Continental Circuits Corp. reports record sales for second quarter fiscal 1997.PHOENIX--(BUSINESS WIRE)--Feb. 14, 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. ) Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant reported results for its fiscal 1997 second quarter ended Feb. 2, 1997. Results included record revenue and a return to the record levels realized prior to last summer's technology slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. . For the quarter, sales reached a record $29.6 million compared with second-quarter sales of $28.9 million for a year ago. The company posted net income of $2.0 million, or 27 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , from operations, vs. $2.3 million, or 31 cents per share, in the second quarter of 1996. Reported earnings were reduced to 24 cents per share due to $314,000 in charges for professional fees related to the abandoned acquisition of SIGMA Circuits Inc. For the first six months of fiscal 1997, company sales were $56.7 million, down from $57.4 million in sales for the same period in 1996. Net income from operations decreased to $3.4 million, or 46 cents per share, from net income of $4.5 million, or 61 cents per share, for the same period of the prior year. 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 commented: "We are very pleased with the top line growth and present market strength as evidenced by our current 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. of $23 million, which represents a 45 percent increase since July July: see month. . "However, net income disappointed our expectations due to the cancellation of a high-revenue niche program and the acceleration of staffing for our inner-layer operations to meet the higher layer-counts required by rising demand for more complex products." He summarized the quarter, saying: "Overall, we are quite encouraged by these operating results and the strength of our business in looking forward. The demand for higher-technology printed circuit boards continues to accelerate, and we've we've Contraction of we have. we've have added several significant new customers. As a result, we feel confident about our ability to grow our business by capitalizing on these opportunities." The company continues to actively pursue internal expansion and acquisition efforts to achieve the goals of its four-prong market strategy of increasing standard printed circuit board production capacity, quick-turn capacity, diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. 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. McNamee commented on the status of these business development activities, saying, "In November November: see month. , we purchased a 45,000-square-foot building in which we will develop a new inner-layer manufacturing facility to increase current output 25 percent. "During the next 12 months, we are committed to investing considerable capital in new equipment in order to make that facility operational in the first quarter of fiscal 1998. We also continue outfitting out·fit n. 1. A set of tools or equipment for a specialized purpose: a welder's outfit. See Synonyms at equipment. 2. A set of clothing, often with accessories. 3. our new Phoenix site for quick-turn operations. The quick-turn expansion was put on hold after Sigma acquisition discussions began. "Now the 25,000-square-foot building, purchased last July, is scheduled to begin production runs by the fourth quarter of fiscal 1997." The company is currently engaged in assessing a number of acquisition and joint venture opportunities -- both in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and internationally. McNamee said, "These opportunities are being examined relative to the degree to which they can help us achieve strategic goals of greater product diversification, production capabilities and capacities in core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Continental Circuits manufactures complex, multilayer 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: This news release contains 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 and actual results may differ materially from the above forward-looking statements due to a number of important factors including, but not limited to, the ability of management to integrate the two companies successfully, the timing and volume of orders, product mix and capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. . These factors are fully discussed in the companies' regular financial filings with the Securities and Exchange Commission. -0-
CONTINENTAL CIRCUITS CORP.
STATEMENTS OF INCOME (unaudited)
(In thousands, except per-share amounts)
Three Months Ended
Feb. 2, Jan. 31,
1997 1996
Net sales $29,562 $28,860
Cost of products sold 24,392 22,645
Gross profit 5,170 6,215
Selling, general and
administrative expense 1,809 2,184
Income from operations 3,361 4,031
Interest 59 183
Other 321 38
Income before income taxes 2,981 3,810
Income taxes 1,164 1,505
Net income $1,817 $2,305
Net income per share $ 0.24 $ 0.31
Weighted average number of shares 7,432 7,431
Six Months Ended
Feb. 2, Jan. 31,
1997 1996
Net sales $56,685 $57,368
Cost of products sold 47,052 45,420
Gross profit 9,633 11,948
Selling, general and
administrative expense 3,839 4,097
Income from operations 5,794 7,851
Interest 123 293
Other 325 25
Income before income taxes 5,346 7,533
Income taxes 2,096 2,980
Net income $3,250 $4,553
Net income per share $ 0.44 $ 0.61
Weighted average number of shares 7,428 7,432
BALANCE SHEETS
(In thousands)
Feb. 2, July 31,
1997 1996
Assets (unaudited)
Currents assets:
Cash & marketable securities $ 2,775 $ 3,851
Accounts receivable - net 18,218 15,114
Inventories 6,715 4,796
Prepaid expenses & other 345 259
Prepaid income taxes 0 240
Deferred income taxes 714 714
Total current assets 28,767 24,974
Property, plant and equipment 81,906 74,317
Less-accumulated depreciation 43,038 40,200
Property, plant and equipment, net 38,868 34,117
Other assets 69 495
Total assets $67,704 $59,586
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $10,941 $7,193
Accrued expenses 1,980 2,052
Income taxes 692 0
Current portion of long-term debt 1,000 1,000
Total current liabilities 14,613 10,245
Long-term debt 3,333 3,333
Deferred income taxes 1,976 1,976
Shareholders' equity 47,282 44,032
Total liabilities and
shareholders' equity $67,704 $59,586
CONTACT: Continental Circuits Corp., Phoenix Frederick G. McNamee/Joseph G. Andersen, 602/268-3461 or Silverman Silverman is the surname of:
Glenn Schoenfeld, 310/208-2550 |
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