PCD Inc. Announces First Quarter 2001 Results

Apr 30, 2001, 01:00 ET from PCD Inc.

    PEABODY, Mass., April 30 /PRNewswire/ -- PCD Inc. (Nasdaq:   PCDI), a
 manufacturer of electronic connectors, today announced its financial results
 for the first quarter ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990921/PCDILOGO )
     Net sales of $14.5 million for the quarter were up 4% from the $13.9
 million achieved a year ago, but 18% below the previous quarter's sales of
 $17.6 million.
     First quarter net income of $0.4 million was $0.05 per share, compared
 with $0.3 million or $0.04 per share one year ago, and net income of $1.5
 million or $0.17 per share in the fourth quarter of 2000.  Net income for the
 first quarter before amortization was $0.12 per share in 2001 and $0.11 per
 share in 2000.
     The Company generated $1.4 million in free cash flow during the first
 quarter and reduced outstanding debt by $1.2 million to $34.9 million at the
 end of the quarter.
     "PCD's shipments for the first quarter were bolstered by a strong opening
 backlog," stated John L. Dwight Jr., Chairman and CEO.  "but results have been
 hurt by the well documented sudden downturn in the semiconductor industry.
 Our Industrial/Avionics Division, which serves the world industrial controls
 equipment and aircraft markets, had an excellent quarter and is projecting
 strong business and a generally healthy market through the year.  At Wells-
 CTI, however, which targets semiconductor burn-in testing applications and is
 our larger business segment, incoming orders are off sharply.  In view of
 this, we have reduced costs at Wells-CTI by over $1.0 million annualized;
 largely through layoffs, attrition and salary and hiring freezes which do not
 impact our field sales and aggressive new product programs."
     "It is extremely difficult," Mr. Dwight continued, "to precisely project
 semiconductor market behavior or pinpoint the timing of a rebound.  We have
 had significant success, for example, in working with a number of market
 leaders to develop and design in new PCD burn-in sockets for advanced memory
 chip applications which we expect to be introduced in the second and third
 quarter -- but have limited visibility at present as to their anticipated
 production ramp-up schedule.  Consequently, PCD's strategy is to maintain
 extremely tight cost controls and continued cost reductions at Wells-CTI,
 capitalize on the balance provided by our strong presence in the aircraft and
 industrial markets, focus on new product and business segment opportunities in
 all of our markets, and continue to monitor the semiconductor industry.  When
 it recovers, PCD will be ready."
 
     PCD Teleconference:
     PCD will hold a teleconference for all interested parties at 11:00 AM
 Eastern Daylight Time April 30, 2001 to discuss first quarter financial
 results.  Interested parties are invited to participate by dialing 719-457-
 2621 five minutes in advance and requesting the PCD conference call, Code
 767040.  For those unable to participate in the conference call, there will be
 a continuous playback recording available from Monday, April 30, 2001 at
 2:00PM ET through Monday, May 7, 2001 at 2:00PM ET. To listen to the playback,
 please call 719-457-0820 (during this period) and enter the code number
 767040.
 
     Cautionary Statement:
     Statements in this press release concerning the future revenues, expenses,
 profitability, financial resources, product mix, market demand, product
 development and other statements in this press release concerning the future
 results of operations, financial condition and business of PCD Inc. are
 "forward-looking" statements as defined in the Securities Act of 1933 and
 Securities Exchange Act of 1934. Investors are cautioned that the Company's
 actual results in the future may differ materially from those projected in the
 forward-looking statements due to risks and uncertainties that exist in the
 Company's operations and business environment, including the Company's
 dependence on the semiconductor industry, the Company's ability to meet its
 debt covenants, fluctuations in demand for the Company's products, the
 Company's dependence on its principal customers and independent distributors,
 indebtedness, international sales and operations, rapid technological
 evolution in the electronics industry and the like.  The Company's most recent
 filings with the Securities and Exchange Commission, including Form 10-K,
 contain additional information concerning such risk factors, and copies of
 these filings are available from the Company upon request and without charge.
     PCD Inc. (www.pcdinc.com) designs, manufactures and markets electronic
 connectors for use in semiconductor burn in, industrial equipment and
 avionics.  Electronic connectors, which enable an electrical current or signal
 to pass from one element to another within an electronic system, range from
 the minute individual connections within an integrated circuit ("IC") to
 rugged, multiple lead connectors that couple various types of
 electrical/electronic equipment. Electronic connectors are used in virtually
 all electronic systems, including data communications, telecommunications,
 computers and computer peripherals, industrial controls, automotive, avionics
 and test and measurement instrumentation.
     The Company markets over 6,800 electronic connector products in three
 product categories, each targeting a specific market.  These product
 categories are semiconductor burn in sockets, industrial interconnects and
 avionics junction modules and relay sockets.
     The Company's consolidated statements of income and consolidated balance
 sheets are attached.
 
     PCD INC.
     CONSOLIDATED STATEMENTS OF OPERATIONS
     (In thousands, except per share data - Unaudited)
 
 
                                                        Three Months Ended
                                                     3/31/01           4/01/00
 
            Net Sales                               $14,461           $13,905
            Cost of sales                             8,134             7,722
            Gross profit                              6,327             6,183
            Operating expenses                        3,353             3,380
            Amortization                              1,048             1,048
            Income from operations                    1,926             1,755
            Interest expense/(other
             income), net                             1,040             1,218
            Income before income taxes                  886               537
            Provision for income taxes                  459               215
            Net income                                 $427              $322
 
            Earnings per share - Basic                $0.05             $0.04
            Earnings per share - Diluted              $0.05             $0.04
 
            Diluted earnings per share:
               Income before amortization              0.12              0.11
               Amortization                           (0.07)            (0.07)
               Net income                             $0.05             $0.04
            Weighted average number of
             common and common
            equivalent shares outstanding:
              Basic                                   8,823             8,578
              Diluted                                 9,133             9,001
 
     CONSOLIDATED BALANCE SHEETS
     (In thousands - Condensed and
      Unaudited)
 
            Assets                             Mar 31, 2001      Dec 31, 2000
            Current assets:
               Cash and cash equivalents               $892              $837
               Accounts receivable, net               6,280             8,318
               Inventories                            6,818             6,199
               Prepaid expenses and other
                current assets                          691               823
                    Total current assets             14,681            16,177
            Equipment and improvements,
             net                                     15,747            15,801
            Deferred tax asset                       11,154            11,151
            Goodwill and other assets                64,901            65,984
                    Total Assets                   $106,483          $109,113
 
            Liabilities and Stockholders'
             Equity
            Current liabilities                      $8,627           $10,693
            Short-term debt                           8,450             7,300
            Long-term debt                           26,294            28,573
            Stockholders' equity                     63,112            62,547
                     Total Liabilities and
                      Stockholders' Equity         $106,483          $109,113
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X71187268
 
 

SOURCE PCD Inc.
    PEABODY, Mass., April 30 /PRNewswire/ -- PCD Inc. (Nasdaq:   PCDI), a
 manufacturer of electronic connectors, today announced its financial results
 for the first quarter ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990921/PCDILOGO )
     Net sales of $14.5 million for the quarter were up 4% from the $13.9
 million achieved a year ago, but 18% below the previous quarter's sales of
 $17.6 million.
     First quarter net income of $0.4 million was $0.05 per share, compared
 with $0.3 million or $0.04 per share one year ago, and net income of $1.5
 million or $0.17 per share in the fourth quarter of 2000.  Net income for the
 first quarter before amortization was $0.12 per share in 2001 and $0.11 per
 share in 2000.
     The Company generated $1.4 million in free cash flow during the first
 quarter and reduced outstanding debt by $1.2 million to $34.9 million at the
 end of the quarter.
     "PCD's shipments for the first quarter were bolstered by a strong opening
 backlog," stated John L. Dwight Jr., Chairman and CEO.  "but results have been
 hurt by the well documented sudden downturn in the semiconductor industry.
 Our Industrial/Avionics Division, which serves the world industrial controls
 equipment and aircraft markets, had an excellent quarter and is projecting
 strong business and a generally healthy market through the year.  At Wells-
 CTI, however, which targets semiconductor burn-in testing applications and is
 our larger business segment, incoming orders are off sharply.  In view of
 this, we have reduced costs at Wells-CTI by over $1.0 million annualized;
 largely through layoffs, attrition and salary and hiring freezes which do not
 impact our field sales and aggressive new product programs."
     "It is extremely difficult," Mr. Dwight continued, "to precisely project
 semiconductor market behavior or pinpoint the timing of a rebound.  We have
 had significant success, for example, in working with a number of market
 leaders to develop and design in new PCD burn-in sockets for advanced memory
 chip applications which we expect to be introduced in the second and third
 quarter -- but have limited visibility at present as to their anticipated
 production ramp-up schedule.  Consequently, PCD's strategy is to maintain
 extremely tight cost controls and continued cost reductions at Wells-CTI,
 capitalize on the balance provided by our strong presence in the aircraft and
 industrial markets, focus on new product and business segment opportunities in
 all of our markets, and continue to monitor the semiconductor industry.  When
 it recovers, PCD will be ready."
 
     PCD Teleconference:
     PCD will hold a teleconference for all interested parties at 11:00 AM
 Eastern Daylight Time April 30, 2001 to discuss first quarter financial
 results.  Interested parties are invited to participate by dialing 719-457-
 2621 five minutes in advance and requesting the PCD conference call, Code
 767040.  For those unable to participate in the conference call, there will be
 a continuous playback recording available from Monday, April 30, 2001 at
 2:00PM ET through Monday, May 7, 2001 at 2:00PM ET. To listen to the playback,
 please call 719-457-0820 (during this period) and enter the code number
 767040.
 
     Cautionary Statement:
     Statements in this press release concerning the future revenues, expenses,
 profitability, financial resources, product mix, market demand, product
 development and other statements in this press release concerning the future
 results of operations, financial condition and business of PCD Inc. are
 "forward-looking" statements as defined in the Securities Act of 1933 and
 Securities Exchange Act of 1934. Investors are cautioned that the Company's
 actual results in the future may differ materially from those projected in the
 forward-looking statements due to risks and uncertainties that exist in the
 Company's operations and business environment, including the Company's
 dependence on the semiconductor industry, the Company's ability to meet its
 debt covenants, fluctuations in demand for the Company's products, the
 Company's dependence on its principal customers and independent distributors,
 indebtedness, international sales and operations, rapid technological
 evolution in the electronics industry and the like.  The Company's most recent
 filings with the Securities and Exchange Commission, including Form 10-K,
 contain additional information concerning such risk factors, and copies of
 these filings are available from the Company upon request and without charge.
     PCD Inc. (www.pcdinc.com) designs, manufactures and markets electronic
 connectors for use in semiconductor burn in, industrial equipment and
 avionics.  Electronic connectors, which enable an electrical current or signal
 to pass from one element to another within an electronic system, range from
 the minute individual connections within an integrated circuit ("IC") to
 rugged, multiple lead connectors that couple various types of
 electrical/electronic equipment. Electronic connectors are used in virtually
 all electronic systems, including data communications, telecommunications,
 computers and computer peripherals, industrial controls, automotive, avionics
 and test and measurement instrumentation.
     The Company markets over 6,800 electronic connector products in three
 product categories, each targeting a specific market.  These product
 categories are semiconductor burn in sockets, industrial interconnects and
 avionics junction modules and relay sockets.
     The Company's consolidated statements of income and consolidated balance
 sheets are attached.
 
     PCD INC.
     CONSOLIDATED STATEMENTS OF OPERATIONS
     (In thousands, except per share data - Unaudited)
 
 
                                                        Three Months Ended
                                                     3/31/01           4/01/00
 
            Net Sales                               $14,461           $13,905
            Cost of sales                             8,134             7,722
            Gross profit                              6,327             6,183
            Operating expenses                        3,353             3,380
            Amortization                              1,048             1,048
            Income from operations                    1,926             1,755
            Interest expense/(other
             income), net                             1,040             1,218
            Income before income taxes                  886               537
            Provision for income taxes                  459               215
            Net income                                 $427              $322
 
            Earnings per share - Basic                $0.05             $0.04
            Earnings per share - Diluted              $0.05             $0.04
 
            Diluted earnings per share:
               Income before amortization              0.12              0.11
               Amortization                           (0.07)            (0.07)
               Net income                             $0.05             $0.04
            Weighted average number of
             common and common
            equivalent shares outstanding:
              Basic                                   8,823             8,578
              Diluted                                 9,133             9,001
 
     CONSOLIDATED BALANCE SHEETS
     (In thousands - Condensed and
      Unaudited)
 
            Assets                             Mar 31, 2001      Dec 31, 2000
            Current assets:
               Cash and cash equivalents               $892              $837
               Accounts receivable, net               6,280             8,318
               Inventories                            6,818             6,199
               Prepaid expenses and other
                current assets                          691               823
                    Total current assets             14,681            16,177
            Equipment and improvements,
             net                                     15,747            15,801
            Deferred tax asset                       11,154            11,151
            Goodwill and other assets                64,901            65,984
                    Total Assets                   $106,483          $109,113
 
            Liabilities and Stockholders'
             Equity
            Current liabilities                      $8,627           $10,693
            Short-term debt                           8,450             7,300
            Long-term debt                           26,294            28,573
            Stockholders' equity                     63,112            62,547
                     Total Liabilities and
                      Stockholders' Equity         $106,483          $109,113
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X71187268
 
 SOURCE  PCD Inc.