Planar Systems posts lower sales, earnings in second quarter of FY04

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The market's shift to digital imaging took its toll on Planar Systems Inc.'s financial results in its second fiscal quarter, ending March 26.

Sales declined 2 percent to $58.6 million, compared with $60.1 million in the second quarter of FY03. Net income also slipped to $744,000, compared with $3.6 million in the year-ago quarter. Sales in Planar's medical segment totaled $18.9 million, off 17 percent compared from the year-ago quarter.

Planar blamed the year-to-year decline primarily on what the company described as "a rapidly shifting competitive environment in the digital imaging sector, which the company's new strategy is intended to address."

For the six-month period, sales increased to $121.5 million, up from $116.8 million in the same period of FY03. Net income decreased to $3.8 million, compared with $6.3 million in the year-ago period.

Planar Chairman, President and CEO Balaji Krishnamurthy said that the company's "changeover in digital imaging has not been easy," adding that he is "confident we chose the right course. The strategy should gain traction in the coming quarters."

Second-quarter sales outside the U.S. were 18 percent of total sales, down from 22 percent in the year-ago quarter and up from 15 percent in first quarter of FY04.

As for the rest of FY04, Planar anticipates total sales of approximately $260 million.