Valpey-Fisher Corporation Reports Fourth Quarter and Year End Results.Business Editors/High-Tech Writers HOPKINTON Hopkinton is the name of several towns in the United States:
Valpey-Fisher Corporation (AMEX AMEX See: American Stock Exchange :VPF VPF vascular permeability factor; see vascular endothelial growth factor, under factor. ) reported today its financial results for the fourth quarter and year ended December December: see month. 31, 2002. Valpey-Fisher Corporation specializes in providing frequency control devices, including quartz crystals A slice of quartz ground to a prescribed thickness that vibrates at a steady frequency when stimulated by electricity. The tiny crystal, about 1/20th by 1/5th of an inch, creates the computer's heartbeat. Without the quartz crystal, there would be no computers as we know them today! and oscillators. Commenting on the results, Ted Valpey, Jr., Chairman said, "Valpey-Fisher performance for 2002 continues to reflect our dependence on the communication market, which continued to decline last year. We expect that over the first half of 2003 business will bottom out as inventories and older designs get flushed flush 1 v. flushed, flush·ing, flush·es v.intr. 1. To turn red, as from fever, embarrassment, or strong emotion; blush. 2. through the system. In the latter half of 2003 we expect some increase, although modest, and in 2004 all indications are that growth, although single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. , will begin. Our sales dropped 57% to $7,294,000 resulting in an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $4,201,000. This loss reflects additional provisions for inventory obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. . The continued softness in the market has resulted in the large inventory overhangs at the supplier base and at the equipment manufacturers. However, the inventory obsolescence offers a mixed blessing mixed blessing Noun an event or situation with both advantages and disadvantages mixed blessing n it's a mixed blessing → tiene su lado bueno y su lado malo . On the positive side it has allowed us to position ourselves with new product approvals when the market turn finally comes. On the negative side it has expedited the obsolescence of even more inventory for mature products, which is the principal reason for our action in writing off the additional inventories." Mr. Valpey, Jr. further stated, "The main cause for the continued drop in sales is primarily the result of significant capacity that was built-out by our industry in 1999 and 2000. Our 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. at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. was $1.1 million compared to the prior year of $1.4 million. Our net loss in 2002 was $2,889,000 ($.69 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) compared to net earnings of $2,751,000 ($.64 per diluted share) in 2001. The net loss in 2002 includes a loss of $99,000 from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . By comparison, the net earnings in 2001 were positively impacted by investment gains, primarily from the sale of our investment in MetroWest This article is about a region in Massachusetts. For the planned community in Fairfax, Virginia, see Fairlee Metro-West. MetroWest is a cluster of cities and towns lying west of Boston and east of Worcester, in the US state of Massachusetts. Bank of $3,551,000 ($.83 per diluted share). While it is very disappointing to have realized operating losses over the past two years, our Company remains strong and is able to invest in people and continued new product development. Out continued efforts in the development of advanced products in Omsk Omsk (ômsk), city (1989 pop. 1,148,000), capital of Omsk region, W Siberian Russia, at the confluence of the Irtysh and Om rivers and on the Trans-Siberian RR. It is a major river port and produces agricultural machinery and railway equipment. , Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). is expected to generate sales in the later part of 2003 as a result of considerable sampling of products and the start of new qualifications. In our 3rd quarter report, we announced the appointment of Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. J. Ferrantino as President, 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. and a Director of the Company. Mr. Ferrantino is a seasoned veteran of the electronic business with a successful track record. His proactive operating and marketing skills are already having a positive impact on our Company." Michael J. Ferrantino, President and Chief Executive Officer, said, "After assessing the skill sets of our employees we had a reduction in our workforce last October of approximately 15%. Since then we have added key engineering, sales and marketing people. During the current year, we expect to improve yields, factory efficiency and increased market share as a result of these moves." Mr. Valpey, Jr. concluded, "In our 2001 annual report we cautioned that 2002 would also be a year of challenges and it certainly has been. While the industry slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. has continued through 2002, the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the business indicates we should anticipate improvement. Coupling our financial strength with our new leadership, we have positioned the company to grow both organically and when the occasion arises take advantage of external growth opportunities. We continue to review all our options in our efforts to realize shareholder value." 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. Certain statements made herein contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Words such as "expects," "believes," "estimates," "plans" or similar expressions are intended to identify such forward-looking statements. The forward-looking statements are based on the Company's current views and assumptions and involve risks and uncertainties that include, but not limited to: the ability to develop, market and manufacture new innovative products competitively, the fluctuations in product demand of the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry, the ability of the Company and its suppliers to produce and deliver materials and products competitively, and the ability to limit the amount of the negative effect on operating results caused by pricing pressure.
Valpey-Fisher Corporation
Condensed Consolidated Statements of Operations
Audited
(in thousands, except per share data)
Quarter Ended Year Ended
------------------ --------------------
12/31/02 12/31/01 12/31/02 12/31/01
------------------ --------------------
Net sales $1,602 $1,976 $7,294 $16,897
Cost of sales 2,016 3,338 8,640 14,610
------------------ --------------------
Gross profit (loss) (414) (1,362) (1,346) 2,287
Selling and advertising
expenses 327 331 1,456 2,365
General and administrative
expenses 525 240 1,399 1,380
------------------ --------------------
852 571 2,855 3,745
------------------ --------------------
Operating profit (loss) (1,266) (1,933) (4,201) (1,458)
Other income, net (A) (B) 41 5,517 213 5,752
------------------ --------------------
Earnings (loss) from
continuing operations before
income taxes (1,225) 3,584 (3,988) 4,294
Income tax (expense) benefit 148 (1,259) 1,198 (1,543)
------------------ --------------------
Earnings (loss) from
continuing operations (1,077) 2,325 (2,790) 2,751
(Loss) from discontinued
operations (54) 0 (99) 0
------------------ --------------------
Net earnings (loss) $(1,131) $2,325 $(2,889) $2,751
================== ====================
Basic earning (loss) per
share:
Continuing operations $(0.26) $0.56 $(0.67) $0.66
Discontinued operations (0.01) 0.00 (0.02) 0.00
------------------ --------------------
$(0.27) $0.56 $(0.69) $0.66
================== ====================
Diluted earnings (loss) per
share:
Continuing operations $(0.26) $0.55 $(0.67) $0.64
Discontinued operations (0.01) 0.00 (0.02) 0.00
------------------ --------------------
$(0.27) $0.55 $(0.69) $0.64
================== ====================
Basic weighted average shares 4,228 4,153 4,166 4,138
Diluted weighted average
shares 4,228 4,225 4,166 4,277
(A) For the year ended 12/31/02, the net loss from continuing
operations includes gains on the sales of assets amounting to $124,000
or $.03 per basic and diluted share.
(B) For the quarter ended 12/31/01, net earnings from continuing
operations includes a gain on the sale of an asset amounting to
$3,460,000 or $.83 per basic share and $.82 per diluted share. For the
year ended 12/31/01, net earnings from continuing operations includes
gains on the sales of assets amounting to $3,551,000 or $.86 per basic
share and $.83 per diluted share.
Valpey-Fisher Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(Audited) (Audited)
12/31/02 12/31/01
--------------------
ASSETS
Current assets:
Cash and cash
equivalents $5,758 $5,960
Receivables, net 2,175 2,307
Inventories, net 2,028 4,469
Deferred income taxes
and other current
assets 1,110 1,469
--------------------
Total current assets 11,071 14,205
--------------------
Property, plant and
equipment, at cost 10,165 9,910
Less accumulated
depreciation 6,231 5,383
--------------------
3,934 4,527
--------------------
Other assets 146 109
--------------------
$15,151 $18,841
====================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities $2,365 $1,835
Long-term debt 0 1,278
Deferred income taxes 704 754
Stockholders' equity 12,082 14,974
--------------------
$15,151 $18,841
====================
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