Uniroyal Technology Corp NASDAQ NM: UTCI
Technology Segment Increases Sales 44% Records
Deferred Tax Valuation Allowance; Goodwill Write-Off
SARASOTA, Fla., Dec 26, 2001 /PRNewswire via COMTEX/ -- Uniroyal
Technology Corporation (UTCI) today reported that it continues to make sales
progress at its technology segment as the Company moves to become a
vertically integrated compound semiconductor company focusing on
optoelectronics and electronic devices. For the fourth quarter of Fiscal 2001
(ended September 30, 2001), its Compound Semiconductor &
Optoelectronics segment increased sales 44% versus the comparable prior
year period. The sales of $1.7 million represent the largest quarterly sales
since the Company started the segment two years ago. Sales for the Coated
Fabrics segment, the Company's only remaining legacy business, declined
19% in the quarter versus the prior year due to the downturn in the economy.
Overall, net sales declined 11% to $8.1 million for the fourth quarter versus
the $9.0 million for the fourth quarter of the previous year.
During the fourth quarter of Fiscal 2001, the Company recorded a deferred tax
valuation allowance of $17.9 million. The valuation allowance will be restored
to income as the Company transitions from a development mode to profitable
commercialization of its technology businesses. Also in the fourth quarter,
the Company wrote down $9.8 million of goodwill which was determined to be
impaired. These adjustments and the continued investment spending in the
Compound Semiconductor & Optoelectronics segment led to a reported net
loss of $34.9 million or $1.28 per diluted common share versus a net loss of
$14.1 million or $0.54 per diluted common share for the fourth quarter of the
previous year. Excluding intangible amortization and unusual items from the
fourth quarter of Fiscal 2001 and the fourth quarter of Fiscal 2000, the net
loss was $5.5 million or $0.20 per diluted common share and a loss of $2.2
million or $0.08 per diluted common share, respectively. Both periods
exclude the results of Specialty Adhesives which was sold on November 9. If
the results of Specialty Adhesives were included, the net loss from continuing
operations, excluding intangible amortization and unusual items, for the fourth
quarter of Fiscal 2001 would have been $0.16 per diluted common share
versus a loss of $0.05 per diluted common share for the fourth quarter of
Fiscal 2000.
Sales for the Compound Semiconductor & Optoelectronics business
segment increased 44% to $1.7 million for the fourth quarter of Fiscal 2001,
compared to $1.2 million for the comparable year period. Considerable
progress is being made at the optoelectronics and electronic device
operations as the integrity of product improved greatly and production
capacity increased significantly. The segment's loss before interest, taxes,
minority interest and discontinued operations for the fourth quarter was $19.0
million which included increased investment spending at the optoelectronics
and electronic device facilities, as well as a charge of $9.8 million for goodwill
write-down.
Sales for the Coated Fabrics business segment declined 19% in the fourth
quarter of Fiscal 2001 as compared to the fourth quarter of Fiscal 2000.
Continued weakness in the economy, particularly in the transportation
markets, led to the decline. Income before interest, taxes, minority interest
and discontinued operations for the Coated Fabrics segment was about equal
to the prior year considering that the prior year period included a unusual
charge of $506,000.
For the fifty-two week period ended September 30, 2001, sales were $32.9
million versus $36.7 million for the fifty-three week period ended October 1,
2000, a decline of 10%. Sales for the Compound Semiconductor &
Optoelectronics business segment increased 67% versus the year-ago period
due to the acquisition of Sterling Semiconductor, Inc. (May 2000) and an
increase in sales at the optoelectronics facility in Tampa. Sales for the
Coated Fabrics business segment declined 17% for Fiscal 2001 versus
Fiscal 2000, principally related to the slowing economy.
The loss from continuing operations, excluding intangible amortization and
unusual items, was $17.6 million or $0.67 per diluted common share versus
income of $2.1 million or $0.07 per diluted common share for the comparable
period of the previous year. Both periods exclude the results of the
Company's Specialty Adhesives business segment. If the results of Specialty
Adhesives were included, the net loss from continuing operations, excluding
intangible amortization and unusual items, per diluted common share for the
fiscal year ended September 30, 2001 would have been $0.57 and the net
income per common share for the fiscal year ended October 1, 2000 would
have been $0.15. The decline was primarily due to the recording of a $17.9
million deferred tax valuation allowance, a write-down of goodwill of $9.8
million and increased investment spending in the current year and a favorable
income tax adjustment in the preceding year. On a reported basis, the net
loss for Fiscal 2001 was $51.8 million or $1.97 per diluted common share
versus net income of $46.7 million or $1.87 per diluted common share for
Fiscal 2000. Fiscal 2000 included a significant gain on the sale of a business
segment.
Uniroyal Technology's Compound Semiconductors & Optoelectronics
business segment includes Uniroyal Optoelectronics, LLC, Sterling
Semiconductor, Inc., and NorLux Corp. Uniroyal Optoelectronics
manufactures high brightness light emitting diodes (HB-LEDs), a rapidly
growing market with applications such as traffic signals, indoor/outdoor
signage and automotive applications. Brand names include
POWER-Ga(i)N(TM) and POWER-BR(ite)(TM). Sterling Semiconductor is a
leading producer of silicon carbide (SiC) substrates, epitaxial thin films on
SiC substrates and is developing SiC devices for wireless communications,
industrial process control, and power amplification. NorLux Corp. specializes
in the design and manufacture of custom lighting solutions utilizing light
emitting diodes (LEDs). Uniroyal's business segments also include Coated
Fabrics.
The Company's common stock and warrants trade on the Nasdaq/NMS under
the symbols UTCI and UTCIW, respectively.
CONFERENCE CALL WEDNESDAY, DECEMBER 26, 2001, 10:00 A.M.
EST THE CALL WILL WEBCAST SIMULTANEOUSLY AT
WWW.UNIROYALTECH.COM
Statements made herein that are forward-looking in nature within the meaning
of the Private Securities Litigation Reform Act of 1995 are subject to risks
and uncertainties that could cause actual results to differ materially. Such
risks and uncertainties include, but are not limited to, those related to
business conditions and the financial strength of the various markets served
by the Company, the level of spending for such products and the ability of the
Company to successfully manufacture and market its products.
For the latest news about Uniroyal Technology Corporation, call
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