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Continental Circuits Corp. reports results for first quarter of fiscal 1997.

PHOENIX--(BUSINESS WIRE)--Nov. 25, 1996--Continental Circuits Corp. (NASDAQ:CCIR) Monday announced results for its fiscal 1997 first quarter ended Nov. 2, 1996.

For the quarter, net income was $1.4 million, or 19 cents per share, compared with net income of $2.2 million, or 30 cents per share, for the first quarter of fiscal 1996. The company achieved sales of $27.1 million for the period compared with sales of $28.5 million for the same period a year ago. Operating results for the quarter were improved sequentially from the prior quarter.

Commenting on the company's results, Continental Circuits Chairman and Chief Executive Officer Frederick G. McNamee said: "We are pleased with our operating results for the quarter, which were in line with both our financial plan and analyst expectations for the period.

"The fact that results were improved from the fourth quarter of fiscal 1996 reflects the renewed ordering activity from both new and existing customers that has commenced in conjunction with the industry recovery now taking place. This follows a protracted period of softness that impacted our results during the latter half of last year.

"I am also pleased to report that our pending acquisition of Sigma Circuits Inc. (NASDAQ:SIGA) is proceeding on schedule," McNamee noted. "We are now completing our due diligence and plan to sign a definitive agreement shortly after its conclusion. We expect the transaction to be finalized early in calendar 1997 following shareholder and regulatory approvals.

"We remain very excited about the expanded market opportunities our two companies would have as a true one-stop-shop for electronic interconnect products and services," he continued.

"By providing both quick-turn and volume PCB production, flexible circuits backplane assemblies, sub-assemblies, and complete systems, we offer customers real time-to-volume and time-to-market advantages that positions Continental Circuits to be a leading supplier of complete interconnect solutions and presents us with tremendous opportunities for growth in the years ahead."

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

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that involve risks and uncertainties and actual results may differ materially from the above forward-looking statements due to a number of important factors including, but not limited to, the ability of management to integrate the two companies successfully, the timing and volume of orders, product mix and capacity utilization.

These factors are fully discussed in the companies' regular financial filings with the Securities and Exchange Commission.

 (in thousands, except per share amounts)

 Three months ended
 Nov. 2, Oct. 31,
 1996 1995

Net sales $27,123 $28,508
Cost of products sold 22,660 22,775
 Gross profit 4,463 5,733
Selling, general and
 administrative expense 2,030 1,913
 Income from operations 2,433 3,820
Interest 64 110
Other 4 (13)
 Income before income taxes 2,365 3,723
Income taxes 932 1,475
Net income $1,433 $2,248

Net income per share $ 0.19 $ 0.30

Weighted average number of shares 7,424 7,430


 (in thousands)

 Nov. 2, July 31,
 1996 1996
Assets (unaudited)
Currents assets:
 Cash $5,584 $3,851
 Accounts receivable 15,935 15,114
 Inventories 5,981 4,796
 Prepaid expenses & other 265 259
 Prepaid income taxes 0 240
 Deferred income taxes 714 714
 Total current assets 28,479 24,974

Property, plant and equipment 77,361 74,317
 Less-accumulated depreciation 41,600 40,200
 Property, plant and equipment, net 35,761 34,117

Other assets 518 495
Total assets $64,758 $59,586

Liabilities and shareholders' equity
Current liabilities:
 Accounts payable $8,746 $7,193
 Accrued expenses 2,812 2,052
 Income taxes 673 0
 Current portion of long-term debt 1,000 1,000
 Total current liabilities 13,231 10,245

Long-term debt 4,083 3,333
Deferred income taxes 1,976 1,976

Shareholders' equity 45,468 44,032
Total liabilities and
 shareholders' equity $64,758 $59,586

CONTACT: Continental Circuits Corp., Phoenix

Frederick G. McNamee/Joseph G. Andersen, 602/268-3461


Silverman Heller Associates

Lou Alkana, 310/208-2550
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Publication:Business Wire
Date:Nov 25, 1996
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