Continental Circuits Corp. Reports Results for Fiscal 1997 Fourth Quarter and Year End.PHOENIX--(BUSINESS WIRE)--Aug. 25, 1997--Continental Circuits Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CCIR See ITU. ) Monday Monday: see week. reported financial results for its fiscal 1997 fourth quarter and year ended July July: see month. 31, 1997. For the quarter, sales increased by 31.3 percent to $32.2 million compared with year-ago fourth quarter sales of $24.5 million. Net income was $2.4 million, or $0.32 per share, from net income of $350,000, or $0.05 per share, in the fourth quarter of 1996. In the 12-month period of fiscal 1997, company sales totaled $120.8 million, with net income of $8.0 million, or $1.08 per share, compared with fiscal 1996 sales of $108.4 million and net income of $6.3 million, or $0.85 per share. Year over year, fiscal 1997 sales and net income increased by 11.4 percent and 27.7 percent, respectively, compared with fiscal 1996 results. Gross margins as a percentage of sales in the quarter were 19.5 percent compared with 10.2 percent in the fourth quarter of fiscal 1996. The improved gross margins reflect continuing strong demand from customers across a broad mix of business sectors, with a more balanced product mix that included quick-turn and high-layer-count printed circuit boards. "We're we're Contraction of we are. we're we are pleased with the results for the quarter and the year," said Continental Circuits Chairman and Chief Executive Officer Frederick Frederick, city, United States Frederick, city (1990 pop. 40,148), seat of Frederick co., NW Md.; settled 1745, inc. 1817. The processing center of a fertile farm and dairying area, it makes beer, household items, optical and glass products, leather goods, G. McNamee. "The improved top-line and earnings growth is evidence that our market strategy remained on track in 1997. We're optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our market position and potential for continued strong performance heading into fiscal 1998. 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. was approximately $20 million and our book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can continued to exceed 1.0 at the quarter's end. "The expansion of our inner-layer production with a new facility in Phoenix and start-up Start-up The earliest stage of a new business venture. quick-turn capabilities in Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum are set to come on line during the 1998 fiscal second and third quarters, respectively. And with our credit facility increased to $45 million in July, we have the ready capital resources to pursue and leverage expansion opportunities as they arise." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. McNamee, the company remains committed to achieving its four-prong market strategy-increasing standard printed circuit board production capacity, increasing quick-turn capacity, diversifying into other interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. products and services, and developing a strong global presence in the marketplace -- through both internal expansion and acquisition efforts. Continental Circuits manufactures complex, multi-layer circuit boards used in sophisticated electronic equipment produced by leaders in the computer, communications, instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. and industrial controls industries. "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: The statements in this news release regarding the company's anticipated future performance, demand for the company's products, the expansion of the company's Austin, Texas, quick-turn facility, construction of the Phoenix inner-layer facility and future expansion plans are 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. within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, such factors as changes in demand for, and acceptance of the company's products, its ability to hire trained personnel, to receive required capital equipment on anticipated delivery dates, and to develop the manufacturing processes required to expand its quick-turn and inner-layer manufacturing capabilities. Other risks include possible construction delays for the Phoenix inner-layer facility and the company's ability to find suitable expansion opportunities. -0-
CONTINENTAL CIRCUITS CORP.
STATEMENTS OF INCOME (unaudited)
(in thousands, except per-share amounts)
Three Months Ended 12 Months Ended
July 31, July 31,
1997 1996 1997 1996
Net sales $32,205 $24,530 $120,752 $108,362
Cost of products sold 25,932 22,024 98,698 89,502
Gross profit 6,273 2,506 22,054 18,860
Selling, general and
administrative expense 2,353 1,892 8,487 7,991
Income from operations 3,920 614 13,567 10,869
Interest 148 24 354 470
Other 1 127 365 123
Income before income taxes 3,771 463 12,848 10,276
Income taxes 1,378 113 4,826 3,993
Net income $2,393 $350 $8,022 $6,283
Net income per share $0.32 $0.05 $1.08 $0.85
Weighted average number
of shares 7,497 7,420 7,432 7,430
BALANCE SHEETS
(in thousands)
Year Ended
July 31,
1997 1996
Assets (unaudited)
Current assets:
Cash & Marketable Securities $ 85 $ 3,851
Accounts receivable -- net 21,431 15,114
Inventories 8,805 4,796
Prepaid and other assets 1,660 1,213
Total current assets 31,981 24,974
Property, plant and equipment 97,386 74,317
Less-accumulated depreciation 46,422 40,200
Property, plant and equipment, net 50,964 34,117
Other assets 83 495
Total assets $83,028 $59,586
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $14,665 $ 7,193
Accrued expenses 3,204 2,052
Current portion of long-term debt 0 1,000
Total current liabilities 17,869 10,245
Long-term debt 10,312 3,333
Deferred income taxes 2,676 1,976
Shareholders' equity 52,171 44,032
Total liabilities and shareholders'
equity $83,028 $59,586
CONTACT: Continental Circuits Corp., Phoenix Frederick G. McNamee/Joseph G. Andersen, 602/268-3461 or Silverman Heller Associates Eugene G. Heller/Glenn Schoenfeld, 310/208-2550 |
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