Attention Business/Financial Editors:
''JDS FITEL Announces Financial Results for the First Quarter of Fiscal 1999''
NEPEAN, Ontario, Oct. 8 /CNW/ - JDS FITEL Inc. (TSE:JDS) today announced
consolidated financial results for its first quarter ending August 31, 1998.
Revenues for the quarter were $80.1 million, up 65% from the $48.6
million achieved in the first quarter of fiscal 1998. Net income for the
quarter was $17.1 million, representing a 68% increase over net income of
$10.2 million for the first quarter of fiscal 1998.
Earnings per share for the quarter was $0.22, based on 77.7 million
average shares outstanding. This compares with $0.14 per share achieved for
the same period last year, based on 71.9 million average shares outstanding.
The growth in sales continued to be driven by the strength of the
telecommunication's industry. The Component and Modules product area produced
the strongest growth accounting for $58.1 million in revenues for the first
quarter of fiscal 1999, up 89% from the $30.8 million for the same period in
fiscal 1998. The Instruments product area also showed strong growth
accounting for $15.0 million in revenues, up 40% from the $10.7 million for
the same period a year earlier. The Interconnect (Resale) product area was
flat compared to the same period last year accounting for $7.0 million in
sales.
The geographic distribution of sales (based on invoicing address) in the
first quarter of 1999 was similar to fiscal 1998. The United States continued
to be the primary market for JDS FITEL products, with sales in this region
accounting for 78% of total sales in the first quarter. Europe remained
consistent at 14% of total sales followed by Asia Pacific at 5% and all other
regions at 3%.
Jozef Straus, President and CEO commented:
''We are pleased by our first quarter results for fiscal 1999. Sales
growth continued to reflect the strong fundamentals of the fiberoptic segment
of the telecommunications industry. In particular, sales were driven by the
on-going demand for products used in dense wavelength division multiplexing
applications as well as products providing an increasing level of optical
functionality.
At the recent National Fiber Optic Engineers Conference (NFOEC), we
continued to demonstrate our technological leadership by showcasing the
world's first 8 channel 50GHz wavelength division multiplexer (WDM) based on
thin-film filters and a number of new WDM and optical switching modules.
Subsequent to the end of the quarter, we also concluded the purchase of the
remaining 32% equity interest in FITEL-Photomatrix.
As we continue to lay the foundation for future growth, we are committed
to remain at the forefront of technology through our close relationship with
customers and a strong focus on market-driven product development. While the
telecommunications industry is made up of many segments with differing growth
rates, the fiberoptic segment continues to be one of the strongest growth
areas in the industry and JDS FITEL remains well positioned to capitalize on
the many emerging opportunities that lie ahead.''
JDS FITEL is a Canadian high technology company that manufactures and
distributes a broad range of products for the growing fiberoptic
communications market. The Company executes its business strategy through its
advanced design capabilities, proprietary manufacturing tools and processes
and, in particular, its early participation in advancing market and technology
trends.
JDS FITEL's common shares are listed on The Toronto Stock Exchange under
the symbol JDS.
Jozef Straus, Ph.D. M. Zita Cobb
President and CEO Chief Financial Officer
JDS FITEL Inc.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of Canadian dollars, except per share amounts)
Quarter ended
(Unaudited)
------------------------------------------------------------------------
August 31 August 31
1998 1997
------------------------------------------------------------------------
Sales $ 80,054 $ 48,573
Cost of goods sold 38,180 23,102
------------------------------------------------------------------------
Gross profit 41,874 25,471
------------------------------------------------------------------------
Expenses
Selling, general and administrative 9,593 6,716
Research and development 7,504 3,054
------------------------------------------------------------------------
Total operating expenses 17,097 9,770
------------------------------------------------------------------------
Income before investment and other income,
and income taxes 24,777 15,701
Investment and other income 2,324 439
------------------------------------------------------------------------
Income before income taxes 27,101 16,140
Provision for income taxes 10,029 5,972
------------------------------------------------------------------------
Net income for the period $ 17,072 $ 10,168
------------------------------------------------------------------------
------------------------------------------------------------------------
Earnings per share
Basic $ .22 $ .14
Fully diluted $ .21 $ .14
Weighted average number of shares
(in thousands)
Basic 77,729 71,940
Fully diluted 82,138 75,405
JDS FITEL INC.
CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars, except share amounts)
August 31 May 31
1998 1998
------------------------------------------------------------------------
(Unaudited) Audited
Assets
Current assets
Cash and cash equivalents $174,077 $ 25,679
Short-term investments 7,576 160,805
Accounts receivable 39,389 38,469
Inventories 30,191 29,620
Prepaid expenses and other receivables 2,543 2,181
------------------------------------------------------------------------
253,776 256,754
Capital assets 69,866 53,653
Other assets 10,324 7,650
Deferred income taxes 1,028 1,255
------------------------------------------------------------------------
$334,994 $319,312
------------------------------------------------------------------------
------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 36,254 $ 32,625
Accrued payroll and related expenses 7,525 7,188
Income taxes payable 5,033 12,412
------------------------------------------------------------------------
48,812 52,225
------------------------------------------------------------------------
Shareholders' equity
Preferred shares, unlimited shares authorized;
none issued and outstanding - -
Common shares, unlimited shares authorized;
77,861,841 and 77,675,181 issued and outstanding 169,388 167,998
Retained earnings 115,782 98,710
Foreign currency translation adjustment 1,012 379
------------------------------------------------------------------------
286,182 267,087
------------------------------------------------------------------------
$334,994 $319,312
------------------------------------------------------------------------
------------------------------------------------------------------------
JDS FITEL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars)
Quarter ended
(Unaudited)
------------------------------------------------------------------------
August 31 August 31
1998 1997
------------------------------------------------------------------------
Cash provided by (used in)
Operating activities
Net income for the period $ 17,072 $ 10,168
Operating items not requiring cash
Depreciation and amortization 2,616 2,444
Loss from equity investment - 47
Deferred income taxes 227 63
------------------------------------------------------------------------
19,915 12,722
Net change in non-cash working capital
balances related to operations (7,412) 590
------------------------------------------------------------------------
Cash provided by operating activities 12,503 13,312
------------------------------------------------------------------------
Investing activities
Equity investment - (6,850)
Land and construction in progress (10,827) -
Other capital assets and goodwill (10,043) (4,619)
Proceeds from maturities of investments 159,082 5,974
Purchases of investments (5,853) -
------------------------------------------------------------------------
Cash provided by (used in) investing
activities 132,359 (5,495)
------------------------------------------------------------------------
Financing activities
Increase in construction in progress payable 2,146 -
Issuance of common shares 1,390 607
------------------------------------------------------------------------
Cash provided by financing activities 3,536 607
------------------------------------------------------------------------
Net increase in cash during the
period 148,398 8,424
Cash and cash equivalents, beginning of
period 25,679 48,534
------------------------------------------------------------------------
Cash and cash equivalents, end of period $174,077 $ 56,958
------------------------------------------------------------------------
------------------------------------------------------------------------
-0- 10/08/1998
For further information: Corporate contact: Marc René de Cotret, JDS FITEL Inc., 570 West Hunt Club Road, Nepean, Ontario, K2G 5W8, Telephone: (613) 727-1304, Ext. 1203, Facsimile: (613) 727-1852, E-mail: investor_relations@jdsfitel.com
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