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Zoltek Q1 FY'14 net sales falls to $35mn

11 Feb '14

2 min read

Zoltek Companies Inc. reported financial results for the first quarter of its 2014 fiscal year. For the first quarter of fiscal 2014 ended December 31, 2013, Zoltek reported net sales of $35.0 million, compared to $35.9 million in the first quarter of fiscal 2013.

Zoltek reported a net loss of $2.3 million ($0.07 loss per share) in this year’s first quarter, compared to net income of $3.0 million ($0.09 per share) in the first quarter of fiscal 2013 and a net loss of $0.2 million ($0.00 per share) in the fourth quarter of fiscal 2013.

Operating loss for the first quarter of fiscal 2014 was $0.4 million, a decline from operating income of $3.6 million reported during the first quarter of fiscal 2013.

On September 27, 2013, Zoltek entered into an Agreement and Plan of Merger with Toray Industries, Inc. pursuant to which a wholly-owned subsidiary of Toray would merger with and into Zoltek, with Zoltek continuing as the surviving corporation in the merger as a wholly-owned subsidiary of Toray.

At the effective time of the merger, each issued outstanding share of Zoltek’s common stock will be converted automatically into the right to receive $16.75 per share in cash, without interest. The Agreement and Plan of Merger and related transactions were approved by the shareholders of Zoltek at a special meeting of shareholders held January 23, 2014.

The only outstanding regulatory approval condition for completion of the merger is review of the merger by the Committee on Foreign Investment in the United States (CFIUS). As previously disclosed, Zoltek has received a notice from CFIUS that it has undertaken an investigation of the merger which is to be completed no later than March 3, 2014. Zoltek anticipates that the merger will close as soon after completion of the CFIUS review as possible.

ZOLTEK