Carbon-fiber producer Zoltek Companies, Inc. (NasdaqGS: ZOLT) reported record sales and earnings on a preliminary basis for 2Q08.
For the quarter ending March 31, Zoltek’s net sales totaled $49.6 million, up 34.9% from $36.7 million in 2Q07, and up 23.7% from $40.1 million in 1Q08.
The company’s net income for the latest quarter was $4.3 million, or $0.13 per share, compared to a break-even position in 2Q07 and net income of $2.6 million in 1Q08.
Six analysts polled by Thomson Financial, on average, expected earnings of 22 cents per share on revenue of $50.4 million for the quarter.
Operating income from continuing operations was $8.3 million, up 41.8% from $5.9 million in 2Q07, and up 73% from $4.8 million in 1Q08.
"The fundamentals of our business have not changed, as reflected in both our sales and earnings. We expect the growing demand for our low-cost, high-performance carbon fibers to continue in the long-term,” said Zsolt Rumy, Zoltek’s Chairman and CEO.
The 2Q08 results are considered, while an audit committee determines if any unauthorized transaction occurred after the company reported last week it found errors in some 2007 financial statements.
Zoltek said its previously issued financial statements for the fiscal year ended September 30, 2007 and the fiscal quarter ended December 31, 2007 should no longer be relied upon because of errors in those financial statements resulting from two fund transfers from a Zoltek subsidiary aggregating $250,000 that were not properly authorized or recorded in the company’s financial records.
The Audit Committee of Zoltek’s Board of Directors has commenced an investigation of the circumstances of the transactions and to determine if there were additional fund transfers that were not properly authorized or recorded in the company’s financial records.