Ceradyne, Inc. Reports First Quarter 2002 Results; Record Sales Offset by Expansion Costs.Business Editors COSTA MESA Costa Mesa (kŏs`tə mā`sə), city (1990 pop. 96,357), Orange co., S Calif., on the Pacific south of Santa Ana; inc. 1953. It is a transportation, residential, and light industrial center. , Calif.--(BUSINESS WIRE)--April 29, 2002 Ceradyne Ceradyne, Incorporated, NASDAQ: CRDN is a Costa Mesa, California, USA, manufacturer of ceramics products traded on the NASDAQ Stock Market. Ceradyne researches and produces varieties of ballistic armor for both personnel and vehicles. , Inc. (Nasdaq:CRDN CRDN Certified Restoration Drycleaning Network ) today reported results for the first quarter ended March 31, 2002. Sales for the quarter rose 23% to a record $14.7 million from $11.9 million in the first quarter of 2001. Net income was $579,000, or 7 cents per basic and 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. share, compared to $1.19 million, or 14 cents per basic and diluted share, in the first quarter of 2001. The tax provision, combining federal and state tax rates, was 35% for the quarter, compared to 30% a year ago. New bookings for the quarter grew strongly, rising 21% to $14.2 million from $11.7 million in 2001. The Company's order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at quarter end was $27.5 million, compared to the prior year backlog of $26.4 million. Joel P. Moskowitz, Ceradyne president 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. , commented: "Although shipments, new orders and backlog increased substantially from the year-ago period, gross margins declined. Margin pressure was caused by various costs associated with the threefold increase in diesel engine component shipments and a doubling of armor shipments. Additionally, the move to the recently leased 40,000 square-foot manufacturing facility in Irvine was delayed to the second quarter. The Company expects gradual margin improvement, as rising efficiencies along the `learning curve' help to increase internal yields and, thereby, reduce production costs." Moskowitz added: "Ceradyne continues to work with the Government to resolve the small arms small arms, firearms designed primarily to be carried and fired by one person and, generally, held in the hands, as distinguished from heavy arms, or artillery. Early Small Arms The first small arms came into general use at the end of the 14th cent. protective inserts (SAPI (Speech API) A programming interface from Microsoft for speech recognition and synthesis. It provides a way for developers to enable their applications to receive text from and send text to voice devices. 1. ) quality issues and testing methodology discussed in the Company's April 3, 2002 press release and teleconference. Although the Government, thus far, has taken no formal action, such as a stop work order, and continues to make payment on prior shipped lots of SAPI, Ceradyne has voluntarily stopped producing its current SAPI design. The Company's strategy is first, to work with the Government in order to understand the quality and testing issues and second, resolve the status and disposition of the SAPI plates in question. "We believe this issue relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc SAPI shipped prior to March 22, 2002 will not affect Ceradyne's future potential in SAPI or other 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). armor products," stated Moskowitz. Ceradyne develops, manufactures and markets advanced 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. for industrial, electronic, defense and consumer applications. Additional information about the Company can be found at www.ceradyne.com. Ceradyne will host a conference call today at 10:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT (1:00 p.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 ) to discuss its 2002 first quarter results. Investors or other interested parties may listen to the teleconference live via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.ceradyne.com or at www.CompanyBoardroom.com. These websites will also host an archive of the teleconference for 30 days. A telephonic playback Playback could mean:
Except for the historical information contained herein, certain matters discussed in this news release and teleconference constitute 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. that involve risks and uncertainties that could cause actual results to differ materially from those projected. The Company may use words such as "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions to identify forward-looking statements. Factors which could affect the Company's actual results include the Company's ability to successfully resolve SAPI quality and testing issues without material liability and resume shipments of SAPI plates to the Government in a timely manner. Further information on these and other potential factors that could affect the Company's financial results are included 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. for the fiscal year ended December 31, 2001, as filed with the Securities and Exchange Commission. Below is a summary of unaudited comparative results. Amounts in thousands except for per share data.
Three Months Ended
March 31,
2002 2001
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NET SALES $14,678 $11,949
Cost of product sales 11,789 8,123
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GROSS PROFIT 2,889 3,826
Operating Expenses:
Selling 448 517
General and administrative 1,138 1,263
Research and development 482 481
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2,068 2,261
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INCOME FROM OPERATIONS 821 1,565
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Other income (expense):
Other income 82 141
Interest (expense) (12) (7)
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70 134
INCOME BEFORE PROVISION
FOR INCOME TAXES 891 1,699
Provision for income taxes 312 510
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NET INCOME $579 $1,189
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Earnings per share, basic $0.07 $0.14
Earnings per share, diluted $0.07 $0.14
Avg. shares outstanding, diluted 8,797 8,617
Condensed Consolidated Balance Sheet (in thousands):
March 31, 2002 Dec. 31, 2001
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(unaudited)
Cash and Cash Equivalents $145 $1,017
Other Current Assets 32,585 29,407
Net Property, Plant and Equipment 17,505 16,016
Other Assets 1,511 1,511
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Total Assets $51,746 $47,951
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Current Liabilities $10,308 $7,257
Long Term Debt 133 158
Deferred Revenue 202 270
Deferred Tax Liability 609 609
Stockholders' Equity $40,494 $39,657
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Total Liabilities and
Stockholders' Equity $51,746 $47,951
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