-----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, Ky/RQJyOW68DEHn+E0y1pkRLVb/NW2EJMEwE66eN/tcgK6N6eNfU/wW/DHj0nvPD P/wlz0Dfb9CxkbmyzGYOQg== 0000891092-04-000179.txt : 20040120 0000891092-04-000179.hdr.sgml : 20040119 20040120131842 ACCESSION NUMBER: 0000891092-04-000179 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040119 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INNOVEX INC CENTRAL INDEX KEY: 0000050601 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPONENTS, NEC [3679] IRS NUMBER: 411223933 STATE OF INCORPORATION: MN FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13143 FILM NUMBER: 04531925 BUSINESS ADDRESS: STREET 1: 5540 PIONEER CREEK DRIVE CITY: MAPLE PLAIN STATE: MN ZIP: 55359-9003 BUSINESS PHONE: 7634795300 8-K 1 e16630_8k.txt FORM 8-K 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): January 19, 2004 INNOVEX, INC. (Exact name of Registrant as specified in its charter) Minnesota 000-13143 41-1223933 --------- --------- ---------- (State or other jurisdiction (Commission File (I.R.S. Employer of incorporation) Number) Identification No.) 5540 Pioneer Creek Drive Maple Plain, Minnesota 55359-9003 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (763) 479-5300 Items 1 through 6 and 8 through 11 are not applicable and therefore omitted. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits The following is furnished as an Exhibit to this Report: Exhibit No. Description of Exhibit - ----------- ---------------------- 99.1 Press release issued January 19, 2004. ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION. Pursuant to Item 12 of Form 8-K, Disclosure of Results of Operations and Financial Condition, Innovex, Inc. hereby furnishes a press release, issued on January 19, 2004, disclosing material non-public information regarding its results of operations for the quarter ended December 31, 2003. 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. INNOVEX, INC. By /s/ Thomas Paulson ------------------------- Thomas Paulson Chief Financial Officer Dated: January 20, 2004 EX-99.1 3 e16630ex99_1.txt PRESS RELEASE Exhibit 99.1 Innovex Announces Fiscal 2004 First Quarter Results Generates $1.6 Million Net Profit. Revenue Grows 28% Versus Prior Year. MAPLE PLAIN, Minn., Jan. 19 /PRNewswire-FirstCall/ -- Innovex, Inc. (Nasdaq: INVX) today reported revenue of $44.3 million for the fiscal 2004 first quarter ending December 31, 2003, a 7% increase from the $41.5 million reported in the fourth quarter of fiscal 2003 and a 28% increase from the $34.5 million reported for the prior year first quarter. The company's pretax income was $1.9 million in the first quarter of fiscal 2004 as compared to a pretax income of $693,000 in the fourth quarter of fiscal 2003 and a loss of $4.1 million in the prior year first quarter. The company's net income was $1.6 million or $0.08 per share in the first quarter of fiscal 2004. This compares to a net income of $759,000 or $0.04 per share in the fourth quarter of fiscal 2003 and a net loss of $2.3 million or $0.15 per share in the prior year first quarter. "We are very excited by the broad based improvement in our revenue this quarter as we achieved our fifth consecutive quarter of sequential growth," commented William P. Murnane, Innovex's President and Chief Executive Officer. "Our improvement was driven by continued strength in actuator flex circuit (AFC), liquid crystal display (LCD) and stacked memory product line revenue. We anticipate revenue of $44.5 to $46.0 million and diluted earnings per share of $0.09 to $0.10 in our March quarter, continuing our track record of consecutive top and bottom line improvement. Our fiscal 2004 outlook remains optimistic as all major product lines present growth opportunities for the balance of the fiscal year. We are particularly excited by the long-term opportunities in the LCD and plasma display markets," stated Murnane. Revenue from the disk drive industry generated 75% of the Company's net sales for the quarter, integrated circuit packaging application revenue was 10%, display application revenue was 8%, network system application revenue was 4% and other revenue was 3%. The gross margin for the fiscal 2004 first quarter was 20% as compared to 18% for the fiscal 2003 fourth quarter and 10% for the fiscal 2003 first quarter. The improved margin as compared to the fiscal 2003 fourth and first quarters was the result of higher net sales increasing the company's fixed cost leverage and efficiency improvements primarily related to the company's Six Sigma initiative. Cash and equivalents were $19.7 million and long-term debt was $6.4 million at December 31, 2003 as compared to cash of $21.6 million and long-term debt of $9.1 million at September 30, 2003 and cash of $3.1 million and long-term debt of $13.5 million at December 31, 2002. The increase in cash and reduction of long-term debt at December 31, 2003 as compared to December 31, 2002 is a result of net proceeds of $39.5 million from a follow- on stock offering completed August 4, 2003. Net working capital improved to $36.1 million as of December 31, 2003 as compared to $35.6 million at the end of fiscal 2003 and ($3.0) million as of December 31, 2002. "We continue to experience improving gross margins as our revenue increases and our operations become more efficient," stated Tom Paulson, Innovex's Chief Financial Officer. "We invested $2 million in the fiscal 2004 first quarter primarily to increase capacity in our bottleneck processes and we expect to spend another $6-8 million over the remainder of the fiscal year to selectively increase our capacity as demand continues to grow and to make strategic investments that will improve our operational efficiency," stated Paulson. Cash flow from operations was $1.7 million in the fiscal 2004 first quarter, benefiting from net income and non-cash charges for depreciation and an increase in accounts payable offsetting the increases in accounts receivable and inventories during the quarter. Innovex will conduct a conference call and web cast for investors beginning at 10:00 a.m. Central Standard Time (CST) on Tuesday, January 20, 2004. During the conference call, Mr. Murnane and senior managers will discuss product acceptance, historical results and future outlook. To listen to the live conference call, dial 785-832-1508 and ask for conference ID "Innovex." The live web cast will be available at www.innovexinc.com/investor.shtml . A replay of the call will be available on Tuesday, January 20 through 11:59 p.m. EST on Thursday, January 22. To access the replay, dial (402) 220-1141 and ask for conference ID "Innovex." The web cast version of the conference call will be archived at www.innovexinc.com/investor.shtml . In addition, Innovex's annual shareholders meeting will be web cast on Tuesday, January 20, 2004 at 3:30 p.m. CST. The live web cast will be available at www.innovexinc.com/investor.shtml . To listen to the live annual shareholder meeting, U.S. participants can dial 800-901-5213 and international participants can dial 617-786-2962 and ask for conference ID No. 10501358. The web cast will be archived at www.innovexinc.com/investor.shtml . Innovex, Inc. is a leading manufacturer of high-density flexible circuit- based electronic interconnect solutions. Innovex's products enable the miniaturization and increasing functionality of high technology electronic devices. Applications for Innovex's products include data storage devices such as hard disk drives and tape drives, liquid crystal displays for mobile telecommunication devices, flat panel displays and printers. Innovex is known worldwide for its advanced technology and world class manufacturing. Except for historical information contained herein, the matters discussed in this release are forward looking statements that involve risks and uncertainties, including the timely availability and acceptance of new products, the impact of competitive products and pricing, effect of world-wide economic conditions on flexible circuit demand, changes in manufacturing efficiencies and other risks detailed from time to time in the company's reports filed with the Securities and Exchange Commission. INNOVEX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) Three Months Ended December 31 2003 2002 Net sales $44,344 $34,525 Costs and expenses: Cost of sales 35,619 31,030 Selling, general and administrative 4,957 4,623 Engineering 1,751 1,536 Restructuring charges - 750 Net interest expense 159 568 Net other (income) expense (46) 91 Income (loss) before income taxes 1,904 (4,073) Provision for income taxes 310 (1,777) Net income (loss) $1,594 ($2,296) Net income (loss) per share: Basic $0.08 ($0.15) Diluted $0.08 ($0.15) Weighted average shares outstanding: Basic shares 18,937 15,159 Diluted shares 19,762 15,159 INNOVEX, INC. CONSOLIDATED BALANCE SHEETS (In thousands) December 31, September 30, ASSETS 2003 2003 Current assets: Cash and equivalents $19,666 $21,607 Accounts receivable, net 27,951 24,450 Inventory 11,413 8,635 Other current assets 6,065 5,839 Total current assets 65,095 60,531 Property, plant and equipment, net 66,087 66,881 Intangible & other assets, net 5,323 5,342 Deferred income taxes long term 4,544 4,829 Total assets $141,049 $137,583 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $29,043 $24,949 Long-term debt 6,433 9,087 Stockholders' equity 105,573 103,547 Total liabilities and stockholders' equity $141,049 $137,583 INNOVEX, INC. CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) Three months ended December 31, 2003 2002 Cash Flows From Operating Activities: Net income (loss) $1,594 ($2,296) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 2,871 3,076 Restructuring charges - 750 Other non-cash items (10) 8 Changes in operating assets and liabilities: Accounts receivable (3,501) (1,127) Inventories (2,778) 696 Deferred income taxes 285 (3,143) Income taxes (26) 1,362 Other current assets (200) (216) Accounts payable 3,490 2,458 Other current liabilities (73) 556 Net cash provided by operating activities 1,652 2,124 Cash Flows From Investing Activities: Capital expenditures (2,086) (1,552) Proceeds from sale of assets 38 4 Net cash used in investing activities (2,048) (1,548) Cash Flows From Financing Activities: Principal payments on long-term debt (1,978) (3,097) Net (payments) proceeds on line of credit - 3,201 Proceeds from exercise of stock options 325 15 Proceeds from employee stock purchase plans 108 74 Net cash provided by (used in) financing activities (1,545) 193 Increase (decrease) in cash and equivalents (1,941) 769 Cash and equivalents at beginning of year 21,607 2,364 Cash and equivalents at end of year $19,666 $3,133 SOURCE Innovex, Inc. -0- 01/19/2004 /CONTACT: Tom Paulson, CFO, or Doug Keller, VP - Finance, both of Innovex, Inc., +1-763-479-5300, or fax, +1-763-479-5395/ /Web site: http://www.innovexinc.com http://www.innovexinc.com/investor.shtml / (INVX) CO: Innovex, Inc. ST: Minnesota IN: CPR TLS PEL SU: ERN CCA ERP -----END PRIVACY-ENHANCED MESSAGE-----