Aavid Thermal Technologies, Inc. First Quarter Sales $50 Million; EPS $0.33.CONCORD, N.H.--(BUSINESS WIRE)--April 21, 1999-- Aavid Thermal thermal /ther·mal/ (ther´m'l) pertaining to or characterized by heat. ther·mal adj. 1. Of, relating to, using, producing, or caused by heat. 2. Technologies, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AATT AATT Advanced Air Transportation Technologies (NASA air traffic control project) AATT Advanced Aviation Transportation Technology AATT Advanced Air Traffic Technologies (US FAA) AATT Absolute Arrival Time Technique ), today announced strong operating performance for the first quarter resulting in earnings of 33 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on net income of $3.2 million, up from fourth quarter 1998 earnings of 31 cents per share and net income of $3.0 million. Sales for the first quarter 1999 of $50 million were consistent with expectations and comparable to the fourth quarter of 1998. Aavid Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Ronald F. Borelli said, "I am pleased with the performance across all segments of our business. I am particularly pleased with our successful ramp down of the final phase of the special product we were manufacturing for Intel, and its replacement with new business from other customers." Borelli continued, "Our CFD CFD - Computational Fluid Dynamics software business had a record first quarter as it continued to strengthen its market leadership position which contributed to an increase of Aavid's overall gross margins. The digital side of our thermal products business continued to expand into new applications, particularly video, graphics and networking which gives this segment a broader market to address. The power side of our thermal products business continued to rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective as world semiconductor markets recover as a result of the stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of markets in the Far East." Borelli concluded, "Our strategy of supplying our customers the total thermal solution, including thermal analysis Thermal analysis is a branch of materials science where the properties of materials are studied as they change with temperature. Techniques include:
 n),n the construction or making of a restoration. has placed us in a strong leadership position to address the increasing heat dissipation Noun 1. heat dissipation - dissipation of heat chilling, cooling, temperature reduction - the process of becoming cooler; a falling temperature problem in the electronics industry. As we continue on in 1999, we expect to sustain our performance, taking into account the traditional seasonality in the different areas of our business." Company Background Aavid Thermal Technologies is a leading provider of thermal management solutions for dissipating potentially damaging heat from digital and power electronics. Aavid serves a highly diversified diversified (di·verˑ·s range of markets, principally in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the Far East. Aavid's 1998 sales totaled
$209 million, driven by the company's operations in two distinct
markets: thermal management solutions and computational fluid dynamics Computational fluid dynamicsThe numerical approximation to the solution of mathematical models of fluid flow and heat transfer. Computational fluid dynamics is one of the tools (in addition to experimental and theoretical methods) available to solve software. Thermal management solutions include products and services for problems associated with the dissipation Dissipation See also Debauchery. Breitmann, Hans lax indulger. [Am. Lit.: Hans Breitmann’s Ballads] Burley, John wasteful ne’er-do-well. [Br. Lit. of unwanted heat in electronic and electrical components and systems. Computational fluid dynamics (CFD) software involves developing software for computer modeling and flow analysis of products and processes that would otherwise require time consuming and expensive physical models and the facilities to test them. Ongoing increases in silicon and system integration, higher processing speeds See MHz. and frequencies, smaller form factors, more sophisticated power requirements and other advances in chip technology create excessive heat in microprocessors This is a list of microprocessors. Intel
Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. operate efficiently only in a narrow temperature band. The excessive heat generated by these semiconductors not only harms their own performance but also degrades system performance and reliability and can cause system failure. These negative effects are exacerbated by the increasingly wide range of environmental conditions, including temperature extremes, in which electronic systems are expected to operate. The use of Aavid's thermal solutions helps maintain device and system performance and reliability and helps avoid premature pre·ma·ture adj. 1. Occurring or developing before the usual or expected time. 2. Born after a gestation period of less than the normal time, especially, in human infants, after a period of less than 37 weeks. component and system failure. Additional information on Aavid Thermal Technologies is available on the World Wide Web at http://www.aatt.com. Conference call is scheduled for Thursday Thursday: see week. , April 22, 1999 at 9:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . Conference call number is (212) 676-4907, reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 12030652. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 The matters discussed in this release contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (as such term is defined in the Private Securities Litigation Reform Act of 1995) and information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company that is based on the beliefs of the management of the Company, as well as assumptions made by and information currently available to the management of the Company. When used in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "see," and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events, and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. The Company does not undertake any obligation to publicly release any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. -0-
AAVID THERMAL TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
Apr. 3, Dec. 31,
1999 1998
ASSETS
Cash and cash equivalents $ 20,619 $ 20,027
Notes receivable -- 1,459
Accounts receivable-trade 34,387 31,158
Inventories 14,051 15,283
Refundable income taxes 370 370
Deferred income taxes 9,110 9,072
Prepaid and other current assets 2,900 2,897
-------- --------
Total current assets 81,437 80,266
Property, plant and equipment, net 42,045 42,497
Other assets, net 6,851 6,321
-------- --------
Total assets $130,333 $129,084
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt obligations $ 3,612 $ 3,442
Accounts payable - trade 14,060 17,377
Accrued expenses and other current
liabilities 25,433 23,488
-------- --------
Total current liabilities 43,105 44,307
Debt obligations, net of current portion 10,354 11,208
Deferred income taxes 2,189 2,218
-------- --------
Total liabilities 55,648 57,733
-------- --------
Stockholders' equity:
Common stock, $0.01 par value 93 93
Additional paid-in capital 57,080 56,740
Retained earnings 17,512 14,518
-------- --------
Total stockholders' equity 74,685 71,351
-------- --------
Total liabilities and stockholders'
equity $130,333 $129,084
======== ========
AAVID THERMAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share data)
(UNAUDITED)
QUARTER ENDED
APR. 3, MAR. 28,
1999 1998
Net sales $ 49,841 $ 55,558
Cost of goods sold 31,360 37,170
---------- ----------
Gross profit 18,481 18,388
Selling, general
and administrative
expenses 11,367 11,007
Research and
development 1,729 1,690
Restructuring and
buyout of compensation
agreement charges -- 1,858
---------- ----------
Income from
operations 5,385 3,833
Interest expense,
net (115) (459)
Other expense, net (243) (322)
---------- ----------
Income before
income taxes and
extraordinary item 5,027 3,052
Provision for
income tax
expense (1,859) (1,136)
---------- ----------
Net income
$ 3,168 $ 1,916
========== ==========
Diluted Net income
(loss) per share $ 0.33 $ 0.21
========== ==========
Weighted average
common shares and
equivalents 9,609,023 9,346,565
========== ==========
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1997
Unaudited
Q1 Q2 Q3 Q4 Y/E
NET SALES 34.4 37.1 43.7 52.6 167.7
(b) ATP-
Power Electronics 14.6 15.2 15.0 17.8 62.6
Computer and Network 10.1 10.2 13.0 14.1 47.4
Special Product
(ended Q1 99) 1.1 3.8 8.1 11.7 24.7
Fluent 8.6 7.8 7.5 8.7 32.5
Applied Thermal
Technologies 0.0 0.1 0.1 0.3 0.5
Cost of Sales 20.6 23.0 29.1 34.6 107.4
GROSS PROFIT 13.8 14.0 14.6 17.9 60.3
SG&A 8.3 8.6 8.9 10.9 36.7
R&D 1.8 1.7 1.6 1.8 6.9
OPERATING EXPENSES 10.1 10.4 10.5 12.7 43.6
OPERATING INCOME 3.7 3.7 4.1 5.2 16.7
Interest Inc/
(Exp), net -0.5 -0.5 -0.6 -0.6 -2.2
Other, net -0.5 -0.2 0.0 -0.5 -1.2
PRETAX INCOME 2.7 3.0 3.5 4.2 13.3
Provision for Taxes 1.0 1.0 1.3 1.5 4.8
NET INCOME 1.7 1.9 2.2 2.7 8.5
EPS (excl. one-time
charges) 0.21 0.23 0.25 0.30 0.98
Shares O/S 8.1 8.5 8.9 9.0 8.6
Capital Expenditures 1.4 2.2 4.6 6.9 15.1
Depreciation and
Amortization 1.6 1.4 1.7 1.4 6.1
Cash 3.2 4.6 5.3 6.9
Debt 26.2 27.3 30.2 24.0
Leverage Ratio 83% 77% 77% 48%
Inventory Turns
(Therm Products only) 7.3 7.8 8.9 9.6
A/R DSO 69 69 71 61
Number of employees 1,496 1,502 1,794 1,934
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1998 1999
Unaudited
Q1 Q2 Q3 Q4 Y/E Q1
NET SALES 55.6 54.3 48.8 50.4 209.1 49.8
(b)ATP-
Power Electronics 17.4 16.5 13.0 13.3 60.2 15.4
Computer and Network 15.1 13.3 16.3 17.7 62.4 18.7
Special Product
(ended Q1 99) 12.6 15.0 10.8 8.6 47.0 2.6
Fluent 10.2 9.2 8.6 10.6 38.6 12.9
Applied Thermal
Technologies 0.3 0.3 0.3 0.3 1.2 0.3
Intercompany
Eliminations 0.0 0.0 -0.2 -0.1 -0.3 -0.1
Cost of Sales 37.2 35.9 33.2 32.2 138.4 31.4
GROSS PROFIT 18.4 18.4 15.7 18.2 70.6 18.5
SG&A 11.0 11.2 10.0 11.6 43.8 11.4
R&D 1.7 1.7 1.5 1.9 6.8 1.7
OPERATING EXPENSES 12.7 12.9 11.5 13.5 50.5 13.1
OPERATING INCOME 5.7 5.5 4.2 4.7 20.1 5.4
Interest Inc/
(Exp), net -0.5 -0.4 -0.3 -0.2 -1.3 -0.1
Other, net -0.3 -0.1 -0.1 0.0 -0.5 -0.2
PRETAX INCOME 4.9 5.1 3.8 4.5 18.2 5.0
Provision for Taxes 1.8 1.9 1.3 1.6 6.6 1.9
NET INCOME 3.1 3.2 2.5 2.9 11.7 3.2
EPS (excl.
one-time charges) 0.33 0.34 0.26 0.31 1.23 0.33
Shares O/S 9.3 9.5 9.5 9.6 9.5 9.6
Capital Expenditures 4.4 2.4 1.7 1.9 10.4 0.9
Depreciation and
Amortization 2.4 2.7 2.6 2.1 9.9 1.9
Cash & S/T Notes Rec 5.9 4.4 12.5 21.5 20.6
Debt 21.8 17.3 15.7 14.7 14.0
Leverage Ratio 39% 27% 23% 21% 19%
Inventory Turns
(Therm Products only) 10.1 10.4 9.6 7.7 8.1
A/R DSO 61 64 68 56 63
Number of employees 2,042 1,997 2,152 2,243 2,294
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1997
Unaudited
Q1 Q2 Q3 Q4 Y/E
MARGIN ANALYSIS
Cost of Sales 60.0% 62.1% 66.6% 65.9% 64.0%
Gross Margin 40.0% 37.9% 33.4% 34.1% 36.0%
SG&A 24.1% 23.3% 20.4% 20.7% 21.9%
R&D 5.3% 4.6% 3.6% 3.5% 4.1%
Operating
Margin 10.6% 10.0% 9.4% 10.0% 10.0%
Interest
Inc/Exp, net -1.4% -1.4% -1.4% -1.1% -1.3%
Pre Tax Income 7.9% 8.0% 7.9% 8.0% 7.9%
Tax Rate 37.7% 34.6% 36.5% 36.2% 36.2%
Net Income 4.9% 5.2% 5.0% 5.1% 5.1%
Yr to Yr %
Change
Sales 32.2% 61.1% 69.8% 63.1% 56.8%
Gross Profit 47.2% 55.8% 48.3% 40.3% 47.2%
Operating
Profit 56.6% 501.3% 127.0% 74.8% 115.2%
Pre Tax Income 37.8% 853.7% 185.7% 99.2% 138.3%
Net Income 34.0% 1008.0% 173.7% 97.8% 136.8%
Earnings per
Share 13.6% 922.0% 141.5% 76.0% 111.1%
Qtr to Qtr %
Change
Sales 6.7% 7.8% 17.8% 20.3%
Gross Profit 7.7% 2.0% 4.0% 22.9%
Operating
Profit 21.7% 1.0% 11.1% 27.9%
Pre Tax Income 29.2% 9.3% 16.5% 21.1%
Net Income 25.1% 14.8% 13.2% 21.6%
Earnings per
Share 23.4% 9.1% 9.1% 19.7%
Revenue By Market
Domestic 67% 68% 56% 50% 59%
International 33% 32% 44% 50% 41%
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1998 1999
Unaudited
Q1 Q2 Q3 Q4 Y/E Q1
MARGIN ANALYSIS
Cost of Sales 66.9% 66.1% 67.9% 63.9% 66.2% 62.9%
Gross Margin 33.1% 33.9% 32.1% 36.1% 33.8% 37.1%
SG&A 19.8% 20.7% 20.4% 22.9% 20.9% 22.8%
R&D 3.0% 3.0% 3.1% 3.8% 3.2% 3.5%
Operating
Margin 10.2% 10.2% 8.6% 9.4% 9.6% 10.8%
Interest
Inc/Exp, net -0.8% -0.7% -0.7% -0.4% -0.6% -0.2%
Pre Tax Income 8.8% 9.4% 7.7% 8.9% 8.7% 10.1%
Tax Rate 37.2% 37.1% 34.8% 33.7% 35.8% 37.0%
Net Income 5.5% 5.9% 5.0% 5.8% 5.6% 6.4%
Yr to Yr %
Change
Sales 61.5% 46.4% 11.7% -4.1% 24.6% -10.3%
Gross Profit 33.6% 31.2% 7.2% 1.4% 17.1% 0.5%
Operating
Profit 55.7% 49.6% 1.8% -10.1% 20.4% -5.4%
Pre Tax Income 81.0% 71.2% 8.9% 7.5% 37.0% 2.4%
Net Income 82.3% 64.7% 11.7% 11.7% 37.8% 2.9%
Earnings per
Share 58.8% 48.2% 3.8% 4.7% 25.5% -0.2%
Qtr to Qtr %
Change
Sales 5.7% -2.3% -10.1% 3.2% -1.1%
Gross Profit 2.5% 0.2% -15.0% 16.2% 1.6%
Operating
Profit 8.4% -2.9% -24.4% 13.0% 14.1%
Pre Tax Income 17.4% 3.4% -25.9% 19.5% 11.8%
Net Income 15.3% 3.7% -23.3% 21.6% 6.2%
Earnings per
Share 11.4% 1.9% -23.5% 20.7% 6.1%
Revenue By Market
Domestic 54% 46% 47% 52% 50% 59%
International 46% 54% 53% 48% 50% 41%
Notes:
(a) The above analysis does not include certain one-time charges.
Q1 1998 excludes $1.858 million relating to Buyout of Compensation
Arrangements. Q3 1998 excludes $3.882 million relating to costs
associated with the closing of a plant.
(b) ATP - Power Electronics formally known as ATP
Telecommunications, Industrial Electronics, Instrumentation and Other.
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