Ceradyne, Inc. Reports Record 2007 First-Quarter Results
April 27 2007 - 6:30AM
Business Wire
Ceradyne, Inc. (Nasdaq:CRDN) (Company) today reported results for
the first quarter ended March 31, 2007. Sales for the first quarter
increased 38.2% to a record $188.4 million from $136.3 million in
the first quarter of 2006. Net income for the first quarter of 2007
increased 54.8% to a record $38.1 million, or $1.38 per diluted
share, compared to net income of $24.6 million, or $0.90 per
diluted share, in the first quarter of 2006. Fully diluted average
shares outstanding for the first quarter were 27,528,000 compared
to 27,385,000 in the same period in 2006. Gross profit margin
increased to 40.9% of net sales in the first quarter of 2007 from
39.6% of net sales in the first quarter of 2006. The provision for
income taxes was 36.1% in the first quarter of 2007, compared to
36.5% in the first quarter of 2006. First-quarter 2007 new orders
were $176.5 million compared to $154.7 million in the first quarter
of 2006. Total order backlog on March 31, 2007 was $332.3 million
compared to the prior year backlog of $294.8 million. Joel P.
Moskowitz, Ceradyne chief executive officer, commented: �We are
pleased with the strong results in the first quarter of 2007 which
are due in part to the continued improvement in production
throughput and yields. During the first quarter, the Company
continued to pursue its strategy of product and market global
diversification in both defense and non-defense areas. We
authorized and began implementation of a $15 million expansion of
our ESK subsidiary in Kempten, Germany. This expansion is designed
to increase capacity for our recently introduced Boroneige� boron
nitride powder for both cosmetic and industrial applications. We
also are expanding capacity to produce a wide range of industrial
silicon carbide ceramic seals for various fluid handling uses. �The
opening ceremony for our new factory in Tianjin, China, is
scheduled for June. This 98,000 sq. ft. plant will be dedicated to
the production of high purity fused silica ceramic crucibles used
in the manufacture of polycrystalline silicon in the production of
photovoltaic solar cells.� Moskowitz added, �In anticipation of
future growth in the nuclear waste containment market and
Ceradyne�s technical ceramics for semiconductor applications, we
formed a separate business unit headed by Ceradyne Vice President,
Michael Kraft, reporting to Ceradyne�s President of North American
Operations, David Reed. We anticipate this organizational change
will allow us to focus and better track performance in these
markets.� Ceradyne�s management will review the financial results
for the quarter ended March 31, 2007 and provide an outlook on
Ceradyne�s business in a conference call at 8:00 a.m. PDT today.
Interested parties may listen to the teleconference live via the
Internet at www.ceradyne.com or www.earnings.com. These web sites
will also host an archive of the teleconference. A telephone
playback will be available beginning 11:30 a.m. PDT today through 9
p.m. PDT on April 29, 2007. The playback can be accessed by calling
800-642-1687 (or 706-645-9291 for international callers) and
providing Conference ID 5503918. Ceradyne develops, manufactures
and markets advanced technical ceramic products and components for
defense, industrial, automotive/diesel and commercial applications.
Additional information about the Company can be found at
www.ceradyne.com. Except for the historical information contained
herein, this news release contains forward-looking statements
regarding future events and the future performance of Ceradyne that
involve risks and uncertainties that could cause actual results to
differ materially from those projected. Words such as
�anticipates,� �believes,� �plans,� �expects,� �intends,� �future,�
and similar expressions are intended to identify forward-looking
statements. These risks and uncertainties are described in the
Company�s Annual Report on Form 10-K for the fiscal year ended
December 31, 2006, and its Quarterly Reports on Form 10-Q, as filed
with the Securities and Exchange Commission. � Below is a summary
of unaudited comparative results. Amounts in thousands except per
share data. � Three Months Ended March 31, 2007� 2006� � Net sales
$ 188,443� $ 136,347� Cost of product sales � 111,331� � 82,362�
Gross profit � 77,112� � 53,985� Operating expenses: Selling 6,298�
5,774� General and administrative 9,777� 6,996� Research and
development � 3,486� � 2,522� � 19,561� � 15,292� � Income from
operations 57,551� 38,693� Other income (expense): Other income
3,082� 1,078� Interest (expense) � (1,025) � (1,028) 2,057� 50� �
Income before provision for Income taxes 59,608� 38,743� Provision
for income taxes � 21,519� � 14,130� Net income $ 38,089� $ 24,613�
� � Earnings per share, basic $ 1.40� $ 0.92� Earnings per share,
diluted $ 1.38� $ 0.90� � Avg. shares outstanding, basic 27,150�
26,801� Avg. shares outstanding, diluted 27,528� 27,385� Condensed
Consolidated Balance Sheets (in thousands): � March 31, 2007
December 31, 2006 � � Cash and cash equivalents $ 18,186� $ 13,547�
Short term investments 236,362� 190,565� Other current assets
202,080� 197,863� Net property, plant and equipment 186,444�
183,011� Other assets � 28,896� � 28,829� Total assets $ 671,968� $
613,815� � Current liabilities $ 79,562� $ 69,912� Long term debt
121,000� 121,000� Non current liabilities 20,741� 13,274� Deferred
tax liability 2,065� 3,018� Stockholders' equity � 448,600� �
406,611� Total liabilities and stockholders' equity $ 671,968� $
613,815�
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