Q2 Results Expected to Exceed Q1 Results by Approximately
44 Percent in Revenue and 58 Percent in Operating Profit
SAN JOSE, Calif., May 26 /PRNewswire/ -- SDL, Inc. (Nasdaq: SDLI)
announced today that it expects to report financial results, excluding
acquisition and other non-cash charges, for the second quarter ending June 30,
2000 well in excess of prior estimates.
Michael L. Foster, Chief Financial Officer of SDL, Inc. stated, "Because
of continued strong bookings, success in ramping shipments, and anticipated
closing of the PIRI acquisition in the first full week in June, we now expect
to exceed second quarter expectations by approximately 15 percent in revenue
which would represent sequential revenue growth of approximately 44 percent or
greater. With regard to pro-forma earnings per share, we expect to exceed Q2
estimates by approximately 24 percent or better, representing sequential
growth in pro-forma operating profit of approximately 58 percent."
Foster continued, "Demand for our high-performance fiber optic
communication products is exceeding expectations and our manufacturing team
continues to add capacity to meet customer requirements. We are also
finalizing several long-term contracts with key customers. Consequently, our
visibility of financial results for the balance of the year is enhanced.
Including PIRI, we now project that revenue growth in 2000 over 1999 will be
approximately 140 percent or greater."
SDL's products power the transmission of data, voice, video and Internet
information over fiber optic networks to meet the needs of telecommunications,
dense wavelength division multiplexing (DWDM), cable television and satellite
communications applications. They enable customers to meet the bandwidth
needs of increasing Internet, data, video and voice traffic by expanding their
fiber optic communications networks much more quickly and efficiently than
would be possible using conventional electronic and optical technologies.
SDL's optical products also serve a variety of non-communications
applications, including materials processing and printing. Additional
information about SDL, Inc. is available on the Internet at http://www.sdli.com .
Statements in this press release which are not historical including
statements regarding SDL's or management's intentions, hopes, beliefs,
expectations, representations, projections, plans or predictions of the future
are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements include statements regarding
the company's continued growth in booking and shipping products, the
anticipated closing of the PIRI acquisition in the first full week in June,
the expectation that the second quarter will exceed first quarter results and
prior estimates, demand for the company's communications products exceeding
expectations, the company continuing to add manufacturing capacity to meet
this demand, the company's ability to finalize several long-term contracts and
the projection for 2000 revenue growth. It is important to note that the
Company's actual results could differ materially from those in any such
forward-looking statements. Factors that could cause actual results to differ
materially include risks related to uncertainties in market growth, the
inability to finalize customer contracts, the company's inability to ramp
manufacturing to meet customer demand, the inability to close the PIRI
acquisition in Q2, and the risk factors listed from time to time in the
Company's SEC reports including but not limited to, the annual report on Form
10-K for the year ended December 31, 1999.
SOURCE SDL, Inc.
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Related links:
http://www.sdli.com
CONTACT:
Donald R. Scifres, Chairman and CEO, or
Michael L. Foster, VP Finance and CFO, both of SDL, Inc.
408-943-9411; general, Lisa Chainey or Marcia Nakamura,
investors, Susan Katz, or media, Chris Wood, all of The Financial
Relations Board, 415-986-1591
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