Applied Films: strong bookings in 1Q fiscal 2006

For the 1Q of fiscal 2006, ended 1 October 2005, Applied Films Corporation reported strong bookings in its display and web segments. For the quarter, the company had bookings across all segments of US…

For the 1Q of fiscal 2006, ended 1 October 2005, Applied Films Corporation reported strong bookings in its display and web segments. For the quarter, the company had bookings across all segments of USD 59.8 million and backlog of USD 69.7 million. The company says it expects to recognize revenue from this backlog over the next 9 to 12 months. Net revenues for the 1Q of fiscal 2006 were USD 45.9 million compared to USD 41.7 million for the 1Q of fiscal 2005, an increase of 10.1%. The net loss on a GAAP basis for the 1Q of fiscal 2006 was USD 2.6 million or USD 0.17 per fully diluted common share, compared to a profit of USD 370,000 or USD 0.02 per fully diluted common share for the 1Q of fiscal 2005. The 1Q of 2006 included USD 722,000 for stock based compensation related to FAS 123[R]. Non-GAAP earnings, which are earnings before amortization of intangibles and expenses related to the adoption of FAS123[R] for the 1Q of fiscal 2006, were USD 108,000, or USD 0.01 per fully diluted common share, compared to USD 1.7 million or USD 0.11 per fully diluted common share for the 1Q of fiscal 2005. Gross margin for the quarter was 24.3% compared to 28.5% for the previous year. During the quarter the company recorded an additional expense of USD 1.5 million or approximately USD 0.07 per fully diluted share to cover additional estimated costs to complete the customer acceptance for the TRITON beta system in Korea. Excluding the impact of these costs, the gross margin for the 1Q of fiscal year 2006 would have been 27.6%. “We were pleased to see bookings strength from the display and web markets during the quarter,” said Thomas T. Edman, President and Chief Executive Officer. “Our TRITON beta system [for TFT display coating] is now in the start-up phase at our customer“s site. We found that additional engineering changes were required to ensure successful performance of this system which resulted in an additional expense and a delay in the acceptance schedule for the machine. We did receive a repeat order for a TRITON system in the 1Q, which we view as a positive signal regarding customer confidence in this platform.” For the 2Q fiscal 2006, the company sees net revenues in the range of USD 46-49 million, GAAP loss per share of USD 0.12- 0.10, fully diluted shares outstanding to be approximately 15 million, amortization of intangibles to be approximately USD 1.4 million, and FAS 123[R] stock option expense of approximately USD 800,000. Applied Films is a provider of thin film deposition equipment to the flat panel display, architectural glass, solar cell, consumer products packaging and electronics industries.