FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended October 2, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission file number 1-8277
ACME ELECTRIC CORPORATION
(Exact name of registrant as specified in its charter)
STATE OF NEW YORK 16-0324980
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 Quaker Road, East Aurora, New York 14052
(Address of principal executive offices)
716/655-3800
(Telephone Number)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to
such filing requirements for the past 90 days.
(1) YES x NO ____
(2) YES x NO ____
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.
Class Outstanding at October 2, 1999
Common Stock, Par Value $1.00 Per Share 5,073,887
<PAGE>
ACME ELECTRIC CORPORATION
PART I - FINANCIAL INFORMATION
ITEM I - FINANCIAL STATEMENTS
BALANCE SHEET
Unaudited Audited
October 2, 1999 June 30, 1999
(000's) (000's)
ASSETS
Current Assets:
Cash $ 218 $ 203
Accounts receivable, net 12,367 11,304
Inventories, net 10,468 9,270
Deferred income taxes 1,311 1,311
Other current assets 621 652
------ ------
Total current assets 24,985 22,740
------ ------
Property, plant and equipment, at cost 39,451 39,028
Less accumulated depreciation (25,308) (24,776)
------ ------
Total property, plant &
equipment, net 14,143 14,252
------ ------
Other Assets 4,619 4,396
------ ------
Total Assets $43,747 $41,388
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 4,964 $ 3,766
Accrued compensation and other 4,037 4,528
Current portion of long-term debt 1,008 2,258
------ ------
Total current liabilities 10,009 10,552
------ ------
Long-term debt 7,830 5,987
Other long-term liabilities 3,080 2,973
------ ------
Total Liabilities $20,919 $19,512
------ ------
Shareholders' Equity:
Common stock, Par Value $1.00
Authorized 8,000,000 shares
Issued 5,073,887 and 5,071,658 shares 5,074 5,072
Capital in excess of par value 19,142 19,134
Accumulated deficit (1,380) (2,322)
Less: Treasury stock at cost
(699 Shares) (8) (8)
------ ------
Total Shareholders' Equity 22,828 21,876
------ ------
Total Liabilities and Shareholders' Equity $43,747 $41,388
====== ======
See accompanying Notes to Financial Statements.
<PAGE>
ACME ELECTRIC CORPORATION
STATEMENT OF INCOME
(Unaudited)
13 Weeks Ended 13 Weeks Ended
October 2, 1999 October 3, 1998
(000's) (000's)
NET SALES $19,271 $22,378
------ ------
COSTS AND EXPENSES:
Cost of Sales 13,398 16,736
Research and Engineering Expenses 895 967
Selling and Administrative Expenses 3,289 3,567
Interest Expense 119 252
------ ------
TOTAL COSTS AND EXPENSES 17,701 21,522
------ ------
INCOME BEFORE TAXES 1,570 856
INCOME TAX EXPENSE 628 334
------ ------
NET INCOME $ 942 $ 522
====== ======
Weighted Average Number of
Shares Outstanding Used
to Compute Net Income per
Common Share:
Basic 5,072 5,054
Incremental Shares from
assumed conversion of
stock options 49 14
------ ------
Diluted 5,121 5,068
====== ======
NET INCOME PER COMMON SHARE
Basic $.19 $.10
=== ===
Diluted $.18 $.10
=== ===
See accompanying Notes to Financial Statements
<PAGE>
ACME ELECTRIC CORPORATION
STATEMENT OF CASH FLOWS
(Unaudited)
13 Weeks Ended 13 Weeks Ended
October 2, 1999 October 3, 1998
(000's) (000's)
Cash flows from operating activities:
Net Income $ 942 $ 522
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation and amortization 532 593
Loss on sale of fixed assets -- 35
Change in assets and liabilities:
Accounts receivable, net (1,063) 1,117
Inventories, net (1,198) 1,064
Deferred taxes and other assets (192) (24)
Accounts payable 1,198 183
Accrued compensation and other (384) (914)
------ ------
Net cash (used in) provided from
operating activities (165) 2,576
------ ------
Cash flows from investing activities:
Proceeds from disposition -- 4
Additions to property, plant
and equipment (423) (319)
------ ------
Net cash used in investing activities (423) (315)
------ ------
Cash flows from financing activities:
Increase (decrease) of
borrowings, net 593 (2,544)
Proceeds from employee stock purchase
and stock options plans 10 24
------ ------
Net cash provided from (used in)
financing activities 603 (2,520)
------ ------
Net increase (decrease) in cash 15 (259)
Cash at beginning of period 203 629
------ ------
Cash at end of period $ 218 $ 370
====== ======
See accompanying Notes to Financial Statements.
<PAGE>
ACME ELECTRIC CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. The Balance Sheet of Acme Electric Corporation ("Registrant") at
October 2, 1999, the Statement of Operations for the thirteen-week
periods ended October 2, 1999, and October 3, 1998, and the Statement
of Cash Flows for the thirteen-week periods ended October 2, 1999, and
October 3, 1998, include all adjustments necessary for a fair
representation of the results for such periods.
The unaudited financial data included herein was compiled in
accordance with the "Summary of Significant Accounting Principles and
Practices" (Note 1 of Notes to Financial Statements) contained in the
Registrant's 1999 Annual Report filed on Form 10-K.
The Company had no components of comprehensive income other than net
income for all periods presented.
Recently issued accounting standards.
Effective July 1, 1999, the Company has adopted the American Institute
of Certified Public Accountants' (AICPA) Statement of Position (SOP)
98-5, Reporting on the Costs of Start-up Activities. Accordingly, all
start-up costs associated with the Company's Mexican initiative have
been expensed as incurred.
In June 1998, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 133,
"Accounting for Derivative Instruments and Hedging Activities." The
Statement establishes accounting and reporting standards for
derivative instruments. The FASB has delayed the required adoption
date for implementation of this Statement until the fiscal year
beginning July 1, 2000. The financial statement impact from the
adoption of SFAS No. 133 is not expected to be material.
2. Accounts receivables included in the Balance Sheet are as follows:
October 2, 1999 June 30, 1999
($000's) ($000's)
Accounts receivable $12,582 $11,475
Less allowance for
doubtful accounts 215 171
------ ------
$12,367 $11,304
====== ======
3. Inventories included in the Balance Sheet are as follows:
October 2, 1999 June 30, 1999
($000's) ($000's)
Raw Material $ 5,555 $5,029
Work-In-Process 1,898 1,759
Finished Goods 3,015 2,482
------ -----
$10,468 $9,270
====== =====
Inventories are reported net of reserves for obsolescence of
$1,232,000 and $1,217,000 at October 2 and June 30, respectively.
4. Segment Reporting Disclosures
The Company has adopted FASB Statement No. 131, "Disclosures about
Segments of an Enterprise and Related Information." This statement
revised the manner in which the Company reports information concerning
its operating segments. Each business segment has a separate
manufacturing facility.
The Company operates in three business segments: Aerospace,
Electronics, and Power Distribution Products. The Company's
reportable segments are strategic business units that offer different
products and services to different markets. The segments are managed
separately, based on the fundamental differences of their operations.
Information by industry segment is as follows (dollars in thousands):
13 Weeks 13 Weeks
Ended Ended
October 2, 1999 October 3, 1998
Net Sales
Aerospace $ 2,468 $ 2,790
Electronics 3,668 6,395
Power Distribution Products 13,135 13,193
------ ------
Combined 19,271 22,378
------ ------
Operating Income (Loss)
Aerospace 219 65
Electronics (349) 88
Power Distribution Products 2,551 2,161
------ ------
Combined 2,421 2,314
General Corporate Expense (732) (1,207)
Interest Expense (119) (251)
------ ------
Earnings Before Income Taxes $ 1,570 $ 856
====== ======
Identifiable Assets
Aerospace $ 4,962 $ 5,274
Electronics 15,787 14,835
Power Distribution Products 17,504 16,771
General Corporate ,494 5,886
------ ------
Combined $43,747 $42,766
====== ======
Depreciation and Amortization
Aerospace $ 97 $ 110
Electronics 176 234
Power Distribution Products 117 114
General Corporate 142 135
------ ------
Combined $ 532 $ 593
====== ======
Capital Expenditures
Aerospace $ 92 $ 37
Electronics 42 42
Power Distribution Products 133 188
General Corporate 156 52
------ ------
Combined $ 423 $ 319
====== ======
Management's Discussion and Analysis of
Financial Condition and Results of Operations
The following is Management's discussion and analysis of certain
significant factors which have affected the Registrant's financial
condition and results of operations during the periods included in the
accompanying financial statements.
Financial Condition
A summary of the period-to-period change in the principal items
included in the balance sheets and which affect financial condition
follows:
Comparison of Balance Sheets at
October 2, 1999
and
June 30, 1999
Increase (Decrease)
(000's)
Current Assets $2,245
Property, Plant & Equipment Net (109)
Other Assets 223
-----
$2,359
=====
Current Liabilities $ (543)
Long-Term Debt and Other Liabilities 1,950
Shareholders' Equity 952
------
$2,359
=====
Current assets at October 2, 1999, increased $2,245,000, or 9.9%, from
June 30, 1999, levels due to an increase in accounts receivable of
$1,063,000 and inventories of $1,198,000. Receivables increased as a
result of higher sales for the quarter (compared with fourth quarter fiscal
1999) in the Company's power distribution products business, as the
Powerware (outsourced magnetics) program continued to ramp up. The
increase in inventories is reflective of the transition and start-up
support associated with the Company's manufacturing initiative in
Monterrey, Mexico. Further contributing to higher inventories was product
reschedules experienced in the Company's electronics business.
The net decrease in property, plant and equipment of $109,000, or
0.8%, represents year-to-date expenditures in the amount of $423,000 offset
by depreciation of approximately $532,000.
Current liabilities decreased $543,000, or 5.1%, as a result of
performance incentive payouts made against the June 30, 1999, accruals and
the early buyout of the lease obligation associated with the business
information system. These reductions in current liabilities were partially
offset with increased trade payables associated with higher inventory
stock.
Long-term debt and other liabilities increased approximately
$1,950,000, or 21.8%. This increase includes approximately $760,000 of
revolver proceeds used to pay off the business system lease obligation,
resulting in a balance sheet debt reclassification from current to long-
term, for that amount. The remainder of the increased borrowings was used
for capital expenditures and to support working capital requirements.
The increase in shareholders' equity of $952,000 is primarily due to
the profit year-to-date of $942,000.
The Company has financed its working capital requirements, as well as
year-to-date capital expenditures, in part, through operations, with the
balance coming from increased bank borrowings. The Company expects that
operating activities for the remainder of fiscal year 2000 will provide
adequate cash flow to support working capital requirements, as well as
support the majority of the anticipated $3 million of capital expenditures.
The Company has in place a credit agreement which provides for two
secured term loans, with current principal balances of $337,000 and
$700,000, and a secured revolving credit line, with a $21,000,000 limit and
a maturity date of December 31, 2000, against which the Company has
combined outstanding borrowings and letters of credit of approximately
$4,260,000 at October 2, 1999. Outstanding borrowings against the
revolving credit facility are limited by formula to specified amounts of
accounts receivable and inventory, reduced by outstanding term debt. As of
October 2, 1999, the Company's eligible (formula-based) unborrowed funds
available on the line of credit were approximately $10,940,000. Management
believes that this will provide adequate liquidity for the foreseeable
future with intent to renegotiate the credit facility in the near term.
Expectation for Year 2000 Compliance
As noted in the Company's June 30, 1999, Form 10-K filing, the
business is reliant on systems which utilize time-based mechanisms for
asset and information management, and management recognizes that such
systems may encounter problems affecting the capability thereof due to the
year 2000 (Y2K) date change. The Company also has business relationships
with vendors, product purchases, and financial institutions, among others,
who are reliant on such systems. It is possible that, given problems
encountered by the Company or these parties, the Company could send or
receive improper billings, produce products which are unaccounted for,
experience production shortages or delays, encounter collection delays, or
report inaccurate data, among other things.
The Company organized its year 2000 task group during the third
quarter of fiscal 1998, with member participation from all operating units,
as well as the corporate office. Assessment programs were developed and
implemented at each of the locations. The assessment, which included an
inventory and identification of the Company's mission critical information
technology (IT) systems, as well as non-IT systems (i.e. equipment
microcontrollers), is complete.
The most significant mission critical elements associated with the IT
system area included the necessity to: (1) transition from the AIX
operating system version 4.1 to 4.2 and Oracle business application and
data-base software version 10.6.1 and 7.1 to the year 2000 compliant Oracle
versions 10.7.1 and 7.3, respectively; and (2) receive and install third-
party software upgrades used in support of certain manufacturing routines,
to include inventory management areas. The Company completed the
installation of its new client-server based business information system in
April 1998. This system, which runs vendor-provided off-the-shelf business
enterprise software (Oracle) in a client-server environment, was installed
by the Company as an enhancement to the business, replacing the legacy
mainframe system. This system provided the basis for a relatively
inexpensive transition to the Y2K-compliant business system through vendor-
provided software upgrades. Other third-party-provided customized software
critical to the business operation was identified and upgraded with vendor-
provided year 2000 compliant modifications.
The Company has completed the implementation of Y2K compliant
operating systems and Oracle software upgrades. All such costs were
expensed as incurred.
The Company has tested its embedded systems used in the manufacture
and distribution of its products for year 2000 compliance. Equipment
manufacturers were contacted for verification and solutions for potential
Y2K issues where mission critical equipment utilizing microcontrollers had
been identified. The Company is unaware of any unresolved issues relative
to this process.
The Company has, and will continue to, assess the year 2000 readiness
on the part of its supply base, as well as customer base. Both vendor and
customer letters requesting responses and/or certifications to their year
2000 readiness were sent with high response rate received, documenting
their own efforts to be Y2K compliant. The Company has also contacted,
and, in certain instances, visited vendor locations in the endeavor to gain
assurance that its critical suppliers are preparing for year 2000.
The total costs directly associated with the Company's effort to be
year 2000 ready, to date, has approximated $50,000.
The Company has developed contingency plans in the areas that
management considered appropriate. Elements of the contingency plans
include the capability to manually process customer orders and increase
safety stock inventories of critical parts and materials.
While third parties (customers, suppliers and service providers) are
engaged in efforts intended to address and resolve their year 2000 issues
on a timely basis, it is possible that a series of failures by third
parties could have a material adverse effect on the Company's results of
operations in future periods.
Portions of the narrative set forth in this Financial Condition and
Results of Operations, which are not historical in nature, are forward-
looking statements, based upon current expectations, all of which are
subject to risk and uncertainties, and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. One
can identify these forward-looking statements by their use of the words
such as "anticipates," "believes," "intends," "budgeted," and other words
of similar meaning. The Company's actual performance may differ materially
from that contemplated by the forward-looking statements due to a variety
of factors, which include, among other things, inaccurate assumptions, the
condition of the economy, the condition of the markets that the Company
serves, and the success of the Company's strategic plans and contemplated
capital investments. The Company does not assume the obligation to update
any forward-looking statements, whether as a result of new information,
future events, or otherwise.
Results of Operations
Thirteen-week period ended October 2, 1999, compared with the
comparable thirteen-week period ended October 3, 1998
Consolidated sales for the thirteen-week period ended October 2, 1999,
were $19,271,000, compared with $22,378,000 for the comparable period of a
year earlier. This decrease of 13.9% from the same period of the prior
year is primarily due to the loss of the Cisco Systems program in the
Company's Electronics Division. The Company continues its efforts to fill
this void with new programs that will serve the fiber-optic cable power
market, magnetic resonance imaging market, and network attached storage
systems market.
Cost of sales as a percentage of sales for the thirteen-week periods
ended October 2, 1999, and October 3, 1998, were 69.5% and 74.8%,
respectively. The improvement in gross margin is primarily attributable to
the mix of products shipped during the recent quarter in the Company's
power distribution products business (the Powerware program), as well as a
more favorable mix of after-market product sales in the Company's aerospace
business. Included in the current quarter costs (cost of sales and
administrative costs combined) were approximately $120,000 of expenses
associated with the start-up phase of the Mexican manufacturing initiative,
expected to gradually ramp up over the next two quarters.
Research and engineering expenses as a percent of net sales for the
thirteen-week period ended October 2, 1999, increased slightly (from 4.3%
to 4.6%) compared to the same period of the prior year. Actual cost was
reduced by $73,000, compared to the same period a year ago, but the
percentage increased on lower sales volume.
Selling and administrative costs as a percent of net sales increased
to 17.1% for the thirteen-week period ended October 2, 1999, from 15.9% for
the comparable period of the prior year. Included as an offset in the
selling and administrative expenses of the first quarter is $350,000 of
insurance recovery (income), associated with the Company's 1997 municipal
landfill settlement. Further recorded within the selling and
administrative costs for both the current and prior year quarters is
offsetting income of $149,000 and $228,000, respectively, related to
performance incentives earned in the Company's aerospace business, based
upon meeting specified customer delivery schedules. Exclusive of the
offsetting income items, selling and administrative expenses are nearly
unchanged in the quarter-to-quarter comparison.
Interest expense as a percent of net sales for the thirteen-week
period ended October 2, 1999, decreased to 0.6% from 1.1% for the
comparable period of the prior year. Interest expense in the quarter to
prior-year-quarter comparison decreased $132,000 as a result of lower debt
levels, as the Company reduced its outstanding debt by nearly $3,600,000
from September 1998 to September 1999.
Income taxes as a percent of income before taxes for the thirteen-week
period ended October 2, 1999, was 40.0%, compared to 39.0% reported for the
same period of the prior year.
Backlog at October 2, 1999, was $12,295,000, compared with $13,267,000
at the end of the comparable period of the prior year. The lower backlog
at October 2, 1999, reflects a smaller backlog in the aerospace business,
as production throughput improvements have brought customer programs back
to schedule.
PART II
OTHER INFORMATION
Item 5. Other Information
a. Exhibits
Interim Report dated
November 5, 1999, for the
quarter ended October 2,
1999. See Exhibit 13 attached.
Financial Data Schedule. See Exhibit 27 attached.
News Release of October 4,
1999, announcing the beginning
of trading on NASDAQ. See Exhibit 99-1 attached.
News Release of October 25,
1999, announcing first-quarter
results for fiscal year 2000. See Exhibit 99-2 attached.
b. There were no reports filed on Form 8-K during the thirteen-
week period ended October 2, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
ACME ELECTRIC CORPORATION
(Registrant)
Date: November 16, 1999 /s/
Robert J. McKenna
Chairman, President and
Chief Executive Officer
Date: November 16, 1999 /s/
Michael A. Simon
Corporate Controller and
Assistant Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> OCT-02-1999
<CASH> 218
<SECURITIES> 0
<RECEIVABLES> 12,582
<ALLOWANCES> 215
<INVENTORY> 10,468
<CURRENT-ASSETS> 24,985
<PP&E> 39,451
<DEPRECIATION> 25,308
<TOTAL-ASSETS> 43,747
<CURRENT-LIABILITIES> 10,009
<BONDS> 7,830
0
0
<COMMON> 24,216
<OTHER-SE> (1,380)
<TOTAL-LIABILITY-AND-EQUITY> 43,747
<SALES> 19,271
<TOTAL-REVENUES> 19,271
<CGS> 13,398
<TOTAL-COSTS> 17,582
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 119
<INCOME-PRETAX> 1,570
<INCOME-TAX> 628
<INCOME-CONTINUING> 942
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 942
<EPS-BASIC> .19
<EPS-DILUTED> .18
</TABLE>
To Our Shareholders:
Our earnings remained strong, despite the loss of sales from Cisco.
The quarter was highlighted by new sales contracts from Coca Cola and
Powerware and the introduction of a new line of DIN-rail mountable
power supplies. Improved productivity, better margins, and a $200,000
(net of tax) insurance settlement were the principal reasons for the
increase in earnings.
The Power Distribution Products Division is busy with start-up
activities related to its new operation in Monterrey, Mexico. Work on
the new 45,000-square-foot facility is scheduled for completion in
early November, and initial production will commence shortly
thereafter. This capacity expansion project will create much needed
space in our Lumberton, NC, plant, as it ramps up for several new
customer programs.
Our Electronics Division's history of developing and manufacturing
proprietary power systems for large OEMs has provided an avenue into
larger, more complex systems. In September, we began shipping a newly
developed fiber-optic cable power system. Early feedback from the
market has been very positive.
Large magnetic resonance imaging amplifiers (MRI) for Picker
Corporation have been in development for the past eighteen months and
will begin production in February 2000. And, a new network attached
storage system for the computer industry is currently in development
and scheduled for a spring launch.
We have made a significant engineering investment in these three
major programs, and expect to see the benefit of our efforts in the
near future.
Operational improvements, which will yield further reduced cycle
times, continue at the Aerospace Division. The Division has made great
progress over the past few years and is currently working with Airbus
Industries to develop power systems for new aircraft.
We have a solid foundation on which to build, and look forward to
reporting continuing progress.
/s/
Robert J. McKenna
Chairman and CEO
October 25, 1999
_______________________________________________________________________
ACME ELECTRIC CORPORATION
East Aurora, New York
The following tables set forth certain unaudited financial
information for the thirteen-week periods ended October 2, 1999, and
October 3, 1998 (in thousands, except for per share data):
BALANCE SHEET
10/2/99 10/3/98 6/30/99
Current Assets $24,985 $24,563 $22,740
Fixed Assets and Other - Net 18,762 18,203 18,648
------ ------ ------
Total $43,747 $42,766 $41,388
====== ====== ======
Current Liabilities $10,009 $11,117 $10,552
Long-Term Debt 10,910 12,028 8,960
Shareholders' Equity 22,828 19,621 21,876
------ ------ ------
Total $43,747 $42,766 $41,388
====== ====== ======
INCOME STATEMENT
13 Weeks 13 Weeks Fiscal Year
Ended Ended Ended
10/2/99 10/3/98 6/30/99
Net Sales $19,271 $22,378 $79,813
Net Income $942 $522 $2,707
Net Income Per Common Share:
Basic $.19 $.10 $.53
Diluted $.18 $.10 $.53
Weighted Average Number of Shares
Outstanding Used to Compute
Income Per Common Share:
Basic 5,072 5,054 5,060
Diluted 5,121 5,068 5,091
Company news is available by FAX: dial 1-800-758-5804 and input
extension 006675; or visit our web site at acmeelec.com
EXHIBIT 99-1
CONTACT:
Richard Becht
(716) 655-3800
FOR IMMEDIATE RELEASE
ACME ELECTRIC CORPORATION BEGINS TRADING ON NASDAQ
EAST AURORA, N.Y., October 4, 1999 -- Acme Electric Corporation
(NASDAQ:ACEE) stated today that it will commence trading under the symbol
"ACEE" on the NASDAQ National Market ("NASDAQ") on October 7, 1999.
The move from The New York Stock Exchange ("NYSE"), where Acme
Electric had traded under the symbol "ACE," was made in response to the
NYSE's decision to raise the standards for listing requirements with regard
to several hundred smaller companies that did not comply with the new
requirements for continued listing.
Robert J. McKenna, Chairman and Chief Executive Officer of Acme
Electric, stated, "We are pleased to be included among the rapidly growing
companies of the NASDAQ stock market system and fully expect a smooth
transition."
Founded in 1917, Acme Electric Corporation is a leader in the design
and manufacture of power conversion equipment for electronic and electrical
systems for industrial, commercial, residential, and military and aerospace
applications. Corporate headquarters are in East Aurora, N.Y., with
operations in Cuba, N.Y., Lumberton, N.C., and Tempe, Ariz.
# # # #
EXHIBIT 99-2
CONTACT:
Richard Becht
(716) 655-3800
FOR IMMEDIATE RELEASE
ACME ELECTRIC CORPORATION REPORTS FIRST QUARTER RESULTS
EAST AURORA, N.Y., October 20, 1999 -- Acme Electric Corporation
(NASDAQ:ACEE) announced today that, for the first quarter ended October 2,
1999, consolidated net sales were $19,271,000, with net income of $942,000,
compared with net sales of $22,378,000 and net income of $522,000 for the
comparable period in the prior year.
Robert J. McKenna, Chairman and Chief Executive Officer, stated that,
"We continue our strong commitment to new product development and the
search for new OEM relationships. Several new programs in the early stages
of development are expected to more than fill the void left by the loss of
Cisco's business."
Founded in 1917, Acme Electric Corporation is a leader in the design
and manufacture of power conversion equipment for electronic and electrical
systems for industrial, commercial, residential, and military and aerospace
applications. Corporate headquarters are in East Aurora, N.Y., with
operations in Cuba, N.Y., Lumberton, N.C., and Tempe, Ariz.
# # # #
<PAGE>
ACME ELECTRIC CORPORATION
Comparative Analysis
(in thousands, except per share data)
For the 13 Weeks Ended
10/02/99 10/03/98
Net Sales $19,271 $22,378
Net Income $942 $522
Net Income Per Common Share
Basic $.19 $.10
Diluted $.18 $.10
Weighted Average Number of shares
Outstanding Used to Compute
Income Per Common Share:
Basic 5,072 5,054
Diluted 5,121 5,068
