American Technical Ceramics Corp. Announces Third 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)--May 2, 2002 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) ), a leading manufacturer of high-performance electronic components, including capacitors and Thin Film circuits thin film circuits: see microelectronics. for a broad range of commercial and military applications, today announced financial results for the third fiscal quarter and the nine months ended March 31, 2002. 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 March 31, 2002 decreased 49% to $11,956,000 from $23,359,000 in the comparable quarter in fiscal year 2001. Net loss amounted to $1,057,000 or approximately ($.13) per common share (($.13) per common share assuming dilution), for the quarter ended March 31, 2002, compared with net income of $2,959,000, or approximately $.37 per common share ($.35 per common share assuming dilution), for the comparable quarter ended March 31, 2001. Net sales for the nine months ended March 31, 2002 decreased 43% to $37,443,000 from $65,582,000 in the comparable period in fiscal year 2001. Net loss amounted to $1,797,000, or approximately ($.22) per common share (($.22) per common share assuming dilution), for the nine months ended March 31, 2002, compared with net income of $7,999,000, or approximately $1.01 per common share ($.96 per common share assuming dilution), for the comparable period ended March 31, 2001. Management stated that the decrease in sales and operating results for both the three and nine month periods was a direct result of the continuing economic downturn that is affecting the entire electronic components industry. Net sales for the majority of the Company's product lines were below the prior year's levels. The Company's sales were insufficient to cover fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). during these periods which resulted in the reported operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. . Gross margins were negatively impacted by a reduction in benefits from reclaiming
Bookings for the third quarter improved relative to the immediately preceding quarter for the Company's core capacitors, but were significantly below levels from the comparable period of last fiscal year. Customers appear to be depleting their inventory overstock o·ver·stock tr.v. o·ver·stocked, o·ver·stock·ing, o·ver·stocks To stock more of (something) than necessary or desirable. n. An excessive supply. Verb 1. and are beginning to place orders to meet current production needs. The sequential quarter improvement in bookings was primarily the result of orders from customers in the wireless infrastructure, medical and military industries. Orders from customers in the fiber optic and semiconductor equipment industries remain depressed. Victor Insetta, President and Chief Executive Officer of the Company, stated that "Our results for the third quarter reflect the continuing effect of the economy on the electronic components industry. Sales of products across all of our major product lines were effected. This past quarter we experienced an upturn in bookings. While this is encouraging, the outlook is still very uncertain and our customers are still working from very short term horizons. As a result, we once again made the difficult decision to reduce our costs during the fourth quarter. These reductions are designed to reduce our breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations point commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the current level of business. While we will absorb some of the costs associated with these reductions during the fourth quarter, we should be able to see some of the benefits toward the end of this quarter into the beginning of the next fiscal year." The Company invites you to participate in the upcoming conference call with management. The details are as follows:
Friday, May 3, 2002
11:00 A.M. Eastern Daylight Time
TOLL FREE CALL IN NUMBER: 1 - 800 - 450 - 0785
A replay of the call will be available by telephone beginning shortly after the call ends through May 17, 2002. To hear the replay, the number is 1-800-475-6701 (USA) and 320-365-3844 (International). The access code is 635914. A live webcast of the call will begin at 11:00 EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on May 3, 2002. 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. This webcast will be available for two weeks. American Technical Ceramics Corp. designs, develops, manufactures and markets electronic components including ceramic multilayer capacitors, and custom Thin Film circuits. The Company's products are utilized in a broad range of commercial and military applications, including wireless infrastructure, 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 , medical electronics, semiconductor manufacturing 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 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. represent 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
March 31, 2002
(unaudited) June 30, 2001
Accounts Receivable $ 6,623 $ 11,530
Inventories 22,604 24,568
Current Assets 37,873 44,288
Total Assets 69,161 76,576
Current Liabilities 5,207 10,626
Total Liabilities 14,643 20,747
Total Stockholders' Equity 54,518 55,829
Condensed Consolidated Statement of Operations Data
Three Months Ended
(unaudited)
March 31, 2002 March 31, 2001
Net Sales $ 11,956 $ 23,359
Gross Profit 2,544 9,974
Operating (Loss)/Income (1,537) 4,600
Net (Loss)/Income (1,057) 2,959
(Loss)/Earnings Per Share:
Basic $ (0.13) $ 0.37
Diluted $ (0.13) $ 0.35
Weighted Average Common Shares
Outstanding:
Basic 8,058,167 7,973,284
Diluted 8,058,167 8,355,330
Condensed Consolidated Statement of Operations Data
Nine Months Ended
(unaudited)
March 31, 2002 March 31, 2001
Net Sales $ 37,443 $ 65,582
Gross Profit 9,241 27,971
Operating (Loss)/Income (2,680) 12,395
Net (Loss)/Income (1,797) 7,999
(Loss)/Earnings Per Share:
Basic $(0.22) $ 1.01
Diluted $(0.22) $ 0.96
Weighted Average Common Shares
Outstanding:
Basic 8,044,803 7,950,443
Diluted 8,044,803 8,336,439
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