BEI Technologies, Inc. Reports Fourth Quarter Earnings and Record
2004 Revenues SAN FRANCISCO, Nov. 10 /PRNewswire-FirstCall/ -- BEI
Technologies, Inc. (NASDAQ:BEIQ), an established manufacturer of
electronic sensors and motion control products announces fourth
quarter 2004 earnings and record 2004 revenues. Fiscal 2004 Fourth
Quarter compared with Fiscal 2003 Fourth Quarter: -- Revenues
increased 28.0% to $70.1 million with automotive revenue of $43.6
million, an increase of 37.9% -- Net income increased 22.8% to
$2.764 million from $2.250 million -- EPS increased 18.8% to $0.19
including the $0.07 charge noted below, from $0.16 Total Fiscal
2004 Results compared with Fiscal 2003 Results: -- Total revenue
increased 31.6% to $281.3 million -- Net income increased 109% to
$11.643 million from $5.565 million -- EPS increased 105% to $0.80
from $0.39 Quarterly Results Charles Crocker, Chairman and Chief
Executive Officer stated, "Net sales for the fourth quarter
increased by $15.4 million compared with the prior year fourth
quarter due primarily to a $12.1 million increase in automotive
sensor sales, largely GyroChip(R) sensor shipments. Sales of
industrial sensors, actuators and motors increased in the quarter
to $21.2 million from $18.2 million in the prior year fourth
quarter, as a result of the improving manufacturing sector
environment and higher quartz product sales to commercial aviation
customers. Government aerospace and defense sales increased to $5.3
million compared with $5.0 million in the prior year fourth
quarter. Gross margin decreased to 22.3% in the fiscal 2004 fourth
quarter from 24.0% in the prior year fourth quarter primarily due
to the settlement charge noted below offset by reduced cost of
sales associated with royalty payments on quartz products." On
November 9th, after year-end, management met with a customer to
review a claim that certain BEI industrial products did not perform
properly in a specific hostile environment. After review,
management determined to negotiate a settlement agreement with this
customer, subject to confidentiality provisions, and the Company
has taken a charge of $1.6 million, or $0.07 per share, in
accordance with GAAP. The agreement is subject to final approval of
documentation by both parties. BEI management believes the
settlement is consistent with our corporate commitment to the
quality and reputation of our products. SG&A spending increased
in the fourth quarter to $7.7 million compared with the prior year
fourth quarter of $5.7 million. A legal fee recovery of $3.5
million associated with our patent infringement litigation
settlement partially offset spending in the prior year fourth
quarter. Research and development expense in the fourth quarter
remained constant at $4.2 million. Crocker continued, "We shipped a
record 1.1 million automotive GyroChip sensors for the quarter,
utilizing surge capacity and all available shifts. While we met our
customer's demand, our operating efficiency suffered. Our Systron
Donner Automotive Division faced higher overtime, freight and
training costs and increased yield loss associated with the
significant launch and ramp-up of roll stability control (RSC)
units to various platforms." Cash flow for the 2004 fourth quarter
was a negative $3.3 million, primarily due to increased working
capital requirements. The Company's cash balance at fiscal year end
was $8.2 million, with no outstanding balance on the Company's
$25.0 million line of credit. Purchase of property, plant and
equipment for the quarter was $3.98 million mostly to increase
GyroChip production capacity at Systron Donner Automotive. Full
Year Results Revenue increased during fiscal year 2004 by $67.6
million primarily due to a 43.9% increase in automotive revenue to
$171.5 million compared with $119.1 million in fiscal 2003.
Automotive revenue increased primarily due to increased GyroChip
sensor shipments to our largest customer. Industrial revenue
increased by 18% to $85.8 million from the prior year level of
$72.7 million due largely to stronger demand for potentiometers
used in heavy equipment, industrial encoders and quartz products
for commercial aviation. Government aerospace and defense sales
increased 10% to $24.0 million from $21.8 million due to higher
sales to space and military encoder programs. Crocker concluded,
"2004 was a record year for revenue. Many new automotive platforms
were launched with GyroChip products in both the U. S. and Europe.
Our largest customer announced further platforms transitioning to
our newest technology in roll-stability. We are working hard to get
the ramp- up issues behind us. We are pleased that there is
increased favorable regulatory review of stability control for
rollover prevention in the U.S. and compelling evidence of accident
prevention through stability control. The new manufacturing
facility in Mexico experienced significant growth. Product lines
from both Kimco and Duncan are now manufactured and shipped
directly from Mexico for further cost effectiveness. After year
end, we completed the acquisition of UK-based Newall Measurement
Systems to broaden our portfolio of products to include digital
readouts (DROs) and digital linear encoders. Most importantly,
during the year we completed our long-term strategic agreement with
our largest customer which we believe will reduce our revenue and
cash flow variability, reduce our market and manufacturing risk and
reduce our infrastructure and working capital requirements."
Guidance for 2005 We anticipate that the increasing market
acceptance of electronic stability control in North America will
drive automotive GyroChip unit shipments to in excess of 5.0
million units in fiscal 2005. There should be an increasing mix of
RSC units and sensor modules. BEI Technologies, Inc. (the "Company"
or "Technologies") is an established manufacturer of electronic
sensors, motors, actuators, rotary optical encoders, linear
encoders with associated digital readouts (DROs), and motion
control products used for factory and office automation, medical
equipment, military, aviation and space systems. In addition, sales
to manufacturers of transportation equipment, including
automobiles, trucks and off-road equipment, have become a
significant addition to the Company's business in recent years. The
Company's micromachined quartz rate sensors are being used in
advanced vehicle stability control systems and a significant
increase in the production of those sensors had been in progress
from the middle of 1998 to FY 2004 except for a decrease in
production in fiscal 2002 due to increased competition. The Company
is currently transitioning to its next generation of automotive
inertial quartz based sensor products, remotely mounted
multi-sensor clusters with CAN Bus and a multi rate sensor package
suitable for incorporation into electronic systems modules. The
Company also manufactures electronic steering wheel position
sensors, seat-memory modules, throttle position sensors, inertial
navigation systems, and other devices used in transportation
systems. Except for historical information, this news release may
be deemed to contain forward-looking statements that involve risks
and uncertainties, including statements with respect to future
timely development, acceptance and pricing of new products;
potential impact of competitive products and their price; the
ability to manufacture products in sufficient volume on an
efficient and timely basis; general economic conditions as they
affect the Company's customers and strategic partners, as well as
other risks detailed from time to time in the Company's reports to
the Securities and Exchange Commission, including the Company's
Form 10-K for fiscal 2003. BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands) Oct.
2, Sept. 27, 2004 2003 * (Unaudited) ASSETS Cash and cash
equivalents $8,218 $9,211 Investments 4,299 5,185 Trade
receivables, net 45,482 37,271 Inventories, net 29,897 24,190 Other
current assets 19,537 12,915 Total current assets 107,433 88,772
Property, plant and equipment, net 40,970 37,123 Acquired
technology 297 542 Goodwill 1,612 1,612 Other assets, net 3,686
5,404 $153,998 $133,453 LIABILITIES AND STOCKHOLDERS' EQUITY Trade
accounts payable $33,698 $15,680 Accrued expenses and other
liabilities 25,450 27,503 Income tax payable -- 689 Current portion
of long-term debt 7,263 7,117 Total current liabilities 66,411
50,989 Long-term debt, less current portion 10,639 17,494 Other
liabilities 4,053 6,329 Stockholders' equity 72,895 58,641 $153,998
$133,453 * Based on audited information included on Form 10-K for
fiscal year ended September 27, 2003 BEI TECHNOLOGIES, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts) Quarter Ended
Twelve Months Ended Oct. 2, Sept. 27, Oct. 2, Sept. 27, 2004 2003
2004 2003* (Unaudited)(Unaudited) (Unaudited) Net sales $70,137
$54,768 $281,300 $213,674 Cost of sales 54,501 41,601 214,848
161,215 15,636 13,167 66,452 52,459 Selling, general and
administrative expenses 7,717 5,697 33,667 31,383 Research,
development and related expenses 4,240 4,216 14,607 16,510 Income
from operations 3,679 3,254 18,178 4,566 Interest expense 310 383
1,326 1,855 Other income 374 466 983 5,862 Income before income
taxes 3,743 3,337 17,835 8,573 Provision for income taxes 979 1,087
6,192 3,008 Net income $2,764 $2,250 $11,643 $5,565 BASIC EARNINGS
PER COMMON SHARE Net income per common share $0.19 $0.16 $0.81
$0.39 Weighted average shares outstanding 14,458 14,170 14,295
14,119 DILUTED EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE Net
income per common and common equivalent share $0.19 $0.16 $0.80
$0.39 Weighted average shares outstanding 14,777 14,368 14,638
14,291 * Based on audited information included on Form 10-K for
fiscal year ended September 27, 2003 BEI TECHNOLOGIES, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands) Quarter Ended Twelve Months Ended Oct. 2,
Sept. 27, Oct. 2, Sept. 27, 2004 2003 2004 2003* (Unaudited)
(Unaudited) (Unaudited) Net Income $2,764 $2,250 $11,643 $5,565
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 2,251 3,045
10,102 10,833 Other (4,591) 3,465 (5,091) 6,096 Net cash provided
by operating activities 424 8,760 16,654 22,494 Net cash used in
investing activities (3,620) (1,144) (10,110) (9,274) Net cash
provided by (used in) financing activities (109) (2,360) (7,537)
(8,427) Net increase (decrease) in cash and cash equivalents
(3,305) 5,256 (993) 4,793 Cash and cash equivalents at beginning of
period 11,523 3,955 9,211 4,418 Cash and cash equivalents at end of
period $8,218 $9,211 $8,218 $9,211 * Based on audited information
included on Form 10-K for fiscal year ended September 27, 2003
DATASOURCE: BEI Technologies, Inc. CONTACT: John LaBoskey, Senior
Vice President/CFO of BEI Technologies, +1-415-956-4477 Web site:
http://www.bei-tech.com/
Copyright
Grafico Azioni Bei (NASDAQ:BEIQ)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Bei (NASDAQ:BEIQ)
Storico
Da Set 2023 a Set 2024