTHER LONG-TERM LIABILITIES 1,280 1,041
SHAREHOLDERS' EQUITY 52,977 50,190
TOTAL $81,984 $75,518
Note: The balance sheet at June 26, 1998 has been derived from
audited financial statements at that date.
SOURCE: C-COR Electronics, Inc. |
