Continental Circuits Corp. reports results for fiscal 1996.

PHOENIX--(BUSINESS WIRE)--Aug. 20, 1996--Continental Circuits Corp. (NASDAQ:CCIR) Tuesday announced results for its fiscal 1996 fourth quarter and year ended July 31, 1996.

These were in line with analyst estimates that were revised following an April 17 teleconference in which management said they expected the company's third- and fourth-quarter earnings to be lower than originally anticipated due to temporary order delays from several customers engaged in the computer industry.

For the quarter, net income was $350,000, or 5 cents per share, compared with net income of $1.9 million, or 26 cents per share, for the fourth quarter of fiscal 1995. The company achieved sales of $24.5 million for the period compared with sales of $25.6 million a year ago.

Operating results for the quarter were negatively impacted by fixed costs spread over lower production volumes. The company also absorbed several non-recurring costs during the period associated with its ongoing capital expansion program.

For fiscal 1996, net income was $6.3 million, or 85 cents per share, compared with net income of $6.7 million, or 99 cents per share, for fiscal 1995. Sales for fiscal 1996 rose to $108.4 million from $95.4 million in fiscal 1995. Per-share results for the year were influenced by a 10 percent increase in the weighted average number of shares outstanding from a year ago.

Commenting on the company's results, Continental Circuits Chairman and Chief Executive Officer Frederick G. McNamee, said: "As anyone who follows our industry can attest, this was a challenging year for all concerned.

"The weakness in our results for the year, and particularly the third and fourth quarters, chiefly reflects the protracted slowdown of orders from certain customers, some of whom I am pleased to report are now returning to a higher level of activity. We are also encouraged by the fact that we added several important new customers during the year.

"Design activity has since improved, and we are optimistic this will lead to new program start-ups in the months ahead. Importantly, these additions have further expanded our customer base, which we are hopeful will help mitigate the impact of any future business interruptions."

Continental Circuits Corp. manufactures complex, multilayer circuit boards used in sophisticated electronic equipment produced by leaders in the computer, communications, instrumentation and industrial controls industries. -0-

                     Continental Circuits Corp.
                    Statements of Income (unaudited)
                (in thousands, except per-share amounts)

                              Three months ended    12 months ended
                                  July 31,              July 31,
                              1996       1995       1996       1995

Net sales                  $24,530    $25,555   $108,362    $95,372
Cost of products
  sold                      22,024     20,298     89,502     76,174
Gross profit                 2,505      5,257     18,860     19,198
Selling, general and
  administrative expense     1,892      2,002      7,991      7,381
Income from operations         614      3,255     10,869     11,817
Interest                        24         82        470        878
Other                          127         43        123         25
Income before income
  taxes                        463      3,130     10,276     10,914
Income taxes                   113      1,207      3,993      4,260
Net income                    $350     $1,923     $6,283      6,654
Net income per share         $0.05      $0.26      $0.85      $0.99
Weighted average number
  of shares                  7,420      7,413      7,430      6,747

                            Balance Sheets
                            (In thousands)

                                                        July 31,
                                                     1996      1995
Assets                                           (unaudited)
Current assets:
Cash                                               $3,851    $2,038
Accounts receivable                                15,114    14,098
Inventories                                         4,796     5,116
Prepaid expenses & other                              259       624
Prepaid income taxes                                  240         0
Deferred income taxes                                 714       264
Total current assets                               24,974    22,140

Property, plant and equipment                      74,317    68,191
Less accumulated depreciation                      40,200    35,943
Property, plant and equipment, net                 34,117    32,248

Other assets                                          495        94
Total assets                                      $59,586   $54,482

Liabilities and shareholders' equity
Current liabilities:
Accounts payable                                   $7,193    $8,706
Accrued expenses                                    2,052     2,210
Income taxes                                            0       386
Current portion of long-term debt                   1,000     2,143
Total current liabilities                          10,245    13,445

Long-term debt                                      3,333     1,357
Deferred income taxes                               1,976     1,944

Shareholders' equity                               44,032    37,736
Total liabilities and shareholders' equity         59,586    54,482

CONTACT: Continental Circuits Corp., Phoenix

Frederick G. McNamee, 602/268-3461

or

Silverman Heller Associates, Los Angeles

Lou Alkana, 310/208-2550