(COMTEX) B: Stratos Lightwave Achieves Record Second Quarter 2001 Res
B: Stratos Lightwave Achieves Record Second Quarter 2001 Results Sales Increase
33% Over the First Quarter
CHICAGO, Nov 29, 2000 /PRNewswire via COMTEX/ -- Stratos Lightwave, Inc.,
(Nasdaq: STLW) a leading supplier of optical subsystems and optical components,
today announced financial results for its second fiscal quarter ended October
31, 2000. The Company reported a sequential sales increase of 33% over the first
quarter to more than $34 million, as well as record net income in the quarter of
$4.0 million or $0.06 per share, and $6.0 million or $0.10 per share for the
first half of fiscal 2001.
SECOND QUARTER FINANCIAL RESULTS
Net sales increased to $34.5 million, or 115%, from $16.0 million recorded in
the second quarter of fiscal 2000 and 33% sequentially from $25.9 million for
the first quarter ended July 31, 2000. The total sales order backlog continued
to strengthen during the quarter, to a record $52 million as of October 31,
2000. The Company's sales growth momentum continued to be driven by strong
demand in the Gigabit Ethernet market, and accelerating demand in the Fibre
Channel and fast-growing Metro markets. The completion of phase one of the
production capacity ramp during the second quarter enabled a 37% sequential
increase in transceiver shipments during the period. Order demand and sales
strength continued for optical backplane connectors, single mode cable
assemblies, and other value-added products, as well as significant new
opportunities in optical multi-fiber interconnects.
License fees and royalties increased to $436,000 from $323,000 in last year's
second quarter, and from $409,000 last quarter. Operating income for the second
quarter reached $3.5 million, or 10% of net sales, up 51% from $2.3 million, or
8.8% of net sales in the first quarter, and 4.4% of net sales in the second
quarter last year.
Net income for the quarter reached a record $4.0 million, or $0.06 per share,
nearly ten times the $420,000, or $0.01 per share earned in the same period last
year, and a 96% increase over the $2.0 million or $0.04 per share for the first
quarter of this fiscal year.
Gross margin for the second quarter increased to 33.9% from 32.9%, with total
gross profit up 37% sequentially from the first quarter. Operating expenses
declined slightly to 25.1% from 25.7% last quarter. In addition, we earned $2.6
million in net interest on short-term investments. Our estimated effective tax
rate was 34.4%, down from 36.3% in the first quarter of fiscal 2000, and 40.2%
in the second quarter last year.
YEAR TO DATE FINANCIAL RESULTS
Net sales increased to $60.4 million, or 97%, from $30.6 million reported in the
first half of fiscal 2000. License fees and royalties decreased to $845,000 from
$1,123,000 in last year's first half. Operating income for the first half of
fiscal 2001 reached $5.7 million, an 85% increase from $3.1 million for the
first half of fiscal 2000.
Net income for the first half of the year reached a record $6.0 million, or
$0.10 per share, more than three times the $1.9 million, or $0.04 per share for
the same period last year.
Gross margin for the six months ended October 31, 2000 increased slightly to
33.5% from 33.4%, with total gross profit up 98% from the first half of fiscal
2000. Operating expenses declined to 25.4% from 26.9% last year. Net interest
earned on short-term investments was $3.6 million through the period ended
October 31, 2000. Our estimated effective tax rate was 35.0% for the first half
of fiscal 2001, down from 38.6% in the same period last year.
BUSINESS OUTLOOK AND GUIDANCE
The industry is rapidly moving to higher density interconnects and faster data
rates to meet the pressing demand for more bandwidth. "This presents tremendous
sales growth opportunities for the next several years," said James W. McGinley,
President and Chief Executive Officer. "We believe we will continue to see very
strong sales growth across the entire product offering, building on the rapid
growth of the second quarter." The capacity expansion continues to stay on
track, and the Company expects the full implementation of the new 60,000 square
foot production facility by the end of its third quarter.
The Company believes it is in a position to achieve a 15-20% sequential sales
gain in its third quarter and is raising the projections for the fiscal year
with a sales increase of 105-115%. Net income is expected to be in the range of
10-12% of net sales for the full fiscal year.
WEBCAST/CONFERENCE CALL
Stratos Lightwave will host a live audio webcast and conference call on
Wednesday, November 29 at 5:00 pm Eastern Standard Time. Investors and other
interested parties may listen to the live webcast by visiting the investor
relations section of the Stratos Lightwave website at www.stratoslightwave.com .
James W. McGinley and David A. Slack, Vice President, Finance and Chief
Financial Officer, will discuss the Company's earnings and operations. A replay
of the conference call will be available for 48 hours beginning at 7:00 pm EST.
The replay number is 1-800-633-8284 with a pass code of 16906622. A webcast
replay will also be available on the company's website.
ABOUT STRATOS LIGHTWAVE
Stratos Lightwave, Inc. (Nasdaq: STLW) develops, manufactures and sells optical
subsystems and components for high data rate networking, data storage, and
telecommunications applications. These optical subsystems are used in local area
networks (LANs), storage area networks (SANs), metropolitan area networks
(MANs), wide area networks (WANs), and central office networking in the
telecommunications market. The company also designs, manufactures, and sells a
full line of optical components and cable assemblies for use in these networks.
Stratos Lightwave, Inc. is a subsidiary of Methode Electronics, Inc.
This press release contains predictions; estimates and other forward-looking
statements regarding anticipated revenue growth, customer orders, manufacturing
capacity and financial performance. All forward-looking statements in this press
release are based on information available to the company as of the date hereof,
and we assume no obligation to update any such forward-looking statements.
Forward-looking statements are subject to risks and uncertainties and actual
results may differ materially from any future performance suggested. Risk
factors that may affect the Company's performance are listed in the Company's
S-1 registration statement for its initial public offering and its most recent
Quarterly Report on Form 10-Q, as filed with the Securities and Exchange
Commission.
For additional information contact Stratos Lightwave at 7444 W. Wilson Ave.,
Chicago, IL USA 60706-4549; Tel: 708.867.9600. Fax: 708.867.0996. Email:
info@stratoslightwave.com. Website: www.stratoslightwave.com .
STRATOS LIGHTWAVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(unaudited)
(In thousands, except per share amounts and shares outstanding)
Three Months Ended Six Months Ended
October 31, October 31,
2000 1999 2000 1999
REVENUE:
Net sales $34,479 $16,023 $60,395 $30,590
License fees and royalties 436 323 845 1,123
Total 34,915 16,346 61,240 31,713
COSTS AND EXPENSES:
Cost of products sold 22,795 11,325 40,172 20,374
Research and development 3,455 1,399 6,238 2,865
Sales and marketing 2,313 1,589 4,240 2,966
General and
administrative 2,900 1,330 4,850 2,411
Total costs and
expenses 31,463 15,643 55,500 28,616
Income from operations 3,452 703 5,740 3,097
Interest income, net 2,648 0 3,565 0
Income before income taxes 6,100 703 9,305 3,097
Provision for income taxes 2,096 283 3,260 1,196
NET INCOME $4,004 $420 $6,045 $1,901
Basic and diluted earnings
per Common Share $0.06 $0.01 $0.10 $0.04
Weighted average number of
Common Shares outstanding:
Basic 64,092,307 54,029,807 60,827,884 54,029,807
Diluted 65,094,473 54,029,807 61,511,928 54,029,807
STRATOS LIGHTWAVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
October 31, April 30,
2000 2000
ASSETS (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $171,340 $537
Accounts receivable - net 25,351 12,127
Inventories 25,145 11,172
Current deferred income taxes 1,166 1,166
Prepaid expenses 570 201
TOTAL CURRENT ASSETS 223,572 25,203
PROPERTY, PLANT AND EQUIPMENT 55,996 38,377
Less allowance for depreciation 16,001 13,442
NET PROPERTY, PLANT AND EQUIPMENT 39,995 24,935
GOODWILL - net 13,186 10,563
OTHER ASSETS 471 436
TOTAL ASSETS $277,224 $61,137
Accounts and notes payable $15,322 $4,389
Other current liabilities 7,781 3,067
TOTAL CURRENT LIABILITIES 23,103 7,456
OTHER LIABILITIES
Deferred Income Taxes 688 719
Minority Interest 303 0
SHAREHOLDERS' EQUITY
Common Stock 641 540
Paid in capital 246,643 52,422
Retained earnings 5,943 0
Other shareholders' equity (97) 0
TOTAL SHAREHOLDERS' EQUITY 253,130 52,962
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $277,224 $61,137
SOURCE Stratos Lightwave, Inc.
CONTACT: David A. Slack, CFO, or Michael T. Perkins, Manager of Invest
r
Relations, both of Stratos Lightwave, Inc., 708-867-9600
URL: stratoslightwave.com
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(C) 2000 PR Newswire. All rights reserved.
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KEYWORD: Illinois
INDUSTRY KEYWORD: CPR
SUBJECT CODE: ERN
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