CONCORD, Mass., Jan. 31 /PRNewswire/ -- Starmet Corporation (Nasdaq: STMT)
a Concord, Massachusetts based manufacturer of specialized metal products,
today announced financial results for its fiscal first quarter which ended
January 2, 2000.
The Company began fiscal 2000 with its second consecutive profitable
quarter. This was the first time in two years that the Company has achieved
successive profitable quarters. In the quarter, the Company generated net
income of $223,000 on revenues in excess of $5.6 million. Compared to the
Company's first quarter of fiscal 1999, net income improved by $310,000 on
$1.8 million (24%) less in sales, reflecting the Company's success in bringing
its cost structure in line with the current levels of revenue and reducing the
quarterly breakeven point below $5.5 million in revenues.
Sales of the Company's Metal Matrix Composite ("MMC") materials increased
by 29% in the first quarter compared to the prior quarter, as demand continues
for new and existing applications of its patented Beralcast(R) alloys. During
the first quarter of fiscal 2000, the Company delivered its 3000th
Beralcast(R) precision investment casting in less than six months to a leader
in the manufacturing of production semiconductor assembly equipment. The
Company believes that this is a significant milestone as it diversifies its
MMC applications to reduce the revenue impact from cyclical fluctuations in
demand for product from traditional defense and aerospace programs.
The Company generated net income of $223,000 for the first quarter, or
$0.05 per share on basic average shares outstanding of 4,794,000. This
compares with a net loss of $87,000, or $0.02 per share for the first quarter
of fiscal 1999.
The Company continued to generate positive cash flow from operations
($.6 million) and paid down its revolving line of credit by $.4 million during
the first quarter of fiscal 2000.
Unfilled orders backlog was $20.1 million (approximately 10 months' sales)
as of January 2, 2000.
The Company continues to invest heavily in research and development of
processes to recover valuable fluorine compounds from uranium tetrafluoride
and to evaluate new business opportunities for both existing and emerging
patented technologies. The Company continues to pursue potential expansion of
its titanium powder business; development of its Beralcast(R) investment
casting and MGA extrudable metal matrix composite technologies, and
development of its DUCRETE(TM) shielding technology for potential radiation
shielding applications. All of these have the potential of making significant
contributions to the future profitability of the Company.
FIRST QUARTER ENDED
1/2/00 12/31/98
Sales $ 5,635,000 $ 7,419,000
Gross Profit $ 1,583,000 $ 2,047,000
Operating Income $ 499,000 $ 334,000
Net Income (Loss) $ 223,000 $ (87,000)
Basic Earnings (Loss)
Per Share $ 0.05 $ (0.02)
Weighted Average
Number of Shares 4,794,000 4,791,000
Special Note Regarding Forward-looking Statements:
Statements contained herein that are not statements of historical fact are
"forward-looking statements." Forward-looking statements include statements
concerning backlog, the timing of orders, quarterly, annual and long-term
sales growth and future profitability and cash flow.
Such forward-looking statements are based on a number of assumptions and
involve a number of risks and uncertainties, and, accordingly, actual results
could differ materially from those projected in the forward-looking
statements. Factors that may cause such differences include, but are not
limited to: the effects of government regulation; the need for additional
financing to fund growth, continued and future acceptance of the Company's
products and services; and the presence of competitors with greater technical,
marketing and financial resources.
SOURCE Starmet Corporation
 back to top
Related links:
http://www.starmet.com
Company News On-Call:
http://www.prnewswire.com/comp/632850.html or fax,
800-758-5804, ext. 632850
CONTACT:
Gary Mattheson, Chief Financial Officer of
Starmet Corporation, 978-369-5410
|
