JDS FITEL Announces Financial Results for the Third Quarter of Fiscal
1999
Date: Wed, 14 Apr 1999 17:17:44 -0400
''JDS FITEL Announces Financial Results for the Third Quarter of Fiscal 1999''
NEPEAN, ON /April 14 /CNW/ - (TSE:JDS) - JDS FITEL Inc. announced today
consolidated financial results for its third quarter ended February 28, 1999.
Revenues for the quarter were $122.6 million, up 109.6% from the $58.5
million achieved in the third quarter of fiscal 1998. Net income for the
quarter was $26.7 million, representing a 118.9% increase over net income of
$12.2 million for the third quarter of fiscal 1998.
Revenues for the nine months ended February 28, 1999 were $300.8 million,
up 87.6% from the $160.3 million achieved in the same period of fiscal 1998.
Net income for the nine months ended February 28, 1999 was $65.2 million,
representing a 93.0% increase over net income of $33.8 million achieved in the
same period of the previous fiscal year.
Earnings per share for the quarter was $0.34 based on 78.0 million
average shares outstanding. This compares with $0.16 per share achieved for
the same period of fiscal 1998 based on 76.6 million average shares
outstanding.
Earnings per share for the nine months ended February 28, 1999 was $0.84
based on 77.9 million average shares outstanding. This compares with $0.46
per share achieved in the same period of fiscal 1998 based on 73.8 million
average shares outstanding.
The growth in sales continued to be driven by the strength of the
telecommunications industry. The Component and Module product area continued
its strong growth accounting for $98.7 million of revenues for the third
quarter of fiscal 1999, up 163% from the $37.6 million for the same period in
fiscal 1998. The Instruments product area accounted for $16.7 million in
revenues, up 39% from the $12.0 million for the same period in fiscal 1998.
The Interconnect (Resale) product area experienced a decrease, accounting for
$7.2 million in revenues, compared to $8.9 million for the same period in the
last fiscal year.
The United States continued to be the primary market for JDS FITEL
products, with sales in this region (based on invoicing address) accounting
for 82% of total sales in the third quarter of fiscal 1999. European sales
accounted for 14% of total sales with the remaining regions representing 4% of
total sales.
Jozef Straus, President and CEO commented:
''We are very pleased with our third quarter results for fiscal 1999.
The fiberoptic industry continues to evolve rapidly to meet the growing demand
for greater transmission capacity and network flexibility. In particular, our
performance reflects the ongoing deployment of Dense Wavelength Division
Multiplexing (DWDM) applications and products providing more optical
functionality in fiberoptic networks.
Our proposed merger with Uniphase this quarter underscores the
accelerated pace of development in the industry and the need for greater
agility and speed in pursuing emerging high growth areas in fiberoptics.
Reflecting these market dynamics, we strengthened our waveguide position with
the completion of the acquisition of the assets of Akzo Nobel Photonics and
the increase in our ownership of IOT from 49 to 51 percent. In addition, we
also announced a contractual joint venture with Corning to develop and
manufacture optical isolators.
From an operational perspective, we successfully completed our expansion
into Phase I of our new campus facility. Along with the move into Phase I,
construction commenced on Phase II, which will provide an additional 239,000
sq. ft. of manufacturing and R&D capacity.
We were also very pleased with our participation at the recent Optical
Fiber Communication Conference (OFC) in San Diego. During the conference we
demonstrated several new products and technologies including a 50GHz DWDM with
add/drop capability using optical frequency interleaver technology, an
upgradeable 40 channel demux with 100GHz channel spacing, and a new wavelength
monitoring module.
As we look forward to the future, we are very excited by the growing
opportunities that lie ahead. To date, we have achieved an enviable market
position and we are confident in our ability to continue to identify, develop
and introduce products to meet customer needs in this very dynamic industry.''
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 common 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 STATEMENTS OF INCOME
(in thousands of Canadian dollars, except per share amounts)
Quarter ended Nine months ended
(Unaudited) (Unaudited)
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February February February February
28, 1999 28, 1998 28, 1999 28, 1998
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Sales $122,582 $58,510 $300,793 $160,345
Cost of goods sold 58,649 28,143 143,847 76,950
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Gross profit 63,933 30,367 156,946 83,395
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Operating expenses
Selling, general and
administrative 13,592 8,401 34,618 21,738
Research and development 9,814 4,441 25,312 11,292
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Total operating expenses 23,406 12,842 59,930 33,030
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Income before investment and other
income, and income taxes 40,527 17,525 97,016 50,365
Investment and other income 1,956 1,874 6,521 3,249
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Income before income taxes 42,483 19,399 103,537 53,614
Provision for income taxes 15,733 7,178 38,327 19,837
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Net income for the period $ 26,750 $12,221 $ 65,210 $ 33,777
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Earnings per share
Basic $ 0.34 $ 0.16 $ 0.84 $ 0.46
Fully diluted $ 0.33 $ 0.15 $ 0.81 $ 0.44
Weighted average number of shares
(in thousands)
Basic 78,036 76,627 77,893 73,816
Fully diluted 82,599 80,012 82,388 77,276
JDS FITEL INC.
CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars, except share amounts)
February May 31
28, 1999 1998
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(Unaudited) (Audited)
Assets
Current assets
Cash and cash equivalents $ 3,904 $ 25,679
Short-term investments 139,311 160,805
Accounts receivable 72,427 38,469
Inventories 45,174 29,620
Prepaid expenses and other
receivables 3,736 2,181
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264,552 256,754
Capital assets 107,181 53,653
Goodwill and other assets 37,738 7,650
Deferred income taxes 805 1,255
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$410,276 $319,312
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued
liabilities $ 43,314 $32,625
Accrued compensation and related
expenses 8,861 7,188
Income taxes payable 17,937 12,412
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70,112 52,225
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Non-controlling interest 3,417 -
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Shareholders' equity
Preferred shares, unlimited shares
authorized; none issued and
outstanding - -
Common shares, unlimited shares
authorized; 78,165,214 and
77,675,181 issued and
outstanding 172,080 167,998
Retained earnings 163,920 98,710
Foreign currency translation
adjustment 747 379
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336,747 267,087
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$410,276 $319,312
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JDS FITEL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars)
Quarter ended Nine months ended
(Unaudited) (Unaudited)
-------------------------------------------------------------------------
February February February February
28, 1999 28, 1998 28, 1999 28, 1998
-------------------------------------------------------------------------
Cash provided by (used in)
Operating activities
Net income for the period $ 26,750 $ 12,221 $ 65,210 $ 33,777
Operating items not
requiring cash
Depreciation and
amortization 3,954 1,504 9,926 5,492
Loss (income) from equity
investment - (45) - (51)
Deferred income taxes 150 185 450 (1,416)
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30,854 13,865 75,586 37,802
Net change in non-cash
working capital items -
balances related to
operations (3,255) (6,086) (32,293) (13,617)
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Cash provided by operating
activities 27,599 7,779 43,293 24,185
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Investing activities
Long term investments - - (1,000) (6,850)
Land and facilities
expansion (8,296) (6,498) (27,116) (6,633)
Capital assets (17,937) (6,181) (34,108) (16,893)
Goodwill and other assets (15,827) - (32,367) -
Proceeds from maturities
of investments 29,743 42,379 188,825 48,353
Purchases of investments (136,912) (156,693) (167,331) (201,635)
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Cash provided by (used in)
investing activities (149,229) (126,993) (73,097) (183,658)
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Financing activities
Increase (decrease) in
construction in
progress payable (1,429) - 698 -
Issuance of common shares 1,503 579 3,082 121,440
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Cash provided by financing
activities 74 579 3,780 121,440
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Net increase (decrease) in
cash during the period (121,556) (118,635) (26,024) (38,033)
Cash from acquisition of
subsidiary 4,249 - 4,249 -
Cash and cash equivalents,
beginning of period 121,211 129,136 25,679 48,534
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Cash and cash equivalents,
end of period $ 3,904 $ 10,501 $ 3,904 $ 10,501
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