UNIROYAL Diodes Shine

Feb 8, 2000 - 11:16 PM

TED JACKOVICS of The Tampa Tribune

Investors have discovered that a company known for plastics and products such as Naugahyde has entered the high-tech arena.

Shares in Uniroyal Technology Corp., based in Sarasota, soared from $9 on Oct. 26 to $41.94 Tuesday.

The gains are taking place as the company makes test quantities of a tiny electronics element that is changing a portion of the lighting industry. Full production is due to begin by March 31.

``Until November the analysts following chemicals knew us but weren't sure about our [electronics] business,'' said Robert Soran, president of the company that was once a unit of the Uniroyal tire manufacturer.

``At the same time, the electronics company analysts didn't fully understand us,'' said Soran, a former chief executive of Tropicana Products. ``But we gave them a presentation at an electronics association meeting in San Diego, and our stock jumped from $9 to $15 in two to three days.''

The company is transforming itself by selling some of its history, raising money for producing, at Sabal Park, the electronics elements known as light emitting diodes. By the end of this month, it expects to sell its plastics business for $217.5 million.

The company also makes adhesives and coated fabrics.

Uniroyal Technology is banking on a new generation of light emitting diodes. People are likely to recognize an early version of them as a tiny red light that shows electronic equipment is operating.

But Uniroyal Technology is making a ``high-brightness'' diode, a product with few competitors worldwide.

Tinier than a contact lens, this diode produces light 50 times brighter than an incandescent bulb and uses 10 percent of the energy. Uniroyal Technology sells the diodes to companies that install them in tiny packages - called ``lamps'' - that have many uses. Automobile brake lights are an example.

Diodes have replaced conventional lighting, from Times Square's huge video display to Tampa's traffic lights. And analysts say the new diode industry could generate more than $1 billion annually within three years.

Uniroyal Technology is carving out territory in difficult-to-manufacture blue and green colors as well as red, orange and yellow. The company is beginning a second shift at its Sabal Park plant, which has 63 employees, and will add 27 workers for a third shift in May.

On Tuesday, Uniroyal Technology reported first-quarter income of $2.4 million for the three months ended Jan. 2, compared with $19,000 for the same period a year ago. First-quarter revenue was flat at $49.94 million.

Ted Jackovics covers growth companies and can be reached at (813) 259-7817 or tjackovics@tampatrib.comSee Nasdaq tables or TBO.comfor updated stock prices.