CONCORD, Mass., May 16 /PRNewswire/ -- Starmet Corporation (Nasdaq: STMT)
a Concord, Massachusetts based manufacturer of specialized metal products,
today announced financial results for the second quarter which ended April 2,
2000.
The Company continues its financial turnaround with another consecutive
quarter of profitability. In this quarter, Starmet generated net income of
$31,000 on revenue in excess of $5.6 million. Net income improved by $2.1
million over the same quarter in fiscal 1999, on $246,000 less in sales. This
reflects the Company's success in reengineering its cost structure to meet
current revenues and enables it to meet research and development goals.
Metal Matrix Composite Materials ("MMC") appear to have the greatest
potential for dynamic growth. Prototype orders, led by the requirements of a
prominent manufacturer of semiconductor assembly equipment, have become
production orders, enabling Starmet to double production of precision
investment castings in the second quarter. Four new production prototype parts
for the next generation of semiconductor assembly equipment are scheduled for
production in the first quarter of 2001. Starmet continues to aggressively
pursue other revenue enhancement opportunities in data storage, medical,
space, defense and military applications where Beralcast(R) provides a
technological and cost advantage.
The Company generated net income of $31,000 and $254,000, or $0.01 and
$0.05 per share on basic average shares outstanding, for the quarter and six
months ended April 2, 2000, respectively. This compares with net losses of
$2,092,000 and $2,179,000, or $0.44 and $0.45 per share for the quarter and
six months ended March 31, 1999, respectively.
The Company continued to generate positive cash flow from operations, pay
down its revolving line of credit and fund necessary capital expenditures for
its growth opportunities.
Unfilled orders backlog was $18.0 million as of April 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. The Company continues to pursue
potential expansion of its titanium powder business; development of its
Beralcast(R) investment casting and MGA extrudable MMC 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.
SECOND QUARTER ENDED SIX MONTHS ENDED
4/2/00 3/31/99 4/2/00 3/31/99
Sales $5,673,000 $5,919,000 $11,308,000 $13,338,000
Gross Profit $1,518,000 $116,000 $3,101,000 $2,163,000
Operating Income
(Loss) $332,000 $(1,653,000) $ 828,000 $(1,320,000)
Net Income (Loss) $31,000 $(2,092,000) $ 254,000 $(2,179,000)
Basic Earnings (Loss)
Per Share $0.01 $(0.44) $0.05 $(0.45)
Weighted Average
Number of Shares 4,801,000 4,791,000 4,797,000 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, growth potential of new businesses, 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.
For further information, please contact:
Gary Mattheson
Chief Financial Officer
(978) 369-5410
Company News on Call: http://www.prnewswire.com or fax,
800-758-5804, ext. 632850
Web Site: http://www.starmet.com
SOURCE Starmet Corporation
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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
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