Circuit World announces Second Quarter Results
Circuit World announces Second Quarter Results
Circuit World Corporation (TSX:CCW) today announced the second quarter results for the period ended June 29, 2003.
Second Quarter Results (three months ended June 29, 2003,
compared with three months ended June 29, 2002)
Q2 2003
Sales: $5,561,000
Net Income/(Loss): ($1,237,000)
EPS – basic and diluted: ($0.17)
Q2 2002
Sales: $6,728,000
Net Income/(Loss): $34,000
EPS – basic and diluted: $0.00
Year to Date Results (six months ended June 29, 2003,
compared with six months ended June 29, 2002)
Q2 2003
Sales: $11,577,000
Net Income/(Loss): ($2,132,000)
EPS – basic and diluted: ($0.30)
Q2 2002
Sales: $11,889,000
Net Income/(Loss): ($704,000)
EPS – basic and diluted: ($0.10)
Net Sales in the second quarter of 2003 were $5,561,000, a decrease of 17% compared with $6,728,000 in the second quarter of 2002. While sales decreased, unit volumes shipped increased by 17% over the same comparable period. The primary factors contributing to these results were a declining US dollar and reduction in proto-type activity. The US dollar exchange rate declined 11% from the same quarter in 2002 having a $500,000 unfavorable impact on quarterly revenues. Revenues derived from higher margin, proto-types represented 25% of overall revenue in the second quarter of 2003 as compared to 38% in the same quarter of 2002.
The company took several steps to reduce cost during the quarter including staff reductions and material optimization initiatives. Although market conditions remain volatile, we are beginning to see new opportunities as a result of the reduced capacity in North America.
On July 30th 2003, the Company announced that it completed the acquisition of Firan Technology Group, a wholly owned subsidiary of Glendale International Corp. (TSX:GIN). The acquisition establishes Circuit World as the leading supplier of high reliability printed circuit boards to the aerospace and defense industries in Canada.
“We are pleased with the acquisition and the level of integration achieved to date. It is expected that the Company will incur a restructuring charge in the third quarter of approximately $3,000,000. The restructuring charge will be incurred to realize the cost savings resulting from the integration of the two businesses of approximately $5,000,000. Combined revenues of the two companies for their respective second quarters of 2003 amounted to $12,731,000”, added Mr. Roseborough.
The company has begun to market the expanded range of product offerings resulting from the merger and the response from customers has been positive.
Circuit World Corporation is a leading supplier of high reliability printed circuit and flight deck subsystems. The company manufactures its products through its operating divisions, PC World, FTG and Edgelit.
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.
For further information please contact:
Gordon Roseborough, CEO Tel: (416) 299-4000
Circuit World Corporation gordonr@circtwrld.com
John Bartkiw, CFO Tel: (416) 299-4000
Circuit World Corporation johnb@circtwrld.com
Updates can be found at the company”s web site www.circtwrld.com
The company welcomes calls from brokers and analysts wishing to learn more about Circuit World.
