BEAVERTON, Ore.--(BUSINESS WIRE)--May. 5, 2009-- Planar Systems, Inc. (NASDAQ: PLNR), a worldwide leader in specialty display solutions, recorded sales of $36.5 million and GAAP loss per share of $0.15 in the second quarter ended March 27, 2009. On a Non-GAAP basis (see reconciliation table), loss per share was $0.06 in the second quarter of fiscal 2009.

“I am pleased with the continued progress we have made strengthening our balance sheet in the face of the global economic slowdown,” said Gerry Perkel, Planar’s President and Chief Executive Officer. “Our cash balance has increased each quarter this fiscal year and while our revenue levels declined in the second quarter, we believe that revenue will increase in our third quarter based on our expectations for increased demand in most of our business segments. Going forward, we are committed to continuing our strategy to strengthen our balance sheet through further dispositions of underperforming or non-strategic assets and improved working capital management. We also anticipate that planned actions to reduce costs will result in additional improvement in our profitability and cash flow.”

SUMMARY OF KEY FINANCIAL METRICS

The following information summarizes some key financial measures for the Company at the end of the second quarter of fiscal 2009:

• Cash increased $5.7 million to $23.5 million compared to the end of the first quarter (approximately $1.28 per diluted share outstanding for the second quarter). The Company had no debt outstanding at the end of the quarter.
• Net working capital increased to $52.3 million.
• Days sales outstanding (DSO) in accounts receivable ended at 58 days.
• Current Ratio improved to 2.4.
• The Company ended the quarter with Tangible Net Worth of $58.6 million, representing a tangible book value of approximately $3.19 per diluted share outstanding for the second quarter.

SUMMARY OF FISCAL SECOND QUARTER 2009 BUSINESS SEGMENT FINANCIAL PERFORMANCE

The following table presents a breakdown of the Company’s Non-GAAP financial performance by major business unit for the second quarter of fiscal 2009. Additional comparative segment financial information, along with reconciliations to GAAP and information regarding the use of Non-GAAP financial measures, are presented in supplementary tables and notes included with this release.

SUMMARY OF SECOND QUARTER FINANCIAL RESULTS

Revenues from continuing operations in the second quarter were down approximately 37 percent compared to the second quarter of fiscal 2008. Sales in the Company’s Industrial Business Unit (IBU) declined 39 percent to $10.9 million in the second quarter compared to the second quarter in fiscal 2008. The Industrial segment experienced slowing demand and new requests for delays in shipment schedules from existing customers as a direct result of poor economic conditions. In addition, the second quarter of 2008 included a large, one-time order which did not repeat in the second quarter of 2009. Sales in the Commercial Business Unit (CBU) declined 45 percent compared to the second quarter of the prior fiscal year, as a result of a strategic decision to pursue higher margin sales opportunities and maintain relatively low levels of inventory. Sales for the Control Room & Signage Business Unit (CSBU) declined 25 percent compared to the second quarter of 2008 as a result of the macroeconomic difficulties and the relatively large capital project nature of typical video wall installations. In addition, the sale of the Coolsign software business in the first quarter of 2009 resulted in a decline in revenues in the CSBU. Sales for the Home Theater Business Unit (HTBU) declined 37 percent compared to the second quarter of 2008 as demand for high-end home theater equipment continued to be negatively impacted by the slower spending in luxury home construction and high end home remodeling.

During the second quarter the Company recorded a $1.3 million net restructuring charge related to the Company’s most recent cost reduction plan. In addition, the Company was able to complete the sale of some non-strategic intellectual property assets during the second quarter, further helping to increase its cash position.

BUSINESS OUTLOOK

While the Company’s balance sheet has been strengthened over the past few quarters, the Company expects that the weak global economy will continue to adversely impact improvement in the overall financial results of the Company. While relatively soft demand is expected to continue over the next few quarters, the Company currently believes it will experience some sequential revenue growth and small profit improvement in the third quarter of 2009. In addition, if the Company is able to continue executing its strategic action plans as intended, the Company’s cash balance should increase slightly by the end of fiscal 2009 as compared to the balance at the end of the second quarter.

Results of operations and the business outlook will be discussed in a conference call today, May 5, 2009, beginning at 2:00 PM Pacific Time. The call can be heard via the Internet through a link on Planar’s Web site, www.planar.com, or through numerous other investor sites, and will be available for replay until June 5, 2009. The Company intends to post on its Web site a transcript of the prepared management commentary from the conference call shortly after the conclusion of the call.

ABOUT PLANAR

Planar Systems, Inc (NASDAQ:PLNR) is a global leader of specialty display technology providing solutions for the world’s most demanding environments. Hospitals, space and military programs, utility and transportation hubs, shopping centers, banks, government agencies, businesses, and home theater enthusiasts all depend on Planar to provide superior performance when image experience is of the highest importance. Founded in 1983, Planar is headquartered in Oregon, USA, with offices, manufacturing partners, and customers worldwide. For more information, visit www.planar.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 relating to Planar’s business operations and prospects, including statements relating to actions taken to improve future financial performance and the statements made under the heading “Business Outlook.” These statements are made pursuant to the safe harbor provisions of the federal securities laws. These and other forward-looking statements, which may be identified by the inclusion of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “goal” and variations of such words and other similar expressions, are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Many factors, including the following, could cause actual results to differ materially from the forward-looking statements: poor or further weakened domestic and international business and economic conditions; changes or continued reductions in the demand for products in the various display markets served by the Company; further inability to realize expected benefits and synergies of the Clarity and Runco acquisitions; any delay in the timing of customer orders or the Company’s ability to ship product upon receipt of a customer order; any inability to reduce costs quickly enough in response to unanticipated reductions in revenue; adverse impacts on the Company or its operations relating to or arising from Company indebtedness and difficulties in obtaining necessary financing, changes in the flat-panel monitor industry; changes in customer demand or ordering patterns; the Company’s inability to complete intended dispositions of underperforming or non-strategic assets; changes in the competitive environment including pricing pressures or technological changes; technological advances; shortages of manufacturing capacity from the Company’s third-party manufacturing partners; final settlement of various contractual liabilities; future production variables impacting excess inventory and other risk factors listed from time to time in the Company’s periodic filings with the Securities and Exchange Commission (SEC). The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

Note Regarding the Use of Non-GAAP Financial Measures:

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), the Company's earnings release contains Non-GAAP financial measures that exclude the income statement effects of the acquisitions of Clarity Visual Systems and Runco International, share-based compensation and the requirements of SFAS No. 123R, "Share-based Payment" ("123R"). The Non-GAAP financial measures also exclude impairment and restructuring charges, the amortization of intangible assets related to previous acquisitions, and various tax charges including the valuation allowance against deferred tax assets. The earnings release also contains a calculation of Non-GAAP earnings before interest, taxes, depreciation, and amortization (Non-GAAP EBITDA), which, in addition to excluding the effects of the Clarity and Runco acquisitions, share based compensation, and other adjustments, includes an allocation of Corporate expenses to the Company’s business segments in order to calculate Non-GAAP EBITDA by business segment. Such corporate expenses include Corporate General and Administrative (primarily), Research and Development, and Sales and Marketing which are not specifically identified as related to each business segment in the information provided to the Chief Operating Decision Maker, rather are estimated for the purpose of presenting fully burdened lines of business. The Non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.