CSYI _ Press release attached
Friday December 11, 3:05 pm Eastern Time
Company Press Release
SOURCE: Circuit Systems, Inc.
Circuit Systems, Inc. Reports Second Fiscal Quarter
1999 Results and Completion of Acquisition
ELK GROVE VILLAGE, Ill., Dec. 11 /PRNewswire/ -- Circuit Systems, Inc. (Nasdaq: CSYI - news) today reported the results
for its second quarter of fiscal 1999.
Net sales for the current quarter ended October 31, 1998 were $25,102,000, representing a 23% increase over the fiscal 1998
quarter of $20,473,000. The net earnings and diluted earnings per share for the quarter were $1,240,000 and $.29, respectively, as
compared to $217,000 and $.04, respectively, in the prior year.
Net sales for the six months ended October 31, 1998 were $47,655,000, representing a 43% increase over the six months ended
October 31, 1997 of $33,396,000. The net earnings and diluted earnings per share for the six months were $741,000 and $.17,
respectively, as compared to net loss and loss per share of $(286,000), and $(.06), respectively, in the prior year. Included in the
operating results for the current six month period is a pre-tax restructuring charge of $1,520,000 relating to the reorganization of
the Company's management and plant operations which was recorded in the first quarter.
Effective December 1, 1998, the Company completed its acquisition of the assets and assumption of certain liabilities of Silicon
Valley Printed Circuits (''SVPC'') which was previously announced. SVPC specializes in the production of up to thirty plus layer
PCBs for low to medium volume quick turn orders.
D.S. Patel, President and CEO of the Company, stated: ''We are pleased with our current sales efforts as well as some
productivity gains from our Illinois operations which contributed to our margin increases. We have and will continue to see
downward pricing pressure due to Asian competition. Third quarter revenues will be softer than the current quarter, which has
been a historical trend, but we anticipate we will be profitable.''
D.S. added, ''We welcome our new employees in Santa Clara and look forward to providing our combined customer base with
one-stop shopping.''
Headquartered in Elk Grove Village, Ill., Circuit Systems, Inc. is a manufacturer of single-sided, double-sided and multilayer
printed circuit boards. The Company operates manufacturing facilities in Elk Grove Village, Ill., Antioch, Ill., Greeneville, Tenn.,
and its recently acquired operation in Santa Clara, Calif.
NOTE: To the extent any statements in this press release may be deemed to be forward-looking, such statements should be
evaluated in the context of the risks and uncertainties inherent in the Company's business which include, but are not limited to,
those discussed herein, as well as those discussed in the Company's Annual Report on Form 10-K for the year ended April 30,
1998. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no
obligation to publicly release any updates or revision, to these forward-looking statements, which may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Circuit Systems, Inc.
Consolidated Condensed Statement of Earnings
(in thousands except per share data)
Quarter Ended Six Months Ended
Oct 31,1998 Oct 31,1997Oct 31, 1998Oct 31, 1997
Net Sales $25,102 $20,473 $47,655 $33,396
Cost of goods sold 21,021 18,242 40,522 30,526
Gross profit 4,081 2,231 7,133 2,870
Operating expenses,
including restructuring 1,585 1,375 4,812 2,603
Operating income 2,496 856 2,321 267
Other deductions-net 534 471 1,133 657
Pre-tax earnings (loss) 1,962 385 1,188 (390)
Income tax expense/(benefit) 722 168 447 (104)
Net Earnings (Loss) $1,240 $217 $741 $(286)
Net earnings (loss) per
common share - basic $0.29 $0.04 $0.17 $(0.06)
Weighted average number
of common shares
outstanding 4,281,228 5,015,741 4,425,262 5,056,792
Net earnings (loss) per
common share - diluted $0.29 $0.04 $0.17 $(0.06)
Weighted average number of
common and common
equivalent shares
outstanding - diluted 4,281,228 5,045,038 4,425,262 5,056,792
Consolidated Condensed Balance Sheets
(in thousands)
Oc.t 31, 1998 April 30, 1998
Assets
Current assets $25,674 $26,385
Machinery and equipment-net 36,031 36,811
Other assets 4,048 4,411
Total assets $65,753 $67,607
Liabilities and shareholders' equity
Current liabilities $17,853 $19,173
Long-term liabilities 30,145 29,907
Shareholders' equity 17,755 18,527
Total liabilities and shareholders' equity $65,753 $67,607
SOURCE: Circuit Systems, Inc.
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