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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 10, 2000
PHOTON DYNAMICS, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA 3559 94-3007502
(State of incorporation) (Commission File No.) (IRS Employer Identification
No.)
6325 San Ignacio Avenue, San Jose, California 95119-1202
(Address of principal executive offices of Registrant)
(408) 226-9900
(Registrant's telephone number, including area code)
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ITEM 5. PHOTON DYNAMICS REPORTS FINANCIAL RESULTS FOR QUARTER ENDED
DECEMBER 31, 1999
On January 10, 2000, Photon Dynamics, Inc. reported financial results for the
first fiscal quarter ended December 31, 1999. The results of prior periods have
been restated to include the financial statements of CR Technology, Inc., which
was acquired on November 30, 1999 in a transaction which was accounted for as a
pooling of interests.
For the first quarter of fiscal 2000, revenues rose 160% to 16.9 million
compared with $6.5 million, as restated, for the first quarter of fiscal
1999. Net income for the quarter was $2.4 million, or $0.22 per diluted
share, excluding non-recurring acquisition costs, compared to a net loss of
$1.5 million, or ($0.16) per share, as restated, for the same period a year
ago. Including the effect of non-recurring acquisition costs, net income for
the first quarter of fiscal 2000 was $1.5 million, or $0.14 per diluted share.
As of December 31, 1999, the Company's balance sheet included $11.0 million
in cash, $22.2 million in working capital and $24.7 million in shareholders'
equity.
For the first quarter of fiscal 2000, bookings were $24.7 million. Backlog
was $30.0 million as at December 31, 1999. Although the Company's gross
margins fluctuate on a quarterly basis due to production volume and product
mix, the company achieved a gross margin of 45% in the first quarter of
fiscal 2000, compared with 35% for the same period in fiscal 1999.
Due to possible customer changes in delivery schedules, cancellations of
orders and other factors, our bookings and backlog are not necessarily
indicative of actual sales for any succeeding period.
To the extent that any of the statements contained herein are
forward-looking, such statements are based on current expectations that
involve a number of uncertainties and risks. Such uncertainties and risks
include, but are not limited to, growth in the FPD market, market acceptance
of our products, the development of new products, the enhancement of existing
products, manufacturing delays, dependence on principal customers,
competitive pricing pressures, product volume and mix, global economic
conditions, and particularly economic conditions in Asia, our dependence on
international operations, the availability of key components, the timing of
orders received, fluctuations in foreign exchange rates, and the introduction
of competing products having technological and/or pricing advantages. As a
result, the Company's operating results may fluctuate, especially when
measured on a quarterly basis. Actual results may differ materially from such
expectations.
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Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended December 31,
1999 1998
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<S> <C> <C>
Revenue $ 16,871 $ 6,504
Cost of revenue 9,283 4,249
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Gross margin 7,588 2,255
Operating expenses:
Research and development 2,174 1,309
Selling, general and administrative 2,718 2,471
Non-recurring acquisition expenses 860 -
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Total operating expenses 5,752 3,780
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Operating income (loss) 1,836 (1,525)
Interest income 116 81
Interest expense and other (40) (90)
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Income (loss) before provision for income taxes 1,912 (1,534)
Provision for income taxes 390 (46)
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Net income (loss) $ 1,522 $ (1,488)
================= ==================
Basic net income (loss) per share $ 0.16 $ (.16)
================= ==================
Diluted net income (loss) per share $ 0.14 $ (.16)
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Shares used in computing basic net income (loss) per share 9,657 9,067
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Shares used in computing diluted net income (loss) per share 10,709 9,067
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</TABLE>
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Condensed Consolidated Balance Sheet
(In thousands)
<TABLE>
<CAPTION>
December 31, 1999
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(unaudited)
<S> <C>
Assets
Current assets:
Cash, cash equivalents and short-term investments $ 10,988
Accounts receivable, net 13,759
Inventories 6,762
Prepaid expenses and other current assets 360
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Total current assets 31,869
Property, equipment, and leasehold improvements, net 1,830
Other assets 728
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Total assets $ 34,427
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Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 2,875
Accrued expenses and other liabilities 5,750
Customer deposits and deferred revenue 393
Income taxes payable 690
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Total current liabilities 9,708
Long-term debt -
Shareholders' equity:
Common stock 46,064
Accumulated deficit (21,407)
Foreign currency translation adjustment and other 62
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Total shareholders' equity 24,719
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Total liabilities and shareholders' equity $ 34,427
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</TABLE>
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
PHOTON DYNAMICS, INC.
Dated: January 10, 2000 By: /s/ RICHARD DISSLY
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Richard Dissly, Chief Financial Officer
