SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported): March 4, 1998
PARK ELECTROCHEMICAL CORP.
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(Exact Name of Registrant as Specified in Its Charter)
New York 1-4415 11-1734643
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(State or other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
5 Dakota Drive, Lake Success, New York 11042
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(Address of Principal Executive Offices) (Zip Code)
(516) 354-4100
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Registrant's Telephone Number,
Including Area Code
N/A
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Former Name or Former Address, if Changed Since Last Report
Exhibit Index is on Page 4
Page 1 of 6 Pages
Item 5 Other Events.
On March 4, 1998, Park Electrochemical Corp. (the
"Company") announced that it had been informed by its largest
customer, Delco Electronics Corporation, that Delco plans to
close down its printed circuit board fabrication plant and
completely exit the printed circuit board manufacturing business
over the next several months. The Company's news release dated
March 4, 1998 is filed as Exhibit 99 hereto and is incorporated
herein by reference.
Item 7 Financial Statements, Pro Forma Financial Information
and Exhibits.
(c) Exhibits:
Exhibit
Number
99. News Release dated March 4, 1998.
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 hereunto duly
authorized.
PARK ELECTROCHEMICAL CORP.
Date: March 5, 1998 By:/s/ Stephen E. Gilhuley
Name: Stephen E. Gilhuley
Title: Secretary
EXHIBIT INDEX
Number
Exhibit Description Page
99 News Release dated March 4, 1998 5
EXHIBIT 99
PARK ELECTROCHEMICAL CORPORATION
NEWS
Contact: Adrienne Binenstock 5 Dakota Drive
Park Electrochemical Corp. Lake Success, NY 11042
(516) 354-4100 (516) 354-4100
PARK ELECTROCHEMICAL ANNOUNCES EXIT OF ITS LARGEST
CUSTOMER FROM PRINTED
CIRCUIT BOARD MANUFACTURING BUSINESS
LAKE SUCCESS, New York, March 4, 1998...Park Electrochemical Corp. (NYSE-
PKE) announced it has been informed by its largest customer, Delco
Electronics Corporation, that Delco plans to close down its printed
circuit board fabrication plant and completely exit the printed circuit
board manufacturing business over the next several months. After the
plant closure, Delco will purchase all of its printed circuit boards from
outside suppliers and Delco will no longer be a customer of Park's. The
Company has been Delco's principal supplier of semi-finished multilayer
printed circuit board materials for more than ten years. These materials
are used by Delco to produce finished bare multilayer printed circuit
boards. The Company estimates that, during its most recently completed
fiscal year which ended March 1, 1998, sales to Delco Electronics
represented 15.7% of the Company's total sales and the net earnings
attributable to sales to Delco represented approximately 21% of the
Company's total net earnings. The Company plans to aggressively market
its unique high technology semi-finished multilayer circuit board material
manufacturing capability to leading printed circuit board fabricators,
contract assemblers and electronic OEMs in North America. The Company has
not previously been able to aggressively market this capability as it has
been largely committed to supplying Delco Electronics. Although the
Company is not able to quantify the short-term financial impact of the
loss of Delco as a customer, the Company expects that its business should
return to normal operating levels and ratios within approximately one year
as it ramps up its semi-finished circuit board material business with
other customers.
Brian E. Shore, Park's President and CEO, said, "Although we are
disappointed with Delco's decision to exit the circuit board business, we
are excited about the opportunities which have been opened up to us to
market our unique semi-finished circuit board material manufacturing
capabilities to leading electronics companies in North America. Since
Delco's order patterns have been variable in the past, we have been
required to reserve and set aside the large majority of our semi-finished
circuit board material manufacturing capacity and capability for Delco.
Delco's departure from the business will allow us to serve new markets
with our advanced capabilities and leading technology for high layer
count, very thin dielectric, very fine line and space geometry semi-
finished circuit board materials. We have valued our close relationship
with Delco over the years and we believe we have very significantly
enhanced Delco's business during the course of our relationship. We are
looking forward to offering and bringing our unique high technology semi-
finished circuit board manufacturing capabilities to a wider array of
leading electronics customers in the future."
Certain portions of this press release which do not relate to historical
financial information may be deemed to constitute forward looking
statements that are subject to various factors which could cause actual
results to differ materially from Park's expectations. Such factors
include, but are not limited to, general conditions in the electronics
industry, Park's competitive position, the status of the Company's
relationships with its customers, the Company's ability to ramp up its
semi-finished circuit board business with customers other than Delco
Electronics, economic conditions in international markets, and the various
factors set forth under the caption "Factors That May Affect Future
Results" after Item 7 of Park's Annual Report on Form 10-K for the fiscal
year ended March 2, 1997.
Park Electrochemical Corp. is a leading designer and producer of advanced
electronic materials used to fabricate complex multilayer printed circuit
boards and interconnection systems. Park's electronic materials business
is operated by its "Nelco" group of companies. Park also manufactures
specialty adhesive tapes and advanced composite materials for the
electronics, aerospace and industrial markets.
Additional corporate information is available on the World Wide Web at
http://www.parkelectro.com.
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