If anyone is interested, I mentioned the big jump in PHTN earlier in the week. Went up again yesterday and after the close, they announced earnings of 3 cents - which is OK for them given where they have been.
This quarter is actually better sequentially since the company earned a penny last Q due to a one time gain.
Following are some parts of the PR. I have not had time to review the numbers. With this stock, keep in mind their future has always been bright, but clouds have always moved in. Timing might be getting about right at this point.
If anyone desires, I can provide more on the company.
Regards,
Dan
Photon Dynamics Reports Increased Revenues and
Earnings for Second Quarter
SAN JOSE, Calf., April 23 /PRNewswire/ -- Photon Dynamics, Inc. (Nasdaq: PHTN - news)
today reported increased revenues and earnings for its second quarter and six-month period ended
March 31, 1998.
For the second quarter, revenue increased 45 percent to $7.4 million from $5.1 million for the
second quarter last year. Net income for the quarter advanced to $221,000, or $0.03 per diluted
share, compared with a net loss of $(973,000), or $(0.14) per diluted share, for the same period
last year.
For the first six months of fiscal 1998, revenues grew to $12.7 million from $11.3 million for the first
six months of fiscal 1997. Net income for the period rose to $268,000, or $0.04 per diluted share,
versus a net loss of $(921,000), or $(0.13) per diluted share, for the same period last year.
The company's balance sheet remains strong, with more than $5.3 million in cash and no long-term
debt.
Vince Sollitto, Chief Executive Officer, stated, ''Revenues for the quarter came primarily from
existing backlog. We are encouraged by the increase in quote activity being generated by customers
who are interested in incremental capacity additions to existing lines. Furthermore, recent research
reports from flat panel display analysts project that new capacity additions have stabilized and are
expected to accelerate in the first half of 1999. These projections are consistent with our quote
activity patterns.''
''While the ongoing economic problems in Asia have resulted in plant push-outs and reduced output
and capacity, the increased quote activity leads us to believe that spending increases may emerge in
the second half of 1998 as the demand for flat panel displays exceed the supply. This is particularly
relevant as notebook and PC producers begin to migrate to larger sizes and FPD manufacturers do
not have sufficient capacity to meet the demand for these larger sizes,'' Sollitto concluded.
Photon Dynamics is a leading worldwide supplier of test, inspection, and repair systems for the flat
panel display industry. Founded in 1986, the company currently has about 100 employees and
subsidiaries in Japan and Korea. The company has been issued 28 U.S. patents for flat panel
display test and inspection technologies and has other U.S. and foreign patent applications pending.
As the only company with systems addressing all key areas of flat panel test, inspection, and repair,
Photon Dynamics is positioned to provide the complete solution for integrated yield and cost
management systems for FPD manufacturers around the world.
To the extent that any of the statements contained herein are forward- looking, such statements are
based on current expectations that involve a number of uncertainties and risks. Such uncertainties
and risks include, but are not limited to, market acceptance of products, the development of new
products, the enhancement of existing products, manufacturing delays, dependence on principal
customers, competitive pricing pressures, product volume and mix, global economic conditions,
dependence on international operations, availability of key components, timing of orders received,
fluctuations in foreign exchange rates, and introduction of competitor products having technological
and/or pricing advantages. As a result, the company's operating results may fluctuate, especially
when measured on a quarterly basis. For further information, refer to the Company's 1997 Annual
Report on Form 10-KSB, as filed with the Securities and Exchange Commission. Actual results
may differ materially from such expectations.
PHOTON DYNAMICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousand, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
1998 1997 1998 1997
Revenue:
Product revenue $7,362 $5,085 $12,737 $10,181
Non product revenue -- -- -- 1,150
7,362 5,085 12,737 11,331
Cost of revenue:
Product revenue 4,313 2,814 7,042 5,987
Non product revenue -- -- -- --
4,313 2,814 7,042 5,987
Gross margin 3,049 2,271 5,695 5,344
Operating expenses
Research and
development 1,479 1,852 3,352 3,488
Selling, general,
and administrative 1,372 1,466 2,493 2,852
Asset recovery
related to product
line disposal -- -- (350) --
Total operating
expenses 2,851 3,318 5,495 6,340
Operating income (loss) 198 (1,047) 200 (996)
Interest income 69 98 135 209
Interest expense and other (25) (24) (46) (131)
Income (loss) before
provision for
income taxes 242 (973) 289 (918)
Provision for income taxes 21 -- 21 3
Net income (loss) $221 $(973) $268 $(921)
Income (loss) per
diluted share $0.03 $(0.14) $0.04 $(0.13)
Income (loss) per
basic share $0.03 $(0.14) $0.04 $(0.13)
Shares used in
computing income
(loss) per diluted
share 7,461 7,034 7,477 6,995
Shares used in
computing income
(loss) per basic
share 7,220 7,034 7,186 6,995
PHOTON DYNAMICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
in thousands, except share amounts
March 31, September 30,
1998 1997
(Unaudited) (Audited)*
Assets
Current assets
Cash and cash equivalents $5,318 $4,831
Accounts receivable, net 9,035 9,785
Inventories 5,641 5,076
Prepaid expenses and
other current assets 203 512
Total current assets 20,197 20,204
Property, equipment &
leasehold improvements, net 1,896 2,226
Other assets 505 773
Total assets 22,598 23,203
Liabilities and shareholders' equity
Current liabilities
Accounts payable $1,592 $2,666
Accrued expenses and
other liabilities 2,248 2,489
Customer deposits and
deferred revenue 420 276
Line of credit 350 --
Current debt 4 4
Total current liabilities 4,614 5,435
Noncurrent portion of
long-term debt 4 6
Shareholders' equity
Common stock 38,713 38,573
Accumulated deficit (20,415) (20,682)
Foreign currency translation
adjustment (214) (14)
Notes receivable from
shareholders (104) (115)
Total shareholders' equity$17,980 $17,762
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $22,598 $23,203 |
