Hadco earnings out.
Tuesday November 24, 4:18 pm Eastern Time
Company Press Release
SOURCE: HADCO Corporation
HADCO Corporation Reports Fourth Quarter Results
SALEM, N.H., Nov. 24 /PRNewswire/ -- HADCO Corporation (Nasdaq: HDCO - news) today reported financial results for its fiscal year and fourth quarter ended October 31, 1998.
Net sales for the fourth quarter of 1998 were $217.1 million resulting in net income of $0.4 million, and diluted earnings per share of $0.03. Net sales for the fourth quarter of 1997 were $173.2 million, net income was $11.3 million, and diluted earnings per share was $0.84.
On a pro-forma basis for the fourth quarter of 1997, assuming the acquisition of Continental Circuits occurred prior to the beginning of that quarter, net sales would have been $207.5 million, net income $10.7 million, and diluted earnings per share $0.79.
For the fiscal year ended October 31, 1998, net sales were $826.4 million, an increase of 27% over fiscal 1997. Net loss for the year was $54.1 million, and earnings per share was a loss of $4.09. Included in the net loss are restructuring charges amounting to $4.2 million and a non-recurring write-off of $63 million for acquired in-process R&D relating to the acquisition of Continental Circuits. Excluding these non-recurring charges, net income would have been $13.2 million and diluted earnings per share $0.97 in 1998. For the fiscal year ended October 25, 1997, the Company recorded a non-recurring write-off of $78 million for acquired in-process R&D relating to the acquisition of Zycon Corp. Excluding this non-recurring charge, net income would have been $41.5 million, resulting in earnings per share of $3.48.
Bookings for the quarter were $237.1 million, resulting in a book-to-bill ratio for the quarter of 1.09. Backlog at the end of the fourth quarter was $140.1 million, versus $128.7 million for the previous quarter.
Andy Lietz, CEO and President, commented, ''We are very pleased with the 15% increase in total bookings from Q3'98 to Q4'98. This recovery occurred across all sectors of our customer base. At the same time, we have continued to focus on cost reductions: material costs improved over Q3'98, labor productivity increased, and manufacturing efficiency improved as well. Although we achieved our goal of attaining a break-even in Q4'98, overall improvement was moderated by the delays in completing the consolidation of the East Coast Tech Centers. We will continue to focus on cost and efficiency improvements for fiscal 1999.''
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, net income (loss), and operating expectations) 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 all will take place at 4:45 p.m. EST on November 24, 1998. Dial in number is 212-896-6158. Replay will be available until 7:45 p.m. on November 26 by calling 800-633-8284 reservation number 184 5765 .
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 |
