CDT Announces Third Fiscal Quarter 2004 Results

CDT Announces Third Fiscal Quarter 2004 Results 


SCHAUMBURG, Ill., June 9  /PRNewswire-FirstCall/ -- Cable Design Technologies
(NYSE:CDT) reported today that earnings for the third fiscal quarter ending
April 30, 2004, were $3.6 million, or $.08 per diluted share. This compares
with a loss for the second fiscal quarter ending January 31, 2004, of $3.4
million, or $0.08 per diluted share, and earnings of $2 million, or $0.05 per
diluted share, for the third fiscal quarter ending April 30, 2003.

Revenues for the third fiscal quarter 2004 were $148.9 million, compared to
revenues of $121.2 million in the previous quarter and $122.1 million for the
same period last year.  Revenues for the third fiscal quarter 2004 benefited by
approximately $7.0 million from the favorable effects of currency translation.
There was minimal impact from currency translation in the sequential quarter
comparisons.  Network Communication segment sales for the third fiscal quarter
2004 were $86.6 million, representing 58.2% of total company revenues, and
compares to $69.7 million in the previous quarter and $70.5 million for last
year's third fiscal quarter. Specialty Electronic segment sales for the third
fiscal quarter 2004 were $62.3 million compared to $51.5 million last quarter
and $51.6 million for the same period last year. Third fiscal quarter 2004
Network and Specialty segment revenues benefited from currency translation over
the same period last year by $3.6 million and $3.4 million respectively.

Operating Expenses:  Selling, general and administrative expenses were $25.0
million for the current quarter compared $26.3 million for the quarter ending
January 31, 2004 and $23.2 million for the same period last year.  The increase
in SG&A over the same period last year is due to the effect of foreign currency
translation which increased SG&A by approximately $0.9 million and
merger-related expenses of $0.8 million.

Additional Information:  Gross margin was 23.2% for the current quarter
compared to 20.7% for the second fiscal quarter 2004 and 23.4% for the same
period last year.

The company reported positive cashflow of $7.5 million during the quarter,
driven largely by cashflow from operations.

Depreciation and Amortization for the quarter was $4.9 million, and the Company
expects the nine month run-rate to continue throughout the remainder of the
year.

"We saw improving infrastructure spending in the Network segment and
contributions from aviation applications and industrial machinery automation
process control applications in the Specialty segment. However, we believe our
customers replenished inventory in anticipation of our price increases, and
this may affect sales volume in the fourth quarter," Fred Kuznik, CDT CEO
stated.  "These results re-emphasize our belief that the merger with Belden
will provide long term benefit to our shareholders by combining well-known
specialty brands for a more comprehensive array of products and a broader range
of preferred cabling and connectivity solutions," Mr. Kuznik added.

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, timing of any turnaround, and benefits of the merger with
Belden.  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 and Subsidiaries
  CONDENSED CONSOLIDATED INCOME STATEMENTS -- UNAUDITED

  (in thousands, except share and per share amounts)

                          Three months ended       Nine months ended
                               April 30,                April 30,

                          2004         2003         2004         2003
  Net sales             $148,921     $122,127     $400,768     $355,192
  Cost of sales          114,354       93,558      310,246      273,060
    Gross profit          34,567       28,569       90,522       82,132
  Selling, general and
   administrative
   expenses               24,963       23,237       75,000       68,443
  Research and
   development expenses    1,192        1,026        3,447        2,879
  (Gain)/loss on sale
   of assets                  30           57          (72)         142
  Business restructuring
   (income)/expense, net     (40)         (71)         (62)       8,457
    Income/(loss) from
     operations            8,422        4,320       12,209        2,211
  Interest expense, net    1,405        1,219        3,910        4,310
  Other expense/(income),
   net                        86         (409)         (69)        (245)
    Income/(loss) from
     continuing operations
     before income taxes,
     minority interest and
     cumulative effect of
     change in accounting
     principle             6,931        3,510        8,368       (1,854)
  Income tax (benefit)/
   provision               3,022        1,187        4,662         (996)
  Minority interest in
   earnings of
   subsidiaries, net         300          267          772          495
    Net income/(loss) from
     continuing operations
     before cumulative
     effect of accounting
     change                3,609        2,056        2,934       (1,353)

  Discontinued operations:
  Loss from discontinued
   operations, net of tax
   benefit of $293 for
   the nine months ended
   April 30, 2003              -            -            -         (636)
  Loss on sale of business,
   net of tax benefit of
   $22 and $12,698 for
   the three and nine
   months ended April 30,
   2003, respectively          -          (47)           -      (32,055)
  Net loss from discontinued
   operations                  -          (47)           -      (32,691)
  Cumulative effect of
   change in accounting
   principle, net of tax
   benefit                     -            -            -      (35,723)
    Net income/(loss)     $3,609       $2,009       $2,934     $(69,767)

  Basic earnings/(loss)
   per common share:
  Continuing operations
   before cumulative
   effect of accounting
   change                  $0.09        $0.05        $0.07       $(0.03)
  Discontinued operations      -         0.00            -        (0.73)
  Cumulative effect of
   accounting change           -            -            -        (0.80)
                           $0.09        $0.05        $0.07       $(1.56)

  Diluted earnings/(loss)
   per common share:
  Continuing operations
   before cumulative
   effect of accounting
   change                  $0.08        $0.05        $0.07       $(0.03)
  Discontinued operations      -         0.00            -        (0.73)
  Cumulative effect of
   accounting change           -            -            -        (0.80)
                           $0.08        $0.05        $0.07       $(1.56)

  Basic weighted average
   common shares
   outstanding        41,771,293   44,569,872   41,657,354   44,532,838
  Diluted weighted
   average common
   shares outstanding 54,218,107   44,630,160   41,872,967   44,532,838


  Cable Design Technologies Corporation and Subsidiaries
  CONDENSED CONSOLIDATED BALANCE SHEETS -- UNAUDITED

  (in thousands, except share amounts)

                                                 April 30,       July 31,
                                                    2004           2003
  ASSETS

  Current assets:
    Cash and cash equivalents                      $48,928        $32,701
    Trade accounts receivable, net of allowance
     for uncollectible accounts of $6,062 and
     $6,149, respectively                           89,568         79,121
    Inventories                                    118,985        111,589
    Other current assets                            28,212         30,225
    Assets held for sale                             5,392          6,648
      Total current assets                         291,085        260,284
  Property, plant and equipment, net               200,407        204,738
  Goodwill, net                                     11,230         10,980
  Intangible assets, net                             3,309          3,740
  Other assets                                      10,195         12,156
  Total assets                                    $516,226       $491,898

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
    Current maturities of long-term debt            $3,404         $1,960
    Other current liabilities                       76,318         69,244
    Liabilities held for sale                            -            892
      Total current liabilities                     79,722         72,096
  Long-term debt, excluding current maturities     111,173        112,730
  Other non-current liabilities                     23,881         24,168
  Total liabilities                                214,776        208,994

  Minority interest in subsidiaries                  8,185          7,027

  Stockholders' equity:
    Preferred stock, par value $.01 per share --
     authorized 1,000,000 shares, no shares issued       -              -
    Common stock, par value $.01 per share --
     authorized 100,000,000 shares, 48,834,097 and
     48,436,803 shares issued, respectively            488            484
    Paid-in capital                                206,129        202,544
    Deferred compensation                             (997)          (727)
    Retained earnings                              141,412        138,478
    Treasury stock, at cost, 6,772,334 and
     6,764,312 shares, respectively                (65,273)       (65,188)
    Accumulated other comprehensive income/(loss)   11,506            286
  Total stockholders' equity                       293,265        275,877

  Total liabilities and stockholders' equity      $516,226       $491,898


  Cable Design Technologies Corporation and Subsidiaries
  BUSINESS SEGMENT INFORMATION -- UNAUDITED

                                 Network          Specialty
                              Communication      Electronic
                                 Segment           Segment        Total
  (in thousands)
  Three Months Ended April 30,
  Net sales
    2004                         $86,631           $62,290       $148,921
    2003                          70,534            51,593        122,127

  Segment income/(loss) from
   operations
    2004                          $2,651            $5,761         $8,412
    2003                             210             4,096          4,306

   Note:
   Segment operating income/(loss) from operations differs from consolidated
   income/(loss) from operations due to loss on sale of assets and business
   restructuring income.


   Contacts:
   Bill Cann
   Chief Financial Officer
   [phone]

   Chuck Cohrs
   Treasurer
   [phone]


DATASOURCE: Cable Design Technologies



CONTACT:  Bill Cann, Chief Financial Officer, [phone], or Chuck

Cohrs, Treasurer, [phone], both of Cable Design Technologies



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

Copyright