AVX Corporation Announces 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): Quarter highlights: * Revenue increased $17.5 million, or 4.6%, to $400.7 million compared to the previous quarter and also increased $26.1 million, or 7.0%, over the same quarter last year. * Non-GAAP diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , excluding special charges, were $0.23 per diluted share compared to earnings per share of $0.22 in the same quarter last year. * Dividends of $6.9 million, or $0.04 per share, were paid during the current quarter. * Completed the acquisition of American Technical Ceramics Corp. ("ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered ") on September 25, 2007. AVX today reported that 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 for the quarter ended September 30, 2007 were $400.7 million which represents a 7.0% increase over the same quarter last year and a 4.6% increase over the previous quarter. Net income excluding special charges was $39.3 million, or $0.23 per diluted share, compared to $38.8 million, or $0.22 per diluted share for the same quarter last year. On a U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis (including special charges), net income was $37.4 million, or $0.22 per diluted share for the current quarter. Management believes that in order to better understand its short-term and long-term financial trends, investors may find it useful to consider results excluding special charges related to the estimated write off of in-process research and development ("IPR&D") in connection with the acquisition of ATC, and other operations' restructuring charges for headcount reductions. Management believes that the resulting non-GAAP financial measure provides useful information to investors regarding the underlying business trends and performance of the Company's ongoing operations and is useful for period over period comparisons of such operations. Management eliminates such charges when evaluating the operating performance of the Company. Investors should consider the non-GAAP measure in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, the non-GAAP financial measure may not be the same as similar measures presented by other companies. Detail of the Company's non-GAAP measure is provided in the table below. [TABLE OMITTED] Chief Executive Officer and President, John Gilbertson stated, "Revenues for the quarter exceeded $400 million for the first time since the fourth quarter of fiscal 2001 during the tech boom. Revenue increases over the same quarter in the prior year and over the previous quarter continue to be driven by increased end-user demand in the expanding electronics marketplace." On September 25, 2007, the Company acquired by merger all of the outstanding capital stock of ATC in exchange for approximately $231 million in cash, plus related transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . ATC designs, develops, manufactures and markets electronic components, including ceramic multilayer capacitors, custom thin film circuits thin film circuits: see microelectronics. and resistive resistive /re·sis·tive/ (re-zis´tiv) pertaining to or characterized by resistance. products. ATC's products are utilized in a broad range of commercial and military applications, including wireless infrastructure, fiber optics fiber optics, transmission of digitized messages or information by light pulses along hair-thin glass fibers. Each fiber is surrounded by a cladding having a high index of refractance so that the light is internally reflected and travels the length of the fiber , medical electronics, semiconductor manufacturing equipment and satellite equipment. ATC has manufacturing facilities and sales offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , manufacturing and research and development facilities in Florida, and sales offices in Sweden and China. Commenting on the Company's acquisition, John Gilbertson went on to state, "We believe that the addition of ATC will enhance our Advanced product group with offerings of additional components for our end-user's sophisticated electronic needs." The Company incurred an estimated charge of $0.4 million in the current quarter related to the write off of IPR&D, included in its GAAP financial statements, related to the acquisition of ATC. In addition, the Company incurred restructuring charges of $2.1 million related to other operations' headcount reductions as we continue 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 capability. 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 quarter and six months ended September 30, 2007 include the results of ATC beginning September 26, 2007. The results of ATC were not material. [TABLE OMITTED] The Company completed its acquisition of ATC on September 25, 2007 for approximately $231.3 million cash plus related transaction costs. Based on the preliminary allocation of the purchase price to the assets acquired and liabilities assumed, the Company recorded approximately $77.5 million of goodwill, $97.4 million of identifiable intangible assets, $38.4 million of fixed assets and $46.4 million of working capital. |
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