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BEI Technologies, Inc. Reports Record First Quarter 2005 Revenue
SAN FRANCISCO, Feb. 2 /PRNewswire-FirstCall/ -- BEI Technologies, Inc.
(NASDAQ:BEIQ), an established manufacturer of electronic sensors and motion
control products, announces record first quarter 2005 earnings.
Fiscal 2005 First Quarter compared with Fiscal 2004 First Quarter:
* Revenues increased 11.8% to $76.9 million with automotive revenue of
$47.4 million, an increase of 11.4%
* Net income increased 82.1% to $3.648 million from $2.003 million
* EPS increased 78.6% to $0.25 from $0.14
Quarterly Results
Charles Crocker, Chairman and Chief Executive Officer stated, "Net sales for
the first quarter increased by $8.1 million compared with the prior year first
quarter due primarily to a $4.9 million increase in automotive sensor sales,
largely GyroChip(R) sensor shipments. In addition to the record first quarter
revenue, deferred automotive revenue increased by $1.2 million during the
quarter. Deferred revenue is expected to be recognized in a future quarter when
all revenue recognition criteria have been met. Sales of industrial sensors,
actuators and motors increased in the quarter to $24.0 million from $18.9
million in the prior year first quarter, as a result of the addition of Newall
Measurement Systems' Digital Readout (DRO) and digital linear encoder sales not
included in the prior year and higher quartz product sales to commercial
aviation customers. Government aerospace and defense sales decreased to $5.5
million compared with $7.3 million in the prior year first quarter due to
reduced quartz and encoder program sales."
Gross margin increased to 27.5% in the fiscal 2005 first quarter from 22.0% in
the prior year first quarter. Average gross margin percentages improved in both
industrial products and automotive products compared to the prior year quarter.
1.3% of the 2005 first quarter gross margin resulted from a $1.0 million
insurance recovery related to a $1.6 million settlement with a customer in the
fourth quarter of fiscal 2004. The prior year first quarter was unfavorably
impacted by vendor scrap issues.
Crocker continued, "We are pleased with the progress Systron Donner Automotive
achieved in shipping a record of 1.26 million GyroChip sensors for the quarter
while increasing annual capacity to 5.0 million sensors. This was ahead of our
previously stated goal of 4.5 million by December 2004. We are also gratified
by the adoption of the Newall products we acquired at the beginning of the
quarter which resulted in approximately $3.0 million of industrial revenue for
the quarter. These products contributed to the quarter's favorable margin
expansion."
SG&A spending increased in the first quarter to $10.8 million compared with the
prior year first quarter of $8.3 million. The inclusion of Newall SG&A added
approximately $1.1 million in spending not in the prior year. The first
quarter 2005 spending also included charges associated with severance,
technology licensing, and sales tax totaling $0.8 million. Research and
development expense in the first quarter increased to $4.2 million compared
with $3.3 million in the prior year first quarter due to the inclusion of
Newall spending and reduced prior year first quarter spending.
During the first quarter our operations used $4.6 million in cash. Cash used by
operations was primarily affected by an increase in receivables from increasing
sales volumes. The acquisition of Newall for $11.0 million and the purchase of
property, plant and equipment for $4.6 million, primarily to increase GyroChip
production at Systron Donner Automotive, were major factors in a $17.4 million
use of cash financed by borrowing from the Company's line of credit.
Accordingly, cash inflow for the quarter was $26.3 million from financing
partially offset by the paydown of $7.0 million of Senior Notes. The Company's
cash balance at quarter end was $5.0 million, with an outstanding balance on
the Company's $35.0 million line of credit of $14.3 million.
Crocker concluded, "We have integrated Newall Measurement Systems into our
organization and are beginning to execute plans that leverage both specific
customer and market opportunities. We enhanced our financing capabilities by
increasing our line of credit to $35 million. We look forward to continued
execution of our plan to increase both industrial and military business through
acquisition and investment, as well as organic growth."
Guidance for Second Quarter 2005
Revenue for the second quarter should grow in the range of 3% to 7%. We are
increasing our GyroChip automotive sensor shipments guidance from 5.0 million
units to 5.6 million units for the 12 month period ending September 2005.
About BEI Technologies, Inc.
BEI Technologies, Inc. (the "Company" or "Technologies") is an established
manufacturer of electronic sensors, motors, actuators, rotary optical encoders,
linear encoders with associated digital readouts (DROs), and motion control
products used for factory and office automation, medical equipment, military,
aviation and space systems. In addition, sales to manufacturers of
transportation equipment, including automobiles, trucks and off-road equipment,
have become a significant addition to the Company's business in recent years.
The Company's micromachined quartz rate sensors are being used in advanced
vehicle stability control systems and a significant increase in the production
of those sensors had been in progress from the middle of 1998 to FY 2005 except
for a decrease in production in fiscal 2002 due to increased competition. The
Company also manufactures electronic steering wheel position sensors,
seat-memory modules, throttle position sensors, inertial navigation systems,
and other devices used in transportation systems.
Except for historical information, this news release may be deemed to contain
forward-looking statements that involve risks and uncertainties. The Company's
actual results could differ materially from those discussed in this release.
Factors that could cause or contribute to such differences include, but are not
limited to, the Risk Factors discussed from time to time in the Company's
reports to the Securities and Exchange Commission, including the Company's
Annual Report on Form 10-K for fiscal 2004.
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
January 1, October 2,*
2005 2004
(Unaudited)
ASSETS
Cash and cash equivalents $4,995 $8,218
Investments 4,537 4,299
Trade receivables, net 51,565 45,482
Inventories, net 31,137 29,897
Other current assets 18,132 17,147
Total current assets 110,366 105,043
Property, plant and equipment, net 42,629 39,905
Goodwill 8,804 1,612
Other assets, net 9,972 6,008
$171,771 $152,568
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $30,302 $33,698
Accrued expenses and other liabilities 24,496 25,450
Income tax payable -- --
Current portion of long-term debt 21,610 7,263
Total current liabilities 76,408 66,411
Long-term debt, less current portion 15,781 10,639
Other liabilities 2,680 2,783
Stockholders' equity 76,902 72,735
$171,771 $152,568
* Based on audited information included on Form 10-K for fiscal year
ended October 2, 2004
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts)
Quarter Ended
January 1, January 3,
2005 2004
(Unaudited) (Unaudited)
Net sales $76,924 $68,805
Cost of sales 55,780 53,658
21,144 15,147
Selling, general and administrative expenses 10,759 8,328
Research, development and related expenses 4,201 3,260
Income from operations 6,184 3,559
Interest expense 441 368
Other income (expense) 125 (10)
Income before income taxes 5,868 3,181
Provision for income taxes 2,220 1,178
Net income $3,648 $2,003
BASIC EARNINGS PER COMMON SHARE
Net income per common share $0.25 $0.14
Weighted average shares outstanding 14,496 14,230
DILUTED EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
Net income per common and common
equivalent share $0.25 $0.14
Weighted average shares outstanding 14,766 14,517
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Quarter Ended
January 1, January 3,
2005 2004
(Unaudited) (Unaudited)
Net income $3,648 $2,003
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 2,604 2,599
Other (10,841) 276
Net cash provided (used) by operating
activities (4,589) 4,878
Net cash used in investing activities (17,405) (2,115)
Net cash provided by (used in) financing
activities 18,771 (6,324)
Net decrease in cash and cash equivalents (3,223) (3,561)
Cash and cash equivalents at beginning of
period 8,218 9,211
Cash and cash equivalents at end of period $4,995 $5,650
DATASOURCE: BEI Technologies, Inc.
CONTACT: John LaBoskey, Senior Vice President/CFO of BEI Technologies,
Inc., +1-415-956-4477
Web site: http://www.bei-tech.com/