Peak Reports Sales of $86 Million and Diluted EPS of $1.08 for FY 2001

Apr 23, 2001, 01:00 ET from Peak International Limited

    FREMONT, Calif. and HONG KONG, April 23 /PRNewswire Interactive Press
 Release/ -- Peak International Limited (Nasdaq:   PEAK) had net sales of
 $15.3 million in the fourth fiscal quarter ended March 31, 2001 compared to
 $21.5 million in the fourth quarter of FY 2000.  Peak had a net loss for the
 period of $0.3 million, or $-0.02 per share fully diluted, due primarily to a
 slowdown in the semiconductor market, compared to a net loss of $2.8 million,
 or $ -0.19 per share fully diluted in the fourth quarter of FY 2000.
     For the full fiscal year ended March 31, 2001, Peak had net sales of
 $86.1 million compared to $83.5 million in the prior year.  Net income for FY
 2001 was $15.1 million, or $1.08 per share fully diluted compared to
 $9.6 million or $0.68 per share fully diluted in the prior year.
     Cal Reed, Peak's President & CEO, said, "I am very pleased with Peak's
 performance in fiscal 2001.  The steps we took throughout the year to improve
 quality, service and performance paid off.  We were able to build cash
 reserves throughout the year and we are now positioned to use these resources
 to our advantage.  We recently announced that we would use a portion of our
 reserves to tender for up to 1.8 million TrENDS of Peak TrENDS Trust
 (Amex:   PTT)* at a price range for each of the TrENDS from $5.50 to $6.50.  The
 TrENDS will be converted into Peak common shares on May 15, 2001 in accordance
 with the terms of such TrENDS.  There will be no dilution to Peak as a result
 of the conversion of the TrENDS into shares of Peak."
     "We believe our business model is sound, our fixed costs are reasonable,
 and that our cash reserves will continue to be adequate for our business and
 contingencies after the tender offer is completed.  I am also confident that
 our long-term prospects are strong."
 
     About Peak International Limited
     Peak International Limited is a value added leading supplier of
 precision-engineered transport products for storage, transportation and
 automated handling of semiconductor devices and other electronic components.
 Peak employs approximately 2,200 people worldwide, directly and through its
 Shenzhen, China operating partner.  Peak operates warehouses throughout the
 world and offers JIT services to leading semiconductor manufacturers and
 assemblers.  Peak is a leading recycler of used plastic matrix trays operating
 worldwide under its SemiCycle(TM) trade name.
 
     *About Peak TrENDS Trust
     Peak TrENDS Trust is a Delaware trust, which was established to purchase
 and hold a portfolio of stripped U.S. Treasury securities maturing on a
 quarterly basis through May 15, 2001.  On such date, each of the TrENDS will
 be automatically exchanged for between 0.8696 shares and 1 share of the common
 stock of Peak, par value $0.01 per share.  No dilution of PEAK shares will
 result from the conversion of the TrENDS on May 15, 2001.  Each of the TrENDS
 is entitled to a distribution of approximately $0.35 on May 15, 2001 to
 holders of record on May 1, 2001. If the average closing price of PEAK shares
 from April 17 through May 14, 2001 is $15.75 per share or less, then each of
 the TrENDS will be exchanged for one share of PEAK on May 15, 2001.  All
 rights to exercise the cash settlement feature of the TrENDS Trust have been
 waived.  Information regarding the TrENDS may be obtained from the trust, 850
 Library Avenue, Newark, DE 19715, Attn:  Donald Puglisi 302-738-6680.
     This press release contains forward-looking statements that are subject to
 certain risks and uncertainties, including among others, the ability of the
 company to attract and retain employees, the ability to patent its technology
 and to expand its manufacturing capacity and sales force, difficulties related
 to working in the PRC, market demand for the company's products, issues
 related to costs of manufacturing and raw materials, and other matters that
 could cause actual results to differ materially from the projections made
 herein.  Furthermore, the price of Peak Common Stock may be adversely affected
 by an increase in the number of shares of common stock offered for sale in
 anticipation of or as a result of the conversion of the TrENDS.  The words
 "believes," "expects," "anticipates," "intends," "plans," "estimates" and
 similar expressions identify such forward-looking statements.
 
                       Consolidated Statements of Income
                     (in thousands, except per share data)
 
                                                  Three Months Ended March 31,
                                                      2001            2000
                                                   (Unaudited)     (Unaudited)
     Net Sales:
       -Third parties                                 $14,115        $20,279
       -Related companies                               1,151          1,264
                                                       15,266         21,543
     Cost of Goods Sold                                10,531         19,430
     Gross Profit                                       4,735          2,113
 
     General & Administrative                           2,346          3,511
     Research & Development                                63            177
     Selling & Marketing                                1,928          2,412
     Asset impairment                                     759              0
     Special charges                                        0          (862)
     Operating Loss                                     (361)        (3,125)
     Other Expense - net                                (268)           (96)
     Interest Income                                      395            183
     Loss Before Tax                                    (234)        (3,038)
     Taxation                                              51          (267)
     NET LOSS                                          $(285)       $(2,771)
     EARNINGS PER SHARE
       -Basic                                          $-0.02         $-0.20
       -Diluted                                        $-0.02         $-0.19
     Weighted Avg # Shares
       -Basic                                          13,603         13,678
       -Diluted                                        13,844         14,317
 
 
                                                            Year Ended
                                                              March 31,
                                                       2001            2000
                                                    (Unaudited)
     Net Sales:
       -Third parties                                 $78,639        $74,934
       -Related companies                               7,487          8,595
                                                       86,126         83,529
     Cost of Goods Sold                                50,209         54,441
     Gross Profit                                      35,917         29,088
 
     General & Administrative                          10,571         11,215
     Research & Development                               161            546
     Selling & Marketing                                9,207          8,379
     Asset impairment                                     759              0
     Special charges                                        0          (862)
     Operating Income                                  15,219          9,810
     Other (Expenses)Income - net                       (190)            273
     Interest Income                                    1,512            541
     Interest Expenses                                      0            (7)
     Income Before Tax                                 16,541         10,617
     Taxation                                           1,438            970
     NET INCOME                                       $15,103         $9,647
     EARNINGS PER SHARE
       -Basic                                           $1.10          $0.71
       -Diluted                                         $1.08          $0.68
     Weighted Avg # Shares
       -Basic                                          13,701         13,590
       -Diluted                                        14,005         14,114
 
                    Consolidated Balance Sheet(in thousands)
 
                                                      March 31,     March 31,
                                                        2001          2000
                                                     (Unaudited)
     ASSETS
      Current Assets:
       Cash and cash equivalents                      $33,901        $18,667
       Accounts receivable-net of allowance
        for doubtful accounts of $344 at
        March 31, 2001 and $292 at March 31, 2000       9,348         13,283
      Inventories - net                                16,327         19,044
      Other receivables, deposits
       and prepayments                                  1,214            860
      Income tax receivable                               147              0
      Amounts due from related companies                  589            633
        Total Current Assets                           61,526         52,487
 
     Deposits for Acquisition of Plant and Equipment      115            341
 
     Property, Plant and Equipment - net               56,700         51,980
     TOTAL                                           $118,341       $104,808
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current Liabilities:
      Accounts payable:
       -Trade                                          $2,744         $3,749
       -Property, plant and equipment                   1,072          1,187
       Accrued payroll and employee benefits              989            785
       Accrued other expenses                           1,206          1,970
       Taxation                                         5,088          4,232
 
          Total Current Liabilities                    11,099         11,923
 
     Deferred Income Taxes                              2,370          1,858
        Total Liabilities                              13,469         13,781
 
 
     Stockholders' Equity:
       Share capital                                      136            137
       Additional paid-in capital                      34,224         35,209
       Retained earnings                               71,704         56,601
       Accumulated other comprehensive income         (1,192)          (920)
          Total stockholders' equity                  104,872         91,027
     TOTAL                                           $118,341       $104,808
 
     CONTACT:  Cal Reed, President & CEO, or Jack Menache, VP, 510-449-0100, or
 Hong Kong, Jerry Mo, CFO, 852-3193-6200, all of Peak International Limited.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X56447276
 
 

SOURCE Peak International Limited
    FREMONT, Calif. and HONG KONG, April 23 /PRNewswire Interactive Press
 Release/ -- Peak International Limited (Nasdaq:   PEAK) had net sales of
 $15.3 million in the fourth fiscal quarter ended March 31, 2001 compared to
 $21.5 million in the fourth quarter of FY 2000.  Peak had a net loss for the
 period of $0.3 million, or $-0.02 per share fully diluted, due primarily to a
 slowdown in the semiconductor market, compared to a net loss of $2.8 million,
 or $ -0.19 per share fully diluted in the fourth quarter of FY 2000.
     For the full fiscal year ended March 31, 2001, Peak had net sales of
 $86.1 million compared to $83.5 million in the prior year.  Net income for FY
 2001 was $15.1 million, or $1.08 per share fully diluted compared to
 $9.6 million or $0.68 per share fully diluted in the prior year.
     Cal Reed, Peak's President & CEO, said, "I am very pleased with Peak's
 performance in fiscal 2001.  The steps we took throughout the year to improve
 quality, service and performance paid off.  We were able to build cash
 reserves throughout the year and we are now positioned to use these resources
 to our advantage.  We recently announced that we would use a portion of our
 reserves to tender for up to 1.8 million TrENDS of Peak TrENDS Trust
 (Amex:   PTT)* at a price range for each of the TrENDS from $5.50 to $6.50.  The
 TrENDS will be converted into Peak common shares on May 15, 2001 in accordance
 with the terms of such TrENDS.  There will be no dilution to Peak as a result
 of the conversion of the TrENDS into shares of Peak."
     "We believe our business model is sound, our fixed costs are reasonable,
 and that our cash reserves will continue to be adequate for our business and
 contingencies after the tender offer is completed.  I am also confident that
 our long-term prospects are strong."
 
     About Peak International Limited
     Peak International Limited is a value added leading supplier of
 precision-engineered transport products for storage, transportation and
 automated handling of semiconductor devices and other electronic components.
 Peak employs approximately 2,200 people worldwide, directly and through its
 Shenzhen, China operating partner.  Peak operates warehouses throughout the
 world and offers JIT services to leading semiconductor manufacturers and
 assemblers.  Peak is a leading recycler of used plastic matrix trays operating
 worldwide under its SemiCycle(TM) trade name.
 
     *About Peak TrENDS Trust
     Peak TrENDS Trust is a Delaware trust, which was established to purchase
 and hold a portfolio of stripped U.S. Treasury securities maturing on a
 quarterly basis through May 15, 2001.  On such date, each of the TrENDS will
 be automatically exchanged for between 0.8696 shares and 1 share of the common
 stock of Peak, par value $0.01 per share.  No dilution of PEAK shares will
 result from the conversion of the TrENDS on May 15, 2001.  Each of the TrENDS
 is entitled to a distribution of approximately $0.35 on May 15, 2001 to
 holders of record on May 1, 2001. If the average closing price of PEAK shares
 from April 17 through May 14, 2001 is $15.75 per share or less, then each of
 the TrENDS will be exchanged for one share of PEAK on May 15, 2001.  All
 rights to exercise the cash settlement feature of the TrENDS Trust have been
 waived.  Information regarding the TrENDS may be obtained from the trust, 850
 Library Avenue, Newark, DE 19715, Attn:  Donald Puglisi 302-738-6680.
     This press release contains forward-looking statements that are subject to
 certain risks and uncertainties, including among others, the ability of the
 company to attract and retain employees, the ability to patent its technology
 and to expand its manufacturing capacity and sales force, difficulties related
 to working in the PRC, market demand for the company's products, issues
 related to costs of manufacturing and raw materials, and other matters that
 could cause actual results to differ materially from the projections made
 herein.  Furthermore, the price of Peak Common Stock may be adversely affected
 by an increase in the number of shares of common stock offered for sale in
 anticipation of or as a result of the conversion of the TrENDS.  The words
 "believes," "expects," "anticipates," "intends," "plans," "estimates" and
 similar expressions identify such forward-looking statements.
 
                       Consolidated Statements of Income
                     (in thousands, except per share data)
 
                                                  Three Months Ended March 31,
                                                      2001            2000
                                                   (Unaudited)     (Unaudited)
     Net Sales:
       -Third parties                                 $14,115        $20,279
       -Related companies                               1,151          1,264
                                                       15,266         21,543
     Cost of Goods Sold                                10,531         19,430
     Gross Profit                                       4,735          2,113
 
     General & Administrative                           2,346          3,511
     Research & Development                                63            177
     Selling & Marketing                                1,928          2,412
     Asset impairment                                     759              0
     Special charges                                        0          (862)
     Operating Loss                                     (361)        (3,125)
     Other Expense - net                                (268)           (96)
     Interest Income                                      395            183
     Loss Before Tax                                    (234)        (3,038)
     Taxation                                              51          (267)
     NET LOSS                                          $(285)       $(2,771)
     EARNINGS PER SHARE
       -Basic                                          $-0.02         $-0.20
       -Diluted                                        $-0.02         $-0.19
     Weighted Avg # Shares
       -Basic                                          13,603         13,678
       -Diluted                                        13,844         14,317
 
 
                                                            Year Ended
                                                              March 31,
                                                       2001            2000
                                                    (Unaudited)
     Net Sales:
       -Third parties                                 $78,639        $74,934
       -Related companies                               7,487          8,595
                                                       86,126         83,529
     Cost of Goods Sold                                50,209         54,441
     Gross Profit                                      35,917         29,088
 
     General & Administrative                          10,571         11,215
     Research & Development                               161            546
     Selling & Marketing                                9,207          8,379
     Asset impairment                                     759              0
     Special charges                                        0          (862)
     Operating Income                                  15,219          9,810
     Other (Expenses)Income - net                       (190)            273
     Interest Income                                    1,512            541
     Interest Expenses                                      0            (7)
     Income Before Tax                                 16,541         10,617
     Taxation                                           1,438            970
     NET INCOME                                       $15,103         $9,647
     EARNINGS PER SHARE
       -Basic                                           $1.10          $0.71
       -Diluted                                         $1.08          $0.68
     Weighted Avg # Shares
       -Basic                                          13,701         13,590
       -Diluted                                        14,005         14,114
 
                    Consolidated Balance Sheet(in thousands)
 
                                                      March 31,     March 31,
                                                        2001          2000
                                                     (Unaudited)
     ASSETS
      Current Assets:
       Cash and cash equivalents                      $33,901        $18,667
       Accounts receivable-net of allowance
        for doubtful accounts of $344 at
        March 31, 2001 and $292 at March 31, 2000       9,348         13,283
      Inventories - net                                16,327         19,044
      Other receivables, deposits
       and prepayments                                  1,214            860
      Income tax receivable                               147              0
      Amounts due from related companies                  589            633
        Total Current Assets                           61,526         52,487
 
     Deposits for Acquisition of Plant and Equipment      115            341
 
     Property, Plant and Equipment - net               56,700         51,980
     TOTAL                                           $118,341       $104,808
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current Liabilities:
      Accounts payable:
       -Trade                                          $2,744         $3,749
       -Property, plant and equipment                   1,072          1,187
       Accrued payroll and employee benefits              989            785
       Accrued other expenses                           1,206          1,970
       Taxation                                         5,088          4,232
 
          Total Current Liabilities                    11,099         11,923
 
     Deferred Income Taxes                              2,370          1,858
        Total Liabilities                              13,469         13,781
 
 
     Stockholders' Equity:
       Share capital                                      136            137
       Additional paid-in capital                      34,224         35,209
       Retained earnings                               71,704         56,601
       Accumulated other comprehensive income         (1,192)          (920)
          Total stockholders' equity                  104,872         91,027
     TOTAL                                           $118,341       $104,808
 
     CONTACT:  Cal Reed, President & CEO, or Jack Menache, VP, 510-449-0100, or
 Hong Kong, Jerry Mo, CFO, 852-3193-6200, all of Peak International Limited.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X56447276
 
 SOURCE  Peak International Limited