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Uniroyal Technology Corporation Reports Fourth Quarter Results Meets Street Estimates

Source: Uniroyal Technology Corporation

Sarasota, FL. Uniroyal Technology Corporation (Nasdaq: UTCI) today reported that net sales for the fourth quarter of FY 2000 increased to $18.7 million, a gain of 16% versus the fourth quarter of the previous year, excluding sales from the prior year period of the Coated Fabrics automotive business which was sold. On a reported basis, sales increased 6% versus the prior year sales of $17.6 million. During the quarter ended October 1, 2000, increased investment spending at the Company s Compound Semiconductor and Optoelectronics business segment resulted in a net loss from continuing operations, excluding intangible amortization and unusual/non- recurring items, of $0.05 per diluted common share. This compares to net income of $0.07 per diluted common share on a comparable basis for the fourth quarter of the prior year.

During the fourth quarter of FY 2000, the Company incurred a number of non-recurring and unusual items which led to a loss from continuing operations of $0.49 per diluted common share compared to income from continuing operations of $0.07 per diluted common share on a comparable basis for the fourth quarter of the previous year.
Howard R. Curd, Chairman and Chief Executive Officer, noted, "As we increase our processing capabilities, we are seeing the level of interest in our products increasing at both our optoelectronics and silicon carbide businesses. We recently signed a contract with a major silicon carbide customer and we continue to qualify product for major optoelectronics customers. We strongly believe that the significant investments of today will lead to long-term success."

Sales of Naugahyde® products increased 7% in the fourth quarter versus the comparable prior year period. Overall, the Coated Fabrics segment sales declined 12% versus the fourth quarter of last year due to the transitional phase out of the automotive business which has been sold. The decline in income versus the prior year period is due to a non-recurring charge of approximately $506,000 in the fourth quarter of FY 2000 for a special contribution to the 401(k) plan and the absence of automotive sales at the Stoughton, Wisconsin facility.

Sales for the Specialty Adhesives segment increased 12% in the fourth quarter versus the comparable prior year period. Increased selling prices as well as higher unit volume sales for branded industrial products (Hydra Fast- En® and Gunther® were the primary reasons for the increase in fourth quarter sales versus the fourth quarter of last year. Operating income for the fourth quarter of $702,000 was below last year due in part to certain non- recurring items. In the fourth quarter of FY 2000, a non-recurring special contribution to the 401(k) plan reduced income by approximately $459,000.

Sales for the Compound Semiconductor and Optoelectronics segment grew 296% sequentially, increasing to $1.2 million in the fourth quarter from sales of $304,000 in the third quarter of FY 2000. Last year sales for the fourth quarter were $147,000. Sterling Semiconductor, Inc. ("Sterling"), which was acquired on May 31, 2000, was consolidated for three months in the fourth quarter versus only one month in the third quarter of FY 2000. The loss of $14,793,000 in the fourth quarter reflects certain non-recurring items (acquired in-process research and development of $6,590,000 and a special contribution to the 401(k) plan of $638,000); increased amortization as well as start-up costs related to Sterling; and, increased ramp up costs at the Company s high brightness light emitting diode facility in Tampa, Florida.

For the fifty-three week period ended October 1, 2000, excluding the automotive sales of the Coated Fabrics segment from both periods, sales increased 16% versus the prior year period. On a reported basis, sales declined 4% to $68.3 million versus $71.2 million for the fifty-two week period ended September 26, 1999. Net income for the fiscal period ended October 1, 2000 was $46,687,000, or $1.87 per diluted common share, versus net income of $5,520,000 or $0.21 per diluted common share for the fiscal period ended September 26, 1999. During the fiscal period ended October 1, 2000, the Company recorded a gain, net of tax, of $57,346,000 primarily due to the sale of its High Performance Plastics business segment which was sold on February 28, 2000; this gain was partially offset by other unusual/ non- recurring items. Net income from continuing operations, excluding intangible amortization and unusual/non-recurring items, was $4,450,000 or $0.15 per diluted common share for the fiscal period ended October 1, 2000 versus net income of $910,000 or $0.03 per diluted common share for the fifty-two week period ended September 26, 1999.

Uniroyal Technology s Compound Semiconductor and Optoelectronics business segment includes Uniroyal Optoelectronics and Sterling Semiconductor, Inc. Uniroyal Optoelectronics manufactures high brightness light emitting diodes (HB-LEDs), a rapidly growing market with applications such as traffic signals, indoor/outdoor signage and automotive applications. Sterling Semiconductor is a leading producer of silicon carbide (SiC) substrates, epitaxial thin films on SiC substrates and is developing SiC devices for wireless communications, industrial process control, and power amplification. Well-known brand names in Uniroyal s Coated Fabrics and Specialty Adhesives segments include NAUGAHYDE® and NAUGASOFT™ in coated fabrics and, SILAPRENE®, HYDRA FAST-EN® and GUNTHER ULTRA/BOND® in adhesives. The Company s stock and warrants trade on the Nasdaq/NMS under the symbols UTCI and UTCIW, respectively. CONFERENCE CALL - DECEMBER 7, 2000, 11:00 A.M. EST THE CALL WILL BE SIMULTANEOUSLY WEBCAST AT WWW.UNIROYALTECH.COM

Statements made herein that are forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995 are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those related to business conditions and the financial strength of the various markets served by the Company, the level of spending for such products and the ability of the Company to successfully develop, commercialize, qualify, manufacture and market its products.

Contact: George J. Zulanas, CFO of Uniroyal Tel: 941-361-2220 or Mark N. Tyler of TT Communications Tel: 212-962-3690

George J. Zulanas, CFO of Uniroyal
Tel: 941-361-2220
or
Mark N. Tyler of TT Communications
Tel: 212-962-3690
Web site: http://WWW.UNIROYALTECH.COM
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