<PAGE>
Exhibit 7.1
The following represents the pro forma statements of operations for the six
months ended July 1, 2000 and July 3, 1999, and for the years ended December 31,
1999, 1998, and 1997.
<TABLE>
<CAPTION>
For the six months ended July 1, 2000
(in millions of dollars)
Adjustments
Adjustment for Adjusted
Historical for Switches Pro forma Pro forma
---------- ------------ ---------- ---------
<S> <C> <C> <C> <C>
Net Sales $ 88.5 $ - $ - $ 88.5
Costs and expenses:
Costs of goods sold 73.0 - - 73.0
Selling and administrative 14.1 - - 14.1
Restructuring and severance 1.7 - - 1.7
Other expense (income) (0.4) - - (0.4)
Foreign exchange loss 0.6 - - 0.6
Interest expense 8.3 - (2.1)(b) 6.3
------ ------ ------ ------
Total operating costs and expenses 97.3 - (2.1) 95.3
------ ------ ------ ------
Income (loss) before income taxes (8.8) - 2.1 (6.7)
Income tax expense (benefit) (1.9) - 0.8 (c) (1.1)
------ ------ ------ ------
Net income $ (6.9) $ - (a) $ 1.3 $ (5.6)
====== ====== ====== ======
</TABLE>
(a) No adjustment for Switches is necessary in the six months ended July 1,
2000 statement as the adjustment was made in the Company's second quarter
10Q, filed on August 18, 2000, which is used for the Historical values
above.
(b) Represents the reduction to interest expense as a result of use of a
significant portion of the proceeds of the sale to reduce debt.
(c) Represents the change in tax expense as a result of the change in income
before taxes.
Page 1
<PAGE>
<TABLE>
<CAPTION>
For the six months ended July 3, 1999
(in millions of dollars)
Adjustments
Adjustment for Adjusted
Historical for Switches Pro forma Pro forma
---------- ------------ ---------- ---------
<S> <C> <C> <C> <C>
Net Sales $ 95.6 $ - $ - $ 95.6
Costs and expenses:
Costs of goods sold 76.4 - - 76.4
Selling and administrative 14.7 - - 14.7
Restructuring and severance - - - -
Other expense (income) (1.1) - - (1.1)
Foreign exchange loss - - - -
Interest expense 7.9 - (2.1)(b) 5.9
------ ------ ------ ------
Total operating costs and expenses 97.9 - (2.1) 95.9
------ ------ ------ ------
Income (loss) before income taxes (2.3) - 2.1 (0.3)
Income tax expense (benefit) - - 0.8 (c) 0.8
------ ------ ------ ------
Net income $ (2.3) $ - (a) $ 1.3 $ (1.1)
====== ====== ====== ======
</TABLE>
(a) No adjustment for Switches is necessary in the six months ended July 3,
1999 statement as the adjustment was made in the Company's second quarter
10Q, filed on August 18, 2000, which is used for the Historical values
above.
(b) Represents the reduction to interest expense as a result of use of a
significant portion of the proceeds of the sale to reduce debt.
(c) Represents the change in tax expense as a result of the change in income
before taxes.
Page 2
<PAGE>
<TABLE>
<CAPTION>
For the year ended December 31, 1999
(in millions of dollars)
Adjustments
Adjustment for Adjusted
Historical for Switches Pro forma Pro forma
---------- ------------ ---------- ---------
<S> <C> <C> <C> <C>
Net Sales $ 214.0 $ (26.1) $ - $ 187.9
Costs and expenses:
Costs of goods sold 172.1 (20.5) - 151.6
Selling and administrative 31.1 (2.6) - 28.5
Restructuring and severance 0.5 - - 0.5
Other expense (income) (1.0) - - (1.0)
Foreign exchange loss - - - -
Interest expense 15.8 - (4.1)(b) 11.7
------- ------- ------- -------
Total operating costs and expenses 218.5 (23.1) (4.1) 191.3
------- ------- ------- -------
Income (loss) before income taxes (4.5) (3.0) 4.1 (3.4)
Income tax expense (benefit) 0.3 (1.0) 1.6 (c) 0.9
------- ------- ------- -------
Net income $ (4.8) $ (2.0)(a) $ 2.5 $ (4.3)
======= ======= ======= =======
</TABLE>
(a) Adjustments to Historical statement of December, 1999 filed on our 10K for
the year ended December, 1999, to remove Switches as a sold business.
(b) Represents the reduction to interest expense as a result of use of a
significant portion of the proceeds of the sale to reduce debt.
(c) Represents the change in tax expense as a result of the change in income
before taxes.
Page 3
<PAGE>
<TABLE>
<CAPTION>
For the year ended December 31, 1998
(in millions of dollars)
Adjustments
Adjustment for Adjusted
Historical for Switches Pro forma Pro forma
---------- ------------ ---------- ---------
<S> <C> <C> <C> <C>
Net Sales $ 237.1 $ (28.1) $ - $ 209.0
Costs and expenses:
Costs of goods sold 188.7 (21.2) - 167.5
Selling and administrative 32.3 (2.9) - 29.4
Costs assoc. with option repurch 2.1 - - -
Restructuring and severance 0.7 - - 0.7
Other expense (income) - - - -
Foreign exchange loss - - - -
Interest expense 13.5 - (4.1)(b) 9.4
------- ------- ------- -------
Total operating costs and expenses 237.3 (24.1) (4.1) 207.0
------- ------- ------- -------
Income (loss) before income taxes (0.2) (4.0) 4.1 2.0
Income tax expense (benefit) 0.7 (1.4) 1.6 (c) 0.9
------- ------- ------- -------
Net income $ (0.9) $ (2.6)(a) $ 2.5 $ 1.1
======= ======= ======= =======
</TABLE>
(a) Adjustments to Historical statement of December, 1998 filed on our 10K for
the year ended December, 1999, to remove Switches as a sold business.
(b) Represents the reduction to interest expense as a result of use of a
significant portion of the proceeds of the sale to reduce debt.
(c) Represents the change in tax expense as a result of the change in income
before taxes.
Page 4
<PAGE>
<TABLE>
<CAPTION>
For the year ended December 31, 1997
(in millions of dollars)
Adjustments
Adjustment for Adjusted
Historical for Switches Pro forma Pro forma
---------- ------------ ---------- ---------
<S> <C> <C> <C> <C>
Net Sales $ 125.6 $ (29.4) $ - $ 96.2
Costs and expenses:
Costs of goods sold 100.8 (21.0) - 79.8
Selling and administrative 17.8 (3.1) - 14.7
Costs assoc. with option repurch - - - -
Restructuring and severance - - - -
Other expense (income) 0.3 - - 0.3
Foreign exchange loss - - - -
Interest expense 5.4 - (4.1)(b) 1.3
------- ------- ------- -------
Total operating costs and expenses 124.3 (24.1) (4.1) 96.1
------- ------- ------- -------
Income (loss) before income taxes 1.3 (5.3) 4.1 0.1
Income tax expense (benefit) 1.0 (1.8) 1.6 (c) 0.8
------- ------- ------- -------
Net income $ 0.3 $ (3.5)(a) $ 2.5 $ (0.7)
======= ======= ======= =======
</TABLE>
(a) Adjustments to Historical statement of December, 1997 filed on our 10K for
the year ended December, 1999, to remove Switches as a sold business.
(b) Represents the reduction to interest expense as a result of use of a
significant portion of the proceeds of the sale to reduce debt.
(c) Represents the change in tax expense as a result of the change in income
before taxes.
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