Circuit World Announces First Quarter Results
Circuit World Announces First Quarter Results
Circuit World Corporation (“Company”) today announced the first quarter results for the period ending February 27, 2004.
First Quarter Results (three months ended February 27, 2004,
compared with three months ended February 28, 2003)
Q1 2004
Sales: $9,478,000
Net Income/(Loss): ($2,060,000)
EPS – basic: ($0.13)
EPS – fully diluted: ($0.13)
Q1 2003
Sales: $6,072,000
Net Income/(Loss): $211,000
EPS – basic: $0.02
EPS – fully diluted: $0.02
The first quarter of 2004 was challenging. The Company experienced delays integrating Firan Technology Group Inc. (“FTG”) and Circuit World Corporation (“CWC”). As of December 1, 2003, all printed circuit manufacturing operations were consolidated into one facility, with the FTG facility being permanently shut down. Working from one facility, it took longer than anticipated to increase production to expected levels and the Company missed its production and revenue targets for December and January.
The Company dramatically turned around operations in the month of February. Planned revenue targets for February were exceeded and the month”s revenue accounted for 55% of the entire quarters revenue. With this increase in output, the Company returned to healthy profitability levels during the month. At the end of the quarter, the Company had backlog in excess of $13,000,000.
“While I am disappointed over the costly delays integrating the businesses, I am pleased to announce that production is now normalized and the integration issues are behind us”, stated Bradley C. Bourne, President and CEO of Circuit World Corporation. “I would like to thank our loyal customer base who worked closely with us and remain committed to the Company and its success”, added Mr. Bourne.
Industry fundamentals remain strong, as book to bill ratios reported by IPC are in excess of 1 to 1. “With improving market conditions and the integration complete, the Company is in a strong position to take advantage of new business opportunities in our target markets of aerospace/defence, high technology commercial and QTA”, added Mr. Bourne.
Subsequent to the end of the first quarter, the Company obtained new financing by way of a USD$2,800,000 term loan. The proceeds were used to pay down the existing term loan with the Company”s main lender (USD$900,000) with the balance used for working capital purposes.
The Company is currently in the process of divesting its Aerospace division that manufactures luminescent cockpit display panels. The Company entered into a non-binding Letter of Intent with Astronics Corporation. Astronics is conducting their due diligence and the Company expects to close the transaction in the second quarter of 2004.
The Company incurred additional restructuring costs in the first quarter of 2004 of $1,200,000. These costs relate solely to the termination of employees.
The Company will host a live conference call on Wednesday, April 7, 2004 at 9:00am (ET) to discuss the results of the first quarter.
Anyone wishing to participate in the call should dial 416-695-9713 or 877-888-4483. A replay of the call will be available until Tuesday, April 14, 2004. The number to call for the rebroadcast is 416-695-5275 or 888-509-0081.
ABOUT CIRCUIT WORLD CORPORATION
Circuit World Corporation is a leading supplier of high reliability printed circuit boards. The Company manufactures its products through its operating division FTG Circuits.
The Company’s shares are traded on the Toronto Stock Exchange under the symbol CCW.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Circuit World with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
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For further information please contact:
Bradley C. Bourne, President and CEO Tel: (416) 299-4000 x314
Circuit World Corporation bradbourne@firantechnology.com
John Bartkiw, CFO Tel: (416) 299-4000 x390
Circuit World Corporation johnbartkiw@firantechnology.com
