BEI Technologies, Inc. Reports Record Fiscal 2000 Third Quarter
25 July 2000
Sales Increase 46%; Earnings Per Share Up 156% To $0.41; Record Nine-Month Results
SAN FRANCISCO, July 24 BEI Technologies, Inc.
reported record earnings from continuing operations for the
fiscal 2000 third quarter ended July 1, 2000, of $2,993,000, or $0.41 per
share, compared to $1,170,000, or $0.16 per share, for the third quarter of
fiscal 1999. Net sales for the quarter increased 46% to $60.2 million
compared to $41.2 million in same period last year, according to Charles
Crocker, chairman, and chief executive officer.
"Our continued quarter-to-quarter revenue growth was again favorably
affected by the growing global demand for BEI's GyroChip(R) sensors used in
automotive stability systems. GyroChip shipments in this quarter exceeded
380,000 units compared to 140,000 units in the third quarter of fiscal 1999
and 300,000 units in the prior quarter of this fiscal year. This demonstrates
the Company's ability to supply the growing stability control yaw sensor
market and continue to be the dominant high volume manufacturer of this
sophisticated MEMS sensor. Compared to the third quarter of 1999, sales of
automotive components increased 114%. Additionally, sales of our core
industrial sensors contributed to the current quarter revenue growth by
increasing 11.2% over the third quarter of 1999. The semiconductor production
equipment market was especially strong," Crocker commented.
"Gross margin for the quarter was 29.1% of sales, which is slightly lower
than the third quarter of 1999 at 29.6%. However, this is an improvement of
1.1 percentage points from the second quarter of fiscal 2000 due to continued
progress in reducing unit costs utilizing vendor participation, value
engineering and continuous manufacturing process improvement."
Crocker continued, "The previously announced open market stock repurchase
program has been successful to date. The Company purchased approximately
317,000 shares in the just-completed quarter at an average price below $18.00
per share. To date, the repurchase program has accumulated approximately
415,000 shares at an average price below $17.00 per share. We believe this
was an excellent use of our cash."
Selling, general and administrative (SG&A) expense as a percentage of net
sales improved in the fiscal 2000 third quarter to 16.6% from 19.2% in the
year-earlier period. Development spending in the third quarter of fiscal 2000
increased to $2.2 million from $1.9 million one year ago, but decreased as
percentage of net sales to 3.6% from 4.5% in the 1999 third quarter.
NINE-MONTH RESULTS
For the fiscal 2000 nine-month period ended July 1, 2000, earnings from
continuing operations increased 93% to a record $6,540,000, or $0.89 per
share, versus $3,383,000, or $0.47 per share, in the comparable period of
fiscal 1999. Net sales in the recent nine-month period were a record
$158.2 million, a 35% increase over the $117.0 million reported last year.
Sales to automotive customers accounted for the majority of the increase.
For the recent nine-month period, SG&A expense was 16.5% of net sales, an
improvement from 19.8% in fiscal 1999. Development spending, though higher
in absolute terms, was 3.9% of net sales, versus 4.4% for the nine months of
fiscal 1999. Operating income increased approximately 57% to $12.0 million
from $7.6 million in the fiscal 2000 and 1999 nine-month periods,
respectively.
Summing up, Crocker said, "We are extremely pleased to continue our
quarter-to-quarter growth in revenue and earnings, which is driven by the
continued market acceptance of our GyroChip sensor and the continuing strength
in our core industrial markets. We also look forward to exciting new market
opportunities. We are sampling customers with our proprietary NCAPS(TM)
(non-contacting angular position sensor) that we believe has excellent market
potential. Also, we are exploring the large potential of rollover sensor
applications. Finally, we continue to pursue opportunities in synergistic
markets in our core industrial and automotive sectors."
BEI Technologies, 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 GyroChip(R) 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 is a registered trademark of
BEI.
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
July 1, October 2,
2000 1999
(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $9,663 $3,181
Investments 7,080 6,467
Trade receivables - net 31,439 29,555
Inventories - net 31,534 31,036
Other current assets 8,087 7,193
Total current assets 87,803 77,432
Property, plant, and equipment, net 34,881 35,122
Acquired technology 3,333 4,054
Goodwill 2,292 2,436
Other assets, net 3,928 4,316
$132,237 $123,360
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $16,575 $15,484
Accrued expenses and other liabilities 30,326 23,891
Current portion of long-term debt 120 120
Total current liabilities 47,021 39,495
Long-term debt, less current portion 36,643 36,705
Other liabilities 3,368 1,317
Stockholders' equity 45,205 45,843
$132,237 $123,360
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts)
Unaudited
Quarter Ended Nine Months Ended
July 1, July 3, July 1, July 3,
2000 1999 2000 1999
Net sales $60,246 $41,175 $158,191 $116,965
Cost of sales 42,704 28,981 113,931 80,992
17,542 12,194 44,260 35,973
Selling, general and
administrative expense 9,977 7,891 26,147 23,143
Research, development and
related expense 2,178 1,855 6,130 5,188
Income from operations 5,387 2,448 11,983 7,642
Interest expense 655 730 2,006 2,266
Other income 178 234 797 327
Income before income taxes 4,910 1,952 10,774 5,703
Provision for income taxes 1,917 782 4,234 2,320
Income before extraordinary item 2,993 1,170 6,540 3,383
Extraordinary item, net of
income taxes --- --- --- (326)
Net income $2,993 $1,170 $6,540 $3,057
BASIC EARNINGS PER COMMON SHARE
Income before extraordinary item $0.42 $0.16 $0.91 $0.48
Loss from extraordinary item, net
of income taxes --- --- --- (0.05)
Net income per common share $0.42 $0.16 $0.91 $0.43
Weighted average shares
outstanding 7,165 7,169 7,216 7,120
DILUTED EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
Income before extraordinary item $0.41 $0.16 $0.89 $0.47
Loss from extraordinary item, net
of income taxes --- --- --- (0.05)
Net income per common and common
equivalent share $0.41 $0.16 $0.89 $0.42
Weighted average shares
outstanding 7,289 7,286 7,381 7,249
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Unaudited
Quarter Ended Quarter Ended
July 1, July 3, July 1, July 3,
2000 1999 2000 1999
Net income $2,993 $1,170 $6,540 $3,057
Adjustments to reconcile net
income to net cash provided
(used) by operating activities:
Depreciation and amortization 2,164 2,019 6,152 5,918
Other 2,640 847 5,023 (3,870)
Net cash provided by operating
activities 7,797 4,036 17,715 5,105
Net cash used in investing
activities (2,443) (3,342) (3,658) (6,896)
Net cash provided (used) by
financing activities (6,114) (507) (7,575) 2,170
Net increase (decrease) in cash
and cash equivalents (760) 187 6,482 379
Cash and cash equivalents at
beginning of period 10,423 3,749 3,181 3,557
Cash and cash equivalents at
end of period $9,663 $3,936 $9,663 $3,936
CONTACT: John LaBoskey, Senior Vice President-CFO of BEI Technologies,
Inc., 415-956-4477.