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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 May 1999
PEAK INTERNATIONAL LIMITED
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(Exact Name of Registrant)
Units 3, 4, 5 and 7, 37/th/ Floor, Wharf
Cable Tower, 9 Hoi Shing Road,
Tsuen Wan N.T., Hong Kong
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(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
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(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 May 6, 1999, Peak International Limited, a Bermuda corporation,
("We" or the "Company"), announced that it had reported its results for its
fiscal fourth quarter ended March 31, 1999 which reflect continuing improvement
in its business, consistent with the strengthening in the semiconductor
marketplace.
We reported net sales for the 1999 fiscal fourth quarter of $17.7
million. We also reported net income for the quarter was $3.7 million, or $0.28
per share basic and fully diluted. We also reported net sales of $66.2 million
and net income of $11.8 million, or $0.88 per basic common share and $0.87 per
fully diluted share, for the full fiscal year ended March 31, 1999. We indicated
that net income and net income per share for fiscal 1999 includes a fiscal third
quarter special charge totaling $2.0 million relating to the termination of the
employment contract of a former executive.
We also announced that we have added two independent outside
directors, Douglas Broyles and Jack Menache, to our Board, bringing the present
Board total to four members. Both have an extensive background and expertise in
the technology sector. For more details regarding their backgrounds, see our
press release attached hereto as Exhibit 99.1.
We also announced that during the fiscal 1999 fourth quarter, our tape
and reel products continued to gain market share and to steadily grow in their
overall importance to the company. Tape products sales were up 7 percent over
the previous quarter.
We also announced that because we are the only large scale producer
using recycled trays we have been able to capitalize on customers' accentuated
interest in cost savings caused by the downturn in the semiconductor industry
over the past year.
We also announced that our factory expansion is on track and that a
large portion of cash utilized by the company during the past fiscal quarter
went toward progress payments to the construction companies working on the new
factory building.
We also announced that we have continued to lower our costs by
reducing our inventory through the slowing of purchases of raw materials. As a
result, we reduced our inventory by 2.4 percent for the quarter ended March 31,
1999.
A copy of the press release issued on May 6, 1999 with respect to the
foregoing is attached hereto as Exhibit 99.1.
In connection with the appointment of Mr. Broyles and Mr. Menache, the
Company granted each of them options to purchase shares of the Company's common
stock, as follows: 10,000 shares at a purchase price of $3-7/8 per share. Half
of the options vest on the first anniversary of their date of grant, and the
balance vest on the second anniversary of their date of grant. Additionally, we
plan to grant each of them additional options for the purchase of 10,000
additional shares of our common stock at the price on the date of grant with the
same vesting terms described above.
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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 perfor mance. These forward-looking
statements are subject to certain risks and uncertainties 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 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 the Press Release, dated May 6, 1999, issued by
the Company announcing the Company's fourth quarter
results and the appointment of two independant outside
directors.
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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: May 6, 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
Kekst and Company Peak International Ltd.
(212) 521-4800 (619) 385-0308
PEAK INTERNATIONAL FISCAL FOURTH QUARTER REFLECTS CONTINUING
IMPROVEMENT IN ITS BUSINESS
--TWO OUTSIDE DIRECTORS NAMED TO BOARD--
FOR IMMEDIATE RELEASE
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HONG KONG AND AUSTIN, TEXAS, MAY 6, 1999-- Peak Internationa1 Limited
(NASDAQ:PEAKF) (AMEX:PTT) today reported that results for its fiscal fourth
quarter ended March 31, 1999, reflect continuing improvement in its business,
consistent with the strengthening in the semiconductor marketplace.
For the 1999 fiscal fourth quarter, Peak had net sales of $17.7 million, the
third consecutive quarter of higher sales. Peak's net income for the quarter
was $3.7 million, or $0.28 per share basic and fully diluted. For the fiscal
1998 fourth quarter, which occurred in a stronger semiconductor market, Peak had
net sales of $20.2 million and net income of $5.9 million, or $0.43 per share
basic and fully diluted.
For the full fiscal year ended March 31, 1 999, Peak had net sales of $66.2
million and net income of $11.8 million, or $0.88 per basic common share and
$0.87 per fully diluted share. Net income and net income per share for fiscal
1999 includes a fiscal third quarter special charge totaling $2.0 million
relating to the termination of the employment contract of a former executive.
For fiscal l 998, Peak had net sales of $73.7 million and net income of $20.6
million, or $ l.6l per basic common share and $1.59 per fully diluted share.
Peak, in addition, announced that it has added two independent outside directors
to its Board, bringing the present Board total to four members. The two new
directors are Douglas Broyles and Jack Menache. Both have an extensive
background and expertise in the technology sector. Mr. Broyles, who has been
Involved in venture capital, is among other things, currently President and CEO
of Avalon Data, a wireless data communications company. Mr. Menache is Vice
President, General Counsel and Secretary of Integrated Device Technology, Inc.,
a publicly traded semiconductor company.
Calvin L. Reed, Peak's new Chief Executive Officer and President, stated, "We
are confident that a new era is underway at Peak. Not only is the company
experiencing improvement in its business, but Peak is moving forward with a new
management team of proven professional
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executives. This team and the reconstituted Board will be able to provide Peak
with a fresh perspective on how to best build the company's inherent values."
During the fiscal 1999 fourth quarter, Peak's tape and reel products continued
to gain market share and to steadily grow in their overall importance to the
company. Tape products sales were up 7 percent over the previous quarter.
Peak has been able to capitalize through its recycled trays business on
customers' interest in cost savings as a result of the downturn the
semiconductor industry has experienced over the past year. Peak is the only
large scale operator of recycled trays.
Peak's average number of customers was maintained at the same level during the
quarter. Peak's location in Asia positions it well to provide local support and
short delivery lead time to these assembly businesses.
Peak's factory expansion is on track. A large portion of cash utilized by the
company during the past fiscal quarter went toward progress payments to the
construction companies working on the new factory building.
Peak has continued to lower its costs by reducing its inventory and by slowing
its purchases of raw materials. As a result, Peak's inventory declined 2.4
percent for the quarter ended March 31, 1999.
Peak International Limited is a leading supplier of precision engineered
packaging products for the storage, transportation, and automotive handling semi
conductor devices electronic components.
This press release 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 Peak with respect to future events and financial
performance. These forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from these
statements. The words "believes," "expects," "anticipates," "intends," "plans,"
"estimates" and similar expressions identify forward-looking statements. Peak
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new informa tion, future events, or
otherwise. Readers are cautioned not to place undue reliance on these forward-
looking statements.
-- (Table Follows)--
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Peak International Limited
Income Statement Excerpts
(all amounts in thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1999 1998
<S> <C> <C>
Net Sales $17,673 $20,166
Cost of Goods Sold 10,391 11,552
Gross Profit 7,282 8,614
General & Administrative and
Research Development 2,085 1,730
Selling & Marketing 1,459 1,306
Operating Income 3,738 5,578
Other Income 240 456
Interest Income-net 82 313
Profit Before Tax 4,060 6,347
Taxation 340 492
NET INCOME $ 3,720 $ 5,855
EARNINGS PER SHARE -- BASIC $ 0.28 $ 0.43
-- DILUTED $ 0.28 $ 0.43
Weighted Avg. Number of Shares Diluted 13,509 13,695
Year Ended March 31,
1999 1998
Net Sales $66,235 $73,705
Cost of Goods Sold 39,487 41,048
Gross Profit 26,748 32,657
General & Administrative and
Research & Development 7,338 6,194
Selling & Marketing 5,801 5,487
G&A - special charge 2,000 -
Operating Income 11,609 20,976
Other Income 887 926
Interest Income-net 679 517
Profit Before Tax 13,175 22,419
Taxation 1,338 1,825
NET INCOME $11,837 $20,594
EARNINGS PER SHARE -- BASIC $ 0.88 $ 1.61
-- DILUTED $ 0.87 $ 1.59
Weighted Avg. Number of Shares-Diluted 13,550 12,972
</TABLE>
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Consolidated Balance Sheet
<TABLE>
<CAPTION>
(in thousands) March 31, 1999 March 31, 1998
ASSETS (unaudited)
<S> <C> <C>
Current assets:
Cash & cash equivalents $ 10,597 $19,314
Accounts receivable-net 11,829 14,416
Inventory-net 26,169 27,941
Other current assets 1,241 1,521
Total Current Assets 49,836 63,192
Property, plant and
equipment-net 52,517 26,348
TOTALS $102,353 $89,540
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities
Bank borrowings 0 89
Accounts payable 6,324 7,251
Taxation 3,805 3,800
Total Current Liabilities 10,129 11,140
LT Provision 647 -
Deferred income taxes 1,607 818
Total Liabilities 12,383 11,958
Stockholders' Equity:
Share capital 135 135
Additional paid-in capital 34,620 34,034
Retained earnings 55,954 44,117
Cumulative translation
adjustment (739) (704)
Total stockholders'
equity 89,970 77,582
TOTALS $102,353 $89,540
</TABLE>
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