CDT Announces Fiscal First Quarter 2004 Results

CDT Announces Fiscal First Quarter 2004 Results
Company returns to profitability, generates positive cash flow. 


SCHAUMBURG, Ill., Dec. 8  /PRNewswire-FirstCall/ -- Cable Design Technologies 
reported today that earnings for the first fiscal quarter ending October 31,
2003 were $2.7 million, or $0.07 per diluted share. This compares with a net
loss of $1.8 million, or $0.04 per diluted share, for the quarter ended July 31,
2003 and a net loss of $71.9 million, or $1.61 per diluted share, for the
quarter ended October 31, 2002.  The losses in the previous quarter and for the
same period last year included expenses of $2.3 million and $4.7 million, net of
tax, respectively, related to restructuring activities.  In addition, the net
loss for the same period last year included a $32.6 million loss, net of tax,
from discontinued operations and a $35.7 million charge, net of tax, in
connection with a change in accounting principle.  The Company had a net loss
from continuing operations of $1.7 million, or $0.04 per diluted share, for the
quarter ending July 31, 2003 and a net loss from continuing operations of $3.6
million, or $0.08 per diluted share, for the quarter ending October 31, 2002.

Revenues for the first fiscal quarter ending October 31, 2003, were $130.6
million, compared with revenues of $129.5 million in the previous quarter and
$121.0 million for the same period last year.  Revenues for the first fiscal
quarter 2004 benefited by approximately $6.0 million over the same period last
year from the favorable effects of currency translation resulting from the
weaker dollar.  There was minimal impact from currency translation in the
sequential quarter comparisons.  Network Communication segment sales for the
first fiscal quarter 2004 were $76.2 million and represented 58.3% of total
company revenues, compared to $75.8 million in the previous quarter and $71.5
million for last year's first quarter. Specialty Electronic segment sales for
the first fiscal quarter 2004 were $54.5 million compared to $53.6 million last
quarter and $49.6 million for the same period last year.  First fiscal quarter
2004 segment revenues benefited from currency translation over the same period
last year by approximately $3.3 million and approximately $2.7 million for the
Network and Specialty segments, respectively.  Sales outside of North America
represented 38.7% of CDT's current quarter revenues compared to 39.1% last
quarter and 35.6% for the same period last year.

Selling, general and administrative expenses were $23.8 million for the current
quarter compared to $24.7 million for the quarter ending July 31, 2003 and $23.5
million for the same period last year.  The increase in SG&A over the same
period last year is primarily due to the effect of foreign currency translation
which increased SG&A by approximately $1.0 million.  On a percent of sales
basis, SG&A has declined to 18.2% from 19.4% a year ago.

The Company generated $5.1 million of cash during the quarter, driven largely by
cash flow from operations.

Gross margin was 23.6% for the current quarter compared to 24.6% for the fiscal
fourth quarter 2003 and 22.9% for the same period last year.

"This quarter's results in terms of profit, cashflow, and costs show the
benefits of our restructuring efforts," CEO Fred Kuznik stated.  "With
restructuring taking hold, we believe we have established a solid foundation for
the business. The improving economy has resulted in increased revenues, and we
continue to look to grow revenue through product and market development."

About CDT

Cable Design Technologies ( http://www.cdtc.com/ ) is a leading designer and
manufacturer of high bandwidth network connectivity products used in computer
interconnect, switching and wireless applications and electronic data and signal
transmission products that are used in automation and process control and
specialty applications.

Safe Harbor Provision

Certain statements in this press release are forward-looking statements that are
based on information currently available to management, management's beliefs and
a number of assumptions concerning future events.  These statements include
future financial results and performance, capital expenditures, length of market
downturn and timing of any turnaround.  These forward looking statements are
subject to various uncertainties and other factors, which could cause the actual
results to differ materially from those currently expected, including the level
of market demand for the Company's products, competitive pressures, economic
conditions in the U.S. and other countries where the Company operates, working
capital needs, information technology spending, the ability to achieve
reductions in costs, the ability to continue to integrate acquisitions, price
fluctuations of raw materials and the potential unavailability thereof, foreign
currency fluctuations, technological obsolescence, environmental matters,
industry competition and other specific factors discussed in the Company's
Annual Report on Form 10-K for the year ended July 31, 2003 and other Securities
and Exchange Commission filings by the Company.  The Company does not intend to
update this information to reflect developments or information obtained after
the date hereof and disclaims any legal obligation to the contrary.

           Cable Design Technologies Corporation & Subsidiaries
       Condensed Consolidated Statements of Operations - Unaudited
             (In thousands, except share and per share data)

                                                       Three Months
                                                          Ended
                                                        October 31,
                                                    2003            2002

  NET SALES                                      $ 130,648       $121,041
  Cost of Sales                                     99,758         93,348
   GROSS PROFIT                                     30,890         27,693
  Selling, general and administrative expenses      23,770         23,451
  Research & development expenses                    1,105          1,049
  Business restructuring expense, net                    -          7,072
   INCOME (LOSS) FROM OPERATIONS                     6,015         (3,879)
  Interest expense, net                              1,264          1,640
  Other (income) expense, net                         (128)           269
  Income (loss) before income taxes, minority
   interest and cumulative effect of
   accounting change                                 4,879         (5,788)
   Income tax provision (benefit)                    1,878         (2,301)
  Minority interest expense, net                       254             88
   Net income (loss) from continuing operations
    before cumulative effect of accounting change    2,747         (3,575)
  Loss from discontinued operations, net of tax          -           (636)
  Loss on sale of business, net of tax                   -        (32,008)
  Net loss from discontinued operations                  -        (32,644)
  Cumulative effect of change in accounting
   principle, net of tax                                 -        (35,723)
   Net income (loss)                                $2,747       $(71,942)

  NET INCOME (LOSS) PER COMMON SHARE

  Basic:
   Continuing operations                              $0.07        $(0.08)
   Discontinued operations                                -         (0.73)
   Cumulative effect of change in
    accounting principle                                  -         (0.80)
                                                      $0.07        $(1.61)
  Diluted:
   Continuing operations                              $0.07        $(0.08)
   Discontinued operations                                -         (0.73)
   Cumulative effect of change in accounting
    principle                                             -         (0.80)
                                                      $0.07        $(1.61)

  Basic weighted average common shares
   outstanding                                   41,501,168    44,528,305
  Diluted weighted average common shares
   outstanding                                   53,824,700    44,528,305

  Results for the three months ended October 31, 2002 have been adjusted to
  reflect the cumulative effect of accounting change related to the adoption
  of SFAS 142 that was retroactive to August 1, 2002.


           Cable Design Technologies Corporation & Subsidiaries
            Condensed Consolidated Balance Sheets - Unaudited
                              (In thousands)

                                                  October 31,      July 31,
                                                     2003            2003
  ASSETS
  Current Assets:
   Cash and cash equivalents                        $37,790        $32,701
   Accounts receivable, net                          80,485         79,121
   Inventories                                      116,218        111,589
   Other current assets                              31,952         30,225
   Assets held for sale                               6,769          6,648
  Total current assets                              273,214        260,284

  Property, plant and equipment, net                207,949        204,738
  Goodwill, net                                      11,020         10,980
  Intangible assets, net                              3,562          3,740
  Other assets                                       13,364         13,211
  Total assets                                    $ 509,109       $492,953

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities:
   Current maturities of long-term debt              $1,956         $1,960
   Other current liabilities                         73,527         70,299
   Liabilities held for sale                            965            892
  Total current liabilities                          76,448         73,151

    Long-term debt, excluding current maturities    112,337        112,730
    Other non-current liabilities                    24,142         24,168
  Total liabilities                                 212,927        210,049

  Minority interest in subsidiaries                   7,532          7,027

  Stockholders' Equity
   Common stock                                         486            484
   Paid in capital                                  203,684        202,544
   Deferred compensation                               (701)          (727)
   Retained earnings                                141,225        138,478
   Treasury stock                                   (65,159)       (65,188)
   Accumulated other comprehensive income             9,115            286
  Total stockholders' equity                        288,650        275,877

  Total liabilities and stockholders' equity      $ 509,109       $492,953


           Cable Design Technologies Corporation & Subsidiaries
                Segment Results of Operations -- Unaudited
                              (In Thousands)

                                           Three months ended
                                October 31,      July 31,     October 31,
                                   2003            2003          2002

  Net sales:
   Network Communication           $76,165         $75,823       $71,485
   Specialty Electronic             54,483          53,648        49,556
  Total net sales                 $130,648        $129,471      $121,041

  Segment operating profit (loss):
   Network Communication              $761            $621         ($654)
   Specialty Electronic              5,254           5,349         3,847
  Total segment operating profit     6,015           5,970         3,193
  Business restructuring
   expense, net                          -           3,965         7,072
  Interest expense, net              1,264           1,218         1,640
  Other (income) expense, net         (128)             85           269
  Income (loss) from continuing
   operations before
   income taxes, minority
   interest and cumulative
   effect of change in
   accounting principle             $4,879            $702       ($5,788)


DATASOURCE: Cable Design Technologies



CONTACT:  Chuck Cohrs, Treasurer of Cable Design Technologies,

[phone]



Web site:  http://www.cdtc.com/ 

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