Planar Reports Third Fiscal Quarter 2006 Financial Results; Company Announces New Strategic Initiatives with the Entry into High-End Home Theater Market and Acquisition to Enter Fast Growing Digital Signage Market.BEAVERTON Beaverton, city (1990 pop. 53,310), Washington co., NW Oreg., a suburb of Portland, in a farm area; inc. 1893. Beaverton is the heart of the Silicon Forest high-technology manufacturing complex. Headquarters for electronics companies and NIKE, Inc., are there. , Ore. -- Planar A technique developed by Fairchild Instruments that creates transistor sublayers by forcing chemicals under pressure into exposed areas. Planar superseded the mesa process and was a major step toward creating the chip. Systems, Inc. (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 :PLNR), a worldwide leader in display systems recorded sales of $49.4 million and GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income per 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. share of $0.11, including share-based compensation expense of $0.02, in the third fiscal quarter ended June June: see month. 30, 2006. On a non-GAAP basis (see reconciliation table), net income per diluted share was $0.13 in the third fiscal quarter of 2006. "I am pleased that we continued to deliver on our goals relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc driving solid profitability and generating positive cash flow," said Gerry Ger·ry , Elbridge 1744-1814. American politician. A signer of the Declaration of Independence (1776) and a delegate to the Continental Congress (1787), he served as governor of Massachusetts (1810-1811) and as Vice President of the United States Perkel, Planar president and chief executive officer. "GAAP earnings came in above the high end of our expectations based in part on sales of higher-margin products and good expense management in the quarter. In addition, we are very excited about our new strategic initiatives at Planar including our planned acquisition of Clarity Clarity is the property of being clear or transparent. Clarity can refer to one's ability to clearly visualize an object or concept, as in thought, understanding, and the "mind's eye", as well as the traditional notion of visual perception, that is, with the Visual Systems announced earlier today." Industrial segment sales in the third fiscal quarter were $13.7 million, down 13 percent sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen and up 4 percent compared to the third quarter of fiscal 2005, as orders from the Company's 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 partners subsided somewhat from the above expectation levels of the second quarter. The Medical segment of the Company recorded third quarter sales of $17.3 million, up 2 percent sequentially and approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. flat compared to the third quarter a year ago. The Company continues to invest in its high resolution, Digital Imaging specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. display business and its expanding relationships with new and existing distribution partners with a goal of growing market share over time. Sales in the Company's Commercial segment were $18.3 million, down 9 percent sequentially and down 20 percent versus the third quarter a year ago. Average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. dropped for all sizes of desktop monitors, with sequential One after the other in some consecutive order such as by name or number. price declines similar to those the Company experienced in the first half of fiscal 2005. The Company continued its focus on limiting the fluctuations on earnings in this challenging pricing environment. In addition, the commercial unit is continuing its efforts to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its product portfolio into more specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. products in an effort to improve gross margins. The Company ended the third quarter with cash and short term investments of $76.2 million, an increase of $2.9 million from the end of the second quarter of 2006 and an increase of $11.1 million from the end of fiscal 2005. NEW STRATEGIC INITIATIVES As indicated in previous communications, the Company has been refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar strategic alternatives over the past six months to chart the best path to enhance long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value. That process has led the Company to some new strategic initiatives that it believes can offer exciting opportunities to expand and enhance top-line revenue growth and profitability over time. In summary, the Company is announcing the following actions: --Begin moving the Company toward more specialty, value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: display markets that offer higher gross margin opportunities over time --Acquire Clarity Visual Systems, a provider of command and control room display systems and digital signage Digital signage is a form of out-of-home advertising in which content and messages displayed on an electronic screen, or digital sign, can be changed without modification to the physical sign, typically with the goal of delivering targeted messages to specific locations at hardware and software --Launch a high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. home theater An audio/video entertainment center that has a large-screen TV and hi-fi system with three speakers in the front (left, right and center) and left and right speakers in the rear. Starting in the early 1990s, video inputs were added to stereo receivers and preamplifiers. specialty display initiative, including the new Planar Xscreen product line --Hire a new VP of business development, Brad Gleeson Gleeson is an Irish surname. Gleeson was a translation of the Gaelic name O Glasain or O Gliasain. The name is first found in county Tipperary where they held a family seat from very ancient times. , an industry expert in large- format display systems and former president of Activelight At the center of the Company's new strategic direction is the belief that the Company can build upon its display technology innovation capabilities and, in particular, focus its energies on creating solutions that address applications requiring display system performance beyond what is available from general purpose, commodity display suppliers. The Company believes it can extend its history of innovation to create solutions for multiple specialty display markets leveraging a common core support structure. "By coupling a strong capability for innovation with vertically-focused go-to-market groups whose strength lies in truly understanding the specific needs of each market and creating products, service, and support unique to that market, we believe we can develop a business model that creates higher gross margin product lines and overall Company efficiency to generate higher operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: than the Company currently produces," continued Perkel. The Company currently serves two such value-added, specialty display markets: the Industrial market and Medical market. Both markets require products that typically exceed the capabilities of general purpose, commodity displays. The Company has clearly demonstrated the innovation necessary to create well accepted solutions for customers in these market segments. In addition, the Company has well-developed well-developed adj [arm, muscle etc] → bien desarrollado; [sense] → agudo, fino well-developed adj [girl , vertically-aligned, go-to-market capabilities to serve both of these markets. The Company's new strategic direction intends to build on this specialty display core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
First, as was announced in a separate release this morning, the Company has entered into an agreement to acquire Clarity Visual Systems. Clarity, whose current headquarters are approximately 20 miles from Planar's headquarters in Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , brings a strong capability for innovation, an excellent set of products and focused go-to-market skills to drive revenue both in the command and control system marketplace and in the emerging, fast growing market for digital signage. Planar's previously announced initiatives in retail signage and kiosk kiosk Originally, in Islamic architecture, an open circular pavilion consisting of a roof supported by pillars. The word has been applied to a Turkish summer garden pavilion and a type of early Persian mosque. systems will be combined with Clarity's market position in digital signage to address this growing market's need for display network management software and specialty displays. "We are very excited about the opportunities to participate in Clarity's addressed markets which require capabilities, products and integrated solutions that are highly differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: from typical commodity products," continued Perkel. "We believe the acquisition of Clarity increases Planar's future revenue growth trajectory Trajectory The curve described by a body moving through space, as of a meteor through the atmosphere, a planet around the Sun, a projectile fired from a gun, or a rocket in flight. as well as its future profitability. In addition, I am especially pleased to announce that we will be strengthening our leadership team as a part of this acquisition. Clarity's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Gulick will be joining Planar in the role of vice president and chief technology officer, and Kris Gorriaran, Clarity's senior vice president of sales and marketing will be joining Planar as the Company's vice president and general manager leading our resources focused on penetrating penetrating breaching the tissues of the body. both the command and control and digital signage markets." Second, the Company has recently begun funding a new internal initiative focused on providing specialty display solutions to the high-end home theater marketplace. The Company does not intend to participate in the commodity home entertainment market served by large consumer electronic retailers and brands, but rather has launched an initiative to focus on creating a product portfolio that addresses the discriminating dis·crim·i·nat·ing adj. 1. a. Able to recognize or draw fine distinctions; perceptive. b. Showing careful judgment or fine taste: preferences of home theater buyers, who are typically served by specialty resellers and audio/visual installers. To launch this business, the Company has built a dedicated, focused team led by Scott Hix in his new role of vice president and general manager of the Home Theater initiative. The Company began the initiative in the home theater market in the third quarter by launching the Planar Xscreen product, a unique, large-screen display that generates brighter images from front projectors Noun 1. front projector - a projector for digital input projector - an optical instrument that projects an enlarged image onto a screen even in ambient-light environments. Initially sales from this initiative will be disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). within the Company's Commercial Business unit segment for SEC reporting purposes. "The Planar Xscreen is just our first product in this market space and we expect to broaden our product portfolio in the coming months," stated Perkel. In addition to the above noted focus areas for the Company, a significant portion of the Company's current revenue is generated from the Commercial Business unit, whose primary business is providing general purpose LCD monitors A flat panel display that uses liquid crystals. Although laptops have used LCDs as their flat panel technology almost exclusively, LCD is also the most popular for flat panel desktop monitors. Toward the end of 2003, sales of LCD displays for desktops overtook CRTs for the first time. through large information technology (IT) resellers and distributors. The Company has built a very efficient logistical lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation operation, and intends to leverage this model for multiple product types moving forward. For some time the focus of the business has been growing touch monitor sales in an effort to pursue specialty displays within the IT channel. The Company believes these distribution partners will play a continuing and significant role in its ongoing distribution strategy. However, the Company will continue its efforts to diversify its product offerings with the goal of focusing on higher-margin products and becoming less dependent on the sales of lower-margin, general purpose desktop monitors. "With these recent additions to the Company we will now begin the process of building out our strategy with innovative products and focused go-to-market capabilities in medical, industrial, home theater, command and control and digital signage marketplaces," continued Perkel. "We believe we will have a greatly enhanced innovation capability with the addition of the Clarity technical resources to our own. Further, we believe these new resources will be able to be leveraged over time to offer the ability to address even more potential opportunities within our new strategic direction." To assist in evaluating new opportunities for the future, the Company has further expanded its capabilities by adding Brad Gleeson as the new vice president of business development, replacing Mr. Hix. Prior to joining Planar, Mr. Gleeson was president of Activelight, a leading distributor of large-format display systems. Mr. Gleeson will be initially focused on finding new opportunities and partners to help accelerate the growth of the Company's current segments, as well as seeking out new specialty display market opportunities. Planar's technology innovation, go-to-market capabilities, and operational excellence create value-added solutions for an attractive array of specialty display markets. "As we move forward you will see a Planar that is increasingly focused on opportunities for display technology where profit margins are higher and where we can leverage our capabilities for technical innovation to create differential advantages," summarized Perkel. "We look to substantially grow our revenues in the higher-margin segments with a goal of enhancing shareholder value. While it may take some time for the total strategy to take hold, I am excited about the growth opportunities going forward and believe that over the long term this new strategy will create an exciting future for the Company." BUSINESS OUTLOOK The Company is developing a number of new strategic initiatives with an expectation of improved shareholder value over time As such, some increases in expenses are planned in the fourth quarter as the Company begins to invest in some new growth areas, such as its new Home Theater initiative, as a direct result of its new strategic realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. . The Company's current expectations on a stand alone basis for the fourth quarter, ending September September: see month. 29, 2006, are for sales of $46 million to $50 million and GAAP net income per diluted share of $0.06 to $0.10, including share-based compensation expense of $0.03 to $0.04 per diluted share. This guidance assumes the proposed acquisition of Clarity closes subsequent to the Company's fourth quarter. The Clarity transaction is expected to be slightly accretive to Planar's internal non-GAAP financial projections in fiscal 2007. Results of operations, new strategic initiatives and the business outlook will be discussed in a conference call today, July July: see month. 19, 2006, beginning at 8:30 a.m. Pacific Time. The call can be heard via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the through a link on Planar's Web site, www.planar.com, or through numerous other investor sites, and will be available for replay beginning July 20 until August 19, 2006. The Company intends to post on its Web site a transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the prepared management commentary from the conference call shortly after the conclusion of the call. ABOUT PLANAR Planar Systems, Inc (NASDAQ:PLNR) is a leading provider of valued-added display hardware and software for a variety of specialty display markets worldwide. Hospitals, shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into , banks, businesses, and other discriminating consumers depend on Planar to provide unique display-based solutions to exacting requirements leveraging its operational excellence, technical innovation, and go-to-market capabilities. Founded in 1983, Planar is headquartered in Oregon, USA, with offices, manufacturing partners, and customers worldwide. For more information, visit www.planar.com. "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 by Gerry Perkel, the statements regarding growth of the Digital Imaging product line and the statements in the Strategic Direction and Business Outlook section above 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 Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including: the possibility that the proposed acquisition of Clarity Visual Systems will not close or that the closing may be delayed; the impact that a failure to close the acquisition of Clarity Visual Systems would have on the Company's new strategic direction; difficulties in the integration of the operations, employees, strategies, technologies and products of Clarity Visual Systems if the transaction does close; changes or slower growth in the digital signage and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. command and control display markets; the potential inability to realize expected benefits and synergies; domestic and international business and economic conditions; changes in the flat-panel monitor industry; unexpected difficulties in penetrating the Home Theater market; changes in customer demand or ordering patterns; changes in the competitive environment including pricing pressures or technological changes; technological advances; shortages of manufacturing capacity from our third-party manufacturing partners; final settlement of contractual liabilities; future production variables impacting excess inventory and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this press release. Additional Information and Where to Find It: In connection with Planar's acquisition of Clarity Visual Systems, Planar intends to file with the Securities and Exchange Commission a registration statement on Form S-4 that will contain a Proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. Statement/Prospectus. Investors and security holders are urged to read the Registration Statement and the Proxy Statement/Prospectus carefully when they become available because they will contain important information about Planar, Clarity and the acquisition. The Proxy Statement/Prospectus and other relevant materials (when they become available), and any other documents filed by Planar with the SEC, may be obtained free of charge at the SEC's web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . In addition, investors and security holders may obtain free copies of other documents filed with the SEC by Planar by directing a written request to: Planar Systems, Inc., 1195 N.W. Compton Compton, city (1990 pop. 90,454), Los Angeles co., S Calif., a suburb between Los Angeles and Long Beach; inc. 1888. It has aircraft, electronic, and steel industries. Largely African American, Compton is a noted center for rap music. Drive, Beaverton, OR 97006, Attention: Investor Relations Investor relations The process by which the corporation communicates with its investors. . Investors and security holders are urged to read the Proxy Statement/Prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed acquisition. This communication shall not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful Contrary to or unauthorized by law; illegal. When applied to promises, agreements, or contracts, the term denotes that such agreements have no legal effect. The law disapproves of such conduct because it is immoral or contrary to public policy. prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. meeting the requirements of Section 10 of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Participants in the Solicitation: Planar and its directors and executive officers and Clarity Visual Systems and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Clarity in connection with the proposed transaction. Information regarding the special interests of these directors and executive officers in the proposed transaction will be included in the Proxy Statement/Prospectus referred to above. Additional information regarding the directors and executive officers of Planar is also included in Planar's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended September 30, 2005, which was filed with the SEC on December December: see month. 14, 2005. This document is available free of charge at the SEC's web site (www.sec.gov) and from Investor Relations at Planar at the address described above.
Planar Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
Jun. 30, Jul. 1, Jun. 30, Jul. 1,
2006 2005 2006 2005
---------- --------- ---------- ---------
Sales $ 49,365 $ 53,191 $ 159,394 $177,375
Cost of sales 36,035 40,791 116,828 138,052
--------- -------- --------- --------
Gross profit 13,330 12,400 42,566 39,323
Operating expenses:
Research and development,
net 2,442 2,259 7,477 7,657
Sales and marketing 5,039 4,777 15,065 16,053
General and administrative 3,579 3,471 12,679 12,426
Amortization of intangible
assets 147 305 441 1,510
Impairment and
restructuring charges --- --- 503 5,168
--------- -------- --------- --------
Total operating expenses 11,207 10,812 36,165 42,814
Income (loss) from
operations 2,123 1,588 6,401 (3,491)
Non-operating income
(expense):
Interest, net 682 239 1,814 318
Foreign exchange, net 166 154 19 223
Other, net (9) ( 11) (31) (856)
--------- -------- --------- --------
Net non-operating
income (expense): 839 382 1,802 (315)
Income (loss) before income
taxes 2,962 1,970 8,203 (3,806)
Provision (benefit) for
income taxes 1,294 591 3,076 (1,043)
--------- -------- --------- --------
Net income (loss) $ 1,668 $ 1,379 $ 5,127 $ (2,763)
========= ======== ========= ========
Basic net income (loss) per
share $ 0.11 $ 0.09 $ 0.34 $ (0.19)
Average shares outstanding -
basic 15,320 14,722 15,052 14,692
Diluted net income (loss)
per share $ 0.11 $ 0.09 $ 0.33 $ (0.19)
Average shares outstanding -
diluted 15,635 14,834 15,314 14,692
Planar Systems, Inc.
Consolidated Balance Sheets
(In thousands)
(unaudited)
Jun. 30, 2006 Sept. 30, 2005
-------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $ 76,240 $ 52,185
Short-term investments - 13,000
Accounts receivable 21,937 22,517
Inventories 37,457 36,261
Other current assets 10,393 10,745
------------- --------------
Total current assets 146,027 134,708
Property, plant and equipment, net 11,064 15,011
Goodwill 14,696 14,696
Intangible assets 3,430 3,871
Other assets 5,587 3,798
------------- --------------
$ 180,804 $ 172,084
============= ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 15,420 $ 21,467
Accrued compensation 6,363 5,481
Current portion of long-term debt
and capital leases 213 204
Deferred revenue 2,473 2,578
Other current liabilities 7,899 6,182
------------- --------------
Total current liabilities 32,368 35,912
Long-term debt and capital leases,
less current portion 473 644
Other long-term liabilities 4,462 4,290
------------- --------------
Total liabilities 37,303 40,846
Shareholders' equity:
Common stock 138,231 132,277
Retained earnings 10,033 4,906
Accumulated other comprehensive
loss (4,763) (5,945)
------------- --------------
Total shareholders' equity 143,501 131,238
------------- --------------
$ 180,804 $ 172,084
============= ==============
Planar Systems, Inc.
Consolidated Statement of Cash Flows
(In thousands)
(unaudited)
Three months ended Nine months ended
Cash flows from operating Jun. 30, Jul. 1, Jun. 30, Jul. 1,
activities: 2006 2005 2006 2005
--------- ------- -------- --------
Net income (loss) $ 1,668 $ 1,379 $ 5,127 $(2,763)
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities
Depreciation and amortization 1,837 2,186 5,626 6,861
Impairment and restructuring
charges - - 503 5,168
Loss on long-term investments - - - 887
Stock-based compensation 653 - 2,732 -
Deferred taxes (257) - (660) -
Excess tax benefit of stock-
based compensation (11) - (1,271) -
(Increase) decrease in
accounts receivable (226) 2,456 849 12,180
(Increase) decrease in
inventories (277) 6,313 (1,026) 9,962
(Increase) decrease in other
current assets (116) 1,527 437 1,253
Decrease in accounts payable (459) (4,431) (6,093) (5,178)
Increase (decrease) in
accrued compensation 153 (775) 353 1,496
Increase (decrease) in
deferred revenue 363 878 (135) 1,036
Increase (decrease) in other
current liabilities (45) (1,826) 2,748 (5,444)
--------- ------- -------- -------
Net cash provided by operating
activities 3,283 7,707 9,190 25,458
Cash flows from investing
activities:
Purchase of property, plant and
equipment (230) (546) (770) (2,223)
Proceeds from short-term
investment - - 13,000 -
Increase in other long-term
liabilities - 13 - 13
Increase in long-term assets (1,179) 163 (1,248) ( 67)
--------- ------- -------- -------
Net cash provided by (used in)
investing activities (1,409) (370) 10,982 (2,277)
Cash flows from financing
activities:
Payments of long-term debt and
capital lease obligations (51) (32) (161) (143)
Stock repurchase - - (916) -
Excess tax benefit of stock-
based compensation 11 - 1,271 -
Net proceeds from issuance of
capital stock 130 48 2,817 885
--------- ------- -------- -------
Net cash provided by financing
activities 90 16 3,011 742
Effect of exchange rate changes 965 (1,382) 872 (533)
--------- ------- -------- -------
Net increase in cash and cash
equivalents 2,929 5,971 24,055 23,390
Cash and cash equivalents at
beginning of period 73,311 47,684 52,185 30,265
--------- ------- -------- -------
Cash and cash equivalents at
end of period $ 76,240 $53,655 $ 76,240 $53,655
========= ======= ======== =======
Planar Systems, Inc.
Reconciliation of Non-Gaap to Gaap Results of Operations
(In thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
Jun. 30, 2006 Jun. 30, 2006
------------------ -----------------
GAAP NET INCOME $ 1,668 $ 5,127
Adjustment for share-based
compensation within:
Cost of sales 53 149
Research and development 43 104
Sales and Marketing 230 507
General and administrative 327 1,972
Income taxes (285) (992)
----------------- ----------------
NET INCOME EXCLUDING SHARE-BASED
COMPENSATION $ 2,036 $ 6,867
================= ================
GAAP DILUTED EARNINGS PER SHARE $ 0.11 $ 0.33
Adjustment for share-based
compensation 0.02 0.12
----------------- ----------------
DILUTED EARNINGS PER SHARE
EXCLUDING SHARE-BASED
COMPENSATION $ 0.13 $ 0.45
================= ================
In addition to disclosing financial results calculated in accordance
with U.S. generally accepted accounting principles (GAAP), the
company's earnings release contains non-GAAP financial measures that
exclude the effects of share-based compensation and the requirements
of SFAS No. 123R, "Share-based Payment" ("123R"). The non-GAAP
financial measures used by management and disclosed by the company
exclude the income statement effects of all forms of share-based
compensation and the effects of 123R upon the number of diluted
shares used in calculating non-GAAP earnings per share. The non-GAAP
financial measures disclosed by the company should not be considered
a substitute for, or superior to, financial measures calculated in
accordance with GAAP, and the financial results calculated in
accordance with GAAP and reconciliations to those financial
statements should be carefully evaluated. The non-GAAP financial
measures used by the company may be calculated differently from, and
therefore may not be comparable to, similarly titled measures used by
other companies.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion