Uniroyal Technology Corp, reported that it continues to make sales progress at its technology segment as the company moves to become a vertically integrated compound semiconductor company focusing on optoelectronics and electronic devices. For the fourth quarter of Fiscal 2001 (ended September 30, 2001), its Compound Semiconductor & Optoelectronics segment increased sales 44% versus the comparable prior year period. The sales of $1.7 million represent the largest quarterly sales since the Company started the segment two years ago.
Sales for the Coated Fabrics segment, the Company's only remaining legacy business, declined 19% in the quarter versus the prior year due to the downturn in the economy. Overall, net sales declined 11% to $8.1 million for the fourth quarter versus the $9.0 million for the fourth quarter of the previous year.
During the fourth quarter of Fiscal 2001, the Company recorded a deferred tax valuation allowance of $17.9 million. The valuation allowance will be restored to income as the Company transitions from a development mode to profitable commercialization of its technology businesses. Also in the fourth quarter, the Company wrote down $9.8 million of goodwill that was determined to be impaired.
These adjustments and the continued investment spending in the Compound Semiconductor & Optoelectronics segment led to a reported net loss of $34.9 million or $1.28 per diluted common share versus a net loss of $14.1 million or $0.54 per diluted common share for the fourth quarter of the previous year. Excluding intangible amortization and unusual items from the fourth quarter of Fiscal 2001 and the fourth quarter of Fiscal 2000, the net loss was $5.5 million or $0.20 per diluted common share and a loss of $2.2 million or $0.08 per diluted common share, respectively.
Both periods exclude the results of Specialty Adhesives which was sold on November 9. If the results of Specialty Adhesives were included, the net loss from continuing operations, excluding intangible amortization and unusual items, for the fourth quarter of Fiscal 2001 would have been $0.16 per diluted common share versus a loss of $0.05 per diluted common share for the fourth quarter of Fiscal 2000.
Sales for the Compound Semiconductor & Optoelectronics business segment increased 44% to $1.7 million for the fourth quarter of Fiscal 2001, compared to $1.2 million for the comparable year period. Considerable progress is being made at the optoelectronics and electronic device operations as the integrity of product improved greatly and production capacity increased significantly. The segment's loss before interest, taxes, minority interest and discontinued operations for the fourth quarter was $19.0 million which included increased investment spending at the optoelectronics and electronic device facilities, as well as a charge of $9.8 million for goodwill write-down.
Sales for the Coated Fabrics business segment declined 19% in the fourth quarter of Fiscal 2001 as compared to the fourth quarter of Fiscal 2000. Continued weakness in the economy, particularly in the transportation markets, led to the decline. Income before interest, taxes, minority interest and discontinued operations for the Coated Fabrics segment was about equal to the prior year considering that the prior year period included a unusual charge of $506,000.
For the fifty-two week period ended September 30, 2001, sales were $32.9 million versus $36.7 million for the fifty-three week period ended October 1, 2000, a decline of 10%. Sales for the Compound Semiconductor & Optoelectronics business segment increased 67% versus the year-ago period due to the acquisition of Sterling Semiconductor, Inc. (May 2000) and an increase in sales at the optoelectronics facility in Tampa. Sales for the Coated Fabrics business segment declined 17% for Fiscal 2001 versus Fiscal 2000, principally related to the slowing economy.
The loss from continuing operations, excluding intangible amortization and unusual items, was $17.6 million or $0.67 per diluted common share versus income of $2.1 million or $0.07 per diluted common share for the comparable period of the previous year. Both periods exclude the results of the Company's Specialty Adhesives business segment. If the results of Specialty Adhesives were included, the net loss from continuing operations, excluding intangible amortization and unusual items, per diluted common share for the fiscal year ended September 30, 2001 would have been $0.57 and the net income per common share for the fiscal year ended October 1, 2000 would have been $0.15. The decline was primarily due to the recording of a $17.9 million deferred tax valuation allowance, a write-down of goodwill of $9.8 million and increased investment spending in the current year and a favorable income tax adjustment in the preceding year. On a reported basis, the net loss for Fiscal 2001 was $51.8 million or $1.97 per diluted common share versus net income of $46.7 million or $1.87 per diluted common share for Fiscal 2000. Fiscal 2000 included a significant gain on the sale of a business segment.
Uniroyal Technology's Compound Semiconductors & Optoelectronics business segment includes Uniroyal Optoelectronics, LLC, Sterling Semiconductor, Inc., and NorLux Corp. Uniroyal Optoelectronics manufactures high brightness light emitting diodes (HB-LEDs), a rapidly growing market with applications such as traffic signals, indoor/outdoor signage and automotive applications. Sterling Semiconductor is a leading producer of silicon carbide (SiC) substrates, epitaxial thin films on SiC substrates and is developing SiC devices for wireless communications, industrial process control, and power amplification. NorLux Corp. specializes in the design and manufacture of custom lighting solutions utilizing light emitting diodes (LEDs). Uniroyal's business segments also include Coated Fabrics.