SDL, Inc. Comments On Second Quarter Financial Forecasts
Q2 Results Expected to Exceed Q1 Results by Approximately 44 Percent in Revenue and 58 Percent in Operating Profit
San Jose, CA. SDL, Inc. (Nasdaq: SDLI) announced today that it expects to report financial results, excluding acquisition and other non-cash charges, for the second quarter ending June 30, 2000 well in excess of prior estimates.
Michael L. Foster, Chief Financial Officer of SDL, Inc. stated, "Because of continued strong bookings, success in ramping shipments, and anticipated closing of the PIRI acquisition in the first full week in June, we now expect to exceed second quarter expectations by approximately 15 percent in revenue which would represent sequential revenue growth of approximately 44 percent or greater. With regard to pro-forma earnings per share, we expect to exceed Q2 estimates by approximately 24 percent or better, representing sequential growth in pro-forma operating profit of approximately 58 percent."
Foster continued, "Demand for our high-performance fiber optic communication products is exceeding expectations and our manufacturing team continues to add capacity to meet customer requirements. We are also finalizing several long-term contracts with key customers. Consequently, our visibility of financial results for the balance of the year is enhanced. Including PIRI, we now project that revenue growth in 2000 over 1999 will be approximately 140 percent or greater."
SDL s products power the transmission of data, voice, video and Internet information over fiber optic networks to meet the needs of telecommunications, dense wavelength division multiplexing (DWDM), cable television and satellite communications applications. They enable customers to meet the bandwidth needs of increasing Internet, data, video and voice traffic by expanding their fiber optic communications networks much more quickly and efficiently than would be possible using conventional electronic and optical technologies. SDL s optical products also serve a variety of non-communications applications, including materials processing and printing. Additional information about SDL, Inc. is available on the Internet at www.sdli.com.
Statements in this press release which are not historical including statements regarding SDL s or management s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements regarding the company s continued growth in booking and shipping products, the anticipated closing of the PIRI acquisition in the first full week in June, the expectation that the second quarter will exceed first quarter results and prior estimates, demand for the company s communications products exceeding expectations, the company continuing to add manufacturing capacity to meet this demand, the company s ability to finalize several long-term contracts and the projection for 2000 revenue growth. It is important to note that the Company s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include risks related to uncertainties in market growth, the inability to finalize customer contracts, the company s inability to ramp manufacturing to meet customer demand, the inability to close the PIRI acquisition in Q2, and the risk factors listed from time to time in the Company s SEC reports including but not limited to, the annual report on Form 10-K for the year ended December 31, 1999.
Contact:
SDL, Inc.
Donald R. Scifres, Chairman and CEO or Michael L. Foster, VP Finance and CFO
Tel: (408) 943-9411
or
Financial Relations Board
Lisa Chainey/Marcia Nakamura (general info)
Susan Katz (investor contact)
Chris Wood (media)
Tel: (415) 986-1591
SDL, Inc.
Donald R. Scifres, Chairman and CEO or Michael L. Foster, VP Finance and CFO
Tel: (408) 943-9411
or
Financial Relations Board
Lisa Chainey/Marcia Nakamura (general info)
Susan Katz (investor contact)
Chris Wood (media)
Tel: (415) 986-1591
Web site: http://www.sdli.com
