International DisplayWorks Announces Record Fiscal 2006 Third Quarter Financial Results.ROSEVILLE Roseville. 1 City (1990 pop. 44,685), Placer co., N central Calif., a suburb of Sacramento in the foothills of the Sierras; inc. 1909. Marked by rapid growth in the late 20th cent. , Calif. -- International DisplayWorks, Inc. (IDW IDW Informationsdienst Wissenschaft (German: News service science) IDW Ideal Weight IDW Institut der Wirtschaftsprüfer (German: Institute of Auditors ) IDW Inverse Distance Weighting ) (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 :IDWK IDWK International Display Works IDWK I Don't Wanna Know ), a manufacturer and distributor of liquid crystal displays liquid crystal display (LCD) Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. (LCDs), modules and assemblies, today announced financial results for the Company's third quarter of fiscal 2006 which ended on July July: see month. 31, 2006. The earnings conference call previously scheduled for Thursday Thursday: see week. , September September: see month. 7, 2006 at 4:30 p.m. (EASTERN) has been cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. . Third Quarter Highlights: --Total revenues were a record $32.3 million, representing a 37.0 percent increase over the comparable quarter of fiscal year 2005. --Operating income was $2.0 million, representing a 53.8 percent increase over the comparable quarter of fiscal 2005. --Net income increased 129.2 percent to $2.3 million versus last year, representing the 12th consecutive quarter of profitability. --During the quarter shipments began for the Company's Tier One cell phone customer. Recent Contract Wins and other Events: --IDW was awarded up to $7 million in TFT (Thin Film Transistor) The term typically refers to active matrix screens on laptop computers. Active matrix LCD provides a sharper screen display and broader viewing angle than does passive matrix. See LCD and thin film. TFT - Thin Film transistor orders from CK Telecom Ltd, a leading Chinese Chinese, subfamily of the Sino-Tibetan family of languages (see Sino-Tibetan languages), which is also sometimes grouped with the Tai, or Thai, languages in a Sinitic subfamily of the Sino-Tibetan language stock. handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. manufacturer, with initial shipments beginning in the fourth quarter of 2006. --On July 11, 2006, IDW announced a new contract win from a leading printer manufacturer with anticipated revenues of $6 million over the next 12 months. --IDW secured new contracts for two separate satellite radio products with anticipated revenues of $7 million for both the automotive and mobile MP3 markets. Financial Results: The Company reported revenues of $32.3 million for the third quarter, which was an increase of 37.0 percent as compared to the same period last year. The increase in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the addition of new customers and increased revenues from existing customers. Gross profit increased 34.6 percent to $5.6 million during the third quarter with respective gross margins of 17.2 percent as compared to 17.5 percent last year. SG&A expense during the third quarter totaled $3.6 million and as a percentage of revenue declined to 11.1 percent as compared to 12.1 percent during the third quarter of fiscal 2005. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. experienced a 53.8 percent increase to $2.0 million as compared to $1.3 million last year. As a result of strong revenue growth and a conscious decision to control expenses operating income showed an improvement to 6.1 percent from 5.4 percent for the year ago period. Net income for the period increased 129.2 percent to $2.3 million up from $1.0 million during the third quarter of 2005 despite the inclusion of income tax expense and the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. stock option expense during the quarter. Earnings per share for the third quarter were $0.05 which increased from $0.03 in the prior year period. Fully 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. shares utilized to calculate earnings per share during the third quarter totaled 45.0 million or a 37.5 percent increase versus last year primarily as a result of the Company's February February: see month. 2006 stock offering. Commenting on the Company's financial results Joe Bedewi, the Company's Chief Financial Officer, stated, "During the third quarter we further executed on our strategy to win new contracts, expand our pace of business and capture the inherent operating synergies associated with a higher overall base of revenue. We will look to continue to control our costs and improve our overall level of profitability." For the nine-month period, revenues were $83.1 million, which increased 29.2 percent as compared to the prior year period. Gross profit increased 18.0 percent to $14.0 million primarily driven by strong growth in overall revenue. Operating income for the period totaled $3.7 million or a 6.0 percent decrease as compared to last year. Net income for the nine-month period increased 40.5 percent to $4.9 million with the increase a result of higher overall revenues, other income and a fiscal 2006 first quarter tax benefit offsetting lower overall comparable gross and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . The Company completed the third quarter with $8.1 million in cash and cash equivalents, down slightly from the $8.9 million at the end of fiscal 2005. Including trading securities the Company's total assets were $132.5 million. Shareholder's equity at the end of the third quarter was $108.3 million, a 206.5 percent increase as compared to $35.4 million at the end of fiscal 2005. About International DisplayWorks International DisplayWorks, Inc. is a manufacturer and designer of high quality liquid crystal displays, modules and assemblies for a variety of customer needs including OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and applications. IDW operates 466,000 square feet of manufacturing facilities in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China (PRC). Sales offices are located in US, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Hong
Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). , and China. Copies of IDW's 10-K and other
documents as filed with the SEC are available through a link on our web
site: www.idwk.com.NOTE: The foregoing is news relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc International DisplayWorks, Inc. ("IDW") and 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. , which are made pursuant to the 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. provisions of 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 forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. When used in this release, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to IDW or its management, including without limitation, IDW and its subsidiaries, are intended to identify such forward-looking statements. IDW's actual results, performance or achievements could differ materially from the results expressed in, or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by these forward-looking statements. For more detailed information the reader is referred to IDW's 10-K and other related documents filed with the Securities and Exchange Commission. This does not constitute an offer to buy or sell securities by the Company and is meant purely for informational purposes.
INTERNATIONAL DISPLAYWORKS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS July 31, October 31,
------ 2006 2005
Unaudited Audited
--------- -----------
Current assets:
Cash and cash equivalents
Cash and cash equivalents $ 8,081 $ 8,875
Cash in banks - restricted deposits - 383
--------- -----------
Total cash and cash equivalents 8,081 9,258
Trading Securities, at market 46,645 -
Accounts receivable,
net of allowance for doubtful accounts of
$125 and $36 30,893 21,776
Inventories, net of allowance of $293 and $229 14,409 8,516
Prepaid expense and other current assets 3,140 1,939
--------- -----------
Total current assets 103,168 41,489
--------- -----------
Other assets
Deferred tax asset 1,218 262
Property, plant and equipment at cost, net 28,087 27,031
--------- -----------
Total assets $132,473 $ 68,782
========= ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 15,389 $ 13,928
Accrued liabilities 4,175 3,835
Income taxes payable 555 163
Line of credit - 12,953
Current portion of long term debt 2,506 2,545
--------- -----------
Total current liabilities 22,625 33,424
Long-term debt, net of current portion 1,501 5
--------- -----------
Total liabilities 24,126 33,429
--------- -----------
Commitments and contingencies
Shareholders' equity
Preferred stock, par $0.001, 10,000,000 shares
authorized, none issued - -
Common stock, par $0.001, 100,000,000 shares
authorized 44,719,829 and 31,971,629 shares
issued and outstanding at July 31, 2006 and
October 31, 2005 respectively 45 32
Additional paid in capital 135,164 67,424
Accumulated deficit (27,934) (32,812)
Cumulative translation adjustment 1,072 709
--------- -----------
Total shareholders' equity 108,347 35,353
--------- -----------
Total liabilities and shareholders' equity $132,473 $ 68,782
========= ===========
The accompanying notes are an integral part
of these financial statements
INTERNATIONAL DISPLAYWORKS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except Share and per share data)
For Nine Months For Three Months Ended
----------------------------------------------------
July 31, July 31, July 31, July 31,
2006 2005 2006 2005
Unaudited Unaudited Unaudited Unaudited
----------------------------------------------------
Net sales $ 83,103 $ 64,323 $ 32,340 $ 23,600
Cost of goods
sold 69,063 $ 52,423 26,771 $ 19,463
----------------------------------------------------
Gross profit 14,040 11,900 5,569 4,137
----------------------------------------------------
Operating
expenses:
General and
administrative 7,408 5,532 2,592 1,837
Selling,
marketing and
customer
service 2,112 1,918 757 745
Engineering,
advanced
design and
product
management 827 525 248 273
----------------------------------------------------
Total
operating
expenses 10,347 7,975 3,597 2,855
----------------------------------------------------
Operating
income 3,693 3,925 1,972 1,282
----------------------------------------------------
Other income
(expense):
Interest
expense (309) (426) (54) (248)
Investment
income, net 1,017 - 618 -
Other income 39 (27) 18 (50)
----------------------------------------------------
Total other
income
(expense) 747 (453) 582 (298)
----------------------------------------------------
Income before
taxes 4,440 3,472 2,554 984
----------------------------------------------------
Provision for
income
taxes (438) - 299 -
----------------------------------------------------
Net income $ 4,878 $ 3,472 $ 2,255 $ 984
====================================================
Basic and diluted
income per
common share
Basic $ 0.13 $ 0.11 $ 0.05 $ 0.03
====================================================
Diluted $ 0.13 $ 0.11 $ 0.05 $ 0.03
====================================================
Weighted average
common shares
outstanding
Basic 37,873,056 31,282,781 44,699,621 31,701,456
====================================================
Diluted 38,206,490 32,326,370 45,033,055 32,745,045
====================================================
The accompanying notes are an integral part
of these financial statements
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