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 December 30, 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 December 30, 1999
Common Stock, Par Value $1.00 Per Share 5,075,145
PART I - FINANCIAL INFORMATION
ITEM I - CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
Unaudited Audited
December 30, 1999 June 30, 1999
(000s) (000s)
------ ------
ASSETS
- ------
Current Assets:
Cash $ 236 $ 203
Accounts receivable, net 10,960 11,304
Inventories, net 11,592 9,270
Deferred income taxes 1,311 1,311
Other current assets 939 652
------ ------
Total current assets 25,038 22,740
------ ------
Property, plant and equipment, at cost 40,537 39,028
Less accumulated depreciation (25,844) (24,776)
------ ------
Total property, plant &
equipment, net 14,693 14,252
------ ------
Other Assets 4,777 4,396
------ ------
Total Assets $44,508 $41,388
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current Liabilities:
Accounts payable $ 5,148 $ 3,766
Accrued compensation and other 3,798 4,528
Current portion of long-term debt 996 2,258
------ ------
Total current liabilities 9,942 10,552
------ ------
Long-term debt 8,199 5,987
Other long-term liabilities 3,116 2,973
------ ------
Total Liabilities $21,257 $19,512
------ ------
Shareholders' Equity:
Common stock, Par Value $1.00
Authorized 8,000,000 shares
Issued 5,075,145 and 5,071,658 shares 5,075 5,072
Capital in excess of par value 19,147 19,134
Accumulated deficit (963) (2,322)
Less: Treasury stock at cost
(699 Shares) (8) (8)
------ ------
Total Shareholders' Equity 23,251 21,876
------ ------
Total Liabilities and Shareholders' Equity $44,508 $41,388
====== ======
See accompanying Notes to Financial Statements.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Ended Ended Ended Ended
12/30/99 01/02/99 12/30/99 01/02/99
(000s) (000s) (000s) (000s)
------ ------ ------ ------
NET SALES $19,247 $18,803 $38,518 $41,181
------ ------ ------ ------
COSTS AND EXPENSES:
- ------------------
Cost of Sales 13,614 13,694 27,012 30,430
Research and Engineering Exp. 839 894 1,734 1,862
Selling and Administrative Exp.3,830 3,349 7,119 6,915
Interest Expense 149 208 268 460
------ ------ ------ ------
TOTAL COSTS AND EXPENSES 18,432 18,145 36,133 39,667
------ ------ ------ ------
INCOME BEFORE TAXES 815 658 2,385 1,514
INCOME TAX EXPENSE 398 256 1,026 590
------ ------ ------ ------
NET INCOME $ 417 $ 402 $ 1,359 $ 924
====== ====== ====== ======
Weighted Average Number of
Shares Outstanding Used
to Compute Net Income per
Common Share:
Basic 5,074 5,057 5,073 5,056
Incremental Shares from
assumed conversion of
stock options 78 31 62 22
----- ----- ----- -----
Diluted 5,152 5,088 5,135 5,078
===== ===== ===== =====
NET INCOME PER COMMON SHARE
Basic $.08 $.08 $.27 $.18
Diluted $.08 $.08 $.26 $.18
See accompanying Notes to Financial Statements
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
26 Weeks Ended 26 Weeks Ended
December 30, 1999 January 2, 1999
(000's) (000's)
Cash flows from operating activities:
Net Income $ 1,359 $ 924
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation and amortization 1,068 1,103
Loss on sale of fixed assets -- 35
Change in assets and liabilities:
Accounts receivable, net 344 1,748
Inventories, net (2,322) 1,920
Deferred taxes and other assets (668) (360)
Accounts payable 1,382 (1,056)
Accrued compensation and other (587) (310)
------ ------
Net cash provided from operating activities 576 4,004
----- -----
Cash flows from investing activities:
Proceeds from disposition -- 4
Additions to property, plant and equipment (1,509) (722)
------ ------
Net cash used in investing activities (1,509) (718)
------ ------
Cash flows from financing activities:
Increase (decrease) of borrowings, net 950 (3,561)
Proceeds from employee stock purchase
and stock options plans 16 28
------ ------
Net cash provided (used) in financing activities 966 (3,533)
------ ------
Net increase (decrease) in cash 33 (247)
Cash at beginning of period 203 629
------ ------
Cash at end of period $ 236 $ 382
====== ======
See accompanying Notes to Financial Statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The Consolidated Financial Statements presented herein include the
accounts of Acme Electric Corporation and its subsidiaries
("Registrant" or "Company"). The Consolidated Balance Sheet of the
Company at December 30, 1999, the Consolidated Statement of Income for
the thirteen- and twenty-six-week periods ended December 30, 1999, and
January 2, 1999, and the Consolidated Statement of Cash Flows for the
twenty-six-week periods ended December 30, 1999, and January 2, 1999,
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 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 Account 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 Consolidated Balance Sheet are
net of allowances for doubtful accounts of $265,000 and $171,000 at
December 30, 1999, and June 30, 1999, respectively.
3. Inventories included in the Consolidated Balance Sheet are as follows:
December 30, 1999 June 30, 1999
($000s) ($000s)
------ ------
Raw Material $6,725 $5,029
Work-In-Process 1,844 1,759
Finished Goods 3,023 2,482
------ ------
$11,592 $ 9,270
Inventories are reported net of reserves for obsolescence of
$1,200,000 and $1,217,000 at December 30 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 facilities.
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 26 Weeks 26 Weeks
Ended Ended Ended Ended
12/30/99 01/02/99 12/30/99 01/02/99
(000s) (000s) (000s) (000s)
------ ------ ------ ------
Net Sales
Aerospace $2,397 $2,811 $4,865 $5,601
Electronics 3,883 4,756 7,551 11,151
Power Distribution Products 12,967 11,236 26,102 24,429
------ ------ ------ ------
Combined 19,247 18,803 38,518 41,181
====== ====== ====== ======
Operating Income (Loss)
Aerospace (29) 262 190 327
Electronics (181) (424) (530) (336)
Power Distribution Products 2,151 1,885 4,702 4,046
----- ----- ----- -----
Combined 1,941 1,723 4,362 4,037
General Corporate Expense (977) (857) (1,709) (2,063)
Interest Expense (149) (208) (268) (460)
----- ------ ----- ------
Earnings Before Income Taxes 815 658 2,385 1,514
==== ==== ====== ======
Identifiable Assets
Aerospace 4,527 4,905 4,527 4,905
Electronics 15,534 13,898 15,534 13,898
Power Distribution Products 18,727 14,824 18,727 14,824
General Corporate 5,720 7,893 5,720 7,893
------ ------ ------ ------
Combined 44,508 41,520 44,508 41,520
====== ====== ====== ======
Depreciation and Amortization
Aerospace 98 76 195 186
Electronics 176 186 352 420
Power Distribution Products 119 115 236 229
General Corporate 143 133 285 268
---- ---- ------ ------
Combined 536 510 1,068 1,103
=== === ====== ======
Capital Expenditures
Aerospace 66 47 158 84
Electronics 104 258 146 300
Power Distribution Products 879 91 1,012 279
General Corporate 37 7 193 59
----- ---- ----- ----
Combined $1,086 $403 $1,509 $722
===== ==== ====== ====
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.
A summary of the period-to-period change in the principal items
included in the Consolidated Balance Sheet and which affect financial
condition follows:
Comparison of
Consolidated Balance Sheets at
December 30, 1999
and
June 30, 1999
Increase (Decrease)
(000's)
Current Assets $2,298
Property, Plant & Equipment Net 441
Other Assets 381
------
$3,120
======
Current Liabilities $ (610)
Long-Term Debt and Other Liabilities 2,355
Shareholders' Equity 1,375
------
$3,120
======
Current assets at December 30, 1999, increased $2,298,000, or 10.1%,
from June 30, 1999, levels due primarily to an increase in inventories.
Inventories were increased as a result of several factors, including
planned increases of raw material safety stocks related to Y2K planning,
continued start-up activity with the Mexican manufacturing initiative, and
ramp up on several new customer programs in the Company's power
distribution products business. Further contributing to inventory
increases was customer-related order delays associated with the new
magnetic resonance imaging device program in the Company's electronics
business.
The net increase in property, plant and equipment of $441,000, or
3.1%, primarily represents year-to-date expenditures in the amount of
$1,509,000, primarily associated with the Monterrey, Mexico, startup,
offset by depreciation of $1,068,000.
The increase in other assets of $381,000, or 8.7%, reflects an
increase in the pension asset the Company records associated with its
defined benefit pension plans. To date (through December 30, 1999), the
Company has recorded approximately $380,000 of income from these plans,
compared to income of approximately $520,000 for the similar six-month
period of a year ago.
Current liabilities decreased $610,000, or 5.8%, 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
$2,355,000, or 26.3%. 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.
The increase in shareholders' equity of $1,375,000 is primarily due
the profit year-to-date of $1,359,000.
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 any working capital requirements, as well as
the anticipated additional $1 million of capital expenditures.
The Company recently completed negotiations and signed a new three-
year unsecured credit agreement with favorable interest terms, which
provides for a revolving credit line with a $15,000,000 limit and a
maturity date of December 31, 2002. The Company has combined outstanding
borrowings and letters of credit against this facility of approximately
$5,600,000 as of February 10, 2000. Management believes that this
agreement will provide adequate liquidity for the foreseeable future.
Expectation for Year 2000 Compliance
- ------------------------------------
As noted in the Company's June 30, 1999, 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 purchasers, 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), was completed.
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 completed the implementation of Y2K compliant operating
systems and Oracle software upgrades. All such costs were expensed as
incurred.
The Company 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 developed contingency plans in the areas that management
considered appropriate. Elements of the contingency plans included the
capability to manually process customer orders and increase safety stock
inventories of critical parts and materials.
To date, the Company, to the best of its knowledge, has not
experienced any significant issues or interruptions, associated with the
arrival of the year 2000.
Results of Operations:
- ---------------------
Thirteen- and twenty-six-week periods ended December 30, 1999,
compared with the comparable thirteen- and twenty-six-week periods
ended January 2, 1999
------------------------------------------------------------------
Consolidated sales for the thirteen- and twenty-six-week periods ended
December 30, 1999, were $19,247,000 and $38,518,000, respectively, compared
with $18,803,000 and $41,181,000 for the comparable periods of a year
earlier. This is a 2.4% increase from the prior year quarter and a 6.5%
decrease from the prior year-to-date. Sales for the quarter increased
$444,000 over the prior year quarter, as a result of improved sales in the
Company's power distribution products business, due primarily to a new
customer program sales of $1.4 million. This sales increase was partially
offset by lower quarterly sales in the Company's electronics business, due
to the loss of the Cisco Systems program in January 1999, and lower sales
in the Company's aerospace business, due primarily to material shortages
experienced in production. The Company continues its efforts to fill the
void caused by the loss of the Cisco program, 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- and twenty-
six-week periods ended December 30, 1999, were 70.7% and 70.1%,
respectively, compared to 72.8% and 73.9% for the comparable periods of the
prior year. The improvement in gross margin is primarily attributable to
the mix of products shipped during the current year in the Company's power
distribution products business (Powerware program), as well as a more
profitable mix of product sales in the Company's electronics business,
absent Cisco sales. Included in the current quarter and year-to-date costs
(cost of sales and general administrative costs combined) was approximately
$330,000 and $450,000 of expense, respectively, associated with the start-
up phase of the Mexican manufacturing initiative, expected to gradually
ramp up over the next quarter.
Research and engineering expenses as a percent of net sales for the
thirteen- and twenty-six-week periods ended December 30, 1999, were 4.3%
and 4.5%, respectively, compared to 4.8% and 4.5%, respectively, for the
comparable periods of the prior year. While cost remains relatively
constant as a percentage of sales in the year-to-year comparison, actual
cost has fallen in excess of $125,000. It is anticipated, with the new
program initiatives in both the Company's electronics business and power
distribution products business, some additional engineering resources will
be required.
Selling and administrative costs as a percent of net sales were 19.9%
and 18.5% for the thirteen- and twenty-six-week periods ended December 30,
1999, compared to 17.8% and 16.8% for the comparable periods of the prior
year. Included, as an offset in the selling and administrative expenses in
the current year, 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 the current and prior year
is offsetting income of $168,000 (year-to-date) and $348,000 (year-to-
date), 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 have increased approximately $375,000 year-to-date
over the prior year's comparable period. Most of these additional expenses
related to general and administrative expenses associated with the Mexican
start-up operation (in excess of $350,000), coupled with one-time
professional fees associated with the Company's new NASDAQ listing.
Interest expense as a percent of net sales for the thirteen- and
twenty-six-week periods ended December 30, 1999, decreased to .7% from 1.1%
for the comparable periods of the prior year. Interest expense for the
thirteen- and twenty-six-week periods compared to the prior year same
periods decreased $59,000 and $192,000, respectively, as a result of lower
debt levels.
Income taxes as a percent of income before taxes for the thirteen- and
twenty-six-week periods ended December 30, 1999, were 49% and 43%,
respectively, compared with 39% for the comparable periods of the prior
year. The effective tax rates for the current year are higher than those
of the prior year, primarily due to certain Mexican start-up expenses not
eligible for future tax offset and, as such, no tax benefit was recognized.
Backlog at December 30, 1999, was $11,692,000, compared with
$13,798,000 at the end of the comparable period of the prior year. The
lower backlog at December 30, 1999, primarily reflects a smaller backlog in
the aerospace business, due mainly to production throughput improvements,
which have enabled the Division to bring customer programs current, while
the pursuit of new programs continues.
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.
PART II
OTHER INFORMATION
Item 5. Other Information
a. Exhibits
Interim Report dated
January 24, 2000, for the
quarter ended December 30,
1999. Exhibit 13
Financial Data Schedule. Exhibit 27
News Release of January 24,
2000, announcing the second
quarter results for fiscal year 2000. Exhibit 99
b. There were no reports filed on Form 8-K during the thirteen-
week period ended December 30, 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: February 14, 2000 /s/
Robert J. McKenna
Chairman, President and
Chief Executive Officer
Date: February 14, 2000 /s/
Michael A. Simon
Corporate Controller and
Assistant Secretary
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<PERIOD-END> DEC-30-1999
<CASH> 236
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<ALLOWANCES> 265
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0
0
<COMMON> 24,222
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<TOTAL-COSTS> 18,283
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EXHIBIT 13
SECOND QUARTER INTERIM REPORT
To Our Shareholders:
Our earnings continued to improve in the second quarter, and year-to-
date are up 47%. However, we expect to see some softening in the second
half of the fiscal year, due to timing delays on several new programs,
which we now expect will be profit contributors beginning in our new
fiscal year.
Production was expected to begin in January for the electronic amplifier
system we are supplying to Picker Corporation for its new magnetic
resonance imaging (MRI) equipment. However, we were recently asked to
delay production until July. This will be a terrific new program for
us, and we are anxious to fully demonstrate to Picker our full
capabilities.
We have signed a letter of intent with 3PARdata to develop and
manufacture an integrated uninterruptible/custom power system for its
large data storage equipment. We expect production to begin in late
summer.
We are close to signing an agreement with Tachion Networks to
manufacturea central office telecommunications switch. Production
should start inJune and is expected to yield several million dollars in
new business.
Last quarter, we shipped the first production units of our newly
developed fiber-optic cable power system to Europe. Early feedback has
been positive. Field test units of a domestic version were shipped in
early January, and we expect the evaluation process to be completed by
late spring. Our plans call for full production of both units to begin
in July.
Progress continues at our start-up operation in Monterrey, Mexico. By
the end of March, we will be producing 44 different transformers at this
location, and expect our investment to begin contributing to our
profitability.
Overall, business is good and will be even better once these new
initiatives are underway.
/s/
Robert J. McKenna
Chairman and CEO
January 24, 2000
_____________________________________________________________________
ACME ELECTRIC CORPORATION
East Aurora, New York
The following tables set forth certain unaudited financial information
for the twenty-six-week periods ended December 30, 1999, and January 2,
1999 (in thousands, except for per share data):
BALANCE SHEET
12/30/99 01/02/99 06/30/99
-------- -------- --------
Current Assets $25,038 $23,103 $22,740
Fixed Assets and Other - Net 19,470 18,417 18,648
------ ------ ------
Total $44,508 $41,520 $41,388
====== ====== ======
Current Liabilities $ 9,942 $10,423 $10,552
Long-Term Debt 11,315 11,075 8,960
Shareholders' Equity 23,251 20,022 21,876
------ ------ ------
Total $44,508 $41,520 $41,388
====== ====== ======
INCOME STATEMENT
13 Weeks 13 Weeks 26 Weeks 26 Weeks F/Y
Ended Ended Ended Ended Ended
12/30/99 1/2/99 12/30/99 1/2/99 6/30/99
-------- ------ -------- ------ -------
Net Sales $19,247 $18,803 $38,518 $41,181 $79,813
Net Income $417 $402 $1,359 $924 $2,707
Net Income Per Common Share
Basic $.08 $.08 $.27 $.18 $.53
Diluted $.08 $.08 $.26 $.18 $.53
Weighted Average Number of Shares
Outstanding Used to Compute
Income Per Common Share:
Basic 5,074 5,057 5,073 5,056 5,060
Diluted 5,152 5,088 5,135 5,078 5,091
EXHIBIT 99
NEWS RELEASE
CONTACT:
Richard Becht
(716) 655-3800
FOR IMMEDIATE RELEASE
ACME ELECTRIC CORPORATION REPORTS SECOND QUARTER RESULTS
EAST AURORA, N.Y., January 24, 2000 -- Acme Electric
Corporation (NASDAQ:ACEE) announced today that for the second
quarter ended December 31, 1999, consolidated sales were
$19,247,000, with net income of $417,000, or $.08 per diluted
share, compared with sales of $18,803,000 with net income of
$402,000, or $.08 per diluted share, for the comparable period
last year.
Sales for the twenty-six-week period ended December 31,
1999, were $38,518,000, with net income of $1,359,000, or $.26
per diluted share, compared with sales of $41,181,000, with
net income of $924,000, or $.18 per diluted share, for the
comparable period last year.
Robert J. McKenna, Chairman and Chief Executive Officer,
stated that, "We are very pleased with both our second quarter
and first half-year performance. The second half of the year
is also expected to be profitable, but delays in the timing of
some major programs will reduce sales and earnings in the near
term. We expect these orders, first contemplated for the
second half of this fiscal year, to materialize in the first
half of next fiscal year, beginning July 1."
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.
# # # #
ACME ELECTRIC CORPORATION
Comparative Analysis
(in thousands, except per share data)
13 Weeks Ended 26 Weeks Ended
12/31/99 01/02/99 12/31/99 01/02/99
-------- -------- -------- --------
Net Sales $19,247 $18,803 $38,518 $41,181
Net Income $417 $402 $1,359 $924
Net Income Per Common Share
Basic $.08 $.08 $.27 $.18
Diluted $.08 $.08 $.26 $.18
Weighted Average Number of Shares
Outstanding Used to Compute
Income Per Common Share:
Basic 5,074 5,057 5,073 5,056
Diluted 5,152 5,088 5,135 5,078
Company news is available by FAX: dial 1-800-758-5804, and
input extension 006675; or visit our web site at acmeelec.com
