Artesyn Reports First Quarter Financial Results.Business Editors BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--April 18, 2002 Artesyn Technologies, Inc. (Nasdaq:ATSN ATSN Apprenticeship and Training Support Network (Australia) ) today reported financial results for the first quarter ended March 29, 2002. Revenue for the quarter totaled $90.5 million, down from $150.3 million a year ago. The company incurred a loss of $(0.17) 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 for the quarter, excluding charges. This compares to a cash loss of $(0.07) per diluted share in 2001. These results were in line with the company's recently issued financial guidance. Total orders during the quarter were $87.4 million, with a book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can of 0.97. Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at the end of the quarter stood at $89.1 million, with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $79.5 million of this amount shippable in the second quarter. "Ongoing weakness in the telecom and wireless sectors of the market unfortunately had a negative impact on our revenue and earnings performance for the quarter," commented Artesyn's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Joseph M. O'Donnell O'Donnell (Irish: Ó Dónaill or Ó Dómhnaill), which is derived from the forname Domhnaill (meaning "world ruler", Rex Mundi in Latin, Modern Irish spelling, Dónall) were an ancient and powerful Irish clan, kings, princes, and lords of Tyrconnel in early times, and . "With continued reductions in anticipated infrastructure spending by the major carriers, conditions in these sectors are not expected to improve in the near term. Although the storage and server segments continue to show stability, our expectations for Artesyn are for only modest sequential One after the other in some consecutive order such as by name or number. improvements over the next three quarters." "A focus on cash management and aggressive cost control efforts continue to show positive results," O'Donnell continued. "Over $14 million in operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was generated this quarter. Quarter-end cash balances exceeded $85 million and we anticipate being cash positive on an operating basis for the balance of the year. Given the current market environment, I believe we are taking the appropriate actions to position Artesyn for the eventual pickup Pickup A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Notes: When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their in end-market demand." During the first quarter, the company incurred a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta restructuring charge 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. of $1.0 million related to previously announced restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). actions and facility consolidations. Including the impact of this charge, the first quarter net loss was $7.4 million, or $(0.19) per diluted share. Investors will have the opportunity to listen to management's discussion of this release in a conference call to be held on April 18, 2002 at 8:30 a.m. Eastern time either by calling (800) 711-4000 (passcode: O'Donnell) or over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.artesyn.com. To listen to the live call, please go to the web site at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. The web cast will be available for replay immediately following the teleconference. Artesyn Technologies, Inc., headquartered in Boca Raton, Fla, is a leading provider of advanced power conversion equipment and real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. subsystems to the communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. . With one of the broadest portfolios of power products available, Artesyn offers customers a wide range of high efficiency AC/DC AC/DC adj. Slang Having a bisexual orientation. [From the likening of a bisexual person to an appliance that works on either alternating or direct current. power supplies, as well as advanced DC/DC and Point-of-Load converters for distributed power architectures. Artesyn's line of WAN interfaces, CPU CPU in full central processing unit Principal component of a digital computer, composed of a control unit, an instruction-decoding unit, and an arithmetic-logic unit. boards, DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive solutions and protocol stacks The set of protocols used in a communications network. A protocol stack is a prescribed hierarchy of software layers, starting from the application layer at the top (the source of the data being sent) to the data link layer at the bottom (transmitting the bits on the wire). are also at work in many of today's leading Teledatacom(TM) networks. For more information about Artesyn Technologies and its products, please visit the company's web site at http://www.artesyn.com. This release may contain "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that involve certain risks and uncertainties. Readers are cautioned that these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. may differ materially from actual future events or results. Readers are referred to the documents periodically filed by Artesyn with the Securities and Exchange Commission, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Some of these factors include, but are not limited to, integration of operations and technology, market acceptance of existing and new products, dependence on and volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of foreign sales, the potential for fluctuations in operating results and general technological changes which may render (1) To make visible; to draw. The term comes from the graphics world where a rendering is an artist's drawing of what a new structure would look like. In computer-aided design (CAD), a rendering is a particular view of a 3D model that has been converted into a realistic image. our existing products obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. . Any forward-looking statement made in this release is made as of the date of this release and Artesyn assumes no obligation to update any such forward-looking statement.
Artesyn Technologies, Inc.
Financial Highlights
(In Thousands Except per Share Data)
(Unaudited)
Thirteen Weeks Ended
---------------------------------
March 29, 2002 March 30, 2001
-------------- --------------
Orders $87,410 $113,197
Sales - Power Conversion 80,136 121,179
- Communications Products 10,369 15,921
- Other - 13,174
-------------- --------------
Total 90,505 150,274
Operating loss (8,158) (5,336)
EBITDA (1,577) 2,550
Diluted Per Share Data
Cash Loss Excluding Charges(a) (0.17) (0.07)
Cash Loss(a) (0.19) (0.07)
Net Loss (0.19) (0.12)
Weighted shares outstanding 38,333 38,250
(a) Cash loss represents loss before after-tax goodwill amortization
charges. Due to a change in accounting principle, there was no
amortization of goodwill in 2002; therefore, cash loss and net loss
are the same.
The following table includes items used to reconcile net loss to cash
loss per share excluding charges on a per diluted share basis:
Thirteen Weeks Ended
--------------------------------
March 29, 2002 March 30, 2001
-------------- --------------
Net Loss $(0.19) $(0.12)
After-tax goodwill amortization - 0.05
After-tax restructuring charges 0.02 -
-------------- --------------
Cash loss excluding charges $(0.17) $(0.07)
============== ==============
Artesyn Technologies, Inc.
Consolidated Statements of Operations
(In Thousands Except per Share Data)
(Unaudited)
Thirteen Weeks Ended
---------------------------
March 29, March 30,
2002 2001
--------- ---------
Sales $ 90,505 $150,274
Cost of Sales 79,263 125,511
--------- ---------
Gross Profit 11,242 24,763
--------- ---------
Operating Expenses
Selling, general and administrative 9,763 15,929
Research and development 8,588 12,204
Amortization of goodwill - 1,966
Restructuring and other charges 1,049 -
--------- ---------
Total Operating Expenses 19,400 30,099
--------- ---------
Operating Loss (8,158) (5,336)
Interest Expense, net (1,920) (1,631)
--------- ---------
Loss Before Income taxes (10,078) (6,967)
Benefit for Income Taxes (2,721) (2,229)
--------- ---------
Net Loss $(7,357) $(4,738)
========= =========
Loss per Share
Basic $(0.19) $ (0.12)
========= =========
Diluted $(0.19) $ (0.12)
========= =========
Common and Common Equivalent
Shares Outstanding
Basic 38,333 38,250
Diluted 38,333 38,250
Artesyn Technologies, Inc.
Consolidated Statements of Financial Condition
(In Thousands)
(Unaudited)
March 29, December 28,
2002 2001
------------ ------------
ASSETS
Current Assets
Cash and equivalents $ 85,782 $ 54,083
Accounts receivable, net 61,447 72,580
Inventories, net 93,608 103,556
Prepaid expenses and other 2,733 2,690
Deferred income taxes, net 12,854 12,398
------------ ------------
Total current assets 256,424 245,307
------------ ------------
Property, Plant & Equipment, Net 97,146 103,291
------------ ------------
Other Assets
Goodwill, net 64,176 64,573
Deferred income taxes, net 12,369 10,103
Other assets, net 4,532 3,209
------------ ------------
Total other assets 81,077 77,885
------------ ------------
Total Assets $ 434,647 $ 426,483
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long-term debt
and capital leases $ 65 $ 207
Accounts payable and accrued
liabilities 87,903 92,324
------------ ------------
Total current liabilities 87,968 92,531
------------ ------------
Long-Term Liabilities
Long-term debt and capital leases 69,421 100,399
Convertible subordinated debt 45,695 -
Other long-term liabilities 14,308 14,308
------------ ------------
Total long-term liabilities 129,424 114,707
------------ ------------
Total liabilities 217,392 207,238
Shareholders' Equity 217,255 219,245
------------ ------------
Total Liabilities and
Shareholders' Equity $ 434,647 $ 426,483
============ ============
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