Continental Circuits Corp. reports third quarter results.

PHOENIX--(BUSINESS WIRE)--May 9, 1996--Continental Circuits Corp. (NASDAQ:CCIR) Thursday reported results for its fiscal 1996 third quarter ended April 30, 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 anticipated due to temporary order delays from several customers engaged in the computer industry.

For the quarter, net income was $1.4 million, or 19 cents per share, compared with net income of $1.9 million, or 27 cents per share, for the third quarter of fiscal 1995. The company achieved sales of $26.5 million for the period compared with sales of $24.3 million a year ago. In addition to the aforementioned factors, per share results for the quarter were influenced by a 7% increase in the weighted average number of shares outstanding resulting from the company's initial public offering in March 1995.

For the first nine months of fiscal 1996, net income rose 25% to $5.9 million, or 80 cents per share, from net income of $4.7 million, or 72 cents per share, for the comparable period of fiscal 1995. Sales for the fiscal 1996 period improved 20% to $83.8 million from $69.8 million in the first nine months of fiscal 1995. Per share results for this period were influenced by a 13% increase in the number of shares from the same period a year ago.

Continental Circuits Chairman and Chief Executive Officer Frederick G. McNamee said, "As we announced previously, many major computer manufacturers, some of which we supply, are currently attempting to reduce existing inventories or are experiencing delays in introducing new products. As a result, they are presently pushing out orders for those new products by several months until the situation is resolved.

"We have kept in close contact with the customers who have been affected by these conditions, and we are convinced that what we are seeing is a short-term slow-down in an otherwise robust market whose growth we believe will continue to accelerate behind strong demand for the advanced products that require our high-performance complex, multilayer circuit boards," McNamee continued.

"With this, our historical growth trends and the recent addition of new customers in other business segments such as communications and computer networking, we remain committed to securing additional production capacity as quickly as possible," he said. "We intend to do this whether we build-out a property adjacent to our present location or acquire an existing operation outright. To a person, our management team remains extremely bullish on this company's prospects and we are managing the business accordingly."

Continental Circuits 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    Nine Months Ended
                                 April 30,           April 30,
                           1996          1995    1996          1995

Net sales                $26,464      $24,297  $83,832      $69,817
Cost of products sold     22,058       19,165   67,478       55,876
  Gross profit             4,406        5,132   16,354       13,941
Selling, general and
 administrative expense    2,002        1,852    6,099        5,379
  Income from operations   2,404        3,280   10,255        8,562
Interest                     153          192      446          796
Other                        (29)           2       (4)         (18)
  Income before income
   taxes                   2,280        3,086    9,813        7,784
Income taxes                 900        1,220    3,880        3,053
Net income                $1,380       $1,866   $5,933       $4,731

Net income per share      19 cents    27 cents  80 cents    72 cents

Weighted average number of
 shares                    7,413        6,924    7,428        6,586

-0-
                         Balance Sheets
                         (in thousands)

                                          April 30,    July 31,
                                            1996         1995
                                         (unaudited)
Assets
Current assets:
 Cash                                     $ 2,767      $ 2,038
 Accounts receivable                       15,122       14,098
 Inventories                                5,666        5,116
 Prepaid expenses & other                     814          624
 Deferred income taxes                        264          264
  Total current assets                     24,633       22,140

Property, plant and equipment              74,804       68,191
 Less-accumulated depreciation             39,725       35,943
 Property, plant and equipment, net        35,079       32,248

Other assets                                   30           94
Total assets                              $59,742      $54,482

Liabilities and shareholders' equity
Current liabilities:
 Accounts payable                         $ 7,623      $ 8,706
 Accrued expenses                           2,418        2,210
 Income taxes                                (635)         386
 Current portion of long-term debt          1,000        2,143
  Total current liabilities                10,406       13,445

Long-term debt                              3,583        1,357
Deferred income taxes                       1,944        1,944

Shareholders' equity                       43,809       37,736
Total liabilities and shareholders'
 equity                                   $59,742      $54,482

CONTACT: Continental Circuits Corp., Phoenix

Thomas E. Linnen, 602/268-3461

or

Silverman Heller Associates

Lou Alkana, 310/208-2550