ERIE, Pa., Jan. 8 /PRNewswire/ -- Spectrum Control, Inc. (Nasdaq: SPEC), a leading designer and manufacturer of electronic control products and systems, today reported results for the fourth quarter and fiscal year ended November 30, 2000.

For the fourth quarter of 2000, the Company had net income of $3,416,000 or 26 cents per share (25 cents diluted) on sales of $36,379,000, compared to net income of $1,500,000 or 14 cents per share (13 cents diluted) on sales of $28,971,000 for the same period last year.

For the fiscal year 2000, the Company reported net income of $9,503,000 or 81 cents per share (79 cents diluted) on net sales of $132,639,000. For the fiscal year 1999, the Company had net income of $5,470,000 or 50 cents per share (49 cents diluted) on sales of $97,729,000.

Customer orders received during the fourth quarter of fiscal 2000 amounted to $38.1 million, an increase of $3.7 million or 11% from the same period last year. For the fiscal year 2000, the Company received customer orders totaling $151.8 million, compared to $119.8 million in 1999, an increase of 27%.

Dick Southworth, the Company's President and Chief Executive Officer, commented, "This was another outstanding quarter for Spectrum Control. During the fourth quarter, we achieved record revenues and profits with sales up 26% and earnings per share up 92% compared to the fourth quarter of fiscal 1999. Demand for our products remained strong, with customer orders increasing by 11% during the quarter and 27% for the year, compared to the comparable periods of last year. As a result, we ended the year with a record customer order backlog of $65.4 million."

Other highlights for the quarter and year include:

• The Company's Signal Products Group (discrete EMI filters, filtered arrays, filtered connectors, wireless products, and specialty ceramic capacitors) achieved record customer orders and shipments. Customer orders for these products amounted to $28.3 million in the fourth quarter, up $3.0 million or 12% from the comparable period of 1999. Sales of signal products were $28.3 million in the fourth quarter of fiscal 2000, an increase of $10.0 million or 55% from the same period last year. Demand for these signal products continues to be driven by growth in the telecommunications equipment market for such applications as fiber optic networks, wireless base stations, datacom switching systems, and Internet servers.
  
  
• For the Company's power products (power distribution units, single line filters, power entry modules, and commercial custom assemblies), customer orders received during the quarter amounted to $9.8 million, up 7% from the fourth quarter of 1999.
  
  
• For the year ended November 30, 2000, net cash provided by operating activities was $11.2 million, compared to $2.0 million in fiscal 1999. With this operating cash flow and the net proceeds realized from our secondary stock offering completed in August, the Company invested $6.9 million in capital equipment and improvements and repaid $25.7 million of bank indebtedness in fiscal year 2000.
  
  
• The Company continues to increase operations in its new 46,000 square foot facility in Juarez, Mexico. Signal products manufactured and sold from this facility amounted to $3.5 million during the fourth quarter. Production in this facility is expected to be phased in throughout fiscal 2001.
  
  
• Construction of a 26,000 square foot addition to the Company's Wesson, Mississippi facility was substantially completed during the fourth quarter. This facility expansion significantly increases manufacturing capacity for the Company's power and advanced systems product offerings.
  
  
• At November 30, 2000 the Company had $6.0 million of cash and short- term investments, current assets 4.27 times current liabilities, $76.5 million of stockholders' equity, and only $2.6 million of total borrowed funds.
  
  

Future Outlook

Mr. Southworth stated, "In fiscal year 2000, approximately 64% of the Company's sales were to customers in the telecommunication industry. Demand for our products in this market segment was strong throughout most of fiscal 2000, with overall market growth driven by fast-growing Internet usage, wireless infrastructure upgrades, and bandwidth expansion. Since the latter part of our fiscal fourth quarter, we have seen customer order pushouts by certain major telecom equipment manufacturers as they reduce their inventory levels. Based on these current market conditions and discussions with our customers about their anticipated future demand, we expect our quarterly sales during the first half of fiscal 2001 to be approximately $34 million to $36 million and quarterly earnings per share to be approximately 20 cents to 22 cents. We expect a strong second half of the year in 2001, with overall sales growth for the year of approximately 15% to 18% and earnings growth of 20% to 25% in fiscal year 2001, assuming reasonable market conditions. We believe the overall fundamentals of our business remain very strong and we expect current demand conditions to be a short-term issue. As a result, we remain very optimistic and enthusiastic about the Company's future," he concluded.

Spectrum Control was founded as a solutions-oriented company, designing and manufacturing products to suppress or eliminate electromagnetic interference ("EMI"). In recent years, the Company has broadened its focus and product lines to become a control products and systems company, providing a wide range of components and systems used to condition, regulate, transmit, receive, or govern electronic performance. Although Spectrum Control components and systems are used in many industries worldwide, the Company's largest market is the telecommunications industry. Approximately 64% of the Company's sales are to customers in the telecommunications industry. The Company's operations are currently conducted in two business segments: the Signal Products Group, and Power Technologies Group consisting of power products and advanced systems. The Company recently developed its advanced systems product offering to become a provider of more complex power management systems, including a line of digital radio-frequency control equipment for remote and automatic electronic systems management.

Forward-Looking Information

This news release includes certain forward-looking statements which reflect Management's current views with respect to future operating performance. These forward-looking statements are subject to certain risks and uncertainties, including those identified below, which could cause actual results to differ materially from historical results or those anticipated. The words "believe", "expect", "anticipate", and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. The following factors could cause actual results to differ materially from historical results or those anticipated: (1) increased competition in the Company's marketplace; (2) technology advances affecting the demand for the Company's products; (3) other changes in market demand, particularly among telecommunications customers; (4) market acceptance and penetration for the Company's new product offerings; (5) changes in the overall economic climate; (6) operating cost fluctuations and availability of raw materials; (7) manufacturing yields and capacity limitations; (8) changes in sales mix and average selling prices; and (9) unplanned capital replacement or expansion. These risks and uncertainties are described in more detail in the Company's Annual Report Form 10-K filed with the Securities and Exchange Commission.

Simultaneous Webcast and Teleconference Replay

Spectrum Control will host a teleconference to discuss its fourth quarter and year-end results on Monday, January 8, 2001, at 4:30 P.M., Eastern Time. Internet users will be able to access a simultaneous webcast of the teleconference at www.spectrumcontrol.com. A taped replay of the call will be available for 24 hours at 800-428-6051, access code 148909, or for 90 days over the Internet at the Company's website.

Spectrum Control, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
( Unaudited )
					( Dollars in Thousands )
					November 30,		November 30,
					2000		1999
Assets
Cash and cash equivalents					$        5,977		$           538
Accounts receivable, net					23,831		19,330
Inventories					25,239		24,617
Prepaid expenses and other current assets					1,072		1,278
Total current assets					56,119		45,763
Property, plant and equipment, net					23,490		21,366
Noncurrent assets
Goodwill					14,893		14,225
Other					721		1,200
Total assets					$      95,223		$      82,554
Liabilities and Stockholders' Equity
Short-term debt					$             -		$        5,089
Accounts payable					8,714		8,801
Accrued liabilities					3,903		3,608
Current portion of long-term debt					540		4,276
Total current liabilities					13,157		21,774
Long-term debt					2,107		19,011
Deferred income taxes					3,413		2,634
Stockholders' equity					76,546		39,135
Total liabilities and stockholders' equity					$      95,223		$      82,554

Spectrum Control, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
( Unaudited )
					( Dollars in Thousands Except Per Share Data )
				For the Quarter Ended			For the Year Ended
				November 30,			November 30,
				2000	1999		2000	1999
Net sales				$     36,379	$     28,971		$    132,639	$     97,729
Cost of products sold				25,505	20,556		94,707	69,817
Gross margin				10,874	8,415		37,932	27,912
Selling, general and administrative
expense				5,520	5,497		21,482	17,748
Income from operations				5,354	2,918		16,450	10,164
Other income ( expense )
Interest expense				(45)	(520)		(1,788)	(1,420)
Other income and expense, net				193	38		657	96
				148	(482)		(1,131)	(1,324)
Income before provision for
income taxes				5,502	2,436		15,319	8,840
Provision for income taxes				2,086	936		5,816	3,370
Net income				$      3,416	$       1,500		$        9,503	$      5,470
Earnings per common share :
Basic				$        0.26	$        0.14		$         0.81	$        0.50
Diluted				$        0.25	$        0.13		$         0.79	$        0.49
Number of shares used in computing
earnings per common share :
Basic				13,374,701	10,936,226		11,694,434	10,905,336
Diluted				13,655,734	11,168,310		11,980,305	11,051,476

For more information, contact Spectrum Control, Inc., 8031 Avonia Road, Fairview, PA 16415. Phone: 814-474-2207. Fax: 814-474-2208.