SAN JOSE, Calif., July 27 /PRNewswire/ -- SDL, Inc. (Nasdaq: SDLI) today
announced quarterly revenue and earnings for the quarter ended June 30, 1998.
For the second quarter ended June 30, 1998, SDL reported record revenues
of $25.8 million compared to revenues of $21.6 million in the second quarter
of 1997. This represents a 20 percent increase in revenues over second
quarter 1997. Second quarter 1998 net income was a record $2.9 million or
$0.20 per share on a diluted basis compared to a net loss of $29.5 million or
$2.19 per share on a diluted basis for the second quarter of 1997. Diluted
earnings per share for the second quarter of 1998 were computed based on 14.7
million shares, compared to 13.5 million shares for the second quarter of
1997.
For the six months ended June 30, 1998, SDL reported revenues of $51.2
million and a net income of $5.6 million, or $0.38 per share on a diluted
basis, compared to revenues of $42.6 million and net loss of $29.0 million, or
$2.16 per share on a diluted basis for the first six months of 1997. Diluted
earnings per share for the first six months of 1998 were computed based on
14.6 million shares, compared to 13.4 million shares for the first six months
of 1997.
Commenting on the quarter, Donald Scifres, chairman and chief executive
officer said, "Our second quarter growth represents the successful transition
to and initial yield improvements gained from last year's investments in our
new wafer fab facility and our manufacturing upgrades. The new facilities and
manufacturing upgrades were intended to lower costs and substantially increase
our chip capacity to meet customer demand. It has done both. In the first
half of 1998, for example, we averaged chip yields in our 980 nm laser product
line of more than three times the old line, and our new capacity is over
100,000 chips per year for this product."
Scifres continued, "We are particularly pleased with our performance in
our communications markets where revenues increased by about 20 percent
compared to the first quarter of 1998. Key contributors to this growth were
the strong demand for 980 nm pump modules used in fiber optic communications
and increased satellite communications shipments.
"Going forward we intend to focus on improving yields from our new chip
manufacturing facility and supplying products in volume to meet the expanding
applications for our technology. By targeting major growth markets, including
communications and materials processing, we believe SDL is poised for rapid
expansion," concluded Scifres.
SDL designs, manufactures and markets semiconductor optoelectronic
integrated circuits, semiconductor lasers, fiber optic related products and
optoelectronic based systems. The company's products are used in a diversity
of markets such as telecommunications, cable television, satellite
communications, printing, medical, data storage, consumer electronics, sensor,
defense, materials processing and instrument markets.
Statements in this press release that state SDL's or management's
intentions, hopes, beliefs, expectations, representations, projections, plans
or predictions of the future are forward looking statements. Such statements
include statements regarding revenue and profit growth and the impact of newly
introduced products or manufacturing capabilities. Reasons why actual results
might differ include risks related to uncertainties in implementing or
maintaining new manufacturing processes and capacity, potentially persistent
yield fluctuations, delays, cutbacks or cancellation of customer orders, lack
of customer acceptance of new products, new and continuing customer
qualification of products, competition, price reductions, and difficulties in
successfully managing the Company's investment in new people, processes and
products. All forward looking statements are made as of today, and SDL
disclaims any duty to update such statements. It is important to note that
the Company's actual results could differ materially from those projected in
such forward looking statements. Additional information concerning factors
that could cause actual results to differ materially from those in the forward
looking statements is contained from time to time in the Company's annual
report on Form 10-K for the 1997 fiscal year, the quarterly reports on Forms
10-Q, and other SEC filings. Copies of these filings may be obtained by
contacting SDL or the SEC.
SDL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data - unaudited)
Three Months Ended Six Months Ended
June 30 June 30
1998 1997(A) 1998 1997(A)
Total revenues $25,810 $21,570 $51,167 $42,586
Cost of revenues 16,895 18,333 34,045 32,351
Gross Margin 8,915 3,237 17,122 10,235
Operating expenses:
Research and development 2,696 2,473 5,172 5,309
Selling, general and
administrative 3,194 30,178 6,083 34,075
Amortization of
purchased intangibles 193 163 389 324
Total operating expenses 6,083 32,814 11,644 39,708
Operating income(loss) 2,832 (29,577) 5,478 (29,473)
Interest(income), net (309) (106) (582) (737)
Income(loss) before
income taxes 3,141 (29,471) 6,060 (28,736)
Provision for income taxes 235 -- 455 228
Net income(loss) $2,906 $(29,471) $ 5,605 $ (28,964)
Net income(loss)
per share - basic $0.21 $(2.19) $0.41 $(2.16)
Net income(loss)
per share - diluted $0.20 $(2.19) $0.38 $(2.16)
Number of weighted
average shares - basic 13,830 13,462 13,769 13,400
Number of weighted
average shares - diluted 14,700 13,462 14,623 13,400
(A)Includes one-time charges totaling $30,911.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
1998 1997
(unaudited) (A)
Assets
Current assets:
Cash, cash equivalents
and short-term investments $15,420 $14,993
Accounts receivable, net 20,504 19,960
Inventory 15,844 13,938
Other current assets 2,937 2,738
Total current assets 54,705 51,629
Property and equipment, net 28,743 26,298
Long-term investments 12,043 11,613
Other assets (including purchased intangibles) 4,841 4,684
$100,332 $94,224
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $7,098 $8,469
Accrued liabilities 7,235 7,148
Total current liabilities 14,333 15,617
Long-term liabilities 2,390 2,020
Stockholders' equity 83,609 76,587
$100,332 $94,224
(A) Derived from audited financial statements.
SOURCE SDL, Inc.
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CONTACT:
Donald R. Scifres, Chairman and CEO, or
Vincent A. McCord, VP Finance and CFO, 408-943-9411, both of SDL,
Inc.; or Lisa Horn Chainey, general info, or Kristi Larson,
investor contact, 415-986-1591, both of The Financial Relations
Board
NOTE TO EDITORS: For more information on SDL, Inc. at no cost,
please call 1-800-PRO-INFO or 908-544-2850 if calling from
outside the U.S., ticker symbol SDLI.
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