PARLEX
CORPORATION One Parlex Place, Methuen, MA 01844, (978)946-2564
news. . .
CONTACT:
Jon Kosheff
Chief Financial Officer
(978)946-2591
NASDAQ SYMBOL "PRLX"
For Immediate Release
Parlex Reports Improved Financial Results for First Quarter of FY 2005
Methuen MA, November 10, 2004 - Parlex Corporation (PRLX) today reported
financial results for the first quarter of fiscal year 2005. Revenues
increased 60% to $31.5 million compared with $19.7 million for the same
period in the previous year. Revenues for the quarter increased 8.2%
sequentially from $29.1 million for the prior quarter.
Operating income was $78,000 for the quarter compared to an operating loss
of $1.5 million for the same period in the prior year. Net loss for the
quarter, attributable to common stockholders, was $866,000 or ($.13) per
diluted share versus $2.1 million or ($.33) per diluted share for the first
quarter of fiscal year 2004.
Peter J. Murphy, President and Chief Executive Officer, stated "Revenue has
grown significantly over the past year as a result of increased sales across
all product lines. We are confident that the current rate of shipments is
sustainable and we will see further growth in this fiscal year. In line
with our guidance, the Company achieved a major milestone by a return to
profitability from operations. Bookings for the quarter remained strong at
$32.5 million.
Asian operations accounted for the major share of growth in the quarter and
now represent in excess of 45% of total revenues. In addition to increased
sales in flexible circuit shipments for computer, cell phone and automotive
markets, our surface mount assembly operation helped fuel
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growth. Our smart card substrate business continues to ramp and is now
contributing to our operating profitability.
The Company saw another strong quarter from its Polymer Thick Film
operations both in the United States and the United Kingdom. The appliance
business remained stable while medical applications continued to grow. We
have successfully developed unique solutions for the disposable medical
diagnostic market with multiple applications including nerve sensors and
blood glucose sensors.
The multilayer operations made good progress during the quarter and further
improvement throughout the fiscal year is anticipated. We are well along in
the transition of Delphi's Aerospace rigid flex products to our Methuen,
Massachusetts manufacturing facility. Increased revenue from this program
is expected in each of the next few quarters.
On the technology front, the Company has now qualified its proprietary
print-plate technology with several cell phone suppliers. This low cost,
environmentally friendly additive process will replace our traditional
subtractive technology on a variety of mobile phones over the next two
quarters. Print-plate should allow Parlex to garner significant additional
market share. We have also received FDA approval in a proprietary medical
gel that provides better performance and increased shelf life when compared
to gels available commercially. We expect to enter production with this gel
incorporated into our Polymer Thick Film circuits on disposable medical
products during the current fiscal year.
The Company continues to focus on profitability through expansion of the
markets we serve and superior execution. We expect our performance to
continue to improve as we progress through fiscal year 2005."
Interested parties are invited to participate in Parlex's quarterly
teleconference, which will be held Thursday, November 11, 2004 at 10:00 AM
Eastern Time. To participate in the conference, dial 800-370-0740 and ask
for the Parlex Quarterly Conference. This call is being webcast by CCBN and
can also be accessed at Parlex Corporation's web site at www.parlex.com by
clicking on "Investor Info" on the home page.
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About Parlex
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Parlex Corporation is a world leader in the design and manufacture of
flexible, interconnect products. Parlex produces custom flexible circuits
and laminated cables utilizing proprietary processes and patented
technologies, which are designed to satisfy the unique requirements of a
wide range of customers. Its manufacturing facilities are located in the
United States, China, Mexico and the United Kingdom.
Forward Looking Statements
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This release contains "forward-looking statements" as defined under the
Federal Securities Laws. Actual results could differ materially from those
projected in the forward-looking statements as a result of certain risk
factors, including but not limited to: (i) further adverse changes in
general economic conditions; (ii) further delays or reductions in the
spending of the industry sectors we serve; (iii) the Company's ability to
effectively manage operating costs and increase operating efficiencies; (iv)
further declines in revenues; (v) insufficient, excess or obsolete
inventory; (vi) competitive factors, including but not limited to pricing
pressures, in the flexible interconnect markets; (vii) component quality and
availability; (viii) rapid technological and market change and the
transition to new products; (ix) the relative and varying rates of product
price and component cost declines; (x) the effects of war or acts of
terrorism, including the effect on the economy generally, on particular
industry segments, on transportation and communication systems and on the
Company's ability to manage logistics in such an environment, including
receipt of components and distribution of products; (xi) the ability to
attract and retain highly qualified employees; (xii) the uneven pattern of
quarterly sales; (xiii) fluctuating currency exchange rates; (xiv) risks
associated with strategic investments and acquisitions; (xv) the Company's
ability to execute on its plans; and (xvi) other one-time events and other
important factors disclosed previously and from time to time in its filings
with the U.S. Securities and Exchange Commission.
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