American Technical Ceramics Corp. Announces Fourth Quarter Results.Business Editors 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)--August 23, 2001 AMERICAN TECHNICAL CERAMICS 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) ), the Huntington Station-based manufacturer of component and interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. substrate The base layer of a structure such as a chip, multichip module (MCM), printed circuit board or disk platter. Silicon is the most widely used substrate for chips. Fiberglass (FR4) is mostly used for printed circuit boards, and ceramic is used for MCMs. solutions for the RF, microwave and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industries, today announced its fourth fiscal quarter and year-end results. 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 June 30, 2001 decreased 11% to $19,003,000 from $21,384,000 in the quarter ended June 30, 2000. Net income amounted to $2,333,000, or approximately $.29 per common share ($.28 per common share assuming dilution), for the quarter ended June 30, 2001, compared with net income of $3,380,000, or approximately $.44 per common share ($.40 per common share assuming dilution), for the comparable quarter ended June 30, 2000. Net sales for the fiscal year ended June 30, 2001 increased 27% to $84,585,000, from $66,692,000 in fiscal year 2000. Net income amounted to $10,332,000, or approximately $1.30 per common share ($1.24 per common share assuming dilution), for the fiscal year ended June 30, 2001, compared with net income of $9,071,000, or approximately $1.18 per common share ($1.11 per common share assuming dilution), for the fiscal year ended June 30, 2000. Management stated that the increases in net sales for the fiscal year were attributable to increases across most of the Company's product lines during the first nine months of the year, including Thin Film and newer 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 such as the 600 series and single layer capacitors. "As you know, we are in the middle of a major economic downturn which is hitting the telecommunications and semiconductor industries particularly hard," said Victor Insetta, Chairman of ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered . "We have taken several steps to help us manage through this challenging period. So far, we have successfully reduced costs in response to declining revenues, but it is becoming more difficult each quarter as revenues and our backlog of unfilled orders continue to decline." The decrease in sales from the previous quarter was primarily the result of the economic downturn and the resulting decrease in orders experienced in the third quarter of fiscal 2001. Compounding the low order intake from the telecommunications and semiconductor industries was a slow down in the fiber optics fiber optics, transmission of digitized messages or information by light pulses along hair-thin glass fibers. Each fiber is surrounded by a cladding having a high index of refractance so that the light is internally reflected and travels the length of the fiber market in the fourth quarter. Cancellations for fiber optics products severely hampered fourth quarter bookings. The decrease in net income for the quarter ended June 30, 2001 versus the fourth quarter of the prior fiscal year was primarily due to lower sales volume, a charge to adjust certain inventory to estimated realizable value and increased costs of palladium palladium, chemical element palladium [Gr. Pallas, goddess of wisdom], metallic chemical element; symbol Pd; at. no. 46; at. wt. 106.42; m.p. 1,554°C;; b.p. 2,970°C;; sp. gr. 12.02 at 20°C;; valence +2, +3, or +4. . The decrease was partially offset by expense reductions achieved from cost reduction measures put in place during the fourth quarter. As previously announced, the Company has been taking steps to rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear its workforce and reduce spending in the face of the current downturn. Mr. Insetta stated that, "The current downturn is more severe than we have seen in many years. For example, bookings for the quarter, net of substantial cancellations, were approximately $6.5 million, and backlog at June 30th was approximately $16 million. We expect sales will decline in the first quarter of fiscal 2002 due to the low bookings and declining backlog and will continue at lower levels in future quarters until we see a 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 in bookings. We currently expect that bookings will rebound from the level experienced in the fourth quarter but will remain at significantly lower levels than a year ago. In light of this outlook, we have taken additional difficult but necessary steps to reduce our costs and to conserve cash. We have further scaled back production and reduced our workforce. Our program of investments has also been further scaled back and other cost cutting measures continue to be implemented. We will continue to monitor industry indicators and take appropriate further actions as needed as needed prn. See prn order. . "At the same time, we continue to focus on our long-term objectives. While having to scale back, we will still invest in our R&D and new product initiatives. Our balance sheet remains strong, as evidenced by working capital in excess of $31 million. We believe that this will enable us to weather the current storm. With new technologies and products in our pipeline and excellent market access, we believe that, as the market turns around, we will be ideally positioned to resume our long-term growth." We invite you to participate in the upcoming conference call with management. The details are as follows: Friday, August 24, 2000 11:00 A.M. Eastern Standard Time TOLL FREE CALL IN NUMBER: 1 - 800 - 553 - 0327 A live webcast of the call will begin at 11:00 EST EST electroshock therapy. EST abbr. electroshock therapy on August 24, 2001. A replay of the call will be available beginning shortly after the call ends through August 31, 2001. To hear the replay, the number is 1-800-475-6701 (USA) and 320-365-3844 (International). The access code is 596287. To access the webcast, go to the Company's website, www.atceramics.com and click on the webcast icon in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section. American Technical Ceramics Corp. (ATC) designs, develops, manufactures and markets RF/Microwave/Millimeter/Wave ceramic capacitors A Ceramic Capacitoris a capacitor constructed of alternating layers of metal and ceramic, with the ceramic material acting as the dielectric. Depending on the dielectric, whether Class 1 or Class 2, the degree of temperature/capacity dependence varies. 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, including wireless electronics, fiber optics, medical electronics, semiconductor equipment and satellite equipment. "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, economic and political conditions, the impact of competitive products, product demand and market acceptance risks, changes in product mix, costs and availability of raw materials, fluctuations in operating results, delays in development of highly-complex products, risks associated with international sales and sales to the U.S. military, risk of customer contract or sales order The sales order, sometimes abbreviated as SO, is an order received by a business from a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways. cancellation 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. Any forward-looking statement 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. represents the Company's expectations or forecasts only as of the date they were made and should not be relied upon as representing its expectations or forecasts as of any subsequent date. The Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, even if its expectations or forecasts change.
American Technical Ceramics Corp. and Subsidiaries
(in thousands, except per share data)
Condensed Consolidated Balance Sheet Data
June 30, 2001 June 30, 2000
------------- -------------
Accounts Receivable 11,530 12,686
Inventories 24,568 16,133
Current Assets 44,356 36,696
Total Assets 76,644 59,787
Current Liabilities 10,626 9,609
Total Liabilities 20,815 15,466
Total Stockholders' Equity 55,829 44,321
Condensed Consolidated Statement of Operations Data
Three Months Ended
------------------
June 30, 2001 June 30, 2000
------------- -------------
Net Sales (1) $ 19,003 $ 21,384
Gross Profit (1) 8,378 10,325
Operating Income 3,772 5,220
Net Income 2,333 3,380
Earnings Per Share:
Basic $ 0.29 $ 0.44
Diluted $ 0.28 $ 0.40
Weighted Average Common Shares
Outstanding:
Basic 7,997 7,830
Diluted 8,250 8,693
Condensed Consolidated Statement of Operations Data
Fiscal Year Ended
-----------------
June 30, 2001 June 30, 2000
------------- -------------
Net Sales (1) $ 84,585 $ 66,692
Gross Profit (1) 36,350 29,946
Operating Income 16,167 14,065
Net Income 10,332 9,071
Earnings Per Share :
Basic $ 1.30 $ 1.18
Diluted $ 1.24 $ 1.11
Weighted Average Common Shares
Outstanding:
Basic 7,962 7,706
Diluted 8,315 8,186
(1) Net sales and gross profit for the three months and fiscal
year ended June 30, 2000 have been revised to reflect the
reclassification of shipping and handling revenues and costs upon
adoption of EITF 00-10, Accounting for Shipping and Handling Fees
and Costs, effective July 1, 2000.
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