7/29/2002 - Oak Technology, Inc. (Nasdaq: OAKT), a leading provider of embedded software and semiconductor solutions for the optical storage and digital imaging markets, today announced that for the fourth quarter of fiscal 2002, ended June 30, 2002, the Company reported total revenues of $34.9 million compared with $36.8 million for the same period of the prior fiscal year. For fiscal 2002, the Company recorded revenues of $146.6 million compared to $176.2 million reported for fiscal 2001. Oak generated $9.3 million and $23.6 million in cash flow from operations for the fourth quarter and fiscal 2002, respectively, including a $14.7 million tax refund and balance sheet improvements throughout the year. At year end, Oak had cash and investments of approximately $143 million and remained debt free.
On a GAAP basis, including $0.8 million in restructuring charges, an investment impairment loss of $1.6 million, $0.5 million of legal expenses associated with a one time acquisition project and $3.0 million in amortization of intangibles, the Company reported a fourth quarter net loss of $12.7 million, or $(0.23) per share. Including these items, Oak reported a fiscal year net loss of $27.0 million, or $(0.49) per share.
The Company reported a pro forma net loss of $6.8 million, or $(0.12) per share, for the fourth fiscal quarter of 2002, and a net loss of $9.1 million, or $(0.16) per share for fiscal 2002. Pro forma net loss for the fourth quarter included inventory reserves of approximately $4.1 million, bad debt reserves of $0.8 million, and excluded restructuring charges and amortization of intangible assets. Excluding the inventory and bad debt reserves, the pro forma net loss for the fourth quarter would have been $1.9 million, or $(0.03) per share.
On a GAAP basis in fiscal 2001, the reported net loss for the fourth quarter was $22.1 million, or $(0.41) per share and a net loss of $30.6 million, or $(0.56) per share for the year. In fiscal 2001, Oak reported a fourth quarter pro forma net loss of $1.0 million, or $(0.02) per share and a pro forma net profit of $3.2 million, or $0.05 per diluted share, for the year. In fiscal 2001, the Company also reported an impairment loss totaling $17.4 million related to certain equity securities Oak received in exchange for the Company's sale of a business in January 2000. This impairment loss was excluded from the 2001 pro forma results.
"The broad slowdown in corporate and consumer IT spending has created an inventory glut among our customer base," said Young Sohn, Oak Chairman and Chief Executive Officer. "As a result, revenues across the industry, including at Oak, have been disappointing. However, we believe the digital market opportunity is a high growth opportunity for Oak. We continue to make solid progress on research and development of next-generation products including our recently announced DVD recordable product line. We believe Oak's continued leadership in products, technology, customer relationships and fundamental financial strength, position us well for success when the market environment improves."
RECENT BUSINESS REVIEW
The following statements are based on current expectations for the first fiscal quarter of 2003 as of July 23, 2002. These statements, and the use of such phrases as "expects", "anticipates" and "intends" are forward-looking, and actual results may differ materially.
The Company notes that current visibility and channel inventory positions make it difficult to see one quarter ahead. Given the current uncertainties in the economy and the industry, the Company will refrain from commenting on expectations beyond the current quarter.
Oak Technology's procedure for publishing and updating this outlook is as follows. Following the publication of the outlook in its quarterly earnings release, Oak will continue its current practice of having corporate representatives meet privately during the quarter with investors, the media, investment analysts and others to discuss the published outlook and publicly disclosed material related to the outlook. This outlook will not be updated during the quarter unless Oak Technology publishes a notice stating otherwise.
Oak will broadcast its fourth quarter earnings conference call today at 4:30 PM EDT/1:30 PM PDT. This event is available through the Oak Technology web site at www.oaktech.com by clicking on the "financial results" link. Listeners should go to the website at least ten minutes before the event to download and install any necessary audio software. For those unable to attend the live broadcast, an archived version of the webcast will be available and a telephonic replay will also be available approximately two hours following the earnings call. The conference call can be accessed by dialing (719) 457-2629 and entering the passcode number 167359 approximately 10 minutes before the conference call begins.
About Oak Technology
Oak Technology, Inc., a leading provider of solutions for the storage, capture and sharing of digital content, is committed to driving the emerging world of connected information appliances. The Company's fully integrated products and technologies target two key markets: optical storage (CD-RW and DVD for PC and consumer) and digital imaging (advanced copiers, printers, faxes, scanners, MFPs and iAppliances). Founded in 1987, Oak is headquartered in Sunnyvale, California, and has sales offices, design centers and research facilities around the world. The Company trades on the Nasdaq Stock Exchange under the symbol OAKT. Additional information about Oak and its digital solutions can be found at www.oaktech.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
In addition to the historical information contained herein, statements in this press release may contain forward-looking statements within the meaning of the Federal securities laws and are subject to the safe harbors created thereby. The following are among the factors that could cause actual results to differ materially from the forward-looking statements: The foregoing statements may consist of forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Factors that could cause actual outcome to differ materially from those set forth include, without limitation, the rate of adoption of new technology, the rate of growth of the CD-RW market, changes in product mix or distribution channels; the demand for semiconductors and end-user products that incorporate semiconductors; technological difficulties and resource constraints encountered in developing and/or introducing new products, and market acceptance of new products. Forward-looking statements contained in this press release regarding expected financial results, industry trends, sales and future product development and business strategies and activities should be considered in light of these factors, and those factors discussed from time to time in the Company's public reports filed with the Securities and Exchange Commission, such as those discussed in the Company's Annual Report on Form 10K for fiscal year ended June 30, 2001, and in quarterly reports on Form 10Q.
Oak Technology and SimpliCD are registered trademarks of Oak Technology, Inc. and the Oak logo, ExacLink, and IPS/5E are common law trademarks of Oak Technology, Inc. All others are trademarks of their respective owners.
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