Aavid Thermal Technologies, Inc. First Quarter sales up 62% to $55.6 million; EPS up 59% to $0.33.CONCORD, N.H.--(BUSINESS WIRE)--April 21, 1998--Aavid Thermal Technologies, Inc. (Nasdaq: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 record first quarter 1998 sales of $55.6 million, an increase of 62 percent over first quarter 1997 sales of $34.4 million. Net income for the first quarter of 1998 was $3.1 million (excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge), an 82 percent increase from the $1.7 million reported for the first quarter of 1997. Reflecting the increased net income, earnings (on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis and excluding the one-time charge) were 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. for the first quarter of 1998, compared to 21 cents per share for the first quarter of 1997. The one time non-recurring after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $1.2 million was recorded during the quarter to terminate future obligations to a former director and venture investors, which originated with the 1993 financial restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the company. 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 extremely pleased with the performance of Aavid in the first quarter of 1998, particularly in light of the uncertainties in some of our end markets. Aavid continues to experience growth in the thermal market due to increasing overall thermal content as the heat dissipation Noun 1. heat dissipation - dissipation of heat chilling, cooling, temperature reduction - the process of becoming cooler; a falling temperature problem increases in magnitude and complexity. Our performance reflects Aavid's strong competitive position as the total integrated solution for electronics cooling. Fluent's thermal analysis Thermal analysis is a branch of materials science where the properties of materials are studied as they change with temperature. Techniques include:
"Additionally, I am pleased to announce that Frank J. Pipp has agreed to join Aavid's board of directors. Frank Pipp is a former Xerox Corporation (company) XEROX Corporation - http://xerox.com/. See also XEROX PARC, XEROX Network Services. group vice-president vice president or vice-pres·i·dent n. Abbr. VP 1. An officer ranking next below a president, usually empowered to assume the president's duties under conditions such as absence, illness, or death. 2. with more than 30 years of operations experience with Ford Motor Company and Xerox (Xerox Corporation, Stamford, CT, www.xerox.com) A major manufacturer of analog and digital copy machines, computer printers and document management systems. Corporate headquarters are in Stamford, CT, while manufacturing and marketing is in Rochester, NY. . He is also the former chairman of the Malcolm Baldrige National Quality Award The Malcolm Baldrige National Quality Award is given by the United States National Institute of Standards and Technology. Through the actions of the National Productivity Advisory Committee chaired by Jack Grayson, it was established by the Malcolm Baldrige National Quality judges panel. His addition marks the continued transition and strengthening of our board, where he joins Charles Dickinson Charles Dickinson may refer to:
Borelli continued, "Near-term near-term adj. Of, for, or involving a short period of time in the near future. , we remain cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the increasing thermal content in electronics cooling will tend to off-set any short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. unit volume disruptions in the market. The recent announcements within the computer segment of our business are a strong indication of the volatility in that market and we are monitoring closely the product mix for the personal computer industry, including our recently introduced thermal solutions for applications using Intel's new Celeron A family of lower-cost Pentium chips from Intel. The first Celerons in 1998 were Pentium II chips without an L2 cache. In 1999, models included a 128KB cache, which increased performance. microprocessors This is a list of microprocessors. Intel
First Quarter Highlights: -- The addition of Frank J. Pipp to Aavid's board of directors; strengthening the professional operations experience of Aavid's board. -- Fluent fluent /flu·ent/ (floo´int) flowing effortlessly; said of speech. Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Aavid Thermal Technologies Inc., announced the appointment of Dr. Dennis A. Nagy to the position of Vice President, Marketing and New Business Development. Dr. Nagy, with over 20 years experience in the computer-aided engineering See CAE. Computer-aided engineering Any use of computer software to solve engineering problems. With the improvement of graphics displays, engineering workstations, and graphics standards, computer-aided engineering (CAE) has come to mean the computer software industry, will be responsible for the implementation of Fluent's new business initiatives and marketing strategy, and will further drive Fluent's global expansion, particularly in the Asia-Pacific region. -- Aavid Thermal Products, Inc., a wholly owned subsidiary of Aavid Thermal Technologies Inc., announced thermal solutions for thermoelectric ther·mo·e·lec·tric also ther·mo·e·lec·tri·cal adj. Characteristic of, resulting from, or using electrical phenomena occurring in conjunction with a flow of heat. coolers (TECs). While TEC use in microprocessor microprocessor, integrated circuit containing the arithmetic, logic, and control circuitry required to interpret and execute instructions from a computer program. cooling remains experimental, TECs are used in a wide variety of other applications such as laser diode A semiconductor-based laser used to generate analog signals or digital pulses for transmission through optical fibers. Both laser diodes and LEDs (light-emitting diodes) are used for this purpose, but the laser diode generates a smaller beam that is easier to couple with the smaller core arrays; each TEC requires at least one high efficiency thermal solution to ensure proper heat removal. Aavid's marketing efforts for these highly versatile coolers will focus initially on cooling in medical electronics and instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. markets. 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 and the Far East. Aavid's 1997 sales, which totaled $168 million, were driven by the company's operations in two distinct markets: thermal management solutions and computational fluid dynamics Computational fluid dynamics The 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 CFD - Computational Fluid Dynamics ) 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 and IC's (semiconductors) in electronic and electrical components and systems. Microprocessors and integrated circuits Integrated circuits 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. The increasingly wide range of environmental conditions, including temperature extremes, in which electronic systems are expected to operate, exacerbates these negative effects. The use of Aavid's thermal solutions helps maintain device and system performance and reliability and helps avoid premature component and system failure. Additional information on Aavid Thermal Technologies is available on the World Wide Web at http://www.aatt.com. -0- "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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act 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 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) 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 presentation, the words "estimate," "project," "believe," "anticipate," "intend," "expect," 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 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. (Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. and Statement of Income Attached) -0-
AAVID THERMAL TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 28, December 31,
1998 1997
ASSETS
Cash and cash equivalents $ 5,879 $ 6,919
Accounts receivable-trade 38,207 33,766
Inventories 13,696 13,368
Refundable income taxes 1,138 1,138
Deferred income taxes 2,415 2,365
Prepaid and other current assets 4,074 2,256
Total current assets 65,409 59,812
Property, plant and equipment, net 44,421 43,155
Other assets, net 7,865 7,829
Total assets $117,695 $110,796
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt obligations $ 3,444 $ 3,360
Accounts payable - trade 17,483 16,378
Accrued expenses and other current
liabilities 19,872 17,778
Total current liabilities 40,799 37,516
Debt obligations, net of current
portion 18,348 20,596
Deferred income taxes 2,278 2,269
Total liabilities 61,425 60,381
Stockholders' equity:
Common stock, $0.01 par value 79 76
Additional paid-in capital 47,171 43,793
Retained earnings 9,020 6,546
Total stockholders' equity 56,270 50,415
Total liabilities and stockholders'
equity $117,695 $110,796
-0-
AAVID THERMAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share data)
(UNAUDITED)
QUARTER ENDED
March 28, March 29,
1998 1997
From One-time As
Operations Charge Reported
Net sales $ 55,558 -- $ 55,558 $ 34,398
Cost of goods sold 37,170 37,170 20,632
Gross profit 18,388 -- 18,388 13,766
Selling, general
and administrative
expenses 11,007 11,007 8,304
Research and
development 1,690 1,690 1,808
Buyout of
compensation
arrangements -- 1,858 1,858 --
Income from
operations 5,691 (1,858) 3,833 3,654
Interest expense,
net (561) (561) (473)
Other expense, net (220) (220) (468)
Income before
income taxes and
extraordinary
item 4,910 (1,858) 3,052 2,713
Provision for
income tax
expense (1,829) 693 (1,136) (1,024)
Net income $ 3,081 ($ 1,165) $ 1,916 $ 1,689
Diluted Net income
(loss) per share $ 0.33 ($ 0.12) $ 0.21 $ 0.21
Weighted average
common shares
and equivalents 9,322,194 9,322,194 9,322,194 8,119,191
-0-
Aavid Thermal Technologies, Inc.
Comparative Financial Data
(Millions of dollars, except EPS)
1996
Unaudited
Q1 Q2 Q3 Q4 Y/E
NET SALES 26.0 23.0 25.7 32.2 107.0
ATP--Telecommunications
Industrial Electronics,
Instrumentation and other 12.9 12.0 12.1 12.2 49.2
ATP-Computer and Network 7.6 4.9 7.2 12.8 32.5
Fluent 5.5 6.1 6.4 7.2 25.2
Applied Thermal -- -- -- -- --
Technologies
Cost of Sales 16.7 14.0 15.9 19.4 66.0
GROSS PROFIT 9.4 9.0 9.8 12.8 41.0
SG&A 5.7 7.1 6.4 8.3 27.6
R&D 1.3 1.3 1.6 1.5 5.7
OPERATING EXPENSES 7.0 8.4 8.0 9.8 33.2
OPERATING INCOME 2.3 0.6 1.8 3.0 7.8
Interest Inc/(Exp), net -0.4 -0.3 -0.3 -0.5 -1.6
Other, net 0.1 0.0 -0.3 -0.4 -0.6
PRETAX INCOME 2.0 0.3 1.2 2.1 5.6
Provision for Taxes 0.7 0.1 0.4 0.8 2.0
NET INCOME 1.3 0.2 0.8 1.4 3.6
EPS (excl. one-time charges) 0.18 0.02 0.10 0.17 0.47
Shares O/S 6.9 7.9 7.8 8.0 7.7
Capital Expenditures 1.9 1.7 1.0 2.4 7.0
Depreciation and Amortization 1.1 1.0 1.1 1.0 4.1
Cash 6.1 4.0 4.5 4.1 --
Debt 13.5 13.9 20.9 23.3 --
Leverage Ratio 46% 52% 75% 79% --
Inventory Turns (ATP only) 11.1 10.5 8.9 7.2 --
A/R DSO 57 63 63 67 --
Number of employees 1,037 949 1,115 1,199 --
1997 1998
Unaudited Unaudited
Q1 Q2 Q3 Q4 Y/E Q1
NET SALES 34.4 37.1 43.7 52.6 167.7 55.6
ATP--Telecommunications
Industrial Electronics,
Instrumentation and other 14.6 15.2 15.0 17.8 62.6 17.4
ATP-Computer and Network 11.2 14.0 21.1 25.8 72.1 27.7
Fluent 8.6 7.8 7.5 8.7 32.5 10.2
Applied Thermal -- 0.1 0.1 0.3 0.5 0.3
Technologies
Cost of Sales 20.6 23.0 29.1 34.6 107.4 37.2
GROSS PROFIT 13.8 14.0 14.6 17.9 60.3 18.4
SG&A 8.3 8.6 8.9 10.9 36.7 11.0
R&D 1.8 1.7 1.6 1.8 6.9 1.7
OPERATING EXPENSES 10.1 10.4 10.5 12.7 43.6 12.7
OPERATING INCOME 3.7 3.7 4.1 5.2 16.7 5.7
Interest Inc/(Exp), net -0.5 -0.5 -0.6 -0.6 -2.2 -0.6
Other, net -0.5 -0.2 0.0 -0.5 -1.2 -0.2
PRETAX INCOME 2.7 3.0 3.5 4.2 13.3 4.9
Provision for Taxes 1.0 1.0 1.3 1.5 4.8 1.8
NET INCOME 1.7 1.9 2.2 2.7 8.5 3.1
EPS (excl. one-time charges) 0.21 0.23 0.25 0.30 0.98 0.33
Shares O/S 8.1 8.5 8.9 9.0 8.6 9.3
Capital Expenditures 1.4 2.2 4.6 6.9 15.1 3.2
Depreciation and Amortizatio 1.6 1.4 1.7 1.4 6.1 2.1
Cash 3.2 4.6 5.3 6.9 -- 5.9
Debt 26.2 27.3 30.2 24.0 -- 21.8
Leverage Ratio 83% 77% 77% 48% -- 39%
Inventory Turns (ATP only) 7.3 7.8 8.9 9.6 -- 10.1
A/R DSO 69 69 71 61 -- 61
Number of employees 1,496 1,502 1,794 1,934 -- 1,797
-0-
Aavid Thermal Technologies, Inc.
Comparative Financial Data
1996
Unaudited
Q1 Q2 Q3 Q4 Y/E
MARGIN ANALYSIS
Cost of Sales 64.0% 60.9% 61.7% 60.3% 61.7%
Gross Margin 36.0% 39.1% 38.3% 39.7% 38.3%
SG&A 22.1% 30.9% 25.0% 25.7% 25.8%
R&D 4.9% 5.6% 6.3% 4.7% 5.3%
Operating Margin 9.0% 2.7% 7.0% 9.3% 7.2%
Interest Inc/(Exp), net -1.7% -1.4% -1.4% -1.5% -1.5%
Pre Tax Income 7.6% 1.4% 4.7% 6.5% 5.2%
Tax Rate 36.0% 43.7% 33.7% 35.7% 35.8%
Net Income 4.8% 0.8% 3.1% 4.2% 3.4%
Yr to Yr % Change
Sales 36.8% 1.6% 9.4% 25.1% 17.6%
Gross Profit 55.1% 34.7% 34.0% 25.3% 35.5%
Operating Profit 107.6% -68.9% -19.9% 1.1% -6.8%
Pre Tax Income 221.2% -74.8% -17.6% -5.4% 1.0%
Net Income 90.3% -79.1% -56.5% -0.7% -23.8%
Earnings per Share 32.7% -87.0% -71.6% -35.6% -50.8%
Qtr to Qtr % Change
Sales 0.9% -11.5% 11.7% 25.3% --
Gross Profit -8.3% -3.7% 9.2% 29.9% --
Operating Profit -21.4% -73.7% 194.3% 66.2% --
Pre Tax Income -11.3% -84.2% 288.7% 73.7% --
Net Income -7.4% -86.1% 358.3% 68.3% --
Earnings per Share -30.0% -87.9% 361.8% 64.3% --
1997 1998
Unaudited Unaudited
Q1 Q2 Q3 Q4 Y/E Q1
MARGIN ANALYSIS
Cost of Sales 60.0% 62.1% 66.6% 65.9% 64.0% 66.9%
Gross Margin 40.0% 37.9% 33.4% 34.1% 36.0% 33.1%
SG&A 24.1% 23.3% 20.4% 20.7% 21.9% 19.8%
R&D 5.3% 4.6% 3.6% 3.5% 4.1% 3.0%
Operating Margin 10.6% 10.0% 9.4% 10.0% 10.0% 10.2%
Interest Inc/(Exp), net -1.4% -1.4% -1.4% -1.1% -1.3% -1.0%
Pre Tax Income 7.9% 8.0% 7.9% 8.0% 7.9% 8.9%
Tax Rate 37.7% 34.6% 36.5% 36.2% 36.2% 37.2%
Net Income 4.9% 5.2% 5.0% 5.1% 5.1% 5.6%
Yr to Yr % Change
Sales 32.2% 61.1% 69.8% 63.1% 56.8% 61.5%
Gross Profit 47.2% 55.8% 48.3% 40.3% 47.2% 33.6%
Operating Profit 56.6% 501.3% 127.0% 74.8% 115.2% 55.8%
Pre Tax Income 37.8% 853.7% 185.7% 99.2% 138.3% 81.8%
Net Income 34.0% 1008.0% 173.7% 97.8% 136.8% 83.6%
Earnings per Share 13.6% 922.0% 141.5% 76.0% 111.1% 59.9%
Qtr to Qtr % Change
Sales 6.7% 7.8% 17.8% 20.3% -- 5.7%
Gross Profit 7.7% 2.0% 4.0% 22.9% -- 2.5%
Operating Profit 21.7% 1.0% 11.1% 27.9% -- 8.5%
Pre Tax Income 29.2% 9.3% 16.5% 21.1% -- 17.9%
Net Income 25.1% 14.8% 13.2% 21.6% -- 16.1%
Earnings per Share 23.4% 9.1% 9.1% 19.7% -- 12.2%
Note: The above analysis does not include certain one-time charges. Q3
1995 excludes $6.194 million, which consist of $2.649 million relating
to the Buyout of a Compensation Arrangement, $2.770 million for the
Purchase of Undeveloped Technology and $0.775 million Write-off of
Deferred Financing Costs. Q2 1996 excludes $3.446 million relating to
the Purchase of Undeveloped Technology. Q1 1998 excludes $1.858
million pre-tax charge relating to Buyout of Compensation Arrangements
for the termination of future obligations to venture investors and a
former director of the Company.
-0- CONTACT: Aavid Thermal Technologies, Inc. Patrick J. Riley, 603/224-1117 riley@aavid.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion