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[November 2000]
Ceradyne, Inc. Reports Record Third Quarter and Nine-Month Results
Costa Mesa, California: Ceradyne, Inc. has reported record earnings for the third quarter and record sales and earnings for the nine months ended September 30, 2000.
Third-quarter sales grew 47% to $11.5 million from $7.8 million in the third quarter of 1999. Net income increased 184% to $1.4 million, or 17 cents per diluted and basic share, from $496,000, or 6 cents per diluted and basic share, in the year-ago period.
Sales for the nine-month period increased 60% to $34.3 million, compared to $21.4 million in 1999. Net income increased almost fourfold to $3.9 million, or 47 cents per share diluted and 48 cents per share basic, compared to $945,000, or 12 cents per share diluted and basic, in the prior year period.
New bookings for the third quarter were $11.8 million compared to $11.0 million in the year-earlier quarter. For the nine months ended September 30, 2000, new bookings were $34.6 million compared to $30.4 million for the same period in 1999.
Looking beyond the strong results for the period, Joel P. Moskowitz, Ceradyne's president and chief executive officer, commented: "Several events occurred during the third quarter which, on a going-forward basis, support a positive outlook for the coming fiscal year:
Mr. Moskowitz continued: "The company's current cash and equivalents position of $4.2 million, up from $1.4 million at year-end 1999, coupled with positive cash flow from operations is expected to provide the primary financing sources for the above expansions and other corporate activities." First, as announced earlier this month, we received $2.3 million in Government research grants in the fields of ceramic armor for military vehicles and a ceramic composite for high-power microwave communications. Secondly, the company received requests for proposals or became aware of several very large potential contracts for military ceramic armor systems and components for diesel engines. These potential orders are competitive and there is no assurance that Ceradyne will be the successful bidder, although we believe that Ceradyne has a strong position in these markets. The awards are expected to be made no later than early 2001. Thirdly, Ceradyne began expanding its facilities at its Thermo Materials operation in Scottdale, Georgia, and its Advanced Ceramic Operations in Costa Mesa, California. The expansions include both plant and equipment and will allow Ceradyne to meet expected production volumes in ceramic armor and special ceramics for photovoltaic energy devices and other industrial applications. We have committed a minimum of $2 million to these projects, which we expect to complete by the second quarter of 2001.
Ceradyne develops, manufactures and markets advanced technical ceramics for industrial, electronic, defense and consumer applications. Additional information about the Company can be found at www.ceradyne.com.
This web page 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.
ENDS