Planar Announces Fiscal Third Quarter 2013 Financial Results
Planar Announces Fiscal Third Quarter 2013 Financial Results
Company reports over 20% year-over-year growth in quarterly sales of Digital Signage and Touch Monitor products
BEAVERTON, Ore.--(BUSINESS WIRE)-- Planar Systems, Inc. (NAS: PLNR) , a global leader in display and digital signage technology, recorded sales of $37.5 million and a GAAP loss per share of $0.17 in its third fiscal quarter ended June 28, 2013. On a Non-GAAP basis (see reconciliation table), loss per share was $0.02 in the third quarter of fiscal 2013.
"I am pleased we were able to continue to grow in our focus areas of digital signage and touch display products," said Gerry Perkel, Planar's President and Chief Executive Officer. "I am equally pleased we were able to achieve that growth while we continued to lower our overall cost structure to position us for Non-GAAP profitability in the fourth quarter of fiscal 2013 and for fiscal 2014."
SUMMARY OF BUSINESS HIGHLIGHTS
- Sales of digital signage products and touch monitors totaled $19.1 million, representing 22 percent growth compared with the third fiscal quarter of 2012
- Unveiled the Planar® PS5580, a narrow bezel LCD video wall display aimed at budget-conscious customers who want to create high-impact video walls
- Began shipping the Planar UltraRes 84-inch 4k display and announced the upcoming availability of a touch-enabled version which continues Planar's leadership in the UltraHD resolution category with best-in-class, large format, multi-touch display capabilities
- Launched a new 24-inch version, the Planar PCT2485, of the Planar Helium Series of Windows 8 ready touch monitors and the new 22-inch Planar PT2245PW, a dual-touch, zero bezel, HD resolution, projected capacitive touch monitor
THIRD QUARTER FISCAL 2013 RESULTS
The Company's total revenue decreased 16 percent compared to the third quarter of fiscal 2012. As previously announced, the Company sold the assets comprising its Electroluminescent (EL) product line during the first quarter of 2013. Excluding revenue associated with EL products, the Company's total revenue decreased 6 percent compared with the third quarter of fiscal 2012. Sales of digital signage products totaled $14.1 million in the third quarter of 2013, a 19 percent increase from the same period a year ago. Continuing to expand the go-to-market capability and product portfolio remain key success factors for driving growth for digital signage products sales and overall sales. Sales of Commercial and Industrial (C&I) products declined 29 percent (17 percent without EL) to $23.4 million compared with the same quarter a year ago. This decrease was primarily driven by the elimination of the EL display product line, and lower sales of rear projection cubes, high-end home products, and custom products, partially offset by increased sales of desktop and touch monitors which grew 10 and 30 percent respectively compared to the same period a year ago.
The Company's consolidated gross profit margin, as a percentage of sales, (on a Non-GAAP basis) was 21.7 percent in the third quarter of 2013, down slightly from 22.0 percent in the third quarter of 2012 (see reconciliation table). On a sequential basis, the Company's Non-GAAP gross profit margin increased 1.3 percentage points as improved margin rates on sales of digital signage products and better absorption of fixed manufacturing expenses more than offset an unfavorable product mix.
Total operating expenses (on a Non-GAAP basis) for the third quarter of 2013 decreased $2.1 million, or 19 percent, to $9.0 million compared with the same quarter a year ago, as expenses declined in all functions as a result of previously implemented cost reduction measures. In addition, as previously disclosed, the Company recorded a $2.4 million restructuring charge related to the consolidation of its US manufacturing operations into a single facility.
The Company's cash balance increased $0.5 million sequentially to $13.4 million at the end of the third fiscal quarter of 2013 compared to the end of the second quarter of fiscal 2013. The increase in cash was primarily caused by a reduction in accounts receivable and an increase in accounts payable, partially offset by the loss incurred in the quarter and increases in inventory.
Earlier this fiscal year, the Company established a goal to substantially grow the sales of digital signage and touch products while turning a profit (on a Non-GAAP basis) for the fiscal year. Looking forward, with three quarters completed and the expectation for a strong sequential increase in sales, that goal remains achievable. The Company expects to grow sales of digital signage and touch products by more than 30 percent for the full fiscal year and to be profitable for fiscal 2013 (on a Non-GAAP basis). The Company currently anticipates revenue in the range of $42-44 million and Non-GAAP income per share of $0.03 to $0.05 in the fourth quarter of 2013.
Results of operations and the business outlook will be discussed in a conference call today, August 8, 2013, beginning at 2:00 PM Pacific Time. The call can be heard via the Internet through a link on Planar's website, www.planar.com, or through numerous other investor sites, and will be available for replay until September 8, 2013. The Company intends to post on its website a transcript of the prepared management commentary from the conference call shortly after the conclusion of the call.
Planar Systems Inc. (NAS: PLNR) is a global leader in display and digital signage technology, providing premier solutions for the world's most demanding environments. Retailers, educational institutions, government agencies, businesses, utilities and energy firms, and home theater enthusiasts all depend on Planar to provide superior performance when image experience is of the highest importance. Planar video walls, large format LCD displays, interactive touch screen monitors and many other solutions are used by the world's leading organizations in applications ranging from digital signage to simulation and from interactive kiosks to large-scale data visualization. Founded in 1983, Planar is headquartered in Oregon, USA, with offices, manufacturing partners and customers worldwide. For more information, visit www.planar.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 relating to Planar's business operations and prospects, including statements relating to the Company's expected levels of revenue, revenue growth, Non-GAAP earnings/profitability for the fourth quarter, second half, full fiscal year in 2013, and full fiscal year 2014 and the other statements made under the heading "Business Outlook." These statements are made pursuant to the safe harbor provisions of the federal securities laws. These and other forward-looking statements, which may be identified by the inclusion of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "goal" and variations of such words and other similar expressions, are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Many factors, including the following, could cause actual results to differ materially from the forward-looking statements: poor or weakened domestic and international business and economic conditions; changes or continued reductions in the demand for products in the various display markets served by the Company; any delay in the timing of customer orders or the Company's ability to ship product upon receipt of a customer order; the extent and timing of any additional expenditures by the Company to address business growth opportunities; any inability to reduce costs or to do so quickly enough, in either case, in response to reductions in revenue; adverse impacts on the Company or its operations relating to or arising from any inability to fund desired expenditures, including due to difficulties in obtaining necessary financing; changes in the flat-panel monitor industry; changes in customer demand or ordering patterns; changes in the competitive environment including pricing pressures, increased commoditization or the ability to keep pace with technological changes; technological advances; shortages of manufacturing capacity from the Company's third-party manufacturing partners or other interruptions in the supply of components the Company incorporates in its finished goods including as a result of natural disasters; future production variables resulting in excess inventory and other risk factors listed from time to time in the Company's periodic filings with the Securities and Exchange Commission (SEC). The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
Note Regarding the Use of Non-GAAP Financial Measures:
In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), the Company's earnings release contains Non-GAAP financial measures that exclude share-based compensation and the requirements of Topic 718 of the FASB Accounting Standards CodificationTM, "Compensation-Stock Compensation." The Non-GAAP financial measures also exclude impairment and restructuring charges, gains or losses on the sale of assets, the amortization of intangible assets related to previous acquisitions, various tax charges including the valuation allowance against deferred tax assets, the gain or loss on foreign currency due to the non-cash nature of the charge, and various other adjustments. The Non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The Company has provided reconciliations of the Non-GAAP financial measures to the most directly comparable GAAP financial measures.
|Planar Systems, Inc.|
|Consolidated Statement of Operations|
|(In thousands, except per share amounts)|
|Three months ended||Nine months ended|
|Jun. 28, 2013||Jun. 29, 2012||Jun. 28, 2013||Jun. 29, 2012|
|Cost of Sales||29,359||34,895||93,954||102,427|
|Research and development, net||1,620||2,319||5,475||7,805|
|Sales and marketing||4,819||6,019||14,923||19,662|
|General and administrative||2,833||3,167||9,159||10,947|
|Amortization of intangible assets||147||175||442||525|
|Loss on sale of assets||-||-||1,314||-|
|Total Operating Expenses||11,826||11,680||33,914||39,457|
|Income (Loss) from operations||(3,700||)||(1,871||)||(6,767||)||(11,930||)|
|Non-operating income (expense):|
|Foreign exchange, net||(1||)||260||(14||)||523|
|Net non-operating income (expense)||204||390||552||980|
|Income (loss) before taxes||(3,496||)||(1,481||)||(6,215||)||(10,950||)|
|Provision (benefit) for income taxes||71||212||114||604|
|Net Income (loss)||$||(3,567||)||$||(1,693||)||$||(6,329||)||$||(11,554||)|
|Net Income (loss) per share - basic||($0.17||)||($0.08||)||($0.31||)||($0.58||)|
|Net Income (loss) per share - diluted||($0.17||)||($0.08||)||($0.31||)||($0.58||)|
|Weighted average shares outstanding - basic||20,899||20,219||20,672||20,024|
|Weighted average shares outstanding - diluted||20,899||20,219||20,672||20,024|
|Planar Systems, Inc.|
|Consolidated Balance Sheets|
|Jun. 28, 2013||Sep. 28, 2012|
|Accounts receivable, net||16,857||18,604|
|Other current assets||3,101||2,829|
|Total current assets||64,719||71,185|
|Property, plant and equipment, net||6,953||3,554|
|Intangible assets, net||123||565|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Current portion of capital leases||745||449|
|Other current liabilities||13,084||15,915|
|Total current liabilities||30,642||29,709|
|Long-term portion of capital leases||623||545|
|Other long-term liabilities||5,679||5,111|
|Retained earnings (deficit)||(141,472||)||(134,751||)|
|Accumulated other comprehensive loss||(3,167||)||(3,286||)|
|Total shareholders' equity||41,261||46,519|
|Reconciliation of GAAP to Non-GAAP Financial Measures|