BEI Technologies Reports Fiscal 2000 Q1 Operating Income of $0.17 Per Share
1 February 2000
BEI Technologies Reports Fiscal 2000 First Quarter Operating Income of $0.17 Per Share
SAN FRANCISCO, Feb. 1 -- BEI Technologies, Inc.
reported that for the fiscal 2000 first quarter ended
January 1, 2000, earnings from operations were $1,256,000, or $0.17 per share,
up 19% compared to $1,054,000, or $0.14 per share, in the fiscal 1999 first
quarter. Net sales for the quarter increased 19% to $43.7 million compared
with $36.7 million in the 1999 first quarter, according to Charles Crocker,
chairman, president and chief executive officer.
Crocker commented, "Our most significant sales increase from the prior
year was that associated with deliveries of GyroChip(R) yaw sensors for the
automotive business. Shipments of these sensors exceeded 220,000 units in the
first quarter, reflecting our continuing ramp-up to supply units for
additional car models. We have been notified that stability systems using our
GyroChips will be offered in additional makes and models in 2001. Our largest
customer for these products has recently predicted that by 2004 one in three
cars sold in Europe will be equipped with stability systems of the type that
require yaw rate sensors. We, as well as our customers, are pleased with the
consumer response to the GyroChip-based stability systems."
"Sales trends of core products, including motors, actuators and encoders
were mixed. Combined sales of these products increased slightly in comparison
with the prior year's first quarter, offsetting a modest decline in business
with government program customers."
Gross profit margins for the quarter were 26.4% versus 31.2% last year and
reflect the significantly increased proportion of sales of automotive sensors,
which generally have lower margins than industrial products. "We remain
committed to our goal of progressively reducing the cost of automotive
sensors, and gross profit margins for operating units with automotive business
did in fact show improvement in the first quarter," Crocker said. Selling,
general and administrative expenses as a percent of sales improved to 16.1% of
sales in the first quarter of fiscal 2000 from 20.3% in the first quarter of
fiscal 1999.
BEI Technologies, Inc., through its principal subsidiary, BEI Sensors &
Systems Company, Inc., is an established manufacturer of electronic sensors,
motors, actuators and motion control products used for factory and office
automation, medical and scientific equipment, military, aviation and space
systems, and transportation equipment including automobiles, trucks and
off-road equipment. The Company's micromachined quartz yaw rate sensors are
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(R) 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 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 Annual
Report for fiscal 1999.
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
Unaudited
January 1, October 2,
2000 1999
ASSETS
Cash and cash equivalents $564 $3,181
Investments 7,115 6,467
Trade receivables - net 29,217 29,555
Inventories - net 31,517 31,036
Other current assets 7,145 7,193
Total current assets 75,558 77,432
Property, plant, and equipment, net 34,766 35,122
Acquired technology 3,814 4,054
Goodwill 2,389 2,436
Other assets, net 4,291 4,316
Total assets $120,818 $123,360
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $11,869 $15,484
Accrued expenses and other liabilities 24,222 23,891
Current portion of long-term debt 120 120
Total current liabilities 36,211 39,495
Long-term debt, less current portion 36,891 36,705
Other liabilities 1,322 1,317
Stockholders' equity 46,394 45,843
$120,818 $123,360
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts)
Unaudited
Quarter Ended
January 1, January 2,
2000 1999
Net sales $43,728 $36,743
Cost of sales 32,169 25,280
11,559 11,463
Selling, general and administrative expense 7,046 7,463
Research, development and related expense 1,755 1,496
Income from operations 2,758 2,504
Interest expense (687) (778)
Other income 26 59
Income from operations before income taxes 2,097 1,785
Provision for income taxes 841 731
Income from operations 1,256 1,054
Extraordinary item - net of income taxes -- (326)
Net income $1,256 $728
BASIC EARNINGS PER COMMON SHARE
Earnings from operations $0.17 $0.15
Loss from extraordinary item, net of
income taxes -- (0.05)
Earnings per common share $0.17 $0.10
Weighted average shares outstanding 7,180 7,130
DILUTED EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
Earnings from operations $0.17 $0.14
Loss from extraordinary item, net of
income taxes -- (0.04)
Earnings per common and common equivalent
share $0.17 $0.10
Weighted average shares outstanding 7,339 7,296
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Unaudited
Quarter Ended
January 1, January 2,
2000 1999
Net income $1,256 $728
Adjustments to reconcile net income to net cash
provided by (used by) operating activities:
Depreciation and amortization 1,990 1,760
Other (4,360) (4,640)
Net cash provided by (used by) operating
activities (1,114) (2,152)
Net cash used in investing activities (689) (783)
Net cash provided by financing activities (814) 3,671
Net increase (decrease) in cash and cash
equivalents (2,617) 736
Cash and cash equivalents at beginning of
period 3,181 3,557
Cash and cash equivalents at end of period $564 $4,293