biz.yahoo.com, part 1:
Tuesday January 26, 6:22 pm
Eastern Time
Company Press Release
SOURCE: Cannondale Corporation
Cannondale Corporation
Announces Earnings and Revenue for the
Second Quarter of Fiscal 1999
BETHEL, Conn., Jan. 26 /PRNewswire/ -- Cannondale Corporation
(Nasdaq: BIKE - news) today announced results for the second quarter
and first six months of fiscal 1999, the period ended December 26, 1998.
For the three months ended December 26, 1998, net sales were
$47,901,000, compared to the $47,701,000 recorded for the same period
in the prior year. Net income for the second quarter of fiscal 1999 was
$1,775,000, a $2,068,000, or 54% decrease from the $3,843,000 recorded
during the prior-year period.
Diluted earnings per share were 23 cents for the second quarter, a
decrease of 47% compared to 43 cents recorded for the same period in
the prior year. These calculations reflect a 15% decrease in the weighted
average common and common equivalent shares outstanding primarily
as a result of the Company's repurchase of its common stock.
Sales and earnings for the second quarter of fiscal 1999 were adversely
affected by product mix, as Cannondale's ability to ship high-end,
higher-margin bicycles was limited by its suppliers' ability to provide
sufficient quantities of certain components which resulted in lower
shipments and factory-production levels during the quarter. In addition,
earnings for the second fiscal quarter of 1999 were lower compared to
the prior-year period largely due to higher research and development
expenses primarily attributable to the Company's investment in the
development of its motocross motorcycle.
For the six months ended December 26, 1998, net sales were
$90,119,000, a 10% increase over the $82,010,000 recorded for the same
period in the prior year. Net income for the first six months of fiscal 1999
was $2,487,000, a $2,026,000, or 45% decrease from the $4,513,000
recorded during the prior-year period.
Diluted earnings per share were 32 cents for the first six months of fiscal
1999, a decrease of 37% compared to 51 cents recorded for the same
period in the prior year. These calculations reflect a 14% decrease in the
weighted average common and common equivalent shares outstanding
primarily as a result of the Company's repurchase of its common stock.
The increase in sales for the first six months of fiscal 1999 was primarily
a result of strong worldwide demand for Cannondale products during
the first quarter of fiscal 1999. The benefit of increased sales on earnings
for the first six months of fiscal 1999 was offset by lower gross margins
primarily attributable to the second quarter sales product mix and
increased research and development expenses primarily relating to the
Company's investment in the development of its motocross motorcycle.
This press release contains forward-looking statements, as defined
under the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those anticipated as a result of
various risks and uncertainties, including risks described in this press
release, as well as those detailed from time to time in the Company's
periodic reports on Forms 10-K, 10-Q and 8-K filed with the Securities
and Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements which speak only as of the
date hereof. The Company undertakes no obligation to publish revised
forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
Cannondale Corporation is the world's leading manufacturer of
high-performance aluminum bicycles. The Company's bicycles and
bicycle accessories, which include clothing, packs and bags, HeadShok
suspension forks and CODA components, are marketed under the
Cannondale brand name and ''Handmade in USA'' logo, and are sold in
the U.S. and in more than 60 foreign countries. |
