SpecTran Corporation of the United States reported positive results for the second quarter and six months ended 30 June 1997. Net income in the 1997 second quarter was a record US$ 1.33 million or US$…
SpecTran Corporation of the United States reported positive results for the second quarter and six months ended 30 June 1997. Net income in the 1997 second quarter was a record US$ 1.33 million or US$ 0.18 per share, an increase of 60% from US$ 833,000 or US$ 0.14 per share for the same period in 1996. Revenues for the quarter increased 4% to US$ 15.88 million from US$ 15.28 million for the same period in 1996. Net income for the first six months of 1997 increased 62% to a record US$ 2.45 million or US$ 0.35 per share, compared with a net income of US$ 1.52 or US$ 0.26 per share for the first half of 1996. Revenues for the 1997 first half increased 12% to a record US$ 32.1 million from US$ 28.75 million for the same period last year. Earnings per share for the 1997 June quarter and first half were less than the previous records due to a higher number of shares of stock outstanding during the 1997 periods. However, the company expects record net income and earnings per share for the whole year. SpecTran“s President and CEO, Raymond E. Jaeger, said, “Revenue growth for this year“s June quarter compared with the same period last year was strong at all business units. These increases in revenues produced an even higher percentage increase in pre-tax income which was largely attributable to improved manufacturing yields and efficiencies since there was only a small increase in the amount of equipment used during this year“s June quarter. As a result, the consolidated gross profit margin improved to 39% in the June 1997 quarter from 35% in the same quarter last year. “The June 1997 quarter also benefited from a higher level of interest income from the remaining cash obtained from the December 1996 private debt placement and the February 1997 public stock offering. This will diminish as we complete the capacity expansions currently underway at Communication Fibre Technologies and Specialty Optics Company. These expansions remain on schedule.”