CDT Cable Design Tech Cp

CDT Announces Fiscal First Quarter 2004 Results Company returns to profitability, generates positive cash flow. SCHAUMBURG, Ill., Dec. 8 /PRNewswire-FirstCall/ -- Cable Design Technologies reported today that earnings for the first fiscal quarter ending October 31, 2003 were $2.7 million, or $0.07 per diluted share. This compares with a net loss of $1.8 million, or $0.04 per diluted share, for the quarter ended July 31, 2003 and a net loss of $71.9 million, or $1.61 per diluted share, for the quarter ended October 31, 2002. The losses in the previous quarter and for the same period last year included expenses of $2.3 million and $4.7 million, net of tax, respectively, related to restructuring activities. In addition, the net loss for the same period last year included a $32.6 million loss, net of tax, from discontinued operations and a $35.7 million charge, net of tax, in connection with a change in accounting principle. The Company had a net loss from continuing operations of $1.7 million, or $0.04 per diluted share, for the quarter ending July 31, 2003 and a net loss from continuing operations of $3.6 million, or $0.08 per diluted share, for the quarter ending October 31, 2002. Revenues for the first fiscal quarter ending October 31, 2003, were $130.6 million, compared with revenues of $129.5 million in the previous quarter and $121.0 million for the same period last year. Revenues for the first fiscal quarter 2004 benefited by approximately $6.0 million over the same period last year from the favorable effects of currency translation resulting from the weaker dollar. There was minimal impact from currency translation in the sequential quarter comparisons. Network Communication segment sales for the first fiscal quarter 2004 were $76.2 million and represented 58.3% of total company revenues, compared to $75.8 million in the previous quarter and $71.5 million for last year's first quarter. Specialty Electronic segment sales for the first fiscal quarter 2004 were $54.5 million compared to $53.6 million last quarter and $49.6 million for the same period last year. First fiscal quarter 2004 segment revenues benefited from currency translation over the same period last year by approximately $3.3 million and approximately $2.7 million for the Network and Specialty segments, respectively. Sales outside of North America represented 38.7% of CDT's current quarter revenues compared to 39.1% last quarter and 35.6% for the same period last year. Selling, general and administrative expenses were $23.8 million for the current quarter compared to $24.7 million for the quarter ending July 31, 2003 and $23.5 million for the same period last year. The increase in SG&A over the same period last year is primarily due to the effect of foreign currency translation which increased SG&A by approximately $1.0 million. On a percent of sales basis, SG&A has declined to 18.2% from 19.4% a year ago. The Company generated $5.1 million of cash during the quarter, driven largely by cash flow from operations. Gross margin was 23.6% for the current quarter compared to 24.6% for the fiscal fourth quarter 2003 and 22.9% for the same period last year. "This quarter's results in terms of profit, cashflow, and costs show the benefits of our restructuring efforts," CEO Fred Kuznik stated. "With restructuring taking hold, we believe we have established a solid foundation for the business. The improving economy has resulted in increased revenues, and we continue to look to grow revenue through product and market development." About CDT Cable Design Technologies ( http://www.cdtc.com/ ) is a leading designer and manufacturer of high bandwidth network connectivity products used in computer interconnect, switching and wireless applications and electronic data and signal transmission products that are used in automation and process control and specialty applications. Safe Harbor Provision Certain statements in this press release are forward-looking statements that are based on information currently available to management, management's beliefs and a number of assumptions concerning future events. These statements include future financial results and performance, capital expenditures, length of market downturn and timing of any turnaround. These forward looking statements are subject to various uncertainties and other factors, which could cause the actual results to differ materially from those currently expected, including the level of market demand for the Company's products, competitive pressures, economic conditions in the U.S. and other countries where the Company operates, working capital needs, information technology spending, the ability to achieve reductions in costs, the ability to continue to integrate acquisitions, price fluctuations of raw materials and the potential unavailability thereof, foreign currency fluctuations, technological obsolescence, environmental matters, industry competition and other specific factors discussed in the Company's Annual Report on Form 10-K for the year ended July 31, 2003 and other Securities and Exchange Commission filings by the Company. The Company does not intend to update this information to reflect developments or information obtained after the date hereof and disclaims any legal obligation to the contrary. Cable Design Technologies Corporation & Subsidiaries Condensed Consolidated Statements of Operations - Unaudited (In thousands, except share and per share data) Three Months Ended October 31, 2003 2002 NET SALES $ 130,648 $121,041 Cost of Sales 99,758 93,348 GROSS PROFIT 30,890 27,693 Selling, general and administrative expenses 23,770 23,451 Research & development expenses 1,105 1,049 Business restructuring expense, net - 7,072 INCOME (LOSS) FROM OPERATIONS 6,015 (3,879) Interest expense, net 1,264 1,640 Other (income) expense, net (128) 269 Income (loss) before income taxes, minority interest and cumulative effect of accounting change 4,879 (5,788) Income tax provision (benefit) 1,878 (2,301) Minority interest expense, net 254 88 Net income (loss) from continuing operations before cumulative effect of accounting change 2,747 (3,575) Loss from discontinued operations, net of tax - (636) Loss on sale of business, net of tax - (32,008) Net loss from discontinued operations - (32,644) Cumulative effect of change in accounting principle, net of tax - (35,723) Net income (loss) $2,747 $(71,942) NET INCOME (LOSS) PER COMMON SHARE Basic: Continuing operations $0.07 $(0.08) Discontinued operations - (0.73) Cumulative effect of change in accounting principle - (0.80) $0.07 $(1.61) Diluted: Continuing operations $0.07 $(0.08) Discontinued operations - (0.73) Cumulative effect of change in accounting principle - (0.80) $0.07 $(1.61) Basic weighted average common shares outstanding 41,501,168 44,528,305 Diluted weighted average common shares outstanding 53,824,700 44,528,305 Results for the three months ended October 31, 2002 have been adjusted to reflect the cumulative effect of accounting change related to the adoption of SFAS 142 that was retroactive to August 1, 2002. Cable Design Technologies Corporation & Subsidiaries Condensed Consolidated Balance Sheets - Unaudited (In thousands) October 31, July 31, 2003 2003 ASSETS Current Assets: Cash and cash equivalents $37,790 $32,701 Accounts receivable, net 80,485 79,121 Inventories 116,218 111,589 Other current assets 31,952 30,225 Assets held for sale 6,769 6,648 Total current assets 273,214 260,284 Property, plant and equipment, net 207,949 204,738 Goodwill, net 11,020 10,980 Intangible assets, net 3,562 3,740 Other assets 13,364 13,211 Total assets $ 509,109 $492,953 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term debt $1,956 $1,960 Other current liabilities 73,527 70,299 Liabilities held for sale 965 892 Total current liabilities 76,448 73,151 Long-term debt, excluding current maturities 112,337 112,730 Other non-current liabilities 24,142 24,168 Total liabilities 212,927 210,049 Minority interest in subsidiaries 7,532 7,027 Stockholders' Equity Common stock 486 484 Paid in capital 203,684 202,544 Deferred compensation (701) (727) Retained earnings 141,225 138,478 Treasury stock (65,159) (65,188) Accumulated other comprehensive income 9,115 286 Total stockholders' equity 288,650 275,877 Total liabilities and stockholders' equity $ 509,109 $492,953 Cable Design Technologies Corporation & Subsidiaries Segment Results of Operations -- Unaudited (In Thousands) Three months ended October 31, July 31, October 31, 2003 2003 2002 Net sales: Network Communication $76,165 $75,823 $71,485 Specialty Electronic 54,483 53,648 49,556 Total net sales $130,648 $129,471 $121,041 Segment operating profit (loss): Network Communication $761 $621 ($654) Specialty Electronic 5,254 5,349 3,847 Total segment operating profit 6,015 5,970 3,193 Business restructuring expense, net - 3,965 7,072 Interest expense, net 1,264 1,218 1,640 Other (income) expense, net (128) 85 269 Income (loss) from continuing operations before income taxes, minority interest and cumulative effect of change in accounting principle $4,879 $702 ($5,788) DATASOURCE: Cable Design Technologies CONTACT: Chuck Cohrs, Treasurer of Cable Design Technologies, +1-847-230-1900 Web site: http://www.cdtc.com/

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