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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of October 1999
PEAK INTERNATIONAL LIMITED
--------------------------
(Exact Name of Registrant)
Units 3, 4, 5 and 7, 37/th/ Floor, Cable
TV Tower, 9 Hoi Shing Road, Tsuen
Wan N.T., Hong Kong
--------------------------
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F)
Form 20-F X Form 40-F
--- ---
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
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On October 28, 1999, Peak International Limited, a Bermuda corporation
("We" or the "Company") announced continued momentum for our business in our
fiscal second quarter ended September 30, 1999, which reflects ongoing
strengthening in the semiconductor industry. The company's performance exceeded
both the year-ago quarter and the preceding quarter.
We also announced that for the second quarter of fiscal year 2000, we
achieved net sales of $20.6 million, a 9.5 percent increase over the preceding
quarter, and a 34 percent increase over net sales of $15.3 million for the
fiscal second quarter a year ago. Due to improved utilization of capital
equipment and increases in unit volumes in the semiconductor industry, our gross
profit for the second fiscal quarter was $8.7 million, or 42.2% of sales,
compared to $6.0 million, or 39% of sales for the same period last year.
Our net income for the quarter was $4.2 million, compared to $3.2
million for the same period last year, an increase of 33.9 percent. Earnings
were .31 per share, basic and fully diluted. Operating income was $4.5 million
for this year's second fiscal quarter versus $2.9 million for the fiscal second
quarter one year ago, an increase of 55 percent. Both net income and operating
income increased over the previous quarter.
We also announced that John Pylant has been named Vice President of
Engineering and Chief Technology Officer. In this position, Mr. Pylant will
oversee all research and development, engineering and tooling operations. Mr.
Pylant, who has over thirty years of experience, has worked as a consultant for
the past three months at our Shenzhen plant, and will be primarily based in
China.
We also announced that we expect our U.S. headquarters facility and
warehouse in Fremont, California to be ready to occupy by the end of the year.
We believe relocating our U.S. operations from Austin, Texas to Fremont,
California will bring us closer to our customers in the heart of Silicon Valley.
A copy of the press release issued October 28, 1999 with respect to
the foregoing is attached hereto as Exhibit 99.1.
This report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities and Exchange Act of 1934, as amended. The forward-looking statements
reflect the view of the Company at the time the Company made the statements with
respect to future events and financial performance. These statements are
subject to certain risks and uncertainties, including among others dependence on
the semiconductor and electronics industries, competition, dependence on
significant customers, issues relating to its operations in China, the
resolution of recently filed shareholder litigation and other matters that could
cause actual results to differ materially from the statements made herein. The
words "believes," "expects", "anticipates", "intends", "plans", "estimates" and
similar expressions, identify forward-looking statements, which speak only as of
today. The Company undertakes no obligation to publicly update or revise any
forward-looking
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statements, whether as a result of new information, future events, or otherwise.
Investors are cautioned not to place undue reliance on these forward-looking
statements.
The Company files the following exhibit as part of this Report:
Exhibit 99.1 Copy of Press Release, dated October 28, 1999, issued
by the Company
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Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
PEAK INTERNATIONAL LIMITED
Date: October 29, 1999 By: /s/ Calvin L. Reed
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Calvin L. Reed
President and Chief Executive Officer
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Exhibit 99.1
Contact: Robert D. Siegfried/Jessica Barist Contact: Calvin L. Reed, CEO
Kekst and Company Peak International Ltd.
(212) 521-4800 (858) 385-0308
PEAK INTERNATIONAL REPORTS CONTINUED STRONG GROWTH
IN SECOND FISCAL QUARTER
-- SECOND QUARTER SALES INCREASE 34% TO $20.6 MILLION FROM $15.3 MILLION IN
THE SAME PERIOD OF THE PRIOR YEAR --
-- COMPANY NAMES JOHN PYLANT VP ENGINEERING AND CHIEF TECHNOLOGY OFFICER --
HONG KONG AND MILPITAS, CALIFORNIA, OCTOBER 28, 1999 -- Peak International
Limited (NASDAQ: PEAKF) (AMEX: PTT) today reported continued momentum in its
business for its fiscal second quarter ended September 30, 1999, reflecting
ongoing strengthening in the semiconductor industry. The company's performance
exceeded both the year-ago quarter and the preceding quarter.
Peak had net sales of $20.6 million in its second fiscal quarter, a 9.5%
increase over the preceding quarter, and a 34% increase over net sales of $15.3
million second fiscal quarter a year ago. Gross profit for the second fiscal
quarter was $8.7 million, or 42.2% of sales, compared to $6.0 million, or 39% of
sales for the same period last year, due to improved utilization of capital
equipment and increases in unit volumes in the semiconductor industry. Compared
to the previous quarter, margins were maintained at the same level at 42.2%
compared to 42.8%.
Peak's net income for the quarter was $4.2 million, compared to $3.2 million for
the same period last year, an increase of 33.9%. Earning were .31 per share,
basic and fully diluted. Operating income was $4.5 million for this year's
second fiscal quarter versus $2.9 million for the fiscal second quarter one year
ago, an increase of 55%. Both net income and operating income increased over
the previous quarter.
The Company announced that John Pylant has been named Vice President Engineering
and Chief Technology Officer. In this position, Mr. Pylant will oversee all
research and development, engineering and tooling operations. Mr. Pylant, who
has over thirty years of experience, has worked as a consultant for the past
three months at the Company's Shenzhen plant, and will be primarily based in
China.
Calvin L. Reed, Peak's Chief Executive Officer and President, said, "Peak's
business momentum and growth continues as the semiconductor industry remains
strong. Our major product segment
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in semiconductor transport systems increased both in unit volume and revenue
while gross margins were maintained. I am optimistic about Peak's future as we
focus on growth and continued profitability. We expect our new US headquarters
facility and warehouse in Fremont, CA to be ready to occupy by the end of the
year. We believe relocating our US operations from Austin, Texas to Fremont, CA
will bring us closer to our customers in the heart of Silicon Valley."
Mr. Reed added, "I am very pleased to welcome John Pylant to Peak. John has
worked with us in China as a consultant for the past three months. With over 30
years of experience, his presence in China will bring not only improvements in
the design and manufacture of new products, but will influence positively the
Company's culture."
Peak International, Limited is a leading supplier of precision-engineered
transport products for the storage, transportation and automated handling of
semiconductor devices and other electronic components.
This press release contains forward-looking statements that are subject to
certain risks and uncertainties, including among others, the resolution of class
action shareholder litigation, intellectual property rights of third parties,
issues relating to its operations in China, and other matters that could cause
actual results to differ materially from the statements made herein.
-- Table Follows --
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CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended September 30
(Unaudited)
<S> <C> <C>
1999 1998
------- -------
(in thousands, except per share data)
Net Sales $20,580 $15,305
Cost of Goods Sold 11,888 9,328
------- -------
Gross Profit 8,692 5,977
General & Administrative, and
Research & Development 22,401 707
Selling & Marketing 1,951 1,375
------- -------
Operating Income 4,501 2,895
Other Income - net (12) 352
Interest Income - net 136 218
------- -------
Profit Before Tax 4,625 3,465
Taxation 402 311
------- -------
NET INCOME $ 4,223 $ 3,154
======= =======
EARNINGS PER SHARE
- - Basic $0.31 $0.23
- - Diluted $0.31 $0.23
Weighted Avg # Shares-Diluted 13,817 13,509
Six Months Ended September 30
(Unaudited)
1999 1998
------- -------
(in thousands, except per share data)
Net Sales $39,375 $31,074
Cost of Goods Sold 22,634 18,774
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Gross Profit 67,411 2,300
General & Administrative, and
Research & Development 4,789 3,462
Selling & Marketing 3,659 2,902
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Operating Income 8,293 5,936
Other Income - net 277 446
Interest Income - net 195 467
------- -------
Profit Before Tax 8,765 6,849
Taxation 800 615
------- -------
NET INCOME $ 7,965 $ 6,234
======= =======
EARNINGS PER SHARE
- - Basic $0.59 $0.46
- - Diluted $0.58 $0.46
Weighted Avg #Shares-Diluted 13,768 13,596
</TABLE>
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CONSOLIDATED BALANCE SHEETS
September 30, 1999 March 31,1999
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(unaudited)
<TABLE>
<CAPTION>
(in thousands)
ASSETS
<S> <C> <C>
Current assets:
Cash & cash equivalents $ 17,483 $10,598
Accounts receivable-net 12,694 11,828
Inventory-net 24,737 26,469
Other current assets 923 1,241
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Total Current Assets 55,837 50,136
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Property, plant and
Equipment-net 49,145 43,517
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TOTALS $104,982 $93,653
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Bank borrowings 121 0
Accounts payable 9,609 6,624
Taxation 4,268 3,805
Total Current Liabilities 13,998 10,429
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LT Provision 647 647
Deferred income taxes 1,597 1,607
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Total Liabilities 16,242 12,683
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Stockholders' Equity:
Share capital 135 135
Additional paid-in capital 34,645 34,620
Retained earnings 54,919 46,954
Cumulative translation adjustment (959) (739)
Total stockholders' Equity 88,740 80,970
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TOTALS $104,982 $93,653
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</TABLE>
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