Parlex Reports Results for First Quarter
14 November 2000
Parlex Reports Results for First Quarter
METHUEN, Mass--Nov. 13, 2000--Parlex Corporation reported total revenues of $29,689,000 for the first quarter of fiscal year 2001 ended October 1, 2000, compared to $20,366,000 for the same period a year ago. Income from operations before provision for income taxes and minority interest was $1,510,000 versus $2,085,000 for the same period last year. Net income for the quarter was $872,000, or $.14 per share fully diluted on 6,456,174 shares, compared to $1,340,000, or $.28 per share fully diluted on 4,843,188 shares, for the first quarter of fiscal year 2000.The sales backlog, as of October 1, 2000, was approximately $39 million.
Peter J. Murphy, president and chief executive officer, stated, "While demand for our flexible interconnect products remain strong, we are obviously disappointed in our first quarter results. In addition to the previously reported impact of a major cell phone application which was delayed, and capacity issues at Parlex Shanghai, our largest customer did not release flexible circuit products for shipment in accordance with their forecast for the end of the quarter. Consequently, revenues and earnings were below forecast in our Flexible Circuit Products facilities in the U.S. and Asia. However, revenues and earnings met expectations in our Laminated Cable Products and our recently acquired Polyflex Circuit operations.
In order to address the decline in operating results, we have initiated cost reduction measures, which will result in a one-time charge of approximately $200,000 in the second quarter. These actions, which focus on overhead and administrative costs, are expected to provide annualized savings in excess of $2 million.
We anticipate starting production on at least 5 major programs in the current quarter. These programs will enter volume production in our third quarter. We have also secured two additional programs which will enter volume production in our fourth quarter. These programs are in the cell phone, computer, appliance, medical and automotive sectors. They will be manufactured at our facilities in Massachusetts, New Hampshire, Rhode Island, China and Mexico. New customers associated with these programs include Palm, General Electric, Sagem, Sanyo, Whirlpool, Tyco and Johnson Controls.
Additionally, our capacity expansion in China is close to completion. This provides us the capability to increase production at that facility by 50%. We expect to utilize most of this additional capacity by fiscal year end."
Parlex Corporation
Consolidated Statements of Income
(Unaudited)
(In thousands except Share and Per Share Data)
Three Months Ended
October 1, 2000 September 26, 1999
Total Revenues $29,689 $20,366
Cost of Sales 24,134 15,914
S,G&A Expense 4,146 2,321
Operating Income 1,409 2,131
Income Before Provision for
Income Taxes and Minority Interest 1,510 2,085
Provision for Income Taxes (421) (507)
Income Before Minority Interest 1,089 1,578
Minority Interest (217) (238)
Net Income $872 $1,340
Basic Earnings Per Share $.14 $.28
Diluted Earnings Per Share $.14 $.28
Weighted Average Number of Common
and Equivalent Shares Outstanding:
Basic 6,277,751 4,794,858
Diluted 6,456,174 4,843,188
Parlex Corporation
Consolidated Balance Sheets
(Unaudited)
(In thousands)
October 1, 2000 June 30, 2000
ASSETS
Current Assets $58,909 $56,126
Plant, Property & Equipment, Net 55,021 54,227
Goodwill - Net and Other Assets 4,974 4,987
Total Assets $118,904 $115,340
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities $19,774 $17,374
Non Current Liabilities 6,375 6,293
Minority Interest 4,101 3,883
Common Stockholders' Equity 88,654 87,790
Total Liabilities &
Stockholders' Equity $118,904 $115,340