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KR Precision
Reports First Quarter 2004 Results
Key Highlights
- Q1 net loss of Baht 64 million on revenue of Baht 390
million
- Unit shipments declined 55% quarter on quarter to 12.3
million
- EBITDA of Baht 30.4 million
Ayutthaya, Thailand - May 4, 2004 - KR Precision PCL (SET:KRP)
today reported results for the first quarter ending March 31,
2004. Net revenues in the first quarter of 2004 were Baht 390
million compared with Baht 830.3 million for the fourth quarter of
2003 and Baht 644.4 million for the same period a year ago. This
represented a decrease in revenues of 53% percent sequentially and
39% on a year-over-year basis. The lower first quarter 2004
revenue was impacted by a significant reduction in suspension
sales as a result of a general inventory correction in the HDD
industry. Units shipment declined 55% to 12.3 million versus the
prior quarter.
For the quarter the company reported a positive EBITDA of 30.4
million and a net loss of Baht 64 million, or loss per share
of Baht 0.18, compared with a net profit of Baht 34 million, or
Baht 0.10 per share, in the previous quarter. These results
include severance costs of Baht 18 million from a 6% reduction in
headcount, principally in back-office and professional positions,
driven by continuing productivity improvements.
"The first quarter proved challenging for KR Precision
consistent with the storage industry’s broad based inventory
correction. However, we are excited about the fact that we are
ramping 2.5” production on the firm’s new generation of advanced
manufacturing hardware and are in final stages of qualification on
new 2.5” and 3.5" products. In addition, the company’s new product
pipe remains strong with development efforts and commitments in
all form factors,” said Vince Mastropietro, KR's CEO and
President.
For the second quarter of 2004 the company expects unit
shipments, EBITDA and gross margin will be flat.
About KR Precision
Headquartered in Ayutthaya, Thailand, KR Precision is a world
leader in the manufacturing and optimizing of suspension
assemblies for hard disk drives and in the manufacturing of
precision metal components. KR Precision counts among its
customers many of the world’s largest and most well known hard
disk drive producers. For more information, please visit the KR
Precision website at
www.krprecision.com.
Forward Looking Statement
This release contains forward-looking statements that involve
risks, uncertainties and assumptions. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. The forward-looking statements are
based on current management expectations, and actual results may
differ materially as a result of several factors, including:
levels of operating expense and product cost; supply and demand
conditions in the data storage industry; overall economic
conditions; changes in product and customer mix; pricing trends;
actions by competitors; the pace of development of new markets;
successful entry into new markets by the Company; and other
factors discussed in periodic reports filed with the SET. We
undertake no obligation to update or alter our forward-looking
statements to reflect new information or events or for any other
reason.
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