The Little Company that Could!
7/27/00 -
DALSA Corporation Reports Impressive 2nd Quarter Results Revenue up 68% over 2nd Quarter 1999
Waterloo, Ontario, July 27, 2000- DALSA Corporation (TSE:DSA), a leading developer, manufacturer, and vendor
of high performance image sensors and electronic cameras, today reported its second quarter financial results for
the period ended June 30, 2000.
For the quarter ended June 30, 2000, the Company reported revenue of $13,447,000 - an increase of approximately
67.8% over revenues of $8,013,000 reported for the same period in 1999. Revenue for the six-month period ended
June 30, 2000 totaled $23,533,000 or 54.3% greater than revenues of $15,247,000 recorded during the same period
in 1999.
Prior to the inclusion of amortization of acquisition-related costs, consolidated net earnings from operations for
the quarter ended June 30, 2000, increased to $1,565,000 or $0.14 per share, compared to $1,221,000 or $0.11 per
share reported in the corresponding period in 1999. This represents a 28% increase in consolidated net earnings
from operations in the second quarter.
For the six-month period ended June 30, 2000, consolidated net earnings excluding amortization of
acquisition-related costs reached $3,000,000 or $0.27 per share, up 28% from the same time period in 1999.
Earnings from operations are in line with expectations. The company anticipates returning to traditional profit
margins as its recent acquisitions are fully integrated.
The increase in revenue and net earnings from operations is largely a result of DALSA's own organic growth and
the impact of the acquisitions of both Silicon Mountain Design (SMD) in June of 1999 and MedOptics in January
of 2000. Machine vision revenue increased 51% over the second quarter 1999 as a result of the contribution from
the Colorado Springs Operation. During the first half of 2000, margins on Application Specific Contract revenue
were slightly lower than expected due to high material costs, however they are expected to return to their
traditional levels in the remainder of the year.
As at June 30, 2000 the Company had strong working capital of approximately $8.4 million and sales backlog of
$15.7 million.
"We are very pleased to report continued, strong growth at DALSA," said Dr. Savvas Chamberlain, Chief
Executive Officer and Chairman. "Over the quarter, we announced new contracts for our machine vision products
and continued growth in Europe; we extended our distribution network in Japan, progressed with the successful
integration of MedOptics, and advanced new CMOS technology prototypes. We are looking forward to an even
stronger second half of the Year 2000."
In June, DALSA announced two new contracts for the sale of its machine vision products: the first contract
bundled 19 of DALSA's newest digital camera product, the Eclipse, with DALSA's MOTION VISIONä defect
detection software and illustrates the Company's ability to provide customized, total vision systems solutions;
the second contract, a CDN$2,000,000 sale of DALSA's PIRANHA cameras to a European leader in printed circuit
board manufacturing, demonstrates the Company's gaining momentum in its efforts to penetrate the European
market.
Seeking greater access to potentially lucrative Asian markets, DALSA is ramping up efforts to distribute its
products in Japan. The Company's agreement with current distributor, CTC, has been extended to include the
following Japanese cities: Tokyo, Osaka, Nagoya, Fukuoka and Kanagawa; the agreement also provides for
distribution by CTC's sister company (C. Itoh Electronics Corporation of Japan), thus further increasing the
distribution coverage of DALSA's products in Japan. CTC (C. Itoh Techno-Science Corporation Limited) is a
subsidiary company of Itochu Corporation, one of the leading trading firms in Japan. CTC imports electronic
components, photonic devices, image sensors, electronic digital cameras, state-of-the-art computer systems, and
software from all over the world and distributes them nationwide in Japan.
"Japan is a market with great potential for DALSA and provides a great foothold for broader expansion across
Southeast Asia," commented Dr. Chamberlain. "The extension of our distribution agreement with CTC will
provide a solid foundation for strong growth in Japan. With this contract in place, we are well-positioned to more
aggressively promote the DALSA brand name in the region."
Commenting on the acquisition of MedOptics, Dr. Chamberlain remarked that integration of the Tucson
Operations are well underway. "MedOptics generated revenue of $1,000,000 over the quarter while realizing a
loss of $120,000, which is in line with our expectations. We expect the unit to be profitable in the second half of
this year as there is an order backlog of $2,500,000, new orders are in the works and process improvements
should result in production efficiencies."
The Company continues to pursue its stated growth strategy of developing effective CMOS technology and has
recently developed a new prototype under an Application Specific Contract. Dr. Chamberlain concluded his
comments on the quarter's success by hinting at possible technological advancements to be introduced in the
months ahead. "We continue to improve our CMOS sensors and target markets with attractive opportunity
where we can maintain profitability and achieve sustainable growth."
DALSA Corporation, an Electronics-Photonics company, is a leading designer, developer, manufacturer, and
vendor of high-performance semiconductor image sensors and electronic digital cameras. These products are
designed to replace human vision and act as high performance "eyes" for a manufacturing line or computer
system. The visual information captured by DALSA's products is then analyzed and interpreted to prompt an
automated decision or action. DALSA's continually expanding markets currently include machine vision product
inspection, document scanning, postal sorting, electronics inspection, and medical imaging. DALSA
Corporation, as an international company, sells to OEMs worldwide. Based in Waterloo, Ontario, DALSA
Corporation is a public company with common shares trading on the Toronto Stock Exchange (TSE) under the
symbol "DSA". For additional information you can visit DALSA on the World Wide Web at www.dalsa.com. |
