American Technical Ceramics Corp. Announces Fiscal Year 1999 Second Quarter Earnings.HUNTINGTON STATION Huntington Station, uninc. town (1990 pop. 28,247), Suffolk co., SE N.Y., on the north shore of Long Island. The town has a diverse manufacturing base and is located near a popular vacation and fishing area on Long Island's north shore. , N.Y.--(BUSINESS WIRE)--Feb. 3, 1999--AMERICAN TECHNICAL CERAMICS ceramics (sərăm`ĭks), materials made of nonmetallic minerals that have been permanently hardened by firing at a high temperature, or objects made of such materials. CORP. (AMEX AMEX See: American Stock Exchange Symbol: AMK AMK Ammattikorkeakoulu AMK Ang Mo Kio AMK Angkor Mikroheranhvatho Kampuchea (Cambodia microfinance) AMK Angkatan Muda Keadilan (Malaysia) ), today announced earnings for the second quarter ended December 31, 1998. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter ended December 31, 1998 decreased 21% to $8,504,000, from $10,822,000 in the comparable quarter in fiscal year 1998. Net income amounted to $516,000, or approximately $.13 per common share ($.13 per common share assuming dilution), for the quarter ended December 31, 1998, compared with net income of $1,517,000, or approximately $.39 per common share ($.38 per common share assuming dilution), for the comparable quarter ended December 31, 1997. Net sales for the six months ended December 31, 1998 decreased 18% to $17,143,000, from $20,780,000 in the comparable period in fiscal year 1998. Net income amounted to $434,000, or approximately $.11 per common share ($.11 per common share assuming dilution), for the six months ended December 31, 1998, compared with net income of $2,561,000, or approximately $.66 per common share ($.63 per common share assuming dilution), for the comparable period ended December 31, 1997. Management reported that the decrease in net sales for the quarter and six months ended December 31, 1998 compared to the comparable periods in the previous fiscal year was due to the previously announced decline in demand for the Company's core capacitor capacitor or condenser, device for the storage of electric charge. Simple capacitors consist of two plates made of an electrically conducting material (e.g., a metal) and separated by a nonconducting material or dielectric (e.g. products in both foreign and domestic markets. Net sales for the quarter in the aggregate and across all major product lines were at similar levels to those achieved in the first quarter of the current fiscal year. Management further reported that the decline in net income for the quarter and six months ended December 31, 1998 compared to the comparable periods in the previous fiscal year was primarily due to lower sales volume and lower average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. on the Company's core products and raw material price increases. Net income for the quarter compared favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the small net loss in the immediately preceding fiscal quarter primarily as a result of the previously announced work force reduction and realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of manufacturing activities. Management indicated that, since the beginning of the second quarter, order rates for core products, while running significantly lower than the average rates for the prior fiscal year, have showed modest improvement as compared to the first quarter. Further, customer activity, exemplified by customers expediting existing backlog to fill immediate production needs, has been increasing since late in the second quarter. Current order rates for non-core products are currently at levels similar to those achieved in the first half of this fiscal year after adjusting for several large blanket orders A blanket order is defined as an order the customer makes with its supplier which contains multiple delivery dates scheduled over a period of time, sometimes at predetermined prices. It is normally used when there is a recurring need for expendable goods. . Victor Insetta, Chairman of the Company, stated "We are cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the improvement in both gross margin and net margin achieved by the Company in the past quarter. The previously announced work force reductions and manufacturing realignment have improved our profitability as anticipated. However, declining average selling prices on core products and raw material price increases will continue to put pressure on the margins. Although the Company is not anticipating significant increases in sales volume for the remainder of this fiscal year, we are encouraged by recent signs of increased customer activity, especially in commercial communications markets." AMERICAN TECHNICAL CERAMICS CORP. designs, develops, manufactures, and markets RF/Microwave/Millimeter-Wave ceramic This article is about ceramic materials. For the fine art, see Ceramic art. The word ceramic is derived from the Greek word κεραμικός (keramikos). and porcelain porcelain [Ital. porcellana], white, hard, permanent, nonporous pottery having translucence which is resonant when struck. Porcelain was first made by the Chinese to withstand the great heat generated in certain parts of their kilns. capacitors and Thin Film Products. The Company's products are focused primarily in the high reliability market for UHF (Ultra High Frequency) The range of electromagnetic frequencies from 300 MHz to 3 GHz. In the U.S., analog television has used UHF channels 52 to 69 in the 700 MHz band. and microwave applications. "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: This release may contain forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, increases in prices of raw materials, fluctuations in operating results, delays in development of highly-complex products and other risks detailed from time to time in American Technical Ceramics Corp.'s filings with the Securities and Exchange Commission, including, without limitation, those contained under the caption "Item 1. BUSINESS--CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS' in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . These risks could cause American Technical Ceramics Corp.'s actual results for future periods to differ materially from those expressed in any forward looking statements made by, or on behalf of, the Company. -0-
American Technical Ceramics Corp. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)
Three Months Ended
December 31,
--------------------------
1998 1997
---- ----
Net sales $ 8,504,000 $10,822,000
Operating Income 607,000 2,327,000
Net income 516,000 1,517,000
Earnings per share:
Basic $ .13 $ .39
Diluted $ .13 $ .38
Weighted average common shares outstanding:
Basic 3,811,000 3,896,000
Diluted 3,811,000 4,041,000
-0-
American Technical Ceramics Corp. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)
Six Months Ended
December 31,
--------------------------
1998 1997
---- ----
Net sales $17,143,000 $20,780,000
Income from operations 460,000 3,991,000
Net income 434,000 2,561,000
Earnings per share:
Basic $ .11 $ .66
Diluted $ .11 $ .63
Weighted average common shares outstanding:
Basic 3,825,000 3,894,000
Diluted 3,825,000 4,034,000
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