BEI Reports Record Sales and Earnings in Fiscal 2000 Q2
27 April 2000
BEI Technologies Reports Record Sales and Earnings in Fiscal 2000 Second Quarter; Sales Increase 39%; Net Income Nearly Doubles to $0.31 Per Share
SAN FRANCISCO, April 26 BEI Technologies, Inc.
(Nasdaq: BEIQ) reported that earnings from continuing operations for the
fiscal 2000 second quarter ended April 1, 2000, were $2,291,000, or $0.31 per
share, compared to $1,159,000, or $0.16 per share, for the fiscal 1999 second
quarter. Net sales for the quarter increased 39% to $54.2 million compared to
$39.0 million in the second quarter of fiscal 1999, according to Charles
Crocker, chairman and chief executive officer.
Crocker commented, "Our revenue growth was again driven by the continued
global demand by the automotive industry for BEI's GyroChip(R) sensor.
Shipment of automotive GyroChip sensors during this quarter alone exceeded
300,000 units, up from 220,000 units in the first quarter, and during the
quarter we marked the shipment of the one-millionth GyroChip. Compared to the
second quarter of fiscal 1999, sales to automotive customers grew 92%. Sales
of our core industrial products also improved. Compared to last year's second
quarter, this non-automotive commercial revenue increased 18%."
While the gross profit margins for the second quarter decreased to 28.0%
from 31.5% in last year's second quarter because of the increased percentage
of automotive revenue with its typically lower margins, the quarter's gross
margins improved by 1.6 percentage points from the first quarter of fiscal
2000. Selling, general and administrative expenses as a percentage of sales
improved to 16.8% compared to 19.9% last year and development expenses were
4.1% of sales versus 4.7% for the fiscal 1999 second quarter. The fiscal 2000
second quarter included non-recurring other income of approximately $0.04 per
share, primarily from the sale of assets held for investment. The Company's
cash position improved to approximately $10 million during the quarter.
SIX-MONTH RESULTS
For the first six months of fiscal 2000, earnings from continuing
operations were $3,547,000, or $0.48 per share, a 60% increase over earnings
of $2,213,000, or $0.30 per share, reported in the comparable period of 1999.
Net sales for the six-month period of fiscal 2000 were $97.9 million, an
increase of 29% over the $75.8 million for the first half of fiscal 1999.
Sales to automotive industry customers accounted for the majority of this
increase.
Crocker continued, "We are encouraged by the ongoing growth in revenue,
earnings and cash that validates our strategic business model. Our efforts
continue to be directed towards improvements in our proprietary manufacturing
processes, value engineering and methodologies to sustain our competitive
position in both the automotive and industrial market sectors."
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
April 1, October 2,
2000 1999
(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $10,423 $3,181
Investments 6,866 6,467
Trade receivables - net 30,583 29,555
Inventories - net 30,460 31,036
Other current assets 8,414 7,193
Total current assets 86,746 77,432
Property, plant, and equipment, net 34,557 35,122
Acquired technology 3,573 4,054
Goodwill 2,341 2,436
Other assets, net 3,453 4,316
$130,670 $123,360
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $14,060 $15,484
Accrued expenses and other liabilities 28,632 23,891
Current portion of long-term debt 120 120
Total current liabilities 42,812 39,495
Long-term debt, less current portion 36,653 36,705
Other liabilities 3,027 1,317
Stockholders' equity 48,178 45,843
$130,670 $123,360
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts)
Unaudited
Quarter Ended Six Months Ended
April 1, April 3, April 1, April 3,
2000 1999 2000 1999
Net sales $54,217 $39,047 $97,945 $75,790
Cost of sales 39,058 26,731 71,227 52,011
15,159 12,316 26,718 23,779
Selling, general and
administrative expense 9,124 7,789 16,170 15,252
Research, development and
related expense 2,197 1,837 3,952 3,333
Income from operations 3,838 2,690 6,596 5,194
Interest expense 664 758 1,351 1,536
Other income 593 34 619 93
Income before income taxes 3,767 1,966 5,864 3,751
Provision for income taxes 1,476 807 2,317 1,538
Income before extraordinary
item 2,291 1,159 3,547 2,213
Extraordinary item, net of
income taxes --- --- --- (326)
Net income $2,291 $1,159 $3,547 $1,887
BASIC EARNINGS PER COMMON SHARE
Income before extraordinary
item $0.32 $0.16 $0.49 $0.31
Loss from extraordinary item,
net of income taxes --- --- --- (0.05)
Net income per common share $0.32 $0.16 $0.49 $0.26
Weighted average shares
outstanding 7,190 7,154 7,253 7,116
DILUTED EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
Income before extraordinary
item $0.31 $0.16 $0.48 $0.30
Loss from extraordinary item,
net of income taxes --- --- --- (0.04)
Net income per common and
common equivalent share $0.31 $0.16 $0.48 $0.26
Weighted average shares
outstanding 7,428 7,349 7,389 7,319
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Unaudited
Quarter Ended
April 1, April 3,
2000 1999
Net income $2,291 $1,159
Adjustments to reconcile net income to net cash
provided by (used by) operating activities:
Depreciation and amortization 1,998 2,139
Other 6,701 (78)
Net cash provided by (used by)
operating activities 10,990 3,220
Net cash used in investing activities (480) (2,771)
Net cash provided by financing activities (651) (993)
Net increase (decrease) in cash
and cash equivalents 9,859 (544)
Cash and cash equivalents at beginning of period 564 4,293
Cash and cash equivalents at end of period $10,423 $3,749