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Ceradyne, Inc. Reports Strong First Quarter 2000 Results

24 April 2000

Ceradyne, Inc. Reports Strong First Quarter 2000 Results

    COSTA MESA, Calif.--April 24, 2000--Ceradyne, Inc. (Nasdaq/NM:CRDN) today reported net income of $1,156,000 or $0.14 per share, diluted and basic, for the quarter ended March 31, 2000, compared to net income of $48,000 or $0.01 per share for first quarter 1999. Sales for first quarter 2000 increased 77 percent to $11,148,000 from $6,305,000 in first quarter 1999.
    In addition to producing strong bottom-line results for the quarter, the Company also saw growth in new bookings, or orders, indicating future revenue, or sales, growth. New bookings in the first quarter of 2000 totaled $10.5 million, up almost 44 percent from $7.3 million in first quarter 1999. In addition to the $10.5 million, the Company announced on April 18, 2000 that it had received a new $4.0 million military armor release.
    The Company stated the rise in sales and earnings was due to increased shipments of its lightweight ceramic armor, Clarity(TM) ceramic orthodontic brackets, and ceramic diesel engine components. The Company also stated that all operating profit centers contributed positively in the first quarter, with unexpectedly strong performance from the Company's Semicon Associates division.
    "I am very encouraged by the extraordinary results in all areas of our business," remarked Joel P. Moskowitz, Ceradyne's President and Chief Executive Officer. "The current inflow of new orders, for example, the recently announced (see above) $4 million order for military armor, the increasing use of Clarity(TM) by orthodontists, and recent requests for proposals all indicate growth for 2000 and beyond."
    Ceradyne develops, manufactures and markets advanced technical ceramics for industrial, electronic, defense and consumer applications. Additional information about the Company can be found at www.ceradyne.com.
    Below is a summary of unaudited comparative results. Amounts in thousands except for share data.

                                            Three Months Ended
                                                 March 31,
                                             2000        1999

Sales                                      $11,148     $ 6,305
Net income                                 $ 1,156     $    48
Diluted and basic net income per share     $   .14     $   .01
Average shares outstanding                   8,335       8,110

Condensed Consolidated Balance Sheet (in thousands):

                                          March 31,   December 31, 
                                             2000        1999
                                          Unaudited    Audited

Cash and Cash Equivalents                  $ 1,465     $ 1,407
Other Current Assets                        19,113      16,877
Net Property, Plant and Equipment           10,923      11,002
Other Assets                                 3,559       3,607
    Total Assets                           $35,060     $32,893

Other Current Liabilities                    3,911       3,128
Long Term Debt                                 333         358
Deferred Revenue                               202         270
Stockholders' Equity                       $30,614     $29,137
    Total Liabilities and
     Stockholders' Equity                  $35,060     $32,893

    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, 1999, as filed with the Securities and Exchange Commission.