Feb 25, 2003
Toronto-based Circuit World Corporation (CCW) today announced its fourth quarter and audited year-end results to December 31, 2002. While conditions remained challenging in 2002, Circuit World said it "continued to outperform the majority of the printed circuit industry."
The company's revenue for 2002 fell 7% over the previous year, while unit volume increased by 7%. Sales in the fourth quarter of 2002 were 40% higher than those in the same period in 2001, the company said.
Circuit World noted that its sales have increased in each of the last six months over the comparable periods in 2001. The company added that it expects this trend to continue in the first quarter of 2003.
Gross margin for the year was reported as 22%, compared with 24% in 2001. The company said it undertook cost-cutting measures that included salary and wage reductions, reductions in headcount, reduced discretionary spending, manufacturing process improvements, and lower raw material and supply costs.
"Over the past two years, significant capacity within the industry has been permanently shut down," stated Mr. Roseborough, Circuit World's President and CEO. "It is estimated that between 30% and 40% of peak capacity is now decommissioned. With this significant adjustment, we believe a moderate economic rebound could have a dramatically positive effect on the remaining industry players. With modern facilities and high technology offerings, we are ready to respond."
Mr. Roseborough said that Circuit World believes the market for advanced technology printed circuits will continue to grow as "the market matures and economic conditions improve."
"The advantage of modern facilities, combined with our alliance with a leading offshore manufacturer, has enabled us to offer turnkey support of a wider range of product technologies to our growing account base. Modern facilities combined with our technology leadership and world-class customers in Aerospace, Medical, Military, Telecommunications and Contract Manufacturing provide us with the market position needed for future growth," Mr. Roseborough added.
Circuit World Corporation is a high-technology fabricator of high-density, multilayered PCB. Approximately 90% of its sales are derived from the Avionics, Telecommunications, Medical and Advanced Test industries in the U.S., with the remainder in Canada. The company's shares are traded on the Toronto Stock Exchange under the symbol CCW. Currently, there are approximately 7.1 million shares outstanding, the company said.
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