-----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, GQ3onGSmoXZioN+FRqNoXuE26CLgxh7X4xXKWW61KyROhudOzAwPgHatSyxsyBrO jQzDZ3ZsvPkGPpPAQC/IPA== 0000950135-99-001345.txt : 19990316 0000950135-99-001345.hdr.sgml : 19990316 ACCESSION NUMBER: 0000950135-99-001345 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990130 FILED AS OF DATE: 19990315 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HADCO CORP CENTRAL INDEX KEY: 0000729533 STANDARD INDUSTRIAL CLASSIFICATION: PRINTED CIRCUIT BOARDS [3672] IRS NUMBER: 042393279 STATE OF INCORPORATION: MA FISCAL YEAR END: 1030 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-12102 FILM NUMBER: 99564626 BUSINESS ADDRESS: STREET 1: 12A MANOR PKWY CITY: SALEM STATE: NH ZIP: 03079 BUSINESS PHONE: 6038988000 MAIL ADDRESS: STREET 1: 12A MONOR PARKWAY CITY: SALEM STATE: NH ZIP: 03079 10-Q 1 HADCO CORPORATION 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended JANUARY 30, 1999 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) FOR THE TRANSITION PERIOD FROM _______ TO _______ COMMISSION FILE NUMBER 0-12102 HADCO CORPORATION ------------------------------------------------------ (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) MASSACHUSETTS 04-2393279 - --------------------------------- ------------------- (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 12A MANOR PARKWAY, SALEM, NEW HAMPSHIRE 03079 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (603) 898-8000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Registrant has 13,535,404 shares of Common Stock, $0.05 Par Value, outstanding at March 15, 1999. 2 HADCO CORPORATION AND SUBSIDIARIES INDEX PART I - FINANCIAL INFORMATION PAGE Item 1. Financial Statements Consolidated Condensed Balance Sheets as of January 30, 1999 (unaudited) and October 31, 1998.............. 3 Consolidated Condensed Statements of Income for the Three Months ended January 30, 1999 and January 31, 1998 (unaudited)................................... 4 Consolidated Condensed Statements of Cash Flows for the Three Months ended January 30, 1999 and January 31, 1998 (unaudited).................................. 5 Notes to Consolidated Condensed Financial Statements..................................................... 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations............................ 14 Item 3. Quantitative and Qualitative Disclosures about Market Risk..... 18 PART II - OTHER INFORMATION Item 2. Changes in Securities.......................................... 19 Item 6. Exhibits and Reports on Form 8-K............................... 19 SIGNATURE............................................................... 20 2 3 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS HADCO CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands)
ASSETS (unaudited) January 30, October 31, 1999 1998 ----------- ----------- Current Assets: Cash and cash equivalents ............................. $ 9,626 $ 7,169 Accounts receivable, net of allowance for doubtful accounts of $2,527 in 1999 and $2,129 in 1998, respectively ......................... 114,957 111,094 Inventories ........................................... 70,894 67,017 Deferred tax asset .................................... 17,156 17,156 Prepaid expenses and other current assets ............. 9,524 18,666 --------- --------- Total Current Assets ............................. 222,157 221,102 Property, Plant and Equipment, net .................... 323,164 322,887 Acquired Intangible Assets, net ....................... 188,614 191,421 Other Assets .......................................... 9,651 8,415 --------- --------- $ 743,586 $ 743,825 ========= ========= LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities: Short-term debt and current portion of long-term debt.. $ 2,847 $ 4,377 Accounts payable ...................................... 83,894 79,350 Accrued payroll and other employee benefits ........... 24,608 26,529 Other accrued expenses ................................ 12,810 19,016 --------- --------- Total Current Liabilities ........................ 124,159 129,272 --------- --------- Long Term Debt, net of current portion .................... 354,985 354,291 Deferred Tax Liability .................................... 59,520 59,521 Other Long-Term Liabilities ............................... 9,192 9,192 Commitments and Contingencies Stockholders' investment: Common stock, $.05 par value - Authorized 50,000 shares Issued and outstanding 13,485 in 1999 and 13,366 in 1998 ............................... 676 669 Paid-in capital ........................................... 176,405 173,906 Deferred compensation ..................................... (383) (44) Retained earnings ......................................... 19,032 17,018 --------- --------- Total Stockholders' Investment ................... 195,730 191,549 --------- --------- $ 743,586 $ 743,825 ========= =========
The accompanying notes are an integral part of these consolidated condensed financial statements. 3 4 HADCO CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (unaudited ) (In thousands, except per share data)
QUARTER ENDED ------------- January 30, January 31, 1999 1998 ----------- ----------- Net Sales ...................................................... $ 235,979 $ 198,276 Cost of Sales .................................................. 203,546 159,208 --------- --------- Gross Profit .............................................. 32,433 39,068 Operating Expenses ............................................. 20,995 17,784 --------- --------- Income From Operations .................................... 11,438 21,284 Interest and Other Income, net ................................. 601 533 Interest Expense ............................................... (8,696) (2,099) --------- --------- Income before Provision for Income Taxes ................... 3,343 19,718 Provision for Income Taxes ..................................... 1,329 7,591 --------- --------- Net Income ................................................. $ 2,014 $ 12,127 ========= ========= Income per common and common equivalent shares (Note 1) Basic ..................................................... $ 0.15 $ 0.93 ========= ========= Diluted ................................................... $ 0.15 $ 0.90 ========= ========= Weighted average common and common equivalent shares outstanding (Note 1) Basic ..................................................... 13,422 13,096 ========= ========= Diluted ................................................... 13,651 13,505 ========= =========
The accompanying notes are an integral part of these consolidated condensed financial statements. 4 5 HADCO CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)
THREE MONTHS ENDED ----------------------- January 30, January 31, 1999 1998 ----------- ----------- Net Income ................................................................... $ 2,014 $ 12,127 Adjustments to reconcile net income to net cash provided by Operating activities -- Depreciation, amortization, deferred compensation and deferred taxes ..... 19,067 12,931 Loss in sale of fixed assets ............................................. 29 -- Changes in assets and liabilities -- Increase in accounts receivable ..................................... (3,861) (7,691) Increase in inventories ............................................. (3,877) (8,018) (Increase) Decrease in prepaid expenses and other current assets .... ( 507) 21 Decrease (Increase) in refundable taxes ............................. 9,644 ( 499) Increase in other assets ............................................ ( 903) (2,498) (Decrease) Increase in accounts payable and accrued expenses ........ (3,513) 1,302 Decrease in long term liabilities ................................... -- ( 22) -------- -------- Net Cash Provided by Operating Activities .................................... 18,093 7,653 -------- -------- Cash Flows From Investing Activities: Increase in other assets ................................................. (270) -- Purchases of property, plant and equipment ............................... (16,645) (19,366) -------- -------- Net Cash Used In Investing Activities ........................................ (16,915) (19,366) -------- -------- Cash Flows From Financing Activities: Principal payments of long-term debt ..................................... (20,836) (1,224) Net proceeds from issuance of long-term debt ............................. 20,000 10,000 Proceeds from exercise of stock options .................................. 207 147 Tax benefit from exercise of stock options ............................... 334 452 Proceeds from employee stock purchase plan ............................... 1,574 -- -------- -------- Net Cash Provided by Financing Activities .................................... 1,279 9,375 -------- -------- Net increase (decrease) in Cash and Cash Equivalents ......................... 2,457 (2,338) Cash and Cash Equivalents Beginning of Period ................................ 7,169 13,733 -------- -------- Cash and Cash Equivalents End of Period ...................................... $ 9,626 $ 11,395 ======== ======== Supplemental disclosure of cash flow information: Cash paid during period for: Interest ............................................................... $ 13,509 $ 1,407 ======== ======== Income taxes (net of refunds) ......................................... $ 61 $ 322 ======== ========
The accompanying notes are an integral part of these consolidated condensed financial statements. 5 6 HADCO CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Hadco Corporation's (the "Company" or "Hadco") principal products are multilayer rigid printed circuits and backplane and system assemblies. The consolidated condensed financial statements reflect the application of certain accounting policies as described in the accompanying notes to the consolidated condensed financial statements, as well as the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 1998. These financial statements should be read in conjunction with the financial statements and related disclosures included in the above-referenced SEC filing. INTERIM FINANCIAL STATEMENTS The accompanying consolidated condensed balance sheet as of January 30, 1999, and the consolidated condensed statements of income for the three months ended January 30, 1999 and January 31, 1998 and the consolidated condensed statement of cash flows for the three month periods ended January 30, 1999 and January 31, 1998 are unaudited but, in the opinion of management, include all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of results for these interim periods. Results of operations for the interim period are not necessarily indicative of results to be expected for the entire year or any future period. EARNINGS PER SHARE A reconciliation of basic and diluted shares outstanding is as follows:
THREE MONTHS ENDED ------------------------ (in thousands) January 30, January 31, 1999 1998 ----------- ----------- Basic weighted average shares outstanding........ 13,422 13,096 Weighted average common equivalent shares........ 229 409 ------ ------ Diluted weighted average shares outstanding...... 13,651 13,505 ====== ======
Diluted weighted average shares outstanding for the three month periods ended January 30, 1999 and January 31, 1998 do not include 650,430 and 485,290 common equivalent shares, respectively as their effect would be anti-dilutive. 6 7 HADCO CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited) 2. ACQUISITIONS On March 20, 1998, the Company acquired (the "Continental Acquisition") all of the outstanding common stock of Continental Circuits Corp. ("Continental"). Unaudited pro forma operating results for the Company, assuming the Continental Acquisition occurred on October 26, 1997, are as follows:
THREE MONTHS ENDED ------------------------- (in thousands, except per share data) January 30, January 31, 1999 1998 ----------- ----------- Net Sales....................................... $235,979 $233,618 Net Income...................................... $2,014 $10,061 Basic Net Income Per Share...................... $.15 $.77 Diluted Net Income Per Share.................... $.15 $.74
For purposes of these pro forma operating results, the acquired in-process R&D was assumed to have been written off prior to October 26, 1997, so that the operating results presented include only recurring costs. 3. INVENTORIES Inventories are stated at the lower of cost, first-in, first-out (FIFO), or market and consist of the following (in thousands):
January 30, October 31, 1999 1998 ----------- ----------- Raw Materials............................ $25,057 $25,856 Work-in-process.......................... 45,837 41,161 ------- ------- $70,894 $67,017 ======= =======
4. LONG TERM DEBT Long-term debt consists of the following (in thousands):
January 30, October 31, 1999 1998 ----------- ----------- Variable Rate Mortgages.............................. $730 $732 Revolving credit agreement .......................... 150,000 150,000 9 1/2% Senior Subordinated Notes due 2008............ 199,371 199,354 Obligations under capital leases with interest rates ranging from 7% to 7.75%....................... 7,731 8,582 ------- ------- 357,832 358,668 Less - Current portion............................... 2,847 4,377 -------- -------- $354,985 $354,291 ======== ========
7 8 HADCO CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 5. SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Basis of presentation. In connection with the acquisition of Continental Circuits Corp., which was financed with approximately $184 million of borrowings from the Company's line of credit, the Company on May 18, 1998 sold $200,000,000 aggregate principal amount of 9 1/2 % Senior Subordinated Notes due in 2008 (the Notes). The Notes are fully and unconditionally guaranteed on a senior subordinated basis, jointly and severally, by certain of the Company's direct wholly-owned domestic subsidiaries (the Guarantors). The Guarantors are Hadco Santa Clara, Inc., Hadco Phoenix, Inc., CCIR of Texas Corp., and CCIR of California Corp. The condensed consolidating financial statements of the Guarantors are presented below and should be read in connection with the Consolidated Condensed Financial Statements of the Company. Separate financial statements of the Guarantors are not presented because (i) the Guarantors are wholly-owned and have fully and unconditionally guaranteed the Notes on a joint and several basis and (ii) the Company's management has determined such separate financial statements are not material to investors and believes the condensed consolidating financial statements presented are more meaningful in understanding the financial position of the Guarantors. There are no significant restrictions on the ability of the Guarantors to make distributions to the Company. 8 9 HADCO CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)
As of January 30, 1999 ---------------------------------------------------------------- Guarantor Non-Guarantor Parent Elimination Consolidated Subsidiaries Subsidiaries Corporation Entries Total ------------ ------------- ----------- ----------- ------------ (In Thousands) ASSETS Current Assets: Cash and cash equivalents $ 83 $ 867 $ 8,676 $ -- $ 9,626 Accounts receivable, net 55,600 6,118 53,239 -- 114,957 Inventories 26,344 5,860 38,690 -- 70,894 Deferred tax asset -- -- 17,156 -- 17,156 Prepaid and other current assets 1,064 276 8,184 -- 9,524 --------- -------- --------- ---------- --------- Total current assets 83,091 13,121 125,945 -- 222,157 Property, Plant and Equipment, net 137,985 50,696 134,483 -- 323,164 Intercompany Receivable -- 163 87,562 (87,725) -- Investments in Subsidiaries 16,227 -- 267,498 (283,725) -- Acquired Intangible Assets, net 188,614 -- -- -- 188,614 Other Assets 211 -- 9,440 -- 9,651 --------- -------- ---------- ---------- --------- $ 426,128 $ 63,980 $ 624,928 $ (371,450) $ 743,586 ========= ======== ========== ========== ========= LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities: Current portion of long-term debt $ 2,049 $ 78 $ 720 $ -- $ 2,847 Accounts payable 37,367 5,590 40,937 -- 83,894 Intercompany payable 46,784 40,941 -- (87,725) -- Accrued payroll and other employee benefits 2,230 163 22,215 -- 24,608 Accrued taxes 19,973 159 (20,132) -- -- Other accrued expenses 1,440 100 11,270 -- 12,810 --------- -------- --------- ---------- --------- Total current liabilities 109,843 47,031 55,010 (87,725) 124,159 --------- -------- --------- ---------- --------- Long-Term Debt, net of current portion 4,729 104 350,152 -- 354,985 --------- -------- --------- ---------- --------- Deferred Tax Liability 44,676 -- 14,844 -- 59,520 --------- -------- --------- ---------- --------- Other Long-Term Liabilities -- -- 9,192 -- 9,192 --------- -------- --------- ---------- --------- Stockholders' Investment: Common stock, $0.05 par value; Authorized - 50,000 shares Issued and outstanding - 13,485 in 1999 11 29,655 676 (29,666) 676 Paid-in capital 400,616 -- 176,405 (400,616) 176,405 Deferred compensation -- -- (383) -- (383) Retained earnings (133,747) (12,810) 19,032 146,557 19,032 --------- -------- --------- ---------- --------- Total stockholders' investment 266,880 16,845 195,730 (283,725) 195,730 --------- -------- --------- ---------- --------- $ 426,128 $ 63,980 $ 624,928 $ (371,450) $ 743,586 ========= ======== ========= ========== =========
9 10 HADCO CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATING BALANCE SHEET
As of October 31, 1998 ----------------------------------------------------------------- Guarantor Non-Guarantor Parent Elimination Consolidated Subsidiaries Subsidiaries Corporation Entries Total ------------ ------------- ------------ ----------- ------------ (In Thousands) ASSETS Current Assets: Cash and cash equivalents $ 836 $ 2 $ 6,331 $ -- $ 7,169 Accounts receivable, net 54,092 6,382 50,620 -- 111,094 Inventories 24,984 5,560 36,473 -- 67,017 Deferred tax asset -- -- 17,156 -- 17,156 Prepaid and other current assets 999 227 17,440 -- 18,666 --------- --------- --------- --------- --------- Total current assets 80,911 12,171 128,020 -- 221,102 Property, Plant and Equipment, net 138,912 49,029 134,946 -- 322,887 Intercompany Receivable -- 160 91,463 (91,623) -- Investments in Subsidiaries 17,895 -- 267,882 (285,777) -- Acquired Intangible Assets, net 191,421 -- -- -- 191,421 Other Assets 686 -- 7,729 -- 8,415 --------- --------- --------- --------- --------- $ 429,825 $ 61,360 $ 630,040 $(377,400) $ 743,825 ========= ========= ========= ========== ========= LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities: Current portion of long-term debt $ 3,417 $ 158 $ 802 $ -- $ 4,377 Accounts payable 34,249 4,941 40,160 -- 79,350 Intercompany payable 54,523 37,100 -- (91,623) -- Accrued payroll and other employee benefits 3,465 160 22,904 -- 26,529 Accrued taxes 17,099 160 (17,259) -- -- Other accrued expenses 1,328 105 17,583 -- 19,016 --------- --------- --------- --------- --------- Total current liabilities 114,081 42,624 64,190 (91,623) 129,272 --------- --------- --------- --------- --------- Long-Term Debt, net of current portion 3,796 230 350,265 -- 354,291 --------- --------- --------- --------- --------- Deferred Tax Liability 44,677 -- 14,844 -- 59,521 --------- --------- --------- --------- --------- Other Long-Term Liabilities -- -- 9,192 -- 9,192 --------- --------- --------- --------- --------- Stockholders' Investment: Common stock, $0.05 par value; Authorized - 50,000 shares Issued and outstanding - 13,366 in 1998 11 29,654 669 (29,665) 669 Paid-in capital 400,616 -- 173,906 (400,616) 173,906 Deferred compensation -- -- (44) -- (44) Retained earnings (133,356) (11,148) 17,018 144,504 17,018 --------- --------- --------- --------- --------- Total stockholders' investment 267,271 18,506 191,549 (285,777) 191,549 --------- --------- --------- --------- --------- $ 429,825 $ 61,360 $ 630,040 $(377,400) $ 743,825 ========= ========= ========= ========= =========
10 11 HADCO CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three Months Ending January 30, 1999 ---------------------------------------------------------------- Guarantor Non-Guarantor Parent Elimination Consolidated Subsidiaries Subsidiaries Corporation Entries Total ------------ ------------- ----------- ----------- ------------ (In Thousands) Net Sales $ 114,955 $ 10,507 $ 110,517 $ -- $ 235,979 Cost of Sales 105,210 10,859 87,477 -- 203,546 --------- --------- --------- --------- --------- Gross Profit 9,745 (352) 23,040 -- 32,433 Operating Expenses 5,247 678 15,070 -- 20,995 --------- --------- --------- --------- --------- Income (Loss) From Operations 4,498 (1,030) 7,970 -- 11,438 Interest and Other Income (150) (626) 1,371 6 601 Interest Expense (198) (6) (8,492) -- (8,696) --------- --------- --------- --------- --------- Income (Loss) Before Provision for Income Taxes 4,150 (1,662) 849 6 3,343 Provision for (benefit from) Income Taxes 2,873 -- (1,544) -- 1,329 Equity in income (loss) of subsidiary (1,668) -- (385) 2,053 -- --------- --------- --------- --------- --------- Net Income (Loss) $ (391) $ (1,662) $ 2,008 $ 2,059 $ 2,014 ========= ========= ========= ========= =========
For the Three Months Ending January 31, 1998 ----------------------------------------------------------------- Guarantor Non-Guarantor Parent Elimination Consolidated Subsidiaries Subsidiaries Corporation Entries Total ------------ ------------- ----------- ----------- ------------ (In Thousands) Net Sales $ 68,279 $ 9,027 $ 120,970 $ -- $ 198,276 Cost of Sales 57,425 8,298 93,485 -- 159,208 --------- --------- --------- --------- --------- Gross Profit 10,854 729 27,485 -- 39,068 Operating Expenses 2,706 832 14,246 -- 17,784 --------- --------- --------- --------- --------- Income (Loss) From Operations 8,148 (103) 13,239 -- 21,284 Interest and Other Income 380 -- 153 -- 533 Interest Expense (170) (272) (1,657) -- (2,099) --------- --------- --------- --------- --------- Income (Loss) Before Provision for Income Taxes 8,358 (375) 11,735 -- 19,718 Provision for Income Taxes 3,867 -- 3,724 -- 7,591 Equity in income (loss) of subsidiary (375) -- 4,116 (3,741) -- --------- --------- --------- --------- --------- Net Income (Loss) $ 4,116 $ (375) $ 12,127 $ (3,741) $ 12,127 ========= ========= ========= ========= =========
11 12 HADCO CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)
For the Three Months Ended January 30, 1999 --------------------------------------------------------------- Guarantor Non-Guarantor Parent Elimination Consolidated Subsidiaries Subsidiaries Corporation Entries Total ------------ ------------- ----------- ----------- ------------ Net cash provided by operating activities $ 5,207 $ 4,190 $ 8,690 $ 6 $ 18,093 -------- -------- -------- -------- -------- Cash Flows from Investing Activities: Foreign Sales Corp. dividend -- (6) 6 -- -- Purchases of property, plant and equipment (5,254) (3,119) (8,272) -- (16,645) Increase in other assets (270) 6 -- (6) (270) -------- -------- -------- -------- -------- Net cash used in investing activities (5,524) (3,119) (8,266) (6) (16,915) -------- -------- -------- -------- -------- Cash Flows from Financing Activities: Principal payments of long-term debt (436) (206) (20,194) -- (20,836) Net proceeds from issuance of long-term debt -- -- 20,000 -- 20,000 Proceeds from exercise of stock options -- -- 207 -- 207 Proceeds from the sale of common stock -- -- 1,574 -- 1,574 Tax benefit from exercise of Stock options -- -- 334 -- 334 -------- -------- -------- -------- -------- Net cash provided by (used in) financing activities (436) (206) 1,921 -- 1,279 -------- -------- -------- -------- -------- Net Increase (Decrease) in Cash and Cash Equivalents (753) 865 2,345 -- 2,457 Cash and Cash Equivalents, Beginning of Period 836 2 6,331 -- 7,169 -------- -------- -------- -------- -------- Cash and Cash Equivalents, End of Period $ 83 $ 867 $ 8,676 $ -- $ 9,626 ======== ======== ======== ======== ========
12 13 HADCO CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)
For the Three Months Ended January 31, 1998 --------------------------------------------------------------- Guarantor Non-Guarantor Parent Elimination Consolidated Subsidiaries Subsidiaries Corporation Entries Total ------------ ------------- ----------- ----------- ------------ Net cash provided by (used in) operating activities $ 6,348 $ 7,996 $ (6,691) $ -- $ 7,653 -------- -------- -------- ------- -------- Cash Flows from Investing Activities: Purchases of property, plant and equipment (3,836) (3,129) (12,401) -- (19,366) -------- -------- -------- ------- -------- Net cash used in investing activities (3,836) (3,129) (12,401) -- (19,366) -------- -------- -------- ------- -------- Cash Flows from Financing Activities: Principal payments of long-term debt (909) (38) (277) -- (1,224) Net proceeds from issuance of long-term debt -- -- 10,000 -- 10,000 Proceeds from exercise of stock options -- -- 147 -- 147 Tax benefit from exercise of stock options -- -- 452 -- 452 -------- -------- -------- ------- -------- Net cash provided by (used in) financing activities (909) (38) 10,322 -- 9,375 -------- -------- -------- ------- -------- Net Increase (Decrease) in Cash and Cash Equivalents 1,603 4,829 (8,770) -- (2,338) Cash and Cash Equivalents, Beginning of Period (1,603) 2,249 13,087 -- 13,733 -------- -------- -------- ------- -------- Cash and Cash Equivalents, End of Period $ -- $ 7,078 $ 4,317 $ -- $ 11,395 ======== ======== ======== ======= ========
13 14 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Except for the historical information contained in this Quarterly Report on Form 10-Q, the matters discussed below or elsewhere in this Quarterly Report on Form 10-Q are forward-looking statements that involve risks and uncertainties. Hadco Corporation makes such forward-looking statements under the provisions of the "Safe Harbor" section of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements should be considered in light of the factors described below in this Item 2 and under "Year 2000 Readiness Disclosure Statement" and "Factors That May Affect Future Results" below. Actual results may vary materially from those projected, anticipated or indicated in any forward-looking statements. In this Quarterly Report on Form 10-Q, the words "anticipates," "believes," "expects," "intends," "future," "could," "may," and similar words or expressions (as well as other words or expressions referencing future events, conditions or circumstances) identify forward-looking statements. As used herein, the terms "Company" and "Hadco," unless otherwise indicated or the context otherwise requires, refer to Hadco Corporation and its subsidiaries. On March 20, 1998, the Company acquired all of the outstanding capital stock of Continental (the "Continental Acquisition"). Unless otherwise indicated or the context otherwise requires, the results of Continental's operations and other financial information relating to Continental since March 20, 1998 are included in the Company's historical consolidated financial information presented herein. RESULTS OF OPERATIONS Net sales for the first quarter of 1999 increased 19.0% over the same period in 1998. The increase resulted from several factors including the Continental Acquisition, which added $35.2 million to the net sales of printed circuits, and an increase in backplane and system assembly net sales of $20 million; these increases were partially offset by a decrease in printed circuit net sales (excluding the Continental Acquisition) of $19.1 million. Net sales of printed circuits decreased due to slightly lower unit shipments, and a 10.6% decrease in average pricing for the first quarter of 1999 over the same period in 1998. The shift towards printed circuits with more layers and greater densities partially offset the reductions in unit volume and price. Backplane and system assembly net sales increased due to higher production volume and shipments. The gross profit margin decreased to 13.7% of net sales in the first quarter of 1999 from 19.7% in the comparable period in fiscal 1998. Lower pricing on printed circuits caused gross margins to decrease by 5.9 percentage points. Lower capacity utilization from printed circuit operations caused margins to decrease by 2.3 percentage points. The effect of lower overall gross margins from Hadco Phoenix (formerly Continental) operations caused margins to decrease by 1.7 percentage points. All of these decreases were partially offset by lower unit costs through improved production efficiencies resulting in an overall decrease in the gross margin of 6.0 percentage points. Operating expenses, as a percent of net sales, decreased slightly to 8.9% in the first quarter of 1999 from 9.0% in the comparable period in fiscal 1998. The Company includes in operating expenses charges for actual expenditures and accruals, based on estimates, for environmental matters. To the extent and in amounts Hadco believes circumstances warrant, it will continue to accrue and charge to operating expenses cost estimates relating to environmental matters. Interest income decreased in the first quarter of 1999 as compared to the first quarter of 1998 due to lower average cash balances available for investing. Interest expense increased in the first quarter of 1999 as compared to the first quarter of 1998, due to higher average outstanding debt balances for the first quarter of 1999 compared to the first quarter of 1998 as a result of the Continental Acquisition. 14 15 INCOME TAXES In accordance with generally accepted accounting principles, the Company provides for income taxes on an interim basis, using its anticipated effective annual income tax rate. The Company anticipates an effective annual income tax rate for fiscal 1999 of 39.75%, which is slightly less than the combined federal and state statutory rates. The anticipated effective rate was increased by amortization of goodwill which is not tax deductible, and this was offset by the benefit of the Company's foreign sales corporation and various state investment tax credits. The effective tax rate for fiscal 1999 is based on current tax laws. LIQUIDITY AND CAPITAL RESOURCES In the first quarter of fiscal 1999, net cash flow from operations was $18.1 million versus $7.7 million in the first quarter of fiscal 1998. The difference is a result of improved working capital management and a refund of fiscal 1998 estimated tax payments during the first quarter of fiscal 1999. In the first quarter of fiscal 1999, cash used in investing activities decreased over the comparable period in fiscal 1998 due to lower capital expenditures. In the first quarter of fiscal 1999, cash provided by financing activities decreased due to reduced borrowings under the Company's revolving line of credit with various banks pursuant to an Amended and Restated Revolving Credit Agreement, as amended (the "Credit Facility"). At January 30, 1999, the Company had working capital of approximately $98.0 million and a current ratio of 1.79, compared to working capital of approximately $91.8 million and a current ratio of 1.71 at October 31,1998. Cash, cash equivalents and short-term investments at January 30, 1999 were approximately $9.6 million, an increase of $2.4 million from approximately $7.2 million at October 31, 1998. The Company believes that cash generated from operations and its borrowing capacity will be sufficient to fund anticipated working capital, capital expenditure and debt payment requirements through calendar year 1999. Because the Company's capital requirements cannot be predicted with certainty, however, there is no assurance that the Company will not require additional financing during this period. There is no assurance that any additional financing will be available on terms satisfactory to the Company or not disadvantageous to the Company's security holders. The Company believes the ultimate disposition of known environmental matters will not have a material adverse effect upon the liquidity, capital resources, business or consolidated financial position of the Company. However, one or more of such environmental matters could have a significant negative impact on the Company's consolidated financial results for a particular reporting period. YEAR 2000 READINESS DISCLOSURE STATEMENT The Company has undertaken an internal assessment of its operations in order to determine the extent to which the Company may be adversely affected by Year 2000 issues. This internal assessment has included both Information Technology (IT) systems and non-IT systems. By the end of fiscal year 1998, the Company's assessment of its IT systems had been completed. The critical software systems used by the Company to run its business include MFG/PRO, Peoplesoft, Oracle, and Corsair. The Company believes that all of these programs are currently Year 2000 compliant. However, the Company has experienced and may continue to experience interfacing problems when upgrades are received from the vendors of these software programs. The Company has 15 16 YEAR 2000 READINESS DISCLOSURE STATEMENT (CONTINUED) completed some limited testing of its various IT systems, running programs with dates including and after the year 2000. During these tests the Company has not yet experienced any problems with processing of data and effecting transactions. The Company intends to perform further testing of its IT systems during the first half of calendar 1999. There can be no assurance, however, that additional testing of its IT systems will not uncover Year 2000 issues, which could have a material adverse effect on the Company's business, results of operations and financial condition. The Company's internal assessment of its manufacturing equipment for Year 2000 compliance is being done on a plant-by-plant basis. The Company anticipates that all of its internal assessment of manufacturing equipment will be completed by March 31, 1999. To date, the Company has identified three operating systems which are important to the Company's operations, each of which will need software upgrades in order to be Year 2000 compliant. Two of these operating systems are utilized in multiple departments and locations including the tooling/engineering phase of the fabrication business. The Company believes that Year 2000 compliant software upgrades for each of the two engineering systems have already been developed and tested, and the Company plans to install such upgrades on or before July 1, 1999. There can be no assurance that such upgrades will be Year 2000 compliant or that such upgrades will be installed in a timely basis. The Company has also determined that software in certain of its manufacturing systems is not currently Year 2000 compliant. The Company believes that upgrades currently exist to address the Year 2000 issue in this software. The vendor has told the Company that it will complete the software upgrade by the end of second quarter 1999, and will deliver and install it at the Company not later than June 30, 1999. There can be no assurance, however, that such vendor will be able to deliver a Year 2000 compliant software upgrade or that it will be installed at the Company prior to January 1, 2000. Testing of the Company's manufacturing systems for Year 2000 compliance has been started. The Company intends to develop a test plan for all critical systems not later than March 31, 1999 and to complete testing by June 30, 1999. The Company has also undertaken a survey of its suppliers' Year 2000 compliance status and, to date, has received responses from more than 80% of those surveyed, a majority of whom have certified they are compliant. Corporate purchasing will be responsible for obtaining data from those suppliers who have not yet responded to the Company's inquiries, and for obtaining updated information from the Company's more critical suppliers and those who indicated they were not Year 2000 compliant. The Company intends to conduct detailed exchanges with its key suppliers in order to assess the Company's need for contingency plans and in order to develop contingency plans, if required, on a supplier-by-supplier basis. During the first fiscal quarter of 1999, the Company retained the services of a consulting company and has two full-time outside Year 2000 compliance consultants to assist it in guiding its assessment, testing, remediation, and related efforts. To date, approximately 10,000 hours of employee time have been devoted to Year 2000 issues and approximately $2.5 million has been expended in systems upgrades directly relating to Year 2000 issues. The source of such funds has been the working capital of the Company. Present estimates for further expenditures of both employee time and expenses to address Year 2000 issues are between 12,000 and 18,000 employee hours and between $2 million and $5 million, respectively. To date, the Company has experienced minor delays for some non-Year 2000 related IT projects as a result of the Company's Year 2000 compliance efforts. The Company has not yet determined whether it has the internal resources to expend the necessary employee hours to address and resolve the Year 2000 issues at each of its manufacturing facilities; the Company may choose to retain outside consultants or otherwise outsource certain work, which would increase the expenses for Year 2000 issues and decrease the employee time commitment. The Company anticipates making an initial decision regarding the availability of Company resources for Year 2000 issues sometime in the second quarter of 1999, but will continually review this issue in light of the completion of its internal assessment and the results of additional testing and remediation efforts. There can be no assurance that the Company's costs relating to its Year 2000 compliance will not be greater than that currently expected. 16 17 YEAR 2000 READINESS DISCLOSURE STATEMENT (CONTINUED) A software or systems Year 2000 compliance failure with respect to the Company's internal systems and software, or that of third party service providers or major customers, could prevent the Company from being able to fulfill orders of its customers. Any such failure, if not quickly remedied, would have a material adverse affect on the Company's business, results of operations and financial condition. The lost revenues that would result from the Company's inability to operate even one of its major volume manufacturing plants for any significant period of time would have a material adverse effect on the Company. The Company could face an even greater risk of significant damages for which the Company could be liable if it is found responsible for the shutdown of one of its customers' facilities. This could occur if the Company was unable to supply parts integral to the end products manufactured by the Company's customers. In such circumstances, the legal liability of the Company could have a material adverse effect on the Company's business, results of operations and financial condition. At present, the Company has not developed any contingency plans for addressing any Year 2000 difficulties it may experience. The Company intends to develop such plans, both with respect to its suppliers and with respect to its own internal operations, on or before May 1, 1999. FACTORS THAT MAY AFFECT FUTURE RESULTS This Quarterly Report on Form 10-Q contains various "forward-looking" statements within the meaning of the Securities Litigation Reform Act of 1995, including, but not limited to, those concerning gross and operating margins, Year 2000 readiness and compliance, the sufficiency of the Company's working capital, and environmental matters. In this Form 10-Q, the words "anticipates," "believes," "expects," "intends," "future," "could," "may," and similar words and expressions (as well as other words or expressions referencing future events, conditions or circumstances) identify forward-looking statements. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or indicated in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, such factors as: the Company's dependence on the electronics industry; fluctuations in quarterly operating results; the variability of customer orders; significant portions of released backlog may be subject to cancellation or postponement without penalty; the effect of unforeseen problems in the Company's computer systems and those of third parties with which the Company deals, specifically those related to "Year 2000" issues; the effect of acquisitions on the Company; the ability of the Company to compete successfully in the future; the rapid technological change and continuing process development that characterizes the Company's markets; manufacturing process disruptions; the operation of the Company's Malaysia facility; the effect of economic turmoil, currency devaluations and financial market instability in Asia on the Company; the Company's significant customer concentration; the Company's ability to obtain, integrate, manage and utilize manufacturing capacity; the Company's ability to manage its growth; environmental matters; the availability of raw materials and components and price fluctuations in such materials and components; the Company's dependence on key personnel; the Company's ability to protect its intellectual property; and certain anti-takeover provisions applicable to the Company. Further information on factors that could cause actual results to differ from those anticipated is detailed in various publicly available documents filed by the Company from time to time with the Securities and Exchange Commission. Such information includes, but is not limited to, those factors appearing under the caption "Factors That May Affect Future Results" and elsewhere in the Company's Annual Report on Form 10-K for the year ended October 31, 1998. Any forward-looking statement should be considered in light of these factors. 17 18 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK DERIVATIVE FINANCIAL INSTRUMENTS, OTHER FINANCIAL INSTRUMENTS, AND DERIVATIVE COMMODITY INSTRUMENTS At January 30, 1999, the Company did not participate in any derivative financial instruments, or other financial and commodity instruments for which fair value disclosure would be required under SFAS No. 107. The Company holds no investment securities which would require disclosure of market risk. PRIMARY MARKET RISK EXPOSURES The Company's primary market risk exposures are in the areas of interest rate risk and foreign currency exchange rate risk. The Company incurs interest expense on loans made under the Credit Facility at interest rates which are fixed for a maximum of six months. At January 30, 1999, the Company's outstanding borrowings on the Credit Facility were $150 million, at a weighted average interest rate of 6.3125%. This interest rate is a combination of two Eurodollar rate loans of $50 million and $100 million at 6.3125% each. The Eurodollar rates are fixed until March 24, 1999 and April 26, 1999, respectively, at which time the Company can again fix these rates for periods of one, two, three or six months. The Eurodollar Rate is subject to market risks and will fluctuate. Substantially all of the Company's business outside the United States is conducted in U.S. dollar denominated transactions. The Company does operate a volume manufacturing facility in Malaysia. Some of the expenses of this facility are denominated in Malaysian ringgits. Expenses denominated in ringgits include local salaries and wages, utilities and some operating supplies. The Company also funds a small sales office in Ireland where expenses are incurred in British Pounds, Irish Punts and Euros. However, the Company believes that the operating expenses currently incurred in foreign currencies are immaterial, and therefore any associated market risk is unlikely to have a material adverse effect on the Company's business, results of operations or financial condition. 18 19 PART II - OTHER INFORMATION ITEM 2. CHANGES IN SECURITIES Under the Company's Executive Incentive Compensation Deferred Bonus Plan, as Amended and Restated July 1, 1998 (the "Executive Bonus Plan"), certain executives of the Company received payment of a portion of their incentive compensation for fiscal 1998 in the form of restricted Common Stock of the Company. On November 12, 1998, the executives received an aggregate of 9,085 shares of restricted Common Stock pursuant to the Executive Bonus Plan. The aggregate value of all such shares issued on November 12, 1998 to Executives was $275,366 (based on a fair market value on that date of $30.31 per share). Each of the shares of Common Stock of the Company referenced above was issued by the Company in reliance on the exemption from registration provided by Section 4(2) of the Securities Act for an offering to a small number of knowledgeable investors. ITEM 6. - EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits *10.1 Amendment to Hadco Corporation's Retirement Plan dated as of December 2, 1998 21.1 List of Subsidiaries 27. Financial Data Schedule * Indicates a management contract or any compensatory plan, contract or arrangement required to be filed as an exhibit pursuant to Item 14(c). (b) Reports on Form 8-K None 19 20 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. Hadco Corporation Date: March 15, 1999 By: /s/ F. Gordon Bitter ------------------------- F. Gordon Bitter Senior Vice President and Chief Financial Officer (principal financial officer and principal accounting officer) 20 EX-10.1 2 PROPOSED AMENDMENTS TO HADCO RETIREMENT PLAN 1 EXHIBIT 10.1 AMENDMENT TO HADCO CORPORATION'S RETIREMENT PLAN DATED AS OF DECEMBER 2, 1998. 1. Under Section 1434 of the Small Business Job Protection Act of 1996, the compensation definition for purposes of the limits on contributions and benefits for defined contribution plans has been revised to include, in addition to compensation for which a W-2 must be provided, the amount of elective deferrals under qualified plans and salary reduction contributions to cafeteria plans, for years beginning on or after January 1, 1998. In order to implement these provisions of Section 1434 of SBJPA, the Plan is amended as set out below, effective as of January 1, 1998. The definition of "414(q) Compensation" in Section 1.08 of the Plan is amended to read as follows: "414(q) Compensation shall mean Compensation increased by elective deferrals as defined in Section 402(g)(3) of the Code and any amount which is contributed or deferred by the Employer at the election of the Employee and which is not includible in the gross income of the Employee under Section 125 of the Code." The first paragraph of Section 3.09(a) is amended to read as follows: "(a) Maximum Annual Additions All annual additions made under the provisions of this Article III within any Plan Year and with respect to any Participant shall not exceed the lesser of: (i) Thirty thousand dollars ($30,000.00) or, if greater, one-fourth of the dollar limitation in effect under Section 415(b)(1)(A) of the Code, or (ii) for Plan Years ending on or before December 31, 1997, 25% of the Participant's Compensation for such Plan Year, or for Plan Years beginning on or after January 1, 1998, 25% of the Participant's 414(q) Compensation for such Plan Year." 2. Section 1704(n) of the Small Business Job Protection Act of 1996 also included certain requirements for making up contributions for veterans who leave 2 employment for relatively short periods of military service and who are re-employed by the company pursuant to the Uniformed Services Employment and Reemployment Rights Act (USERRA). Under Revenue Procedure 96-49, the IRS provided model amendments which can be adopted to implement the requirements of USERRA as incorporated into Section 414(u) of the Code. The following amendment is adopted pursuant to the provisions of Rev. Proc. 96-49. A new Section 3.12 is added to the Plan effective as of October 13, 1996 to read as follows: "3.12 CONTRIBUTIONS UNDER USERRA Notwithstanding any provision of the Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Internal Revenue Code." 3. The following amendment has been requested by the IRS in order to clarify that an Employee who is absent from work on account of maternity or paternity leave will not be deemed to have incurred a period of severance for purposes of determining eligibility to participate in the plan on account of such leave. The second sentence of the second paragraph of Section 2.01 of the Plan is hereby amended to read as follows: "A period of severance shall mean a period of time during which the Employee is no longer employed by the Employer, and shall begin on the earlier of (i) the date on which the Employee quits, retires, is discharged or dies or (ii) the first anniversary of the first day of a period in which the Employee remains absent from service (with or without pay) with the Employer for any reason other than quit, retirement, discharge or death, such as on account of vacation, holiday, sickness, disability, leave of absence or layoff; provided, however, that "second anniversary" shall be substituted for "first anniversary" under this clause (ii) for an Employee who is absent from service beyond the first anniversary of the first day of absence by reason of the pregnancy of the individual, the birth of a child of the individual, the placement of a child with the individual in connection with the adoption of such child by such individual, or for purposes of caring for such child for a period beginning immediately following such birth or placement." 2 3 ] 5. The following amendments have been requested by the IRS in order to clarify that qualified non-elective contributions are fully vested when made, and that the distribution rules under Section 4.04 of the Plan apply to such contributions. Section 3.04 of the Plan is amended to read as follows: "Qualified Non-elective Contributions shall be paid to the Trustee as soon a pacticable after the end of the Plan Year, but in any event not later than the due date for the Employer's federal income tax return for the Fiscal Year which ends within such Plan Year, including extensions, shall be allocated to the 401(k) Accounts of Participants on whose behalf the contributions are made, and shall be fully vested when made." Section 4.04 shall be amended by inserting the words "(including 401(k) and Qualified Non-Elective Contributions)" after the reference to "401(k) Accounts" in the title and in the introductory paragraph of said Section. 5. Section 10.07(c) must be amended to clarify that "five percent owner" is to be defined by reference to Section 416(i) of the Code. Section 10.07(c) is amended by adding the following sentence to the end thereof: "The determination of who is a five percent owner shall be made in accordance with Section 416(i) of the Code and the regulations thereunder." 6. The reference in Section 6.05 to "Section 1.42" shall be corrected to refer to "Section 1.43", and the reference in Section 10.07(e)(ii) to "subsection 10.07(f)" shall be corrected to refer to "Section 10.07(e)". 3 EX-21.1 3 SUBSIDIARES OF HADCO CORPORATION 1 EXHIBIT 21.1 SUBSIDIARIES OF HADCO CORPORATION DIRECT SUBSIDIARIES (100%) OWNED BY HADCO CORPORATION) STATE OR COUNTRY/ TERRITORY OF ORGANIZATION Hadco Santa Clara, Inc. (f/k/a Zycon Corporation) Delaware Hadco Phoenix, Inc. (f/k/a Continental Circuits Corp.) Delaware Zycon Corporation (a name holding corporation) Delaware Continental Circuits Corp. (a name holding corporation) Delaware Hadco Foreign Sales Corporation U.S. Virgin Islands Hadco Ireland Limited Ireland Hadco Scotland Limited Scotland INDIRECT SUBSIDIARIES STATE OR COUNTRY/ TERRITORY OF ORGANIZATION CCIR of California Corp. (100% owned by Hadco Phoenix, California Inc.) CCIR of Texas Corp. (100% owned by Hadco Texas Phoenix, Inc.) Hadco Corporation (Malaysia) SDN.BHD. (f/k/a Zycon Malaysia Corporation, SDN.BHD) (100% owned by Hadco Santa Clara, Inc. Continental Circuits International, Inc. (100% owned by Barbados Hadco Phoenix, Inc. 21 EX-27 4 FINANCIAL DATA SCHEDULE
5 1,000 U.S. DOLLARS 3-MOS OCT-30-1999 NOV-01-1999 JAN-30-1999 1 9,626 0 117,484 2,527 70,894 222,157 649,986 326,822 743,586 124,159 354,985 0 0 676 195,054 743,586 235,979 235,979 203,546 224,541 0 0 8,696 3,343 1,329 2,014 0 0 0 2,014 0.15 0.15
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