Server: Netscape-Communications/1.1b1 Date: Friday, 21-Nov-97 05:04:03 GMT Last-modified: Wednesday, 11-Jun-97 17:07:50 GMT Content-length: 4904 Content-type: text/html
NEWS RELEASE
P. O. Box 5000
Victoria, Minnesota 55386
612.443.2500
CONTACT: Jerald H. Mortenson, CFO FOR IMMEDIATE RELEASE
HEI ANNOUNCES THIRD QUARTER RESULTS
MINNEAPOLIS, Minnesota (June 11, 1997) HEI, Inc. announced unaudited financial results for the Company’s third quarter ended May 31, 1997.
Net sales for the third quarter of the current fiscal year were $9,067,000, compared to $4,656,000 for the third quarter of fiscal year 1996. Net income for the quarter was $539,000, or $.13 per share, compared to net income of $218,000, or $.05 per share, reported for the same period last year.
Net sales reported for the first nine months of the current fiscal year were $24,522,000. This compared to net sales of $14,283,000 for the first nine months of fiscal year 1996. Net income reported for the first nine months of fiscal year 1997 was $2,140,000, or $.50 per share, compared to net income of $784,000, or $.19 per share, for the first nine months of fiscal year 1996.
HEI stated that increased revenues this past quarter were due to continuing high volume production of a disk drive component for its largest current customer. The Company announced in early April of this year, however, that this customer had abruptly declared its intention to move ongoing production of the device offshore, primarily to its internal facilities. "As anticipated, phase out of this program, which represented 58% of HEI’s revenues during the first nine months of this fiscal year, commenced late this third quarter and will be complete by the end of the fourth fiscal quarter," said Jerald H. Mortenson, HEI Vice President and CFO. "As stated previously, the phase out is expected to result in significantly decreased revenue and operating income relative to the past two quarters until equivalent replacement business is secured, the decline beginning the fourth quarter of this fiscal year and continuing at least through the first fiscal quarter next year," Mortenson said. "We are placing a high priority on replacement business, and are confident that a number of promising applications in telecommunications, medical and other areas will generate new growth opportunities for HEI," he added.
During the quarter just completed, the Company also announced the receipt of production orders totaling over $1 million for devices to be used by a major telecommunications equipment supplier, stating that the orders were significant to HEI because they represented the Company’s initial volume production attributable to a campaign to enter that market. HEI had also reported earlier this quarter that its Board of Directors authorized the repurchase of up to 250,000 of its common shares. The repurchases are to be made from time to time, based upon market conditions at the discretion of management.
HEI
is a Minnesota-based company specializing in the design and manufacture of ultraminiature microelectronic devices and high technology products incorporating those devices. The Company's stock trades on the NASDAQ National Market under the symbol HEII.
FORWARD LOOKING INFORMATION
Information in this news release which is not historical includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All of such forward-looking statements involve risks and uncertainties including, without limitation, adverse business or market conditions, the ability of HEI to secure and satisfy customers, the availability and cost of materials from HEI’s suppliers, adverse competitive developments, change in or cancellation of customer requirements, and other risks detailed from time to time in HEI’s SEC filings.
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