Artesyn Reports Second Quarter Financial Results; Cash Balances Increase to $87 Million - Debt Reduced.Business Editors/Technology Writers 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)--July 23, 2002 Artesyn Technologies, Inc. (Nasdaq:ATSN ATSN Apprenticeship and Training Support Network (Australia) ) today reported financial results for the quarter ended June June: see month. 28, 2002. Revenue for the quarter totaled $90.9 million, down from $127.7 million a year ago and in line with expectations. The company incurred a loss of $(0.13) 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 $(0.17) per diluted share in 2001, excluding charges. Total orders in the quarter were $78.4 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 0.86. 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 $76.9 million, with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $71 million of this amount shippable in the third quarter. "While we experienced modest sequential One after the other in some consecutive order such as by name or number. growth in our core power business, ongoing weakness in the wireless and telecom sectors had a negative impact on revenue 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 . "The impact was especially severe on our Communications Products group, which experienced a 50% drop in quarterly revenues. Unfortunately, this volatility is projected to continue in the second half of the year. Absent any noticeable signs of improvement, we are maintaining a conservative outlook and expect second half performance to remain relatively flat with the first." "Until our end markets begin to show signs of sustained growth, we will continue to take actions to reduce our structural costs and manage for cash flow," O'Donnell continued. "Since the beginning of this slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in early 2001, we have removed over $60 million in costs from the company, while greatly improving our balance sheet position. This focus continued in the second quarter as we generated over $10 million in cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , allowing us to reduce long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. by $7 million to $63 million, while increasing the cash balance to $87 million. These improvements to our financial profile will provide us with significant leverage not only as volumes return, but also competitively as we pursue new business." Artesyn announced earlier in the quarter a series of cost reduction initiatives, including plans to close its Kindberg, Austria Austria (ô`strēə), Ger. Österreich [eastern march], officially Republic of Austria, federal republic (2005 est. pop. 8,185,000), 32,374 sq mi (83,849 sq km), central Europe. manufacturing facility. Effected production will be transferred to the company's low-cost facilities in Hungary Hungary, Hung. Magyarország, officially Republic of Hungary, republic (2005 est. pop. 10,007,000), 35,919 sq mi (93,030 sq km), central Europe. and China throughout the second half of the year. These actions are expected to create over $10 million in annual cost savings when fully implemented. In conjunction with these actions, Artesyn expects to record a total 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 $9 to $10 million. During the second quarter the company recognized $7.1 million of this charge, with the remaining balance expected over the succeeding three quarters. Including the impact of this charge, the second quarter net loss was $10.1 million, or $(0.26) 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 July July: see month. 23, 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 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 Twenty-Six Weeks Ended
-------------------- ----------------------
June 28, June 29, June 28, June 29,
2002 2001 2002 2001
--------- --------- --------- ---------
Orders $78,411 $30,356 $165,822 $143,553
Sales -Power
Conversion 85,736 100,542 165,871 221,754
-Communications
Products 5,159 13,495 15,529 29,416
-Other - 13,679 - 26,821
--------- --------- --------- ---------
Total 90,895 127,716 181,400 277,991
Operating loss (12,148) (27,661) (20,305) (32,996)
EBITDA (5,134) (18,952) (6,710) (16,403)
Diluted Earnings
Per Share Data
Cash Loss Excluding
Charges(a) (0.13) (0.17) (0.30) (0.25)
Cash Loss(a) (0.26) (0.52) (0.46) (0.60)
Loss per Share(a) (0.26) (0.57) (0.46) (0.70)
Common and Common
Equivalent Shares 38,382 38,195 38,358 38,222
(a) Cash loss represents loss before after-tax goodwill
amortization charges. Due to a change in accounting principal, there
was no amortization of goodwill in 2002. Therefore, cash loss and net
loss are the same for the 2002 periods.
Artesyn Technologies, Inc.
Condensed Consolidated Statements of Operations
(In Thousands Except per Share Data)
(Unaudited)
Thirteen Weeks Ended Twenty-Six Weeks Ended
-------------------- ----------------------
June 28, June 29, June 28, June 29,
2002 2001 2002 2001
--------- --------- --------- ---------
Sales $ 90,895 $ 127,716 $ 181,400 $ 277,991
Cost of Sales 78,861 118,239 158,124 243,750
--------- --------- --------- ---------
Gross Profit 12,034 9,477 23,276 34,241
--------- --------- --------- ---------
Operating Expenses
Selling, general and
administrative 8,831 15,438 18,594 31,366
Research and
development 8,276 11,507 16,863 23,712
Amortization of
goodwill - 1,992 - 3,958
Restructuring and
other charges 7,075 8,201 8,124 8,201
--------- --------- --------- ---------
Total Operating
Expenses 24,182 37,138 43,581 67,237
--------- --------- --------- ---------
Operating Loss (12,148) (27,661) (20,305) (32,996)
Interest Expense, net (1,757) (1,868) (3,677) (3,499)
--------- --------- --------- ---------
Loss Before Income
Taxes (13,905) (29,529) (23,982) (36,495)
Benefit for Income
Taxes (3,755) (7,625) (6,475) (9,854)
--------- --------- --------- ---------
Net Loss $ (10,150) $ (21,904) $ (17,507) $ (26,641)
========= ========= ========= =========
Loss per Share
Basic $ (0.26) $ (0.57) $ (0.46) $ (0.70)
========= ========= ========= =========
Diluted $ (0.26) $ (0.57) $ (0.46) $ (0.70)
========= ========= ========= =========
Common and Common
Equivalent Shares
Outstanding
Basic 38,382 38,195 38,358 38,222
Diluted 38,382 38,195 38,358 38,222
The following table includes items used to reconcile after-tax
earnings to cash earnings:
Thirteen Weeks Ended Twenty-Six Weeks Ended
-------------------- ----------------------
June 28, June 29, June 28, June 29,
2002 2001 2002 2001
--------- --------- --------- ---------
Loss per share $ (0.26) $ (0.57) $ (0.46) $ (0.70)
After-tax goodwill
amortization - 0.05 - 0.10
After-tax
restructuring
charges 0.13 0.16 0.16 0.16
After-tax excess and
obsolete inventory
charge - 0.19 - 0.19
--------- --------- --------- ---------
Cash loss excluding
charges $ (0.13) $ (0.17) $ (0.30) $ (0.25)
========= ========= ========= =========
Artesyn Technologies, Inc.
Condensed Consolidated Statements of Financial Condition
(In Thousands)
(Unaudited)
June 28, December 28,
2002 2001
------------------ -----------------
ASSETS
Current Assets
Cash and equivalents $ 87,059 $ 54,083
Accounts receivable, net 57,885 72,580
Inventories, net 86,441 103,556
Prepaid expenses and other 3,980 2,690
Deferred income taxes, net 12,854 12,398
------------------ -----------------
Total current assets 248,219 245,307
------------------ -----------------
Property, Plant &
Equipment, Net 93,011 103,291
------------------ -----------------
Other Assets
Goodwill, net 66,999 64,573
Deferred tax asset, net 18,413 10,103
Other assets, net 3,748 3,209
------------------ -----------------
Total other assets 89,160 77,885
------------------ -----------------
Total Assets $ 430,390 $ 426,483
================== =================
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of
long-term debt and capital
leases $ 75 $ 207
Accounts payable and accrued
liabilities 97,966 92,324
------------------ -----------------
Total current liabilities 98,041 92,531
------------------ -----------------
Long-Term Liabilities
Long-term debt and capital
leases 62,876 100,399
Convertible subordinated
debt 45,746 -
Other long-term liabilities 11,915 14,308
------------------ -----------------
Total long-term liabilities 120,537 114,707
------------------ -----------------
Total liabilities 218,578 207,238
Shareholders' Equity 211,812 219,245
------------------ -----------------
Total Liabilities and
Shareholders' Equity $ 430,390 $ 426,483
================== =================
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion