-----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, TiJOyWy0UdnMNgAaSxNSIH/XHxP2XliBOmQkn1i6yOelDG+MR9ZkeVsvUG0Nd2va NagXUzF7OhPio9oihB/eww== 0001157523-04-010489.txt : 20041109 0001157523-04-010489.hdr.sgml : 20041109 20041109093431 ACCESSION NUMBER: 0001157523-04-010489 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041108 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041109 DATE AS OF CHANGE: 20041109 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: 041127600 BUSINESS ADDRESS: STREET 1: 5540 PIONEER CREEK DRIVE CITY: MAPLE PLAIN STATE: MN ZIP: 55359-9003 BUSINESS PHONE: 7634795300 8-K 1 a4761347.txt INNOVEX 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): November 8, 2004 Innovex, Inc. --------------------------- (Exact name of Registrant as Specified in its Charter) Minnesota --------------------------- (State Or Other Jurisdiction Of Incorporation) 000-13143 41-1223933 ---------------------------------- ------------------------------------ (Commission File Number) (I.R.S. Employer Identification No.) 5540 Pioneer Creek Drive Maple Plain, MN 55359 - ---------------------------------------------- --------------------- (Address Of Principal Executive Offices) (Zip Code) (763) 479-5300 --------------------------- Registrant's Telephone Number, Including Area Code Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| 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)) Items under Sections 1 and 3 through 8 are not applicable and therefore omitted. ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. - --------------------------------------------------------- Innovex, Inc. hereby furnishes a press release, issued on November 8, 2004, disclosing material non-public information regarding its results of operations for the quarter ended September 30, 2004. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS Exhibit No. Description - ------------------- ----------------------------------------- 99.1 Press Release issued on November 8, 2004. 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 Date: November 8, 2004 EX-99.1 2 a4761347ex991.txt PRESS RELEASE Exhibit 99.1 Innovex Announces Fourth Quarter and Fiscal 2004 Results MAPLE PLAIN, Minn.--(BUSINESS WIRE)--Nov. 8, 2004--Innovex, Inc. (Nasdaq:INVX) today reported revenue of $37.1 million for the fiscal 2004 fourth quarter ending September 30, 2004, an 11% decrease from the $41.5 million reported for the prior year fourth quarter. The company's pretax loss, which included restructuring charges of $1.0 million, was $3.8 million in the fourth quarter of fiscal 2004 as compared to a pretax gain of $693,000 in the prior year fourth quarter. The company's net loss was $2.4 million or $0.12 per share in the fourth quarter of fiscal 2004. This compares to a net gain of $759,000 or $0.04 per share in the prior year fourth quarter. The fiscal 2004 fourth quarter pretax restructuring charge of $1.0 million or $0.05 per share is related to the company's previously announced plan to close its Maple Plain facility and transfer operations to the company's Lamphun, Thailand and Litchfield, Minnesota facilities and phase out the flex suspension assembly (FSA) attachment operation. The company's net loss excluding the restructuring charge was $0.07 per share. Fiscal 2004 Fourth Quarter Consistent with the company's guidance, revenue for the fourth quarter was $37.1 million. The increase over the fiscal 2004 third quarter was the result of new flat panel display (FPD) flex products beginning production. Fiscal 2004 fourth quarter gross margins improved to 7.5% as compared to the fiscal 2004 third quarter as a result of the increased revenue, however, the margins continued to be impacted by the high fixed cost structure in place to meet the expected future levels of actuator flex circuit (AFC) and FPD product revenue. Revenue from FSA products generated 61% of the Company's net sales for the quarter, AFC revenue was 16%, FPD product revenue was 12%, integrated circuit packaging application revenue was 6%, network system application revenue was 4% and other revenue was 1%. In its December quarter, the company expects revenue between $39 and $41 million and a loss per share from $0.03 to $0.05. The company continues to expect fiscal 2005 revenue between $180 and $205 million. "We are pleased that many of our new display program ramps are gaining momentum," commented William P. Murnane, Innovex's President and CEO. "Our outlook for display and AFC business growth in fiscal 2005 continues to be optimistic. We expect each business segment to generate between 25% and 30% of fiscal 2005 revenue and help create a significantly more diverse product and customer base." Flat Panel Display The increased fourth quarter revenue resulted from new FPD programs beginning to ramp late in the quarter. These programs will continue to ramp during the fiscal 2005 first quarter and are expected to accelerate greatly during the balance of fiscal 2005 as customers transition to next generation products. Disk Drive Fiscal 2004 fourth quarter FSA and AFC revenue was in line with the company's expectations. An increase in FSA revenue is expected in the fiscal 2005 first quarter related to seasonal strength within the disk drive industry. AFC demand for the fiscal 2005 first quarter is expected to be similar to the fiscal 2004 fourth quarter demand. The company has had a number of important qualifications on next generation AFC products and is well positioned to significantly grow its AFC business as the disk drive industry transitions to next generation technology. Stacked Memory Stacked memory revenue for the fiscal 2004 fourth quarter was slightly higher than the third quarter as customer inventory levels improved. The company expects stacked memory demand to continue to improve in its fiscal 2005 first quarter. Restructuring As anticipated, an additional $1 million restructuring charge was recorded in the fiscal 2004 fourth quarter related to the planned closing of the company's Maple Plain facility. Additional charges of up to $5 million are expected to complete this planned restructuring with $14.8 million of the expected $20 million total charges related to this restructuring having been recorded through September 30, 2004. The remaining expected restructuring charges will be recorded as the liabilities are incurred over the next 9-12 months. The company's restructuring plan is progressing on schedule with the Maple Plain facility expected to remain in operation through the initial ramp-up of new display programs before operations are transferred in the last half of fiscal 2005. The company continues to expect annual operating cost savings from $8 to $9 million related to the restructuring. "Quarterly cost savings of approximately $700,000 related to the cost reduction measures taken in July were realized in the fiscal 2004 fourth quarter," stated Tom Paulson, Innovex's Chief Financial Officer. "The remaining expected quarterly cost savings required to reach the projected $8 to $9 million in annual savings will occur in late fiscal 2005 after the Maple Plain operations have been transferred to Thailand and Litchfield," stated Paulson. Innovex will conduct a conference call and web cast for investors beginning at 10:00 a.m. Central Standard Time (CST) on Tuesday, November 9, 2004. During the conference call, Mr. Murnane and senior managers will discuss the strong future of the company's FPD business and future product, revenue, mix and margin expectations along with historical results. To listen to the live conference call, dial 785-832-2041 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, November 9 beginning at 12:00 p.m. through 11:59 p.m. EST on Thursday, November 11. To access the replay, dial (402) 220-2550 and ask for conference ID "Innovex." The web cast version of the conference call 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, impact of restructuring charges, changes in product mix, the impact of competitive products and pricing, effect of world-wide economic conditions on flexible circuit demand, changes in manufacturing efficiencies, fluctuations in financial results and other risks detailed from time to time in the company's reports filed with the Securities and Exchange Commission. Innovex Announces Fourth Quarter INNOVEX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) Three Months Ended September 30, September 30, 2004 2003 --------------------------- Net sales $37,092 $41,483 Costs and expenses: Cost of sales 34,323 34,222 Selling, general and administrative 3,653 4,327 Engineering 1,633 1,658 Restructuring charges 966 0 Net interest (income) expense 179 372 Net other (income) expense 115 211 --------------------------- Income (loss) before income taxes (3,777) 693 Provision for income taxes (1,427) (66) --------------------------- Net income (loss) ($2,350) $759 =========================== Net income (loss) per share: Basic ($0.12) $0.04 ============= ============= Diluted ($0.12) $0.04 ============= ============= Weighted average shares outstanding: Basic shares 19,080 17,433 Diluted shares 19,080 18,426 Twelve Months Ended September 30, September 30, 2004 2003 --------------------------- Net sales $155,946 $153,007 Costs and expenses: Cost of sales 137,976 132,142 Selling, general and administrative 17,781 17,941 Engineering 6,613 6,459 Restructuring charges 14,789 750 Net interest (income) expense 664 2,040 Net other (income) expense (329) 233 --------------------------- Income (loss) before income taxes (21,548) (6,558) Provision for income taxes (4,052) (3,599) --------------------------- Net income (loss) ($17,496) ($2,959) =========================== Net income (loss) per share: Basic ($0.92) ($0.19) ============= ============= Diluted ($0.92) ($0.19) ============= ============= Weighted average shares outstanding: Basic shares 19,028 15,735 Diluted shares 19,028 15,735 INNOVEX, INC. CONSOLIDATED BALANCE SHEETS (In thousands) September 30, September 30, Assets 2004 2003 -------------- ------------- Cash and short-term investments $14,422 $21,607 Accounts receivable, net 27,248 24,450 Inventory 12,223 8,635 Other current assets 3,612 5,839 - ---------------------------------------------------------------------- Total current assets 57,505 60,531 Property, plant and equipment, net 53,538 66,881 Intangible & other assets, net 5,729 5,342 Deferred income taxes long term 12,975 4,829 - ---------------------------------------------------------------------- Total assets $129,747 $137,583 ============== ============= Liabilities and Stockholders' Equity Current liabilities $31,643 $24,949 Long-term debt 11,022 9,087 Stockholders' equity 87,082 103,547 - ---------------------------------------------------------------------- Total liabilities and stockholders' equity $129,747 $137,583 ============== ============= INNOVEX, INC. CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) Twelve Months Ended September 30, 2004 2003 ------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $(17,496) $(2,959) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 11,286 11,709 Restructuring charges 14,789 750 Other non-cash items (412) (8) Changes in operating assets and liabilities: Accounts receivable (2,798) (7,677) Inventories (3,588) 650 Deferred income taxes (5,178) (4,329) Other current assets (1,203) 1,155 Accounts payable 4,736 2,730 Other liabilities (320) (755) ------------------------- Net cash provided by (used in) operating activities (184) 1,266 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (11,097) (4,946) Proceeds from sale of assets 69 33 ------------------------- Net cash provided by (used in) investing activities (11,028) (4,913) CASH FLOWS FROM FINANCING ACTIVITIES: Net long-term debt activity 2,996 (11,892) Net line of credit activity - (7,302) Proceeds from follow on issuance - 39,462 Proceeds from exercise of stock options 1,031 2,622 ------------------------- Net cash provided by (used in) financing activities 4,027 22,890 ------------------------- Increase (decrease) in cash and equivalents (7,185) 19,243 Cash and equivalents at beginning of period 21,607 2,364 ------------------------- Cash and equivalents at end of period $14,422 $21,607 ========================= CONTACT: Innovex, Inc., Maple Plain Tom Paulson, 763-479-5300 or Doug Keller, 763-479-5300 Facsimile: 763-479-5395 Internet: http://www.innovexinc.com -----END PRIVACY-ENHANCED MESSAGE-----