SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): May 19, 1999
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OPTICAL COATING LABORATORY, INC.
(Exact name of registrant as specified in its charter)
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DELAWARE 0-2537 68-0164244
(State or other (Commission File No.) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation or
organization)
2789 NORTHPOINT PARKWAY, SANTA ROSA, CA 95407-7397
(Address, including zip code, of registrant's principal executive offices)
Registrant's telephone number, including area code: (707) 545-6440
Item 5. Other Events
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On May 19, 1999, Optical Coating Laboratory, Inc., a Delaware
corporation, made the following announcement:
Optical Coating Laboratory, Inc. and Subsidiaries Announce
Second Quarter 1999 Earnings
SANTA ROSA, Calif., May 19, 1999 -- Optical Coating Laboratory,Inc.
(OCLI) (Nasdaq: OCLI) today announced results for its second quarter of
fiscal year 1999. Revenues for the second quarter of 1999 totaled
$84.0 million, an increase of 31% over revenues of $64.3 million in
the second quarter of 1998. Included in the second quarter of 1998 are
revenues of$3.3 million reported by the Company's MMG division which
was sold at the beginning of fiscal year 1999. MMG's income from
operations and net income for the second quarter of 1998 were not material.
Income from operations for the second quarter of fiscal 1999 totaled
$8.2 million which represents an increase of 26% over $6.5 million
reported in the second quarter of 1998. Net income applicable to common
stock totaled $4.8 million, or $.34 per share on a diluted basis, compared
to $.25 per share on a diluted basis for the second quarter 1998. This
includes a loss of $934,000 on the sale of a large continuous production
platform taken out of service in fiscal year 1998.
On February 22, 1999, the Company announced the acquisition of
OPKOR, Inc. (OPKOR), a Rochester, New York-based optical design and
manufacturing company specializing in precision polymer optics components
and assemblies. This transaction closed on March 26, 1999. OPKOR results
for the quarter were not material.
As of April 30, 1999, OCLI's order backlog totaled $89.3
million compared to $70.3 million at April 30, 1998 and $78.2 million
at October 31, 1998 adjusted to exclude MMG.
Except for historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve
risks and uncertainties. Actual results may vary significantly based on a
number of factors including, but not limited to: product development,
commercialization and technological difficulties; manufacturing cost,
yield and throughput issues associated with initiating production at new
facilities; the impact of competitive products and pricing; changing
customer requirements and buying patterns; timely availability and
acceptance of new products; and the change in economic conditions of the
various markets served by OCLI and its Subsidiaries.
Optical Coating Laboratory, Inc. (OCLI) is a worldwide leader
in optical thin film coating technologies. OCLI's products are found in
many applications including computer displays, telecommunications equipment,
photocopiers, fax machines, medical and analytical instruments,
communications satellites and aerospace and defense systems. Flex Products,
Inc., OCLI's wholly owned subsidiary, designs and manufactures thin film
coatings on flexible substrates using high vacuum roll-to-roll processes.
Flex supplies critical pigments for use in anti-counterfeiting applications,
energy conserving window film for residential, commercial, and automotive
applications and ChromaFlair(R) light interference pigments for commercial
paints. For more information about OCLI, visit its web site at www.ocli.com.
OPTICAL COATING LABORATORY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SELECTED
FINANCIAL DATA
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months
Ended
April 30, April 30, April 30, April 30,
1999 1998 1999 1998
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Revenues $83,994 $64,345 $153,845 $117,718
Cost of sales 57,650 42,484 106,282 78,719
Gross profit 26,344 21,861 47,563 38,999
Operating Expenses:
Research and development 5,450 4,026 10,094 7,847
Selling and administrative 11,205 11,171 21,398 20,659
Loss on asset disposal 934 934
Legal settlement, net (2,960)
In-process research
and development 2,906
Amortization of intangible
assets 580 198 797 398
Total operating expenses 18,169 15,395 33,169 28,904
Income from operations 8,175 6,466 14,394 10,095
Other income:
Interest income 304 81 622 165
Interest expense (1,028) (927) (1,987) (1,735)
Income before provision
for income taxes and
minority interest 7,451 5,620 13,029 8,525
Provision for income taxes 2,683 2,163 5,737 3,325
Minority interest -- 408 491 555
Net income 4,768 3,049 6,801 4,645
Dividend on convertible
redeemable preferred stock -- 125 -- 250
Net income applicable
to common stock $4,768 $2,924 $6,801 $4,395
Net income per share,
basic $0.38 $0.27 $0.55 $0.41
Net income per share,
diluted $0.34 $0.25 $0.51 $0.38
Average shares outstanding 12,400 10,903 12,273 10,767
Average shares and common
equivalent shares 13,827 11,553 13,350 11,478
Orders booked (excluding
MMG in 1998) $93,843 $73,269 $164,152 $129,303
Backlog of orders
(excluding MMG in 1998) $89,251 $73,795 $89,251 $73,795
Revenues by Geographic
Destination:
U.S.A. $26,756 $26,525 $49,013 $47,511
Canada and Other Americas 30,400 13,275 53,127 21,554
Europe and Other 16,705 15,876 32,799 32,507
Asia and Pacific Rim 10,133 8,669 18,906 16,146
Total Revenues $83,994 $64,345 $153,845 $117,718
OPTICAL COATING LABORATORY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)
April 30, Oct. 31,
ASSETS 1999 1998
_________ ________
Current Assets:
Cash and short-term investments $34,978 $40,880
Accounts receivable, net 35,835 38,585
Inventories 20,958 25,233
Deferred income tax assets 5,358 9,311
Other current assets 3,383 1,822
Total Current Assets 100,512 115,831
Other Assets and Investments 30,598 4,867
Property, Plant and Equipment 190,968 189,228
Less accumulated depreciation (93,565) (96,340)
Property, Plant and Equipment - Net 97,403 92,888
Total Assets $228,513 $213,586
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $9,569 $8,423
Accrued expenses 7,958 9,935
Accrued compensation expenses 10,164 10,365
Current maturities on long-term debt 5,395 6,026
Notes payable 5,450 4,483
Income taxes payable 178 708
Deferred revenue 5,483 761
Total Current Liabilities 44,197 40,701
Accrued Postretirement Health Benefits
and Pension Liabilities 2,300 2,241
Deferred Income Tax Liabilities 9,308 3,528
Long-term Debt and Other Liabilities 52,390 52,373
Minority Interest -- 12,520
Stockholders' Equity 120,318 102,223
Total Liabilities
and Stockholders' Equity $228,513 $213,586
SIGNATURE
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.
Dated: May 19, 1999
OPTICAL COATING LABORATORY, INC.
(Registrant)
By /s/ CRAIG B. COLLINS
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Craig B. Collins
Vice President, Finance
and Chief Financial Officer
