Press Release

 

Contact: Murray Stamer
Park Electrochemical Corp.
(516) 354-4100

PARK ELECTROCHEMICAL REPORTS FISCAL YEAR RESULTS

LAKE SUCCESS, New York, April 30, 2001…Park Electrochemical Corp. (NYSE-PKE) reported sales of $129,528,000 for the fourth quarter ended February 25, 2001 compared to $104,895,000 for the fourth quarter of last year. Park’s sales for the fiscal year ended February 25, 2001 were $522,197,000 compared to last year’s sales of $425,261,000.

Park reported earnings of $14,108,000 for the fourth quarter compared to $762,000 for last year’s fourth quarter. Earnings for the fiscal year ended February 25, 2001 were $49,419,000 compared to $18,297,000 for last year. (The fourth quarter earnings for the 2000 fiscal year included a pre-tax charge of $4,464,000 for the closure of the Company’s plumbing hardware business.)

Park’s earnings per share for the fourth quarter were $.88 basic and $.74 diluted versus $.05 per share basic and diluted for last year’s fourth quarter, after adjustment for the three-for-two stock split effected on November 8, 2000. Park’s earnings per share for the fiscal year ended February 25, 2001 were $3.10 basic and $2.65 diluted compared to $1.16 per share basic and $1.12 per share diluted for last year, also adjusted for the three-for-two stock split.

Brian Shore, Park’s President and CEO, said, “Our 2001 fiscal year was, without a doubt, our best year ever. I believe the performance of our Company and our people was, by almost any measurement, outstanding. To me, the key theme of our 2001 fiscal year was how hard our people worked to keep our customers going in an extremely pressurized and demanding environment. During the 2001 fiscal year, the global electronics industry which we serve was stronger than any of us could have ever anticipated. This strength placed tremendous pressure on us to provide our customers with extraordinary quantities of the highest quality and highest technology product. But, notwithstanding these huge unanticipated demands for our product, our people worked extremely hard to meet and exceed the market challenges in almost every respect. Our people did not make excuses. Our people simply did what they needed to do to get the job done...and the job was done exceptionally well in my judgment. The dedication and commitment of our people is truly extraordinary. Our people met the challenge of last year with dignity and integrity, and I must tell you that I believe our Company is stronger now than it ever has been!”

Brian Shore continued, “The current 2002 fiscal year is presenting new challenges of a very different kind. As has become very clear to all of us, the global electronics industry had become extremely overheated toward the end of the 2000 calendar year, and now the industry is going through a severe correction and downturn. As a matter of fact, this downturn is the worst downturn that most of us have ever seen in the global electronics industry. Even though our Company has recently gained additional market share with some of the best electronics manufacturing companies in the industry, our sales volumes and bookings during the first two months of the 2002 fiscal year are running at approximately one half of the sales and bookings levels during the 2001 fiscal year. Obviously, the global electronics industry is in a condition of deep distress at this time.”

Brian Shore continued, “As a result of this deep industry distress, many people in our Company have lost their jobs. In addition, many of our people are working short workweeks and many have voluntarily agreed to freeze or reduce their compensation. Our people have done this voluntarily because we believe in our business and we are passionately committed to our long-term mission. Certainly, the reduced work hours and pay and frozen salaries are difficult for our people. But, what hurts very deeply is the fact that some of our people have lost their jobs. These are the same people who worked incredibly hard last year to satisfy the insatiable appetites of the global electronics industry. Now, these people have lost their jobs because the global electronics industry got way ahead of itself last year and is suffering from a severe case of indigestion. It is terribly unfair, and we are very pained by this. Of course, we are only a small part of the global electronics supply chain, and there is absolutely nothing we can do about the excesses of the global electronics industry. All we can do is work our hardest every day to serve our customers to the very best of our ability...and that is what we did last year and that is what we are continuing to do this year.”

Brian Shore continued, “So, what we are doing differently as a result of this severe downturn is precious little. We will continue with our long-term mission and we will not hesitate or falter, as we believe very deeply and strongly in our business and in the long-term future of the global electronics industry. We will continue to pay very close attention to our customers every day ... as this is what we do, and this is who we are. We will continue without hesitation our investment in our future. We will complete all of our North American expansion programs on time. As we recently announced, we are installing RF/microwave manufacturing capacity and capability at our newly-expanded Neltec, Inc. business unit located in Tempe, Arizona. We are making significant investments in new technology at our Nelco, S.A. location in France. We plan to proceed with a major expansion of our Asian manufacturing facilities and to install a facility in China this year as well. We have further increased our investment in R&D in recent months. Of course, anyone can say they are committed to their business. We go out and prove it every day!”

Brian Shore concluded, “As a result of the severe global electronics industry downturn and our dramatically reduced revenues, we expect to report a loss in our fiscal year 2002 first quarter. As I previously indicated, we have recently gained additional market share with some of the best electronic manufacturing companies in the world. As I also previously said, I am convinced our Company is stronger now than ever. We have no apologies to make for this serious industry downturn and the impact it is having on our Company, as we have no control or influence over the short-term whims of the global electronics industry. We do not know how long this downturn will last and, in a sense, it does not matter to us all that much, because we are going forward with our mission every day in any case. What we do know is that we believe very strongly in the long-term future of the global electronics industry, and we believe even more strongly in the quality of our people and our Company. We will not hesitate or falter. We will proceed with our mission and we will not look back.”

The Company will host a conference call to discuss its financial results at 11:00 a.m. EDT today. Forwarding-looking and other material information may be discussed in this conference call. The conference call dial-in number is 800-289-0569.

Certain portions of this press release may be deemed to constitute forward-looking statements that are subject to various factors which could cause actual results to differ materially from Park’s expectations. Such factors include, but are not limited to, general conditions in the electronics industry, Park’s competitive position, the status of Park’s relationships with its customers, economic conditions in international markets, the cost and availability of utilities, and the various factors set forth under the caption “Factors That May Affect Future Results” after Item 7 of Park’s Annual Report on Form 10-K for the fiscal year ended February 27, 2000.

Park Electrochemical Corp. is a leading designer and producer of advanced electronic materials used to fabricate complex multilayer printed circuit boards and interconnection systems. Park specializes in advanced materials for high layer count circuit boards and high-speed digital broadband telecommunications, internet and networking applications. Park’s electronic materials business operates through fully integrated business units in Asia, Europe and North America. The Company’s major manufacturing facilities are located in Singapore, England, France, Germany, New York, Arizona and California. Park’s electronic materials business operates under the “Nelco” name.

*During the fourth quarter of the 2000 fiscal year, the Company recorded a pre-tax charge of $4,464,000 for the closure of its plumbing hardware business.

**The proforma balance sheet above adjusts the Company’s balance sheet as of February 25, 2001 to reflect the changes in long-term debt that occurred the week subsequent to the year end. In total, $98,262,000 of the 51-1/2% Convertible Subordinated Notes were converted into the Company’s Common Stock on or before March 1, 2001. The remaining $1,738,000 principal amount of Notes were redeemed for cash on March 2, 2001. Effective March 2, 2001, the Company had no long-term debt.

Additional corporate information is available on the World Wide Web at http://www.parkelectro.com.

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Park Electrochemical Corporation48 So. Service Road, Suite 300MelvilleNY11747

(631) 465-3600Fax: 465-3100

Copyright 2001 (c) All Rights Reserved. Park Electrochemical Corp.