After the Merix disaster, I think this is good news.
SALEM, N.H., Aug. 19 /PRNewswire/ -- HADCO Corporation HDCO today
reported financial results for its third quarter ended August 1, 1998.
Net sales for the third quarter were $201.4 million resulting in a net loss of ($6.9)
million, and net loss per share of ($0.52). Included in the net loss are restructuring
charges amounting to $1.1 million relating to the restructuring announced on July
31, 1998. Excluding the restructuring charge, the net loss was ($6.2) million, and
net loss per share was ($.47). Net sales for the third quarter of 1997 were $183.3
million, net income was $11.4 million, and diluted earnings per share was $0.93.
On a pro-forma basis for the third quarter of 1997, assuming the acquisition of
Continental occurred prior to the beginning of the that quarter, net sales were
$215.5 million, net income was $10.6 million, and diluted earnings per share was
$0.86.
Backlog at the end of the third quarter was $128.7 million, versus $125.6 million for
the previous quarter.
Andy Lietz, President and CEO, said "we are reporting financial results in line with
expectations. Our focus is now on the future. We are driving our cost structure
down to levels that we believe will result in improved operating margins. We
announced a limited restructuring on July 31, 1998, which is only a part of the total
cost reduction program for our Company. At the same time we are moving forward
with new technologies such as our volume microvia products, and continuing to
drive growth of our backplane capabilities. We are looking forward to improved
bottom line performance in the fourth quarter of 1998."
Hadco is the largest manufacturer of advanced electronic interconnect products in
North America. The Company offers a wide array of sophisticated manufacturing,
engineering and systems integration services to meet its customers' electronic
interconnect needs. The Company's principal products are complex multilayer rigid
printed circuits and backplane assemblies. Hadco provides customers with a
range of products and services that includes development, design, quick-turn
prototype, pre-production, volume products, and backplane assembly. Hadco's
customers are a diverse group of original equipment manufacturers and contract
manufacturers in the computing (mainly workstations, servers, mainframes,
storage and notebooks), data communications / telecommunications and
industrial automation industries, including process controls, automotive, medical
and instrumentation. The Company operates twelve facilities, with eleven facilities
in the United States and one facility in Malaysia.
Except for the historical information contained in this press release (including
pricing, net sales and net income) there may be forward looking statements that
involve risks and uncertainties. Factors that could cause actual results to differ
materially from forward looking statements include, but are not limited to, general
economic conditions, business conditions in the electronics industry, demand for
the Company's products, and other risks and uncertainties described in reports
and other documents filed by the Company from time to time with the Securities
and Exchange Commission.
A conference call will take place at 4:45p.m. eastern time on August 19, 1998.
Dial in number is 212-346 0281. Replay will be available until approximately
6:45p.m. on August 21st by calling 800-633-8284 with a reservation number of 463
2237.
Hadco Corporation's press releases are available through Company News On- Call
by fax at 800-758-5804, PIN# 390325, or on the Internet at
hadco.com:8080/
The figures are as follows:
HADCO CORPORATION
Table A
Condensed Financial Highlights
(in thousands except per share data)
(unaudited)
Three Months Ended
7/26/97 8/1/98
Actual Pro-Forma (A) Actual
Consolidated Summary Statements
Of Operations:
Net Sales $ 183,274 $ 215,479 $ 201,392
Gross Profit $39,256 $45,485 $18,578
Restructuring Charge --- --- $1,105
Income (loss) from Operations $21,352 $23,804 $(3,849)
Net Income (loss) $11,369 $10,580 $(6,880)
Earnings (loss) Per Share
Basic $ 0.96 $0.90 $(0.52)
Diluted $ 0.93 $0.86 $(0.52)
Weighted Average Shares
outstanding
Basic 11,782 11,782 13,255
Diluted 12,254 12,254 13,255
Other Data:
Capital Expenditures $18,278 $26,804 $20,687
Interest Expense $3,428 $6,709 $8,035
Consolidated Balance Sheet Data:
Working capital $66,379 $91,214
Total Assets $500,492 $733,802
Long-term debt and capital lease
obligations, net of
current portion $125,995 $366,898
Stockholders' Investment $228,418 $190,581
NOTE (A): Gives effect to the acquisitions of Continental assuming such
transactions had occurred on October 27, 1996.
HADCO CORPORATION
Table B
Condensed Financial Highlights
(in thousands except per share data)
(unaudited)
Nine Months Ended
7/26/97 8/1/98
Actual Pro-Forma (A) Actual Pro-Forma (B)
Consolidated Summary Statements
of Operations:
Net Sales $ 475,472 $ 630,112 $609,255 $661,206
Gross Profit $ 104,094 $ 129,944 $94,378 $94,864
Write-off of
in-process R&D $78,000 --- $63,050 ---
Restructuring and
Other Charges --- --- $7,052 $7,052
Income (loss) from
Operations $(21,049) $66,547 $(36,359) $20,181
Net Income (loss) $(47,843) $26,856 $(54,493) $1,139
Earnings (loss) Per Share
Basic $(4.36) $2.45 $(4.14) $0.09
Diluted $(4.36) $2.34 $(4.14) $0.08
Weighted Average Shares
outstanding
Basic 10,970 10,970 13,172 13,172
Diluted 10,970 11,467 13,172 13,528
Other Data:
Capital Expenditures $47,810 $72,335 $68,873 $79,670
Interest Expense $8,679 $22,104 $14,329 $20,118
NOTE (A): Gives effect to the acquisitions of Continental and Zycon assuming
such transactions had occurred on October 27, 1996 for the nine months ended
July 26, 1997.
NOTE (B): Gives effect to the acquisition of Continental assuming such
transaction had occurred on October 26, 1997 for the nine months ended August
1, 1998.
SOURCE Hadco Corporation |
