Planar Systems, Inc. (Planar), a US-based company, has reported sales of $49.1 million for the first quarter of fiscal 2009, compared with the sales of $70 million in the year-ago quarter. It has reported a net loss of $0.9 million, or $0.5 loss per diluted share, for the first quarter of fiscal 2009, compared with the net loss of $3.4 million, or $0.20 loss per diluted share, in the year-ago quarter.
On a Non-GAAP basis loss per share was $0.03 in the first quarter of fiscal 2009.
“I am pleased with the progress we have made strengthening our balance sheet and improving our profitability and working capital in the face of continuing economic challenges,” said Gerry Perkel, company’s president and chief executive officer. “Our ending cash balance increased almost $3 million compared to the end of the previous quarter and the actions we have taken to reduce costs have begun to favorably impact our profitability. While our revenue levels continue to be under pressure given the global economic slowdown, our balance sheet is stronger than it has been over the past few quarters, and we remain committed to proactive cost reductions, further dispositions of underperforming or non-strategic assets and improved working capital management as we look forward.”
Cash increased $2.9 million to $17.8 million, or around $1 per outstanding common share. The company had no borrowings under its existing $20 million line of credit at the end of the quarter.
Tangible net worth increased to $60.4 million, representing a tangible book value of around $3.32 per outstanding common share.
Net working capital increased to $51.5 million.
Days sales outstanding (DSO) in accounts receivable ended at 55 days.
Current Ratio improved to 2.2 times.
Summary Of First Quarter Fiscal 2009 Financial Results
Revenues from continuing operations in the first quarter were down around 30 % compared to the first quarter of fiscal 2008. Sales in the Company’s Industrial Business Unit (IBU) declined 19% to $13.8 million in the first quarter compared to the first quarter in fiscal 2008. The Industrial segment experienced generally lower demand and reduced shipments from existing design wins as some customers requested delays in scheduled deliveries to future quarters. Sales in the Commercial Business Unit (CBU) declined 33% compared to the first quarter of the prior year, as average selling prices dropped significantly due to an oversupply of desktop monitors in the market. Sales for the Control Room & Signage Business Unit (CSBU) declined 35% compared to the first quarter of 2008 as the slow down in the macro economy continued to negatively impact the timing of projects and overall demand. Sales for the Home Theater Business Unit (HTBU) declined 32% compared to the first quarter of 2008 as demand for high-end home theater equipment continues to be negatively impacted by the slowdown in new home construction and a poor overall economic climate.
As earlier reported, the company sold its Coolsign digital signage software assets via two separate transactions in the first quarter, resulting in a combined $5.5 million GAAP gain. Around half of the cash proceeds from these transactions were received in the first quarter, with the balance received in the second quarter of the current fiscal year. In addition, as previously disclosed, the company recorded a $0.5 million restructuring charge related to the company’s most recent cost reduction plan undertaken during the first quarter.