While Hutch has left the market thinking there is no short term upside, Innovex seems to have sparked the hopes of others. They are saying they have turn-around potential happening with their recent buy of AdFlex and they seem to hope for improving margins in normal business. They've closed their wires operations which they had been saying would be running for years to come, but then maybe that was years ago?
Anyway, they are up 1 1/4 to $10 and that seems pretty good. Recently traded to the 7's.
Regards, Mark
Innovex Announces Fiscal 1999 Results; Takes $2.8 Million Charge to Shutdown
Lead Wire Operation
HOPKINS, Minn., Nov. 1 /PRNewswire/ --Innovex, Inc. (Nasdaq: INVX) today
reported revenue of $39.8 million for its fourth fiscal 1999 quarter, compared
to revenue of $17.9 million in the fourth quarter of fiscal 1998. The
company's net loss was $0.5 million in the fourth fiscal quarter, or $(.03)
per share. This compares to net income of $2.0 million or $0.13 per diluted
share in the fourth quarter of fiscal 1998. The net loss of $0.5 million for
the fourth fiscal quarter includes a charge of $2.8 million or $0.13 per share
related to the closure of the lead wire operation. Excluding this charge, the
company's profit would have been $1.5 million or $0.10 per share.
For fiscal year 1999, revenue was $103.2 million compared to revenue of
96.3 million in fiscal year 1998. Net income and diluted net income per share
for fiscal year 1999 were $6.6 million and $0.44, respectively, compared with
a net income of $15.9 million or $1.05 per share for fiscal year 1998. Net
income for fiscal year 1999 includes expenses of $2.8 million related to the
closure of the lead wire operation and $1.7 million related to the disposition
of Innovex's software business. Excluding these charges, the company's profit
would have been $9.7 million or $0.65 per share.
Innovex's pre-acquisition flexible circuit business continues to grow
rapidly with fiscal 1999 flexible circuit sales increasing over 130% from the
prior year's level. Innovex exited the fourth quarter with 95% of its revenue
being generated by flexible circuit sales, up from 25% in the prior fiscal
year. Flexible circuit business growth during the quarter was limited due to
capacity constraints. Additional high-end flexible circuit capacity continues
to be added to Innovex's Litchfield factory with new capacity coming on-line
during September. Gross margins for the fourth quarter were negatively
impacted by reduced yields related to an aggressive new product ramp
concurrent with new capacity installation. "We experienced some significant
operating challenges during the last half of the fiscal fourth quarter that
caused some of our product yields to drop," said William P. Murnane, Innovex's
president and COO. "An extraordinary effort by our Plant 4 factory personnel
in Litchfield allowed us to overcome these challenges and we are now
sustaining yields that are above historical levels."
The fourth quarter and year end results for fiscal 1999 included eight
weeks of operating results related to the merger with ADFlex Solutions, Inc.
Innovex expects the ADFlex related operations to be dilutive in its first
fiscal 2000 quarter due to reduced revenue and to reach a breakeven level in
the second fiscal 2000 quarter. "Customers were concerned about ADFlex's
financial troubles earlier this year and found alternative material sources
for their new programs. In addition, former management decided to cease
internal prototyping activity to conserve cash, both decisions have had a
negative impact on our current revenue stream," commented Murnane. "Innovex's
strong balance sheet has addressed customer concerns and we have restarted the
internal prototyping activity. The result is a dramatic increase in new
quoting and prototyping activity that should positively impact revenue in the
second and third fiscal 2000 quarters."
Innovex previously announced that it expects to take a one time charge to
earnings in its first fiscal 2000 quarter related to eliminating ADFlex's
excess capacity and moving secondary operations from the Mexican facility to
the new facility in Thailand in order to improve the operating cost structure.
Innovex, Inc. is a leading supplier of flexible circuit-based interconnect
solutions to the computer, networking, communication, storage, consumer,
medical and other electronic industries. Applications for flex-based
interconnects include cellular telephones, hard disk drives, and other storage
systems, high-end consumer products, notebook computers, pagers and personal
communications systems. Innovex is known worldwide for its excellence in
advanced engineering and low cost manufacturing.
Except for historical information contained herein, the matters discussed
in this release are forward looking statements that involve risks and
uncertainties, including the timely availability and acceptance of new
products, the impact of competitive products and pricing, and other risks
detailed from time to time in both Company's SEC reports, including Innovex,
Inc.'s report on Form 10K for the year ended September 30, 1998, and Form 10Q
for the quarter ended June 30, 1999 and other Securities and Exchange
Commission filings.
INNOVEX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Three Months Ended
September 30, September 30,
1999 1998
Net sales $39,830 $17,865
Costs and expenses:
Cost of sales 33,093 13,169
Selling, general and administrative 3,249 1,773
Engineering 1,713 865
Restructuring charges 2,765 --
Net interest (income) expense (142) (662)
Net other (income) expense (165) (55)
Income (loss) before income taxes (683) 2,775
Provision for income taxes (198) 810
Net income (loss) ($485) $1,965
Net income (loss) per share:
Basic ($0.03) $0.13
Diluted ($0.03) $0.13
Weighted average shares outstanding:
Basic shares 14,817 14,773
Diluted shares 14,817 14,980
Twelve Months Ended
September 30, September 30,
1999 1998
Net sales $103,198 $96,278
Costs and expenses:
Cost of sales 76,277 64,226
Selling, general and administrative 9,787 7,372
Engineering 4,581 4,149
Restructuring charge 4,461 --
Net interest (income) expense (1,567) (1,961)
Net other (income) expense 420 (162)
Income before income taxes 9,239 22,654
Provision for income taxes 2,680 6,743
Net income $6,559 $15,911
Net income per share:
Basic $0.44 $1.08
Diluted $0.44 $1.05
Weighted average shares outstanding:
Basic shares 14,798 14,695
Diluted shares 15,071 15,126
INNOVEX, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, September 30,
Assets 1999 1998
Cash and short-term investments $25,541 $57,455
Accounts receivable, net 28,499 10,522
Inventory 15,892 5,717
Other current assets 6,385 5,625
Total current assets 76,317 79,319
Property, plant and equipment, net 87,158 28,502
Intangible & other assets, net 15,331 1,831
Total assets $178,806 $109,652
Liabilities and Stockholders' Equity
Current liabilities $45,296 $6,251
Long-term debt 26,376 755
Other long-term liabilities 0 228
Stockholders' equity 107,134 102,418
Total liabilities and
stockholders' equity $178,806 $109,652
SOURCE Innovex, Inc.
-0- 11/1/1999
/CONTACT: Douglas W. Keller, VP - Finance of Innovex, Inc., 612-938-4155,
Facsimile, 612-938-7718/
/Web site: innovexinc.com /
(INVX) |
