January 13, 1999 17:36
FULL TEXT-JDS FITEL Q2 results
"JDS FITEL Announces Financial Results for the Second Quarter of Fiscal 1999"
NEPEAN, ON, January 13 /CNW/ - (TSE:JDS) - JDS FITEL Inc. announced today consolidated financial results for its second quarter ended November 30, 1998.
Revenues for the quarter were $98.2 million, up 84% from the $53.3 million achieved in the second quarter of fiscal 1998. Net income for the quarter was $21.4 million, representing an 88% increase over net income of $11.4 million for the second quarter of fiscal 1998.
Revenues for the six months ended November 30, 1998 were $178.2 million, up 75% from the $101.8 million achieved in the same period of fiscal 1998. Net income for the six months ended November 30, 1998 was $38.5 million, representing a 78% increase over net income of $21.6 million achieved in the same period of the previous fiscal year.
Earnings per share for the quarter was $0.27 based on 77.9 million average shares outstanding. This compares with $0.16 per share achieved for the same period last fiscal year based on 72.9 million average shares outstanding.
Earnings per share for the six months ended November 30, 1998 was $0.49 based on 77.8 million average shares outstanding. This compares with $0.30 per share achieved in the same period of fiscal 1998 based on 72.4 million average shares outstanding.
The growth in sales continued to be driven by the strength of the
telecommunications industry. The Component and Modules product area continued its strong growth accounting for $75.8 million in revenues for the second quarter of fiscal 1999, up 120% from the $34.5 million for the same period in fiscal 1998. The Instruments product area accounted for $15.8 million in revenues, up 31% from the $12.1 million for the same period a year earlier. The Interconnect (Resale) product area was flat compared to the same period last
fiscal year accounting for $6.6 million in sales.
The geographic distribution of sales (based on invoicing address) in the second quarter of fiscal 1999 was similar to the same period last fiscal year. The United States continued to be the primary market for JDS FITEL products, with sales in this region accounting for 75% of total sales in the second quarter of fiscal 1999. European sales accounted for 15% of total sales with the remaining regions representing 10% of total sales.
Jozef Straus, President and CEO commented: "We are very pleased with our second quarter results for fiscal 1999. The strong fundamentals of the fiberoptic segment of the telecommunications
industry continue to drive the need for our products. In particular, sales growth this quarter reflects the on-going demand for products providing increased transmission capacity and optical functionality in fiberoptic networks.
In addition to our strong performance this quarter, the last few months
have been characterized by significant corporate initiatives to strengthen the foundation for future growth. During the quarter, we announced the signing of an agreement to acquire the assets of Akzo Nobel Photonics and entered into a strategic alliance with AlliedSignal to add advanced polymer waveguide technology to our optical switching portfolio. Subsequent to the end of the quarter, we announced a contractual joint venture with Corning to develop and
manufacture optical isolators. We also commenced construction of the second phase of our campus facility, adding an additional 239,000 sq. ft. of R&D and manufacturing space to accommodate future expansion.
We continue to be excited by the prospects of the fiberoptic segment of the telecommunications industry and our ability to capitalize on the many opportunities that lie ahead. As we remain focused on our strong commitment to innovation and market-driven product development, we look forward to demonstrating new product capabilities at the upcoming Optical Fiber Communications Conference in February."
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 Six months ended
(Unaudited) (Unaudited)
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November 30 November 30 November 30 November 30
1998 1997 1998 1997
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Sales $ 98,157 $ 53,262 $ 178,211 $ 101,835
Cost of goods sold 47,018 25,705 85,198 48,807
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Gross profit 51,139 27,557 93,013 53,028
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Operating expenses
Selling, general and
administrative 11,433 6,621 21,026 13,337
Research and development 7,994 3,797 15,498 6,851
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Total operating expenses 19,427 10,418 36,524 20,188
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Income before investment
and other income,
and income taxes 31,712 17,139 56,489 32,840
Investment and other
income 2,241 936 4,565 1,375
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Income before income
taxes 33,953 18,075 61,054 34,215
Provision for income taxes 12,565 6,687 22,594 12,659
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Net income for the
period $ 21,388 $ 11,388 $ 38,460 $ 21,556
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Earnings per share
Basic $ .27 $ .16 $ .49 $ .30
Fully diluted $ .26 $ .15 $ .48 $ .29
Weighted average number
of shares
(in thousands)
Basic 77,916 72,939 77,822 72,435
Fully diluted 82,432 76,432 82,284 75,918
JDS FITEL INC.
CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars, except share amounts)
November 30 May 31
1998 1998
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(Unaudited) (Audited)
Assets
Current assets
Cash and cash equivalents $ 121,211 $ 25,679
Short-term investments 32,142 160,805
Accounts receivable 59,931 38,469
Inventories 35,567 29,620
Prepaid expenses and other receivables 2,627 2,181
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251,478 256,754
Capital assets 83,047 53,653
Goodwill and other assets 26,481 7,650
Deferred income taxes 955 1,255
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$ 361,961 $ 319,312
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 35,463 $ 32,625
Accrued compensation and related expenses 7,627 7,188
Income taxes payable 10,078 12,412
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53,168 52,225
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Shareholders' equity
Preferred shares, unlimited shares
authorized; none issued and outstanding - -
Common shares, unlimited shares authorized;
77,972,241 and 77,675,181 issued and
outstanding 170,577 167,998
Retained earnings 137,170 98,710
Foreign currency translation adjustment 1,046 379
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308,793 267,087
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$ 361,961 $ 319,312
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JDS FITEL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars)
Quarter ended Six months ended
(Unaudited) (Unaudited)
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November 30 November 30 November 30 November 30
1998 1997 1998 1997
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Cash provided by (used in)
Operating activities
Net income for the
period $ 21,388 $ 11,388 $ 38,460 $ 21,556
Operating items not
requiring cash
Depreciation and
amortization 3,356 1,544 5,972 3,988
Loss (income) from
equity investment - (53) - (6)
Deferred income taxes 73 (1,664) 300 (1,601)
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24,817 11,215 44,732 23,937
Net change in non-cash
working capital items -
balances related to
operations (21,626) (8,121) (29,038) (7,531)
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Cash provided by operating
activities 3,191 3,094 15,694 16,406
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Investing activities
Long term investments (1,000) - (1,000) (6,850)
Land and construction
in progress (7,993) (135) (18,820) (135)
Other capital assets
and goodwill (22,668) (6,093) (32,711) (10,712)
Proceeds from maturities
of investments - - 159,082 5,974
Purchases of
investments (24,566) (44,942) (30,419) (44,942)
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Cash provided by (used in)
investing activities (56,227) (51,170) 76,132 (56,665)
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Financing activities
Increase (decrease) in
construction in
progress payable (19) - 2,127 -
Issuance of common shares 189 120,254 1,579 120,861
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Cash provided by financing
activities 170 120,254 3,706 120,861
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Net increase (decrease) in
cash during the period (52,866) 72,178 95,532 80,602
Cash and cash equivalents,
beginning of period 174,077 56,958 25,679 48,534
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Cash and cash equivalents,
end of period $ 121,211 $ 129,136 $ 121,211 $ 129,136
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/For further information: Marc Rene 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: investorrelations(at)jdsfitel.com/ |
