Ceradyne, Inc. Reports Third Quarter 1999 Sales and Earnings
26 October 1999
Ceradyne, Inc. Reports Third Quarter 1999 Sales and Earnings; Company Announces 3Q Record Sales and Nine Month Record Bookings
COSTA MESA, Calif.--Oct. 26, 1999--Ceradyne, Inc. today announced financial results for the three months ended September 30, 1999.For the quarter, the Company reported net income of $496,000, or $.06 per diluted and basic share, compared with net income of $44,000 or $.01 per diluted and basic share in the year-ago period. Sales for the 1999 third quarter totaled $7.8 million, compared with sales of $6.3 million in the third quarter of 1998, a 24 percent increase over the prior year period.
For the nine months ended September 30, 1999, net income was $945,000 or $.12 per diluted and basic share as compared to $851,000 or $.11 per diluted and basic share in the prior year period. The 1999 nine months' sales were $21.4 million compared to 1998's nine months' sales of $20.0 million. New bookings for the third quarter ended September 30, 1999 were $11.0 million compared to $6.1 million in the third quarter 1998, and for the nine months ended September 30, 1999 were $30.4 million compared to $18.2 million in the comparable prior year period. The year-to-date book to bill ratio is 1.42.
Total backlog at the end of the quarter was $25.5 million (including $2.6 million in unexercised options) compared to $14.5 million (including $3.1 million in unexercised options) in the comparable 1998 period.
In September 1999, a government agency issued an "authorization to proceed" on the first $7.5 million of military ceramic armor scheduled to be shipped by June 2000.
The Department of Energy and the U.S. Navy each granted Ceradyne a Small Business Innovation Research (SBIR) contract for the further development and commercialization of a recently developed (patent pending) microwave absorbing ceramic. Ceradyne has received four SBIR research grants in 1999 from four different government agencies. These initial Phase I grants total approximately $400,000. If Phase II grants are awarded, the total would be in excess of $2 million of research funding. These awards demonstrate and support the Company's increasing research and development commitment.
Ceradyne develops, manufactures and markets advanced technical ceramics for industrial, electronic, defense and consumer applications. Additional information can be found at the Company's Web site: www.ceradyne.com.
This news release contains forward-looking statements regarding future events and the future performance of Ceradyne that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998, as filed with the Securities and Exchange Commission.
Below is a summary of unaudited comparative results:
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
Sales $7,810,000 $6,290,000 $21,446,000 $19,975,000
Net income $ 496,000 $ 44,000 945,000 851,000
Diluted and Basic
net income per
share $ .06 $ .01 $ .12 $ .11
Average shares
outstanding 8,227,000 8,077,000 8,163,000 8,068,000
Consolidated Balance Sheet:
Sept. 30, 1999 December 31, 1998
Unaudited Audited
Cash and Cash Equivalents $ 1,539,000 $ 2,870,000
Other Current Assets 16,162,000 14,052,000
Net Property, Plant and Equipment 10,265,000 8,857,000
Other Assets 3,652,000 3,714,000
Total Assets $ 31,618,000 $29,493,000
Current Liabilities 2,746,000 1,871,000
Long Term Debt 383,000 --
Deferred Revenue 67,000 270,000
Stockholders' Equity $28,422,000 $27,352,000
Total Liabilities and
Stockholders' Equity $31,618,000 $29,493,000