Uniroyal Technology Corporation Reports First Quarter Results

Source: Uniroyal Technology Corporation

Meets Street Estimates

Sarasota, FL. Uniroyal Technology Corporation (Nasdaq: UTCI) today reported net sales of $14.3 million for the first quarter of FY 2001 ended December 31, 2000. The first quarter of last year included fourteen weeks (versus thirteen this year) and sales were $15.2 million for that period. 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 $0.12 per diluted common share. This compares to a net loss of $0.03 per diluted common share on a comparable basis for the first quarter of the previous year.

The loss from continuing operations in the first quarter of Fiscal 2001 was $0.19 per diluted common share versus income from continuing operations of $0.04 per diluted common share in the previous year. The previous year benefited from a before-tax gain of $2,905,000 on the sale of a security.

Howard R. Curd, Chairman and Chief Executive Officer, in commenting on the quarter said, "We are pleased with the progress being made at our Compound Semiconductor and Optoelectronics business segment. At our high brightness light emitting diode facility, we are rapidly adding capacity and have developed highly competitive products demonstrating brightness levels reaching or exceeding the products currently in the market. Sterling is also quickly adding capacity and we are exploring strategic ways to advance our presence in devices."

Adjusting for the additional week included in the first quarter of last year, sales for the Naugahyde® contract and reupholstery segments in this quarter were slightly ahead of last year s sales. The economic weakness in the transportation markets led to the overall decline in Naugahyde sales of 24% compared to the prior year period. The lower volume resulted in a decline in income before interest, taxes, minority interest and discontinued operations to $8,000 versus $575,000 in the preceding year.

Specialty Adhesives sales increased 11% in the first quarter versus the prior year which included one additional week of sales. Sales of roofing adhesives and branded industrial adhesives were particularly strong versus the prior year period. Income before interest, taxes, minority interest and discontinued operations was $307,000 for the first quarter of this year versus $341,000 in the previous year. Roofing products represented a greater proportion of the adhesives sales this quarter versus the first quarter of last year. Roofing products have lower margins than branded industrial products.

Sales for the Compound Semiconductor and Optoelectronics business segment grew 90% versus the previous year, increasing to $1.2 million versus $614,000 last year. The loss of $8,391,000 in the first quarter reflects the investment spending at the optoelectronics and silicon carbide operations as well as the intangible amortization associated with the purchase of Sterling.

Uniroyal Technology s Compound Semiconductor and Optoelectronics business segment includes Uniroyal Optoelectronics, LLC 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 - , 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 Zulanas, Jr. CFO Uniroyal Technology Corporation Tel: 941-361-2220 or Mark Tyler of TT Communications Tel: 212-962-3690