Planar Systems Inc. Reports Operating Results (10-Q)
Planar Systems has a market cap of $51.4 million; its shares were traded at around $2.57 with and P/S ratio of 0.3. Hedge Fund Gurus that owns PLNR: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns PLNR: Chuck Royce of Royce& Associates.
Highlight of Business Operations: In the first quarter of 2011 net loss was $1.3 million or $0.07 per basic and diluted share as compared to a net loss of $2.7 million or $0.15 per basic and diluted share in the first quarter of 2010. This $1.4 million improvement was due primarily to a decrease of $2.9 million in operating expenses and a $1.8 million improvement in gross profit. These improvements were partially offset by changes in income taxes resulting from a $2.9 million one-time tax benefit recorded in the first quarter of 2010, which reduced the net loss recognized in that period and which was not repeated in the first quarter of 2011.
In the first quarter of 2011 loss from operations was $1.3 million as compared to a loss from operations of $6.0 million in the first quarter of 2010. The $4.7 million improvement in loss from operations for the first quarter of 2011 as compared to the same period of the prior year was due primarily to the impairment and restructuring charges recorded in the first quarter of 2010, which increased operating expenses by $3.4 million in that period. The improved loss from operations was also a result of the increase in gross profit in the first quarter of fiscal 2011 as compared to the first quarter of fiscal 2010.
Expenses for the amortization of intangible assets were $0.5 million and $0.6 million in the first quarters of 2011 and 2010, respectively. The $0.1 million decrease in amortization expenses was the result of certain intangible assets that became fully amortized in the fourth quarter of 2010 and as such had no related amortization expense in the first quarter of 2011. As of December 31, 2010 the consolidated identifiable intangible assets subject to amortization, net of accumulated amortization, consisted of $1.1 million for developed technology and $1.6 million for customer relationships. These assets are being amortized over their remaining estimated useful lives of approximately 1.9 years. When these assets were acquired, the amortization periods were between four and seven years.
In the first quarter of 2011 the Company recorded an income tax expense of $0.1 million on a pretax loss of $1.2 million, resulting in a negative effective tax rate of 8.3%. Comparatively, income tax benefit was $2.9 million in the first quarter of 2010 on a pretax loss of $5.6 million, an effective tax rate of 51.4%. The tax expense for the first quarter of 2011 was largely driven by taxes in foreign jurisdictions and state taxes.
In the first quarter of 2011 net loss was $1.3 million or $0.07 per basic and diluted share. In the same period of the prior year, net loss was $2.7 million or $0.15 per basic and diluted share.
Working capital decreased $0.5 million to $56.6 million at December 31, 2010 from $57.1 million at September 24, 2010. Current assets decreased $2.3 million at December 31, 2010 to $93.7 million as compared to $96.0 million at September 24, 2010 due to a decrease in account receivable, which was partially offset by increases in inventories and other current assets. The $7.4 million decrease in accounts receivable was primarily the result of the $6.4 million decrease in sales in the first quarter of 2011 as compared to the fourth quarter of 2010. Accounts receivable also decreased due to the timing of cash receipts. Inventories increased $3.5 million as a result of the timing of purchases and increases in the forecasts of future shipments. Other current assets increased $1.4 million due primarily to increases in prepaid inventory, prepaid expenses and non-trade receivables. Current liabilities decreased $1.8 million due primarily to decreases in accrued compensation and other current liabilities, which were partially offset by an increase in accounts payable associated with the increase in inventories. The changes in accrued compensation, accrued liabilities, and accounts payable were primarily due to the timing of payments made to the Companys employees and its vendors.
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