Exhibit 99.1
American Technical Ceramics Corp. Announces
Third Quarter Financial Results
Reports Highest Level of Quarterly Bookings since the Quarter
Ended June 30, 2000
HUNTINGTON STATION, N.Y.--(BUSINESS WIRE)--May 3, 2007--AMERICAN
TECHNICAL CERAMICS CORP. (AMEX Symbol: AMK), a leading manufacturer of
high-performance electronic components, including capacitors and thin
film circuits for a broad range of commercial and military
applications, today announced financial results for the third fiscal
quarter and the nine months ended March 31, 2007.
Net sales for the quarter ended March 31, 2007 increased 5.2% to
$23,872,000 from $22,690,000 in the comparable quarter in fiscal year
2006. Net sales for the nine months ended March 31, 2007 increased
12.8% to $67,563,000 from $59,870,000 in the comparable period in
fiscal year 2006. Management stated that the increases in net sales
for the three and nine month periods as compared to the comparable
periods in fiscal year 2006 were a result of higher sales volumes in
all of the markets the Company services, including strong shipments to
customers in the wireless infrastructure, military and fiber optic
markets which are showing strong demand for the Company's products in
RF/Microwave applications.
Net income for the quarter ended March 31, 2007 amounted to
$1,865,000, representing diluted earnings per common share of $0.20,
compared with net income of $2,089,000, representing diluted earnings
per common share of $0.23 for the comparable quarter in fiscal year
2006. Management stated that the decrease in net income and diluted
earnings per common share for the three months ended March 31, 2007 as
compared to the comparable quarter in fiscal year 2006 was a result of
lower gross profit primarily due to higher than normal scrapping of
finished goods and work-in-process inventories. The Company
periodically scraps inventory based upon the mix of inventory relative
to near-term trends in bookings. In the most recent quarter, the
Company scrapped an additional $878,000 of inventory that likely would
have been scrapped over the next several quarters. This had a negative
impact on gross margins for the quarter. For the nine months ended
March 31, 2007, gross margins were approximately 37% which is in
keeping with management's expectations for the foreseeable future.
Net income for the nine months ended March 31, 2007 increased
86.3% to $6,197,000, representing diluted earnings per common share of
$0.68, from net income of $3,327,000, representing diluted earnings
per common share of $0.38, for the comparable period in fiscal year
2006. Management stated that the increase in net income for the nine
months ended March 31, 2007 as compared to the comparable period in
fiscal year 2006 was primarily due to the increase in net sales and
the benefit of operating leverage inherent in the Company's business
model due to its relatively high level of fixed costs.
Bookings for the three months ended March 31, 2007 were
approximately $25,938,000, a substantial increase over the levels
achieved in both the comparable quarter of fiscal year 2006 and the
second quarter of the current fiscal year. Management stated that
these increases are primarily due to the continued strong demand from
new and existing customers in the wireless infrastructure, medical and
fiber optic markets.
Victor Insetta, President and Chief Executive Officer of the
Company, stated, "This past quarter we achieved the highest level of
quarterly bookings since the quarter ended June 30, 2000 and the
second highest level of quarterly bookings in the history of our
company. We are seeing strong demand for our products across all of
our markets. The robust bookings led to another strong quarter for
both sales and profit. Third quarter profit was offset to a degree by
a realignment of our inventories, but we do not expect this
realignment to impact future customer deliveries or gross margins
going forward. In fact, we anticipate that our higher level of
bookings will continue to drive operating leverage and greater
profitability. We have ample capacity to meet the expanding demand in
the market for our products and we are optimistic about our prospects
for the fourth quarter and into fiscal 2008."
American Technical Ceramics Corp. designs, develops, manufactures
and markets electronic components, including ceramic multilayer
capacitors and custom thin film circuits. The Company's products are
utilized in a broad range of commercial and military applications,
including wireless infrastructure, fiber optics, medical electronics,
semiconductor manufacturing equipment and satellite equipment.
The Company invites you to participate in its upcoming quarterly
investors' conference call with management. The details are as
follows:
Friday, May 4, 2007
11:00 A.M. Eastern Time
TOLL FREE CALL IN NUMBERS:
(866) 713-8565 (USA) and (617) 597-5324 (International)
Passcode 16772413
A replay of the call will be available for approximately two weeks
beginning shortly after the call ends. The numbers to call to hear the
replay are (888) 286-8010 (USA) and (617) 801-6888 (International).
The access code is 76168694.
A live webcast of the call will begin at 11:00 A.M., Eastern Time,
on Friday, May 4, 2007. To access the webcast, go to the Company's
website, www.atceramics.com and click on the webcast icon in the
Investor Relations section. This webcast will be available for two
weeks.
"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995:
This release may contain forward-looking statements that are
subject to risks and uncertainties, including, but not limited to,
economic and political conditions, the impact of competitive products,
product demand and market acceptance risks, changes in product mix,
costs and availability of raw materials, fluctuations in operating
results, delays in development of highly-complex products, risks
associated with international sales and sales to the U.S. military,
risk of customer contract or sales order cancellation and other risks
detailed from time to time in American Technical Ceramics Corp.'s
filings with the Securities and Exchange Commission, including,
without limitation, those contained under the caption "Item 1.
BUSINESS - CAUTIONARY STATEMENTS REGARDING FORWARD - LOOKING
STATEMENTS" in the Company's Annual Report on Form 10-K. These risks
could cause the Company's actual results for future periods to differ
materially from those expressed in any forward-looking statements made
by, or on behalf of, the Company. Any forward-looking statements
represent the Company's expectations or forecasts only as of the date
they were made and should not be relied upon as representing its
expectations or forecasts as of any subsequent date. The Company
undertakes no obligation to correct or update any forward-looking
statement, whether as a result of new information, future events or
otherwise, even if its expectations or forecasts change.
American Technical Ceramics Corp. and Subsidiaries
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(in thousands, except per share data)
Condensed Consolidated Balance Sheet Data
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March 31, 2007 June 30, 2006
(unaudited)
-------------- --------------
(audited)
Cash and Investments $ 8,360 $ 8,324
Accounts Receivable 11,982 12,719
Inventories 40,013 33,255
Current Assets 67,188 58,805
Total Assets 97,787 90,543
Current Liabilities 11,182 12,156
Total Liabilities 20,250 22,476
Total Stockholders' Equity 77,537 68,067
Condensed Consolidated Statement of Operations Data
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Three Months Ended
(unaudited)
-----------------------------
March 31, 2007 March 31, 2006
-------------- --------------
Net Sales $ 23,872 $ 22,690
Gross Profit 7,960 8,570
Operating Income 2,772 3,537
Net Income 1,865 2,089
Earnings Per Common Share:
Basic $ 0.21 $ 0.24
Diluted $ 0.20 $ 0.23
Weighted Average Common Shares
Outstanding:
Basic 8,968 8,583
Diluted 9,190 8,918
Condensed Consolidated Statement of Operations Data
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Nine Months Ended
(unaudited)
-----------------------------
March 31, 2007 March 31, 2006
-------------- --------------
Net Sales $ 67,563 $ 59,870
Gross Profit 24,940 20,410
Operating Income 9,504 5,644
Net Income 6,197 3,327
Earnings Per Common Share:
Basic $ 0.70 $ 0.39
Diluted $ 0.68 $ 0.38
Weighted Average Common Shares
Outstanding:
Basic 8,808 8,545
Diluted 9,066 8,861
CONTACT: American Technical Ceramics Corp.
Kathleen M. Kelly, 631-622-4710
Vice President
invest@atceramics.com
or
The Global Consulting Group
Allan Jordan, 646-284-9400
Senior Vice President
ajordan@hfgcg.com