-----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, L0nYgyRJlgCjReU+DBz41kWSiDzSRgsojvSmdG6zkcAzeO78TTUe9WLwBx/iFsw4 /nLWEBn/W7nuW2/S2Gwr1g== 0001157523-05-000227.txt : 20050113 0001157523-05-000227.hdr.sgml : 20050113 20050113080003 ACCESSION NUMBER: 0001157523-05-000227 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050112 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050113 DATE AS OF CHANGE: 20050113 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: 05527057 BUSINESS ADDRESS: STREET 1: 5540 PIONEER CREEK DRIVE CITY: MAPLE PLAIN STATE: MN ZIP: 55359-9003 BUSINESS PHONE: 7634795300 8-K 1 a4799107.txt INNOVEX, INC. 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 12, 2005 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 January 12, 2005, disclosing material non-public information regarding its results of operations for the quarter ended December 31, 2004. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS Exhibit No. Description - ----------- ------------------------------------------------------ 99.1 Press Release issued on January 12, 2005. 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: January 12, 2005 EX-99.1 2 a4799107ex991.txt PRESS RELEASE Exhibit 99.1 Innovex Announces Fiscal 2005 First Quarter Results; Revenue and EPS in Line With Guidance MAPLE PLAIN, Minn.--(BUSINESS WIRE)--Jan. 12, 2005--Innovex, Inc. (Nasdaq:INVX) today reported revenue of $40.0 million for the fiscal 2005 first quarter ending December 31, 2004, as compared to $44.3 million reported for the prior year first quarter. The company's net loss in the first quarter of fiscal 2005 of $1.0 million or $0.05 per share includes a pretax restructuring charge of $343,000 or $0.02 per share. The company's net loss excluding the restructuring charge was $0.03 per share, at the upper end of guidance provided by the company. The restructuring charge 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 had net income of $1.6 million or $0.08 per share in its fiscal 2004 first quarter. Fiscal 2005 First Quarter Consistent with the company's guidance, revenue for the first quarter was $40.0 million. FSA and Stacked Memory demand in the first quarter were higher than expected. FSA shipments in the quarter were limited by the supply of adhesiveless copper clad polyimide from the company's raw material supplier due to the supplier's last build requirements for other customers. The company believes it could have shipped $1 to $2 million more of FSA in the quarter if its material supply was not constrained. On January 6, 2005, the company announced it had purchased the assets used to manufacture adhesiveless copper clad polyimide from Gould Electronics, Inc. "We are disappointed that we were not able to fulfill all FSA demand in the quarter," commented William P. Murnane, Innovex's President and CEO. "Now that we own and control our supply of adhesiveless copper clad polyimide, we expect to maximize FSA revenue in the current and future quarters." Fiscal 2005 first quarter gross margins improved to 9.7% as compared to 7.5% for the fiscal 2004 fourth 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 flat panel display (FPD) product revenue. Revenue from FSA products generated 64% of the company's net sales for the quarter, AFC revenue was 13%, FPD product revenue was 8%, integrated circuit packaging application revenue was 9%, network system application revenue was 4% and other revenue was 2%. As expected, the company's FPD revenue for the quarter was impacted by a major customer fulfilling existing commitments to other suppliers for older generation product prior to transitioning to the next generation lead-free products for which the company has been qualified. In its fiscal 2005 second quarter, the company expects revenue between $42 and $47 million and per share results ranging from a loss of $0.02 per share to income of $0.02 per share excluding restructuring charges. The company expects fiscal 2005 annual revenue between $180 and $200 million. "We expect to see significant growth in our fiscal 2005 second quarter as our FSA business remains strong and our new display program ramps gain momentum," commented Mr. Murnane. "Our AFC business should also experience strong growth as the disk drive industry begins its transition to next generation products creating a significantly more diverse product and customer base." Inventories increased by $5 million during the quarter and accounts payables increased by $4 million primarily as a result of the expected FPD ramp-up. Capital expenditures of $9.1 million for the fiscal 2005 first quarter included the acquisition of the assets required to manufacture copper clad polyimide and expenditures related to the expansion of the company's Thailand operations. "Our Thailand facility expansion remains on schedule and on budget," stated Tom Paulson, Innovex's Chief Financial Officer. "We expect to begin utilizing the facility expansion in our fiscal 2005 third quarter and begin seeing cost savings related to the expansion and the closure of our Maple Plain operation in late fiscal 2005 after the Maple Plain operations have been transferred to Thailand and Litchfield," stated Paulson. Restructuring An additional $343,000 restructuring charge was recorded in the fiscal 2005 first quarter as part of our previously announced restructuring plan to close the company's Maple Plain facility and transfer operations to the company's Lamphun, Thailand and Litchfield, Minnesota facilities. Additional charges of up to $4.9 million are expected to complete this planned restructuring with $15.1 million of the expected $20 million total charges related to this restructuring having been recorded through December 31, 2004. The remaining expected restructuring charges will be recorded as the liabilities are incurred over the next 6 to 9 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 second half of fiscal 2005. The company continues to expect annual operating cost savings from $8 to $9 million related to the restructuring. Innovex will conduct a conference call and web cast for investors beginning at 10:00 a.m. Central Standard Time (CST) on Thursday, January 13, 2005. During the conference call, Mr. Murnane and senior managers will discuss the company's future product, revenue, mix and margin expectations along with historical results. To listen to the live conference call, dial (785) 424-1054 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 Thursday, January 13 beginning at 12:00 p.m. through 11:59 p.m. EST on Saturday, January 15. To access the replay, dial (402) 220-2982 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, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share amounts) Three Months Ended December 31, December 31, 2004 2003 ------------------------- Net sales $40,041 $44,344 Costs and expenses: Cost of sales 36,142 35,619 Selling, general and administrative 3,871 4,957 Engineering 1,709 1,751 Restructuring charges 343 - Net interest (income) expense 210 159 Net other (income) expense (583) (46) ------------------------- Income (loss) before income taxes (1,651) 1,904 Provision for income taxes (643) 310 ------------------------- Net income (loss) ($1,008) $1,594 ========================= Net income (loss) per share: Basic ($0.05) $0.08 ============ ============ Diluted ($0.05) $0.08 ============ ============ Weighted average shares outstanding: Basic shares 19,128 18,937 Diluted shares 19,128 19,762 INNOVEX, INC. CONSOLIDATED BALANCE SHEETS (In thousands) December 31, September 30, Assets 2004 2004 ------------ ------------- Cash and short-term investments $17,082 $14,422 Accounts receivable, net 25,348 27,248 Inventory 17,224 12,223 Other current assets 4,805 3,612 - ---------------------------------------------------------------------- Total current assets 64,459 57,505 Property, plant and equipment, net 59,910 53,538 Intangible & other assets, net 6,109 5,729 Deferred income taxes long term 12,975 12,975 - ---------------------------------------------------------------------- Total assets $143,453 $129,747 ============ ============= Liabilities and Stockholders' Equity Current liabilities $43,632 $31,643 Long-term debt 13,667 11,022 Stockholders' equity 86,154 87,082 - ---------------------------------------------------------------------- Total liabilities and stockholders' equity $143,453 $129,747 ============ ============= INNOVEX, INC. CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) Three Months Ended December 31, 2004 2003 ------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $(1,008) $1,594 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 2,721 2,871 Restructuring charges 343 - Other non-cash items (176) (10) Changes in operating assets and liabilities: Accounts receivable 1,900 (3,501) Inventories (5,001) (2,778) Deferred income taxes - 285 Other current assets (1,435) (226) Accounts payable 4,068 3,490 Other liabilities 2,717 (73) ------------------- Net cash provided by (used in) operating activities 4,129 1,652 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (9,092) (2,086) Proceeds from sale of assets - 38 ------------------- Net cash provided by (used in) investing activities (9,092) (2,048) CASH FLOWS FROM FINANCING ACTIVITIES: Net long-term debt activity 2,814 (1,978) Net line of credit activity 4,729 - Proceeds from exercise of stock options 80 433 ------------------- Net cash provided by (used in) financing activities 7,623 (1,545) ------------------- Increase (decrease) in cash and equivalents 2,660 (1,941) Cash and equivalents at beginning of period 14,422 21,607 ------------------- Cash and equivalents at end of period $17,082 $19,666 =================== 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-----