CONCORD, Mass., Aug. 16 /PRNewswire/ -- Starmet Corporation (Nasdaq: STMT)
a Concord, Massachusetts based manufacturer of specialized metal products,
today announced financial results for the third quarter which ended July 2,
2000.
For the first time in a year, the Company fell below its breakeven point
of approximately $5.6 million in revenues per quarter, with revenues of $5.1
million that generated a net loss of $310,000. The net income improved by $.5
million over the same quarter in fiscal 1999, on $520,000 less in sales. For
the nine months ended July 2, 2000, the Company generated operating income of
$812,000. This reflects the Company's success in reengineering its cost
structure to meet current revenues. The Company expects fourth quarter
revenues to rebound and exceed the current quarterly breakeven point
generating a small profit for the full year.
Metal Matrix Composite Materials ("MMC") continue 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. Four new production prototype parts for the next
generation of semiconductor assembly equipment are scheduled for production in
the first quarter of 2001. New commercial customers are incorporating
Beralcast(R) into their future production requirements. A second
semiconductor equipment manufacturer has confirmed their intentions to use
Beralcast(R) for ten parts which is expected to be in full production in the
next nine months. The Company is also pursuing other commercial applications
that use copper beryllium alloys, a material developed decades ago and widely
used today. Currently, a facilitization program is underway and additional
staff are being hired to increase capacity to handle the manufacturing of
copper beryllium components for commercial aircraft for a leading commercial
aerospace sensor manufacturer.
The Company has negotiated a $1.1 million contract with the U.S. Army to
support their efforts to remove government-furnished equipment from the
Company's Concord facility beginning in September 2000. In August, 2000, the
Company will submit an amended P.L. 85-804 claim directly to the Secretary of
the Army requesting payment of all past and future costs related to the
remediation of the Concord holding basin which have not been previously
funded, but there is no assurance that Army funding will be provided.
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.
The Company generated net losses of $310,000 and $56,000, or $0.06 and
$0.01 per share on basic average shares outstanding, for the quarter and nine
months ended July 2, 2000, respectively. This compares with net losses of
$817,000 and $2,996,000, or $0.17 and $0.63 per share for the quarter and nine
months ended July 4, 1999, respectively.
The Company continued to generate positive cash flow from operations, pay
down its debt and fund necessary capital expenditures for its growth
opportunities.
Unfilled orders backlog was $17.8 million as of July 2, 2000.
THIRD QUARTER ENDED NINE MONTHS ENDED
7/2/00 7/4/99 7/2/00 7/4/99
Sales $5,118,000 $5,638,000 $16,426,000 $18,976,000
Gross Profit $1,098,000 $1,484,000 $4,199,000 $3,647,000
Operating Income
(Loss) $(17,000) $(437,000) $ 812,000 $(1,756,000)
Net Income (Loss) $(310,000) $(817,000) $ (56,000) $(2,996,000)
Basic Earnings (Loss)
Per Share $(0.06) $(0.17) $(0.01) $(0.63)
Weighted Average
Number of Shares 4,801,000 4,791,000 4,798,000 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
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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