UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended December 31, 2002
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ____________ to ____________
Commission File Number 0-29332
PEAK INTERNATIONAL LIMITED
(Exact Name of Registrant as Specified in its Charter)
| Incorporated in Bermuda with limited liability |
None | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) | |
| 44091 Nobel Drive, P.O. Box 1767, Fremont, California |
94538 | |
| (Address of principal executive offices) |
(Zip Code) |
(510) 449-0100
(Registrant’s telephone number)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of February 10, 2003.
| Class |
Outstanding at February 10, 2003 | |
| Common Stock, $0.01 Par Value |
12,700,912 |
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands of United States Dollars, except share and per share data)
| Three Months Ended December 31, |
||||||||||||||
| 2002 |
2001 |
|||||||||||||
| (Unaudited) |
(Unaudited) |
|||||||||||||
| Net Sales: |
||||||||||||||
| —Third parties |
$ |
15,115 |
|
$ |
12,189 |
|
||||||||
| —Related companies |
|
— |
|
|
— |
|
||||||||
|
|
15,115 |
|
100.0 |
% |
|
12,189 |
|
100.0 |
% | |||||
| Cost of Goods Sold |
|
10,176 |
|
67.3 |
% |
|
8,380 |
|
68.8 |
% | ||||
| Gross Profit |
|
4,939 |
|
32.7 |
% |
|
3,809 |
|
31.2 |
% | ||||
| General and Administrative |
|
1,687 |
|
11.2 |
% |
|
2,000 |
|
16.4 |
% | ||||
| Research and Development |
|
36 |
|
0.2 |
% |
|
24 |
|
0.2 |
% | ||||
| Selling and Marketing (Note 3) |
|
2,697 |
|
17.8 |
% |
|
2,007 |
|
16.4 |
% | ||||
| Asset impairment (Note 13) |
|
100 |
|
0.7 |
% |
|
— |
|
0.0 |
% | ||||
| Operating Income (Loss) |
|
419 |
|
2.8 |
% |
|
(222 |
) |
(1.8 |
)% | ||||
| Other Income (Expenses)—net |
|
53 |
|
0.3 |
% |
|
(50 |
) |
(0.4 |
)% | ||||
| Interest Income |
|
76 |
|
0.5 |
% |
|
127 |
|
1.0 |
% | ||||
| Income (Loss) Before Tax |
|
548 |
|
3.6 |
% |
|
(145 |
) |
(1.2 |
)% | ||||
| Income Tax Expense |
|
206 |
|
1.3 |
% |
|
85 |
|
0.7 |
% | ||||
| Net Income (Loss) |
$ |
342 |
|
2.3 |
% |
$ |
(230 |
) |
(1.9 |
)% | ||||
| Other comprehensive income (loss): |
||||||||||||||
| Foreign currency translation adjustment |
|
(42 |
) |
|
37 |
|
||||||||
| Comprehensive income (loss) |
$ |
300 |
|
$ |
(193 |
) |
||||||||
| EARNINGS (LOSS) PER SHARE |
||||||||||||||
| —Basic |
$ |
0.03 |
|
$ |
(0.02 |
) |
||||||||
| —Diluted |
$ |
0.03 |
|
$ |
(0.02 |
) |
||||||||
| Weighted Average Number of Shares (in thousands) |
||||||||||||||
| —Basic |
|
12,699 |
|
|
12,740 |
|
||||||||
| —Diluted |
|
12,742 |
|
|
12,740 |
|
||||||||
2
| Nine Months Ended December 31, |
||||||||||||||
| 2002 |
2001 |
|||||||||||||
| (Unaudited) |
(Unaudited) |
|||||||||||||
| Net Sales: |
||||||||||||||
| —Third parties |
$ |
41,915 |
|
$ |
32,561 |
|
||||||||
| —Related companies |
|
— |
|
|
1,120 |
|
||||||||
|
|
41,915 |
|
100.0 |
% |
|
33,681 |
|
100.0 |
% | |||||
| Cost of Goods Sold (Note 2) |
|
31,301 |
|
74.7 |
% |
|
27,397 |
|
81.3 |
% | ||||
| Gross Profit |
|
10,614 |
|
25.3 |
% |
|
6,284 |
|
18.7 |
% | ||||
| General and Administrative |
|
5,941 |
|
14.2 |
% |
|
6,885 |
|
20.5 |
% | ||||
| Research and Development |
|
103 |
|
0.2 |
% |
|
119 |
|
0.4 |
% | ||||
| Selling and Marketing (Note 3) |
|
7,447 |
|
17.8 |
% |
|
6,002 |
|
17.8 |
% | ||||
| Asset Impairment (Note 13) |
|
10,584 |
|
25.2 |
% |
|
— |
|
0.0 |
% | ||||
| Operating Loss |
|
(13,461 |
) |
(32.1 |
)% |
|
(6,722 |
) |
(20.0 |
)% | ||||
| Other Expenses—net |
|
(40 |
) |
(0.1 |
)% |
|
(148 |
) |
(0.4 |
)% | ||||
| Interest Income |
|
231 |
|
0.5 |
% |
|
631 |
|
1.9 |
% | ||||
| Loss Before Tax |
|
(13,270 |
) |
(31.7 |
)% |
|
(6,239 |
) |
(18.5 |
)% | ||||
| Income Tax Expense (Benefit) |
|
157 |
|
0.3 |
% |
|
(5 |
) |
0.0 |
% | ||||
| Net Loss |
$ |
(13,427 |
) |
(32.0 |
)% |
$ |
(6,234 |
) |
(18.5 |
)% | ||||
| Other comprehensive loss: |
||||||||||||||
| Foreign currency translation adjustment |
|
(79 |
) |
|
134 |
|
||||||||
| Comprehensive loss |
$ |
(13,506 |
) |
$ |
(6,100 |
) |
||||||||
| LOSS PER SHARE |
||||||||||||||
| —Basic |
$ |
(1.06 |
) |
$ |
(0.48 |
) |
||||||||
| —Diluted |
$ |
(1.06 |
) |
$ |
(0.48 |
) |
||||||||
| Weighted Average Number of Shares (in thousands) |
||||||||||||||
| —Basic |
|
12,689 |
|
|
12,997 |
|
||||||||
| —Diluted |
|
12,689 |
|
|
12,997 |
|
||||||||
(See accompanying notes to Condensed Consolidated Financial Statements)
3
Condensed Consolidated Balance Sheets