Peak International Q4 Reflects Continuing Improvement In Its Business
6 May 1999
Peak International Fiscal Fourth Quarter Reflects Continuing Improvement In Its Business
- Two Outside Directors Named to Board -
HONG KONG and AUSTIN, Texas, May 6 -- Peak International
Limited (Amex: PTT) today reported that results for its
fiscal fourth quarter ended March 31, 1999, reflect continuing improvement in
its business, consistent with the strengthening in the semiconductor
marketplace.
For the 1999 fiscal fourth quarter, Peak had net sales of $17.7 million,
the third consecutive quarter of higher sales. Peak's net income for the
quarter was $3.7 million, or $0.28 per share basic and fully diluted. For the
fiscal 1998 fourth quarter, which occurred in a stronger semiconductor market,
Peak had net sales of $20.2 million and net income of $5.9 million, or $0.43
per share basic and fully diluted.
For the full fiscal year ended March 31, 1999, Peak had net sales of
$66.2 million and net income of $11.8 million, or $0.88 per basic common share
and $0.87 per fully diluted share. Net income and net income per share for
fiscal 1999 includes a fiscal third quarter special charge totaling
$2.0 million relating to the termination of the employment contract of a
former executive. For fiscal 1998, Peak had net sales of $73.7 million and
net income of $20.6 million, or $1.61 per basic common share and $1.59 per
fully diluted share.
Peak, in addition, announced that it has added two independent outside
directors to its Board, bringing the present Board total to four members. The
two new directors are Douglas Broyles and Jack Menache. Both have an
extensive background and expertise in the technology sector. Mr. Broyles, who
has been involved in venture capital, is among other things, currently
President and CEO of Avalon Data, a wireless data communications company. Mr.
Menache is Vice President, General Counsel and Secretary of Integrated Device
Technology, Inc., a publicly traded semiconductor company.
Calvin L. Reed, Peak's new Chief Executive Officer and President, stated,
"We are confident that a new era is underway at Peak. Not only is the company
experiencing improvement in its business, but Peak is moving forward with a
new management team of proven professional executives. This team and the
reconstituted Board will be able to provide Peak with a fresh perspective on
how to best build the company's inherent values."
During the fiscal 1999 fourth quarter, Peak's tape and reel products
continued to gain market share and to steadily grow in their overall
importance to the company. Tape products sales were up 7 percent over the
previous quarter.
Peak has been able to capitalize through its recycled trays business on
customers' interest in cost savings as a result of the downturn the
semiconductor industry has experienced over the past year. Peak is the only
large scale operator of recycled trays.
Peak's average number of customers was maintained at the same level during
the quarter. Peak's location in Asia positions it well to provide local
support and short delivery lead time to these assembly businesses.
Peak's factory expansion is on track. A large portion of cash utilized by
the company during the past fiscal quarter went toward progress payments to
the construction companies working on the new factory building.
Peak has continued to lower its costs by reducing its inventory and by
slowing its purchases of raw materials. As a result, Peak's inventory
declined 2.4 percent for the quarter ended March 31, 1999.
Peak International Limited is a leading supplier of precision engineered
packaging products for the storage, transportation, and automotive handling
semi conductor devices electronic components.
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended and Section 21E of
the Securities and Exchange Act of 1934, as amended. The forward-looking
statements reflect the view of Peak with respect to future events and
financial performance. These forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from these statements. The words "believes," "expects," "anticipates,"
"intends," "plans," "estimates" and similar expressions identify forward-
looking statements. Peak undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. Readers are cautioned not to place undue
reliance on these forward-looking statements.
Peak International Limited
Income Statement Excerpts
(all amounts in thousands, except per share data)
(unaudited)
Three Months Ended March 31,
1999 1998
Net Sales $17,673 $20,166
Cost of Goods Sold 10,391 11,552
Gross Profit 7,282 8,614
General & Administrative and
Research & Development 2,085 1,730
Selling & Marketing 1,459 1,306
Operating Income 3,738 5,578
Other Income 240 456
Interest Income-net 82 313
Profit Before Tax 4,060 6,347
Taxation 340 492
NET INCOME $ 3,720 $ 5,855
EARNINGS PER SHARE - BASIC $ 0.28 $ 0.43
- DILUTED $ 0.28 $ 0.43
Weighted Avg. Number of
Shares-Diluted 13,509 13,695
Year Ended March 31,
1999 1998
Net Sales $66,235 $73,705
Cost of Goods Sold 39,487 41,048
Gross Profit 26,748 32,657
General & Administrative and
Research & Development 7,338 6,194
Selling & Marketing 5,801 5,487
G&A - special charge 2,000 -
Operating Income 11,609 20,976
Other Income 887 926
Interest Income-net 679 517
Profit Before Tax 13,175 22,419
Taxation 1,338 1,825
NET INCOME $11,837 $20,594
EARNINGS PER SHARE - BASIC $ 0.88 $ 1.61
- DILUTED $ 0.87 $ 1.59
Weighted Avg. Number of Shares-Diluted 13,550 12,972
Consolidated Balance Sheet
(in thousands)
ASSETS March 31, 1999 March 31, 1998
(unaudited)
Current assets:
Cash & cash equivalents $10,597 $19,314
Accounts receivable-net 11,829 14,416
Inventory-net 26,169 27,941
Other current assets 1,241 1,521
Total Current Assets 49,836 63,192
Property, plant and
equipment-net 52,517 26,348
TOTALS $102,353 $89,540
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Bank borrowings 0 89
Accounts payable 6,324 7,251
Taxation 3,805 3,800
Total Current Liabilities 10,129 11,140
LT Provision 647 -
Deferred income taxes 1,607 818
Total Liabilities 12,383 11,958
Stockholders' Equity:
Share capital 135 135
Additional paid-in capital 34,620 34,034
Retained earnings 55,954 44,117
Cumulative translation
adjustment (739) (704)
Total stockholders'
equity 89,970 77,582
TOTALS $102,353 $89,540