BEI Technologies Reports Record Sales and
Earnings for the Second Quarter 2001 And Year to Date
2001
SAN FRANCISCO, April 19 BEI Technologies, Inc.
reported record earnings for the fiscal 2001 second quarter
ended March 31, 2001 of $3,460,000, or $0.24 per share, compared to
$2,291,000, or $0.15 per share, for the fiscal 2000 second quarter, an
increase of 51%. Net sales for the quarter increased 20% to a record
$65.1 million compared to $54.2 million in the second quarter of fiscal 2000,
according to Charles Crocker, chairman and chief executive officer.
Crocker commented, "BEI's record revenues and earnings performance for the
quarter occurred despite continuing evidence of a slowing economy. Increased
revenues from sales to the automotive industry were primarily the result of
growth in sales of stability control systems utilizing BEI's GyroChip(R) yaw
sensor. Going forward, continuing softness in both the industrial and
automotive sectors may affect growth and profitability in future quarters.
For example, revenue in the industrial sector diminished as compared to the
prior year second quarter, and the second quarter 2001 ending backlog in the
automotive business is below the level at the first quarter 2001".
Gross profit margin was consistent with last year's second quarter at
28.0%, even with a higher percentage of automotive revenue due to volume
leverage and operating efficiencies. Gross margin dollars generated an
increase of $3.1 million, or 20.4% over last year. Selling, general and
administrative expenses, as a percentage of sales, improved to 14.7% compared
to 16.8% last year. Research and development expenses dropped to 3.4% of
sales from 4.1% reported in the second quarter of 2000 due primarily to the
reduction of expenses attributable to OpticNet, Inc., a minority owned
subsidiary of BEI.
SIX-MONTH RESULTS
For the first six months of fiscal 2001, earnings were $6,752,000, or
$0.47 per share, a 90% increase over earnings of $3,547,000, or
$0.24 per share, reported in the comparable period of 2000. Net sales for the
first six months of fiscal 2001 were $125.3 million, an increase of 28% over
the $97.9 million for the first half of fiscal 2000. Sales to automotive
customers accounted for the majority of this increase.
Crocker continued, "We are gratified by the results generated from
execution of our strategic business plan. As management stated last quarter,
the effects of the economic unpredictability on our business sector continue
to be difficult to forecast. While demand for our GyroChip sensors
remains strong, economic uncertainty may cause fluctuations in
quarter-to-quarter sales and earnings. Management believes that the GyroChip
and stability control systems will continue to migrate to new platforms with
increased penetration into North American and global markets in the coming
years."
BEI Technologies, Inc. is an established manufacturer of electronic
sensors, motors, actuators and motion control products used for factory and
office automation, medical equipment, military, aviation and space systems.
In addition, sales to manufacturers of transportation equipment including
automobiles, trucks and off-road equipment have become a significant addition
to the Company's business in recent years. The Company's micromachined quartz
yaw rate sensors are being used in advanced vehicle stability control systems
and a significant increase in the production of those sensors has been in
progress since the middle of 1998. BEI also manufactures electronic steering
wheel position sensors, seat-memory modules, throttle position and pressure
sensors and other devices used in automotive systems. GyroChip is a
registered trademark of BEI Sensors & Systems Company, Inc.
Except for historical information, this news release may be deemed to
contain forward-looking statements that involve risks and uncertainties,
including statements with respect to timely development, acceptance and
pricing of new products; impact of competitive products on volume and price;
the ability to manufacture products in sufficient volume on an efficient and
timely basis; general economic conditions as they affect the Company's
customers, as well as other risks detailed from time to time in the Company's
reports to the Securities and Exchange Commission, including the Company's
Form 10-K for fiscal 2000.
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, September 30,
2001 2000
(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $10,835 $12,296
Investments 7,127 7,252
Trade receivables, net 30,087 33,067
Inventories, net 32,286 31,084
Other current assets 13,888 7,863
Total current assets 94,223 91,562
Property, plant and equipment, net 35,684 36,010
Acquired technology 2,912 3,093
Goodwill 1,890 2,085
Other assets, net 5,575 5,538
$140,284 $138,288
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $15,081 $18,926
Accrued expenses and other liabilities 30,444 30,694
Current portion of long-term debt 7,088 134
Total current liabilities 52,613 49,754
Long-term debt, less current portion 29,592 36,614
Other liabilities 3,046 2,824
Stockholders' equity 55,033 49,096
$140,284 $138,288
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts)
Unaudited
Quarter Ended Six Months Ended
March 31, April 1, March 31, April 1,
2001 2000 2001 2000
Net sales $65,116 $54,217 $125,337 $97,945
Cost of sales 46,857 39,058 89,584 71,227
18,259 15,159 35,753 26,718
Selling, general and
administrative expenses 9,575 9,124 18,760 16,170
Research, development
and related expenses 2,196 2,197 4,498 3,952
Income from operations 6,488 3,838 12,495 6,596
Interest expense 650 664 1,286 1,351
Other income (expense) (65) 593 100 619
Income before income
taxes 5,773 3,767 11,309 5,864
Provision for income
taxes 2,313 1,476 4,557 2,317
Net income $3,460 $2,291 $6,752 3,547
BASIC EARNINGS PER
COMMON SHARE
Net income per common
share $0.25 $0.16 $0.49 $0.24
Weighted average shares
outstanding 13,935 14,380 13,900 14,506
DILUTED EARNINGS PER
COMMON AND COMMON
EQUIVALENT SHARE
Net income per common
and common equivalent
share $0.24 $0.15 $0.47 $0.24
Weighted average shares
outstanding 14,415 14,798 14,392 14,778
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Unaudited
Quarter Ended
March 31, April 1,
2001 2000
Net income $3,460 $2,291
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and Amortization 2,078 1,998
Other (3,270) 6,701
Net cash provided by operating activities 2,268 10,990
Net cash used in investing activities (1,003) (480)
Net cash used in financing activities (98) (651)
Net increase in cash and cash equivalents 1,167 9,859
Cash and cash equivalents at beginning of period 9,668 564
Cash and cash equivalents at end of period $10,835 $10,423
CONTACT: John LaBoskey, Senior Vice President-CFO of BEI Technologies,
Inc., 415-956-4477.
