-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WceRG+aMOt8IV5vSCoiZEojbJku/FV0Ql6ml1+AEGAsxrfUvqWYzydTsspoCfgU0 PJy7WI5zYoUws8xbCxZBLA== 0001275287-05-001235.txt : 20050411 0001275287-05-001235.hdr.sgml : 20050411 20050411115635 ACCESSION NUMBER: 0001275287-05-001235 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050411 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050411 DATE AS OF CHANGE: 20050411 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEI INC CENTRAL INDEX KEY: 0000351298 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 410944876 STATE OF INCORPORATION: MN FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-10078 FILM NUMBER: 05743340 BUSINESS ADDRESS: STREET 1: 1495 STEIGER LAKE LN STREET 2: P O BOX 5000 CITY: VICTORIA STATE: MN ZIP: 55386 BUSINESS PHONE: 9524432500 MAIL ADDRESS: STREET 1: P O BOX 5000 STREET 2: 1495 STEIGER LAKE LANE CITY: VICTORIA STATE: MN ZIP: 55386 8-K 1 hi2399.txt ================================================================================ UNITED STATES 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): April 11, 2005 HEI, Inc. (Exact name of Registrant as Specified in Charter) Minnesota 0-10078 41-0944876 ---------------------------- ------------ ------------------- (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) PO Box 5000, 1495 Steiger Lake Lane, Victoria, Minnesota 55386 -------------------------------------------------------------- (Address of Principal Executive Offices, including Zip Code) (952) 443-2500 ---------------------------------------------------- (Registrant's telephone number, including area code) N/A ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2.): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION HEI, Inc. issued a press release on April 11, 2005 disclosing its results of operations for the quarter ended February 26, 2005. The full text of the press release issued on April 11, 2005 is furnished as Exhibit 99.1 to this report. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits The following Exhibits shall be deemed furnished and not filed as a part of this Report: Exhibit No. Description of Exhibit - ----------- ----------------------------------------------------------------- 99.1 Press release issued April 11, 2005, announcing results of operations for the quarter ended February 26, 2005. 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 hereunto duly authorized. HEI, INC. Dated: April 11, 2005 By /s/ Timothy Clayton ---------------------------- Timothy Clayton Its: Chief Financial Officer Exhibit Index 99.1 Press Release dated April 11, 2005, regarding the Company announcing results for its second quarter of fiscal 2005, which ended February 26, 2005. EX-99.1 2 hi2399ex991.txt Exhibit 99.1 HEI ANNOUNCES SECOND QUARTER FISCAL 2005 RESULTS PR Newswire -- April 11, 2005 -- Revenues grow 37% over second quarter of fiscal 2004 -- Year-to-date revenues increase 33% over fiscal 2004 -- Quarterly operating results improve by $2.5 million from 2004 MINNEAPOLIS, April 11 /PRNewswire-FirstCall/ -- HEI, Inc. (Nasdaq: HEII) ( http://www.heii.com ) today announced results for its second quarter of fiscal 2005, which ended February 26, 2005. Net sales for the second quarter of fiscal 2005 were $13.7 million, a 37% improvement over sales of $10.0 million reported in the second quarter of fiscal 2004. The Company reported a net loss of $537,000 or ($0.06) per share in the second quarter this year as compared to a loss of $2,969,000 or ($0.41) per share last year. For the six-month period ended February 26, 2005, net sales were $27.8 million, an increase of 33% over the first six months of fiscal 2004. The Company's net loss for the first six months of fiscal 2005 shrank to $122,000 or ($0.01) per share from a loss of $4.2 million or ($0.59) per share for the first six months of fiscal 2004. "I am pleased to report that our initiatives over the past year are continuing to pay dividends by way of significantly improved operating metrics, said Mack Traynor, Chief Executive Officer and President. "Increased sales levels are obviously the driver of our improved results and we are very pleased with the 37% increase in quarterly sales over last year. We could not deliver the products without the improvements in our manufacturing capabilities which have also resulted in an improvement in our gross margins from 5% last year to 21% this year. As a result, our operating results improved substantially, cutting our operating loss for the quarter by $2.5 million." Traynor added, "While we are not satisfied with reporting even a small operating loss for the quarter, the results are as we expected given the unusual matters that we had to address over the past three or four months. These issues included the completion of our fiscal 2004 audit and filing of the Form 10-K, meetings with NASDAQ about our listing status, several system integration activities and other internal control improvements. All told, we incurred approximately $500,000 of costs that were over and above the norm in the second quarter. I am very pleased that these issues have been satisfactorily resolved and we can now focus all of our energies on the continued growth of the Company." "Over the past few months I have met with a number of customers who are very pleased with the high standards of quality and service provided by HEI. This level of commitment to our customers has provided us with additional opportunities to increase our business with these customers and to obtain business with new customers. We will continue to pursue these opportunities aggressively. As evidenced by our strong increases in sales, these efforts have proven successful over the past six months. However, this growth has also required a significant increase in our working capital requirements and has precipitated the need for additional manufacturing equipment in order to meet this demand. In order to continue to execute on our strategic plan, we believe that additional capital will be necessary and we are currently evaluating the best means by which to satisfy these growth oriented capital requirements. We look forward to actively pursuing the new opportunities that lie ahead," concluded Mr. Traynor. The Company will hold a conference call to discuss the Company's operating results and business strategies on Monday, April 11, 2005 at 4:00 p.m. Eastern Time (3:00 p.m. Central Time). This call is being web cast and is also accessible via telephone. To access the listen-only web cast, visit http://www.actioncast.acttel.com and enter Event ID 28309. The conference call can be accessed via telephone by dialing 1-800-218-0713 (outside the US, dial 303-262-2131). Specify conference reservation number 11027978. HEI, Inc. Consolidated Statements of Operations (Unaudited) (In thousands, except per share data)
Three Months Ended Six Months Ended ---------------------------- ---------------------------- February 26, February 28, February 26, February 28, 2005 2004 2005 2004 ------------ ------------ ------------ ------------ Net sales $ 13,736 $ 9,995 $ 27,808 $ 20,911 Cost of sales 10,869 9,544 21,984 19,396 Gross profit 2,867 451 5,824 1,515 Operating expenses: Selling, general and administrative 2,344 2,061 4,387 3,818 Research, development and engineering 934 857 1,771 1,579 Costs related to investigation - 504 - 757 Operating loss (411) (2,971) (334) (4,639) Other income (expenses): (126) 2 212 417 Loss before income taxes (537) (2,969) (122) (4,222) Income tax benefit - - - - Net loss $ (537) $ (2,969) $ (122) $ (4,222) Net loss per common share(basic and diluted): $ (0.06) $ (0.41) $ (0.01) $ (0.59) Weighted average common shares outstanding (basic and diluted): 8,357 7,232 8,357 7,140
HEI, Inc. Consolidated Balance Sheets (In thousands) February 26, August 31, 2005 2004 ------------ ------------ (unaudited) (audited) Cash and cash equivalents $ 69 $ 200 Restricted cash - 481 Accounts receivable, net 8,816 6,770 Inventories 7,932 6,787 Other current assets 1,298 1,221 Total current assets 18,115 15,459 Net property and equipment 6,933 7,391 Other assets 2,237 2,262 Total assets $ 27,285 $ 25,112 Line of credit $ 3,539 $ 1,310 Current maturities of long-term debt 368 403 Accounts payable and accruals 10,173 10,332 Total current liabilities 14,080 12,045 Long-term debt, less current maturities 1,672 1,833 Other long-term liabilities 1,470 1,277 Total shareholders' equity 10,063 9,957 Total liabilities and shareholders' equity $ 27,285 $ 25,112 HEI, Inc. designs, develops and manufactures microelectronics, subsystems, systems, connectivity and software solutions for OEMs engaged in the medical equipment and medical device, hearing, communications, and industrial markets. HEI provides its customers with a single point of contact that can take an idea from inception to a fully functional, cost effective and manufacturability product utilizing innovative design solutions and by the application of state-of-the-art materials, processes and manufacturing capabilities. Headquarters & Microelectronics Division PO Box 5000, 1495 Steiger Lake Lane, Victoria, MN 55386 -Advanced Medical Division 4801 North 63rd Street, Boulder CO 80301 -High Density Interconnect Division 610 South Rockford Drive, Tempe, AZ 85281 RF Identification and Smart 1546 Lake Drive West, Card Division Chanhassen, MN 55317 FORWARD-LOOKING INFORMATION Information in this news release, which is not historical, includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements contained in this press release, including the implementation of business strategies, growth of specific markets, improved results and the estimated HEI revenue, cash flow and profits, HEI's expectations regarding continued listing of HEI's common stock on Nasdaq, are forward looking statements. All of such forward- looking statements involve risks and uncertainties including, without limitation, continuing adverse business and market conditions, the ability of HEI to secure and satisfy customers, the availability and cost of materials from HEI's suppliers, our ability to satisfy financial or other obligations or covenants set forth in our banking agreements, adverse competitive developments, change in or cancellation of customer requirements, the integration of the Advanced Medical Division, collection of outstanding debt, HEI's ability to succeed on the merits and defend against litigation, and other risks detailed from time to time in HEI's SEC filings. We undertake no obligation to update these statements to reflect ensuing events or circumstances, or subsequent actual results. SOURCE HEI, Inc. -0- 04/11/2005 /CONTACT: Mack V. Traynor, CEO, or Timothy Clayton, CFO, +1-952-443-2500, both of HEI/ /Web site: http://www.heii.com -----END PRIVACY-ENHANCED MESSAGE-----