Earnings Call Excerpt
Innovex (INVX)
F1Q07 Earnings Call
January 15, 2007 5:00 pm ET
Executives:
William Murnane, President and CEO, Director
Doug Keller, Vice President, Finance
Presentation
Operator: Welcome to today's teleconference. At this time, all participants are in a listen-only mode. Later, there will be an opportunity to ask questions during our Q&A session. I'll now turn the call over to Mr. Bill Murnane. You may begin.
William Murnane, President and CEO, Director
Thanks, Andrea. Good afternoon and welcome to our fiscal 2007 first quarter conference call. With me this afternoon is Doug Keller, Innovex's vice president of finance. Before we get started, let me read our safe harbor statement.
Except for historical information, the matters discussed in this call are forward-looking statements that involve risk and uncertainty, including the timely availability and acceptance of new products, the impact of competitive products and pricing, effective worldwide economic conditions on flex circuit demand, changes in manufacturing efficiencies, and other risks detailed from time to time, in the company's reports filed with the Securities and Exchange Commission.
We'll start off the call with Doug, providing some specifics on the recent quarter's financials. I'll then follow Doug with additional information on the quarter and balance of the year, and with that, I'm going to turn over to Doug Keller. Doug?
Doug Keller, Vice President of Finance
Thanks, Bill. I'll start with a review of our fiscal 2007 first quarter operating results, and follow up with an update of our restructuring efforts.
Revenue for the fiscal year 2007 first quarter was $26 million. This represented a decrease of 19% from the $32.2 million reported in the prior quarter. Revenue excluding pass-through material content was $13.9 million, down 21% from the $17.5 million reported in the fiscal 2006 fourth quarter. Gross margins were 2% during the fiscal 2007 first quarter, down from the 7% reported in the fourth quarter. The decline was primarily related to the impact of lower revenue. We were successful in reducing costs during the quarter, but not enough to offset the lower revenue. Operating expenses were $4.4 million in the fiscal 2007 first quarter, including $150,000 of non-cash compensation expense for stock options related to FASB Statement 123. This level of operating expense was similar to the expense reported in the fourth quarter. The fiscal 2006 fourth quarter benefited from the reversal of a portion of a previously recorded incentive compensation accrual, while the fiscal 2007 first quarter reflected restructuring-related reductions in compensation. These restructuring-related reductions in compensation will continue to benefit future quarters.
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