PCD Inc. Announces Second Quarter 2001 Results
Story Filed: Monday, July 30, 2001 7:58 AM EST
PEABODY, Mass., Jul 30, 2001 /PRNewswire via COMTEX/ -- PCD Inc. (Nasdaq: PCDI), a manufacturer of electronic connectors, today announced its financial results for the second quarter ended June 30, 2001. Net sales of $9.3 million for the quarter were down 35% from the $14.3 million achieved a year ago, and 36% below the previous quarter's sales of $14.5 million. On a year-to-date basis, net sales were $23.7 million, a 16% decrease compared to $28.2 million for the same period last year.
As a result of reduced volume, second quarter results showed a net loss of $1.8 million or $0.20 per share, compared to net income of $735,000 or $.08 per share one year ago, and net income of $427,000 or $0.05 per share in the first quarter. Net loss for the second quarter before amortization was $0.12 per share in 2001 compared to net income of $0.15 per share in 2000.
On a year-to-date basis, net loss was $1.4 million or $0.16 per share, as compared with net income of $1.1 million or $0.12 per share during the prior year. Net loss before amortization was $0.01 per share in 2001 compared to net income of $0.26 per share in 2000.
"Reduced sales and the resulting losses are entirely due to the severe downturn in the semiconductor industry, which directly impacts on our Wells- CTI Division burn-in socket business" stated John L. Dwight Jr., Chairman and CEO. "Our Industrial/Avionics business segment remains strong. This Division's sales and incoming orders for the first half of the year were more than 10% above 2000, and remain ahead of last year through July as well."
"We are now in the third quarter of the semiconductor market decline, and the timing of a recovery is uncertain, but could well extend into next year. What is clear is that our present semiconductor market business level does not fit the PCD profitability matrix. During the past four months we have reduced annualized expenses by over $2.0 million and will continue to take necessary measures to return to profitability. As a further consequence of lower sales, we are presently not in compliance with one of the covenants governing our Senior Credit Facility and are working with the lenders to modify the Facility in light of the present and forecasted situation."
"On a positive note," Mr. Dwight continued, "Wells-CTI recently received a significant first order for burn-in sockets for a new RAMBUS memory package from Samsung, the leader in this rapidly growing market segment. In the Avionics area, we are in final negotiations on several agreements with leading airframe suppliers which would both expand our present business base and add new business and products."
PCD Teleconference:
PCD will hold a teleconference for all interested parties at 11:00 AM Eastern Time July 30, 2001 to discuss second quarter financial results. Interested parties are invited to participate by dialing 719-457-2633 five minutes in advance and requesting the PCD conference call, Code 698737. For those unable to participate in the conference call, there will be a continuous playback recording available from Monday, July 30, 2001 at 2:00PM ET through Monday, August 6, 2001 at 2:00PM ET. To listen to the playback, please call 719-457-0820 (during this period) and enter the code number 698737.
Cautionary Statement:
Statements in this press release concerning the future revenues, expenses, profitability, financial resources, product mix, market demand, product development and other statements in this press release concerning the future results of operations, financial condition and business of PCD Inc. are "forward-looking" statements as defined in the Securities Act of 1933 and Securities Exchange Act of 1934. Investors are cautioned that the Company's actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company's operations and business environment, including the Company's dependence on the semiconductor industry which is currently experiencing a severe downturn, the Company's ability to meet its debt covenants and to modify its Senior Credit Facility to the extent that is cannot meet such covenants, fluctuations in demand for the Company's products, the Company's dependence on its principal customers and independent distributors, international sales and operations, rapid technological evolution in the electronics industry and the like. The Company's most recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, contain additional information concerning such risk factors, and copies of these filings are available from the Company upon request and without charge.
PCD Inc. ( www.pcdinc.com) designs, manufactures and markets electronic connectors for use in semiconductor burn in, industrial equipment and avionics. Electronic connectors, which enable an electrical current or signal to pass from one element to another within an electronic system, range from the minute individual connections within an integrated circuit ("IC") to rugged, multiple lead connectors that couple various types of electrical/electronic equipment. Electronic connectors are used in virtually all electronic systems, including data communications, telecommunications, computers and computer peripherals, industrial controls, automotive, avionics and test and measurement instrumentation.
The Company markets over 6,800 electronic connector products in three product categories, each targeting a specific market. These product categories are semiconductor burn in sockets, industrial interconnects and avionics junction modules and relay sockets.
The Company's consolidated statements of income and consolidated balance sheets are attached.
PCD INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data - Unaudited)
Three Months Ended Six Months Ended
06/30/01 07/01/00 06/30/01 07/01/00
Net Sales $9,266 $14,330 $23,727 $28,235
Cost of sales 6,702 7,573 14,836 15,295
Gross profit 2,564 6,757 8,891 12,940
Operating expenses 3,345 3,281 6,698 6,661
Amortization 1,047 1,047 2,095 2,095
Income (loss) from operations (1,828) 2,429 98 4,184
Interest expense/(other income),
net 828 1,202 1,868 2,420
Income (loss) before income taxes (2,656) 1,227 (1,770) 1,764
Provision (benefit) for income
taxes (845) 492 (386) 707
Net income (loss) $(1,811) $735 $(1,384) $1,057
Earnings (loss) per share - Basic $(0.20) $0.09 $(0.16) $0.12
Earnings (loss) per share -
Diluted $(0.20) $0.08 $(0.16) $0.12
Diluted earnings (loss) per
share:
Income (loss) before
amortization $(0.12) $0.15 $(0.01) $0.26
Amortization (0.08) (0.07) (0.15) (0.14)
Net income (loss) $(0.20) $0.08 $(0.16) $0.12
Weighted average number of common
and common
equivalent shares outstanding:
Basic 8,879 8,599 8,851 8,588
Diluted 8,879 8,984 8,851 9,000
CONSOLIDATED BALANCE SHEETS
(In thousands - Condensed and Unaudited)
Assets Jun 30, 2001 Dec 31, 2000
Cash $210 $837
Accounts receivable, net 6,329 8,318
Inventories 6,516 6,199
Equipment and improvements, net 15,502 15,801
Other assets 75,355 77,958
Total Assets $103,912 $109,113
Liabilities and Stockholders'
Equity
Total debt $35,714 $35,873
Accounts payable and accrued
liabilities 6,799 10,693
Stockholders' equity 61,399 62,547
Total Liabilities and
Stockholders' Equity $103,912 $109,113
Contacts:
John L. Dwight, Jr. John J. Sheehan III
Chief Executive Officer Chief Financial Officer
PCD Inc. PCD Inc.
(978) 532-8800 (978) 532-8800
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SOURCE PCD Inc. |
