CHANDLER, ARIZONA, November 30, 2004 - Isola Group today reported that sales increased for the three-month period ending September 30, 2004 by 19% versus prior year. Sales of high performance products grew significantly from the prior year and are expected to grow at a 50% annual rate over the next two years, leading the way to improved profitability.
"The combination of improved operational performance following recent restructuring activities and our success in growing revenues from high performance products resulted in a return to positive EBITDA for the nine months ending September, 30 2004" stated Raymond Sharpe, President and CEO. Commenting further he said, "Our cash flow from operations has improved substantially since the company was acquired by TPG and Redfern Partners in June. This has enabled us to improve our balance sheet and fund restructuring operations and strategic investments we believe will return value to our shareholders and customers."
The future appears bright for Isola, with a reduced cost structure and new technology sales driving revenue growth. The company has plans to continue expanding in the rapidly growing Asia market and in high performance niche markets. "By improving profits in Europe and returning the US to profitability we are able to invest in growth markets and new product development," commented Sharpe.
Isola believes in continued innovation and is taking a leadership role in the time-to-market launch of several exciting new technology products. "We have committed significant resources to drive an improved shift in product mix. We feel we offer the broadest portfolio of high performance products including lead free, halogen free, polyimide and low loss products, which supplement our FR4 product range," added Tarun Amla, Vice President and CTO.
Commenting on sales and service channel improvements Sharpe said, "In the mature markets, we are uniquely positioned to provide technical service both direct and through our strategic distribution partners. For example in the US we are moving to secure Insulectro as our sole distributor, a change that we believe provides Isola a strong competitive advantage. In Europe we use their partner, CCI to achieve a similar advantage. We believe that supporting our distribution base is critical, so we are increasing the number of field technical support staff which will help them grow revenues in both traditional and high performance products."
While business seems to have softened over the last few months, Isola feels confident that the investments being made will position the company to provide exceptional service and value for our customers and shareholders.
"We have identified $50 million in savings centered on restructuring, operational performance improvements. Our focus on technology, customer service and internal operational excellence will translate into long term value and sustained competitive advantages," stated Ted Hull, Vice President and CFO.