EXHIBIT 99.1
[MEADE LOGO] MEADE INSTRUMENTS CORPORATION
6001 OAK CANYON, IRVINE, CALIFORNIA 92618-5200 U.S.A.
(949) 451-1450 o FAX: (949) 451-1460 o WWW.MEADE.COM
Brent W. Christensen, CFO Philip Bourdillon/Eugene Heller
Meade Instruments Corp. Silverman Heller Associates
(949) 451-1450 (310) 208-2550
MEADE INSTRUMENTS CORP. REPORTS
FIRST QUARTER FISCAL 2005 RESULTS
IRVINE, CALIF. - JUNE 17, 2004 - MEADE INSTRUMENTS CORP. (NASDAQ NM: MEAD) today
reported results for the first quarter of its fiscal year 2005, ended May 31,
2004. The Company's fiscal year 2005 ends on February 28, 2005.
Net sales for the three months ended May 31, 2004 were $19.6 million versus
$24.5 million in the comparable period a year ago. Excluding non-cash charges
for the Company's ESOP, net loss for the three months ended May 31, 2004 was
$1.1 million, or ($0.06) per share, compared to ESOP-adjusted net loss of $0.6
million, or ($0.03) per share, for the comparable period a year ago.
Including ESOP charges, first-quarter 2005 net loss was $1.2 million, or ($0.06)
per share, compared to a net loss of $0.7 million, or ($0.04) per share, in the
comparable period a year ago.
Steve Murdock, president and CEO of Meade, said the first quarter results were
somewhat lower than the Company's expectations. "After last year's strong fourth
quarter, sales were a bit soft in our first quarter, across many of our product
lines," said Murdock. "We also sold significant amounts of discontinued and
close-out Simmons inventory in last year's first quarter. Those sales were not
repeated in the current year's quarter," added Murdock. The Company also
attributed a portion of the decrease in sales to timing of orders from some
major customers. The Company expects those orders to be reflected in fiscal 2005
second-quarter sales.
"Although we are seeing some improvement in order volume over that of the first
quarter and expect more stable demand as the year progresses, we continue to
have limited top-line visibility for the year," continued Murdock. The Company
reiterated that at this point fiscal 2005 revenue growth is expected to be as
much as 5% and net income, excluding ESOP charges, is expected to be in the
range of $0.15 to $0.22 per diluted share.
Gross margin for the quarter improved to 24.0% from 23.4% in the prior year, as
the Company expected. The company said it was pleased with the margin
improvements despite the reduction in sales. The increase was attributed to the
Company's renewed focus on competitive pricing.
Referring to disclosures in the Company's most recently filed Form 10-K, Murdock
added, "We are pleased to have settled the litigation with Celestron. We believe
that this settlement will enhance the Company's market position and its
reputation as the industry's foremost innovator."
The Company will host a teleconference with investment professionals at 7:30
a.m. PDT (10:30 a.m. EDT) on June 17, 2004. A live Web-cast of the
teleconference will be available at www.fulldisclosure.com and at www.meade.com
under the "Investor Relations" link, where it will be archived.
Meade Instruments is a leading designer and manufacturer of optical products
including telescopes and accessories for the beginning to serious amateur
astronomer. Meade offers a complete line of binoculars for the casual observer
to the serious sporting or birding observer. Meade also offers a complete line
of riflescopes under the Simmons(R), Weaver(R) and Redfield(R) brand names. The
Company distributes its products worldwide through a network of specialty
retailers, mass merchandisers and domestic and foreign distributors. Additional
information on Meade is available at www.meade.com
"SAFE-HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: THIS NEWS RELEASE CONTAINS COMMENTS AND FORWARD-LOOKING STATEMENTS BASED
ON CURRENT PLANS, EXCEPTIONS, EVENTS, AND FINANCIAL AND INDUSTRY TRENDS THAT MAY
AFFECT THE COMPANY'S FUTURE OPERATING RESULTS AND FINANCIAL POSITION
EXPECTATIONS, INCLUDING NET SALES AND INCOME FOR FISCAL 2005. SUCH STATEMENTS
INVOLVE RISKS AND UNCERTAINTIES WHICH CANNOT BE PREDICTED OR QUANTIFIED AND
WHICH MAY CAUSE FUTURE ACTIVITIES AND RESULTS OF OPERATIONS TO DIFFER MATERIALLY
FROM THOSE DISCUSSED ABOVE. SUCH RISKS AND UNCERTAINTIES INCLUDE, WITHOUT
LIMITATION: ANY SIGNIFICANT DECLINE IN GENERAL ECONOMIC CONDITIONS OR
UNCERTAINTIES AFFECTING CONSUMER SPENDING; ANY GENERAL DECLINE IN DEMAND FOR THE
COMPANY'S PRODUCTS; THE COMPANY'S INABILITY TO DEVELOP AND BRING TO MARKET NEW
AND INNOVATIVE PRODUCTS; ANY LOSS OF, OR FAILURE TO REPLACE, ANY SIGNIFICANT
PORTION OF THE SALES MADE TO ANY SIGNIFICANT CUSTOMER OF THE COMPANY; THE
INHERENT RISKS ASSOCIATED WITH INTERNATIONAL SALES, AS WELL AS THE OTHER RISKS
AND UNCERTAINTIES PREVIOUSLY SET FORTH IN THE COMPANY'S FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION. THE HISTORICAL RESULTS ACHIEVED ARE NOT
NECESSARILY INDICATIVE OF FUTURE PROSPECTS OF THE COMPANY. FOR ADDITIONAL
INFORMATION, REFER TO THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION.
(Financial Data Follow)
MEADE INSTRUMENTS CORP.
STATEMENT OF OPERATIONS DATA
(Unaudited)
(000s omitted, except per share data)
Three Months Ended
May 31,
-------------------------------
2004 2003
------------- -------------
Net sales ....................................... $ 19,617 $ 24,491
Cost of sales ................................... 14,912 18,758
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Gross profit ................................. 4,705 5,733
Selling expenses ................................ 3,402 3,327
General and administrative expenses ............. 2,476 2,669
ESOP expense .................................... 103 169
Research and development expenses ............... 525 534
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Operating loss ............................... (1,801) (966)
Interest expense ................................ 151 216
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Loss before income taxes ........................ (1,952) (1,182)
Income tax benefit .............................. (793) (470)
------------- -------------
Net loss ........................................ $ (1,159) $ (712)
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Per share information:
Net loss-- basic and diluted .................... $ (0.06) $ (0.04)
============= =============
Weighted average common shares
outstanding-- basic and diluted .............. 19,232 18,788
============= =============
Reconciliation of net loss, excluding ESOP charges, to net loss, including ESOP
charges (000s omitted, except per share data):
Three Months Ended
May 31,
-------------------------------
2004 2003
------------- -------------
Net loss ........................................ $ (1,159) $ (712)
ESOP expense, net of tax ........................ 58 82
------------- -------------
Net loss excluding ESOP, net of tax ............. $ (1,101) $ (630)
============= =============
Per share information:
Net loss-- basic and diluted .................... $ (0.06) $ (0.04)
ESOP expense, net of tax ........................ 0.00 0.01
------------- -------------
Net loss excluding ESOP-- basic and diluted ..... $ (0.06) $ (0.03)
============= =============
Management believes net loss, excluding ESOP expense, net of tax is a
supplemental financial measure commonly used by management and industry analysts
to evaluate the Company's financial performance. The ESOP expense is a non-cash
expense related to the allocation of Company stock to participants in its
Employee Stock Ownership Plan. The expense related to the ESOP stock allocation
is based on the market value of the allocated stock. Excluding the ESOP expense,
net of tax, eliminates the volatility introduced into the income statement by
the market value expense of the ESOP allocation. Given the possibility for
volatility in the future share price of the Company's stock, the Company is
unable to provide guidance with respect to future net income (loss) including
ESOP charges.
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