AVX Corporation Announces Preliminary Second Quarter Results.MYRTLE BEACH, S.C. -- AVX AVX Adult Video XXX AVX Avid Visual Extensions AVX anti Virus Expert Corporation (NYSE NYSE See: New York Stock Exchange :AVX) AVX today reported preliminary results for the second quarter ended September 30, 2009. Highlights: * Revenue for the September 2009 quarter increased 6.3% from the previous quarter to $310.5 million. * Gross Profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. excluding special charges reached its highest level since the fourth quarter of fiscal 2001, improving to 21.0% in the current quarter. * Non-GAAP net income of $32.5 million, or $0.19 per share, for the September 2009 quarter. * Dividends of $6.8 million, or $0.04 per share, were paid during the current quarter. * Cash and investments in securities increased to $864.0 million with no debt at September 30, 2009. For the quarter ended September 30, 2009, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased sequentially over the previous quarter by $18.5 million, or 6.3%, to $310.5 million. Gross profit as a percent of sales (including special charges) improved over both the previous quarter and the same quarter last year to 20.8%. On a U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, unaudited net income (including special charges) for the quarter was $31.6 million, or $0.19 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Non-GAAP net income (excluding special charges) was $32.5 million, or $0.19 per diluted share, for the quarter ended September 30, 2009. Non-GAAP gross profit as a percent of sales (excluding special charges) improved to 21.0% this quarter. Chief Executive Officer and President, John Gilbertson, stated, "We executed well in the second quarter, posting results that reflect sequential improvement over the previous quarter in both margins and revenue. The sale of higher value products in addition to the proactive management of our cost structure led to significant improvement in our gross profit margins during the quarter. While we can't predict where the macro economy will go, we are seeing more positive signs of end market growth and overall low supply chain inventories. We continue to remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future. Our competitive advantage and sustained financial strength provides us a solid base for future performance improvement. The Company has worked hard to maintain a solid balance sheet and is proud of its ability to continue to pay a quarterly cash dividend." During the current quarter, the Company incurred $1.1 million of pre-tax restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. related to global actions to realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. production capabilities and reduce personnel costs. [TABLE OMITTED] See discussion of GAAP/Non-GAAP presentation below. Chief Financial Officer, Kurt Cummings, stated, "We posted solid financial progress in all major aspects of our business while maintaining our disciplined cost management to deliver improving gross margins. The Company's financial position remains exceptionally strong with cash and cash equivalents and short and long-term investments in securities of $864.0 million and no debt at September 30, 2009. During the quarter, the Company paid $6.8 million of dividends to stockholders and spent $0.9 million to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. shares of AVX stock on the open market which are held as treasury stock." In order to better understand the Company's short-term and long-term financial trends, investors may find it helpful to consider results excluding special charges and gains related to other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from gains on the sale of corporate assets, operations' restructuring charges and the write down of certain available-for-sale securities due to an other-than-temporary impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. . The resulting non-GAAP financial measure provides additional information to investors regarding the underlying business trends and performance of the Company's ongoing operations and may be of assistance for period-over-period comparisons of such operations. Management considers the exclusion of such charges as part of its evaluation of the operating performance of the Company. Investors should consider the non-GAAP measure as a supplement to, and not as a substitute for, financial performance measures prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP. In addition, the non-GAAP financial measure may not be similar to non-GAAP information presented by other companies. Detail of the Company's non-GAAP measure is provided in the table above. AVX, headquartered in Myrtle Beach, South Carolina Myrtle Beach is a city and in Horry County, South Carolina, United States. It is part of the Grand Strand, a stretch of beaches along the South Carolina coastline, and the combined Myrtle Beach-Conway-North Myrtle Beach MSA. , is a leading manufacturer and supplier of a broad line of passive electronic components and related products. Please visit our website at www.avx.com. [TABLE OMITTED] Results for the three and six months ended September 30, 2008 include pre-tax restructuring charges of $4,002 and $5,293, respectively. In addition, during the quarter ended September 30, 2008, the Company recorded a $1,646 impairment charge in other income related to the decline in value of its available-for-sale securities. For the six month period ended September 30, 2008, results also reflect a gain on the sale of corporate assets of $4,051 included in other operating income. Results for the three and six months ended September 30, 2009 include pre-tax restructuring charges of $1,069 and $2,069, respectively. In addition, results for the six months ended September 30, 2009 include a pre-tax impairment charge of $362 in other income related to the decline in value of the Company's available-for-sale securities. [TABLE OMITTED] |
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