Artesyn Technologies Announces Record Sales for First Quarter; Sales Increase 18%; Net Income Up 45%.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, 2000 Artesyn Technologies, Inc. (Nasdaq:ATSN ATSN Apprenticeship and Training Support Network (Australia) ) today reported net income for the first quarter ended March 31, 2000 of $10.6 million, or $0.28 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 on record sales of $159.6 million. Net income for the quarter improved 45% from the same quarter last year on 18% growth in sales. Likewise, robust orders of $196.2 million resulted in a record 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. of $174.2 million and 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 1.23. Cash earnings, defined as net income before after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. goodwill charges, increased 42% to $11.1 million or $0.29 per fully diluted share in the first quarter, compared to $7.8 million or $0.20 a year ago. The improvement in cash earnings is primarily the result of increased sales volume and continued manufacturing cost reductions, as gross margins improved to 25.7% from 24.8% in the first quarter of 1999. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased to 15.7% of sales, despite a planned increase in research and product development investment of $1.4 million, or 16% over last year. Commenting on the quarter, 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 said, "We were pleased with the strong demand across all of our divisions during the first quarter. With strong end-market growth, the availability of selected components appears to be the only factor that may temper tem·per n. 1. A state of mind or emotions; mood. 2. A tendency to become easily angry or irritable. 3. An outburst of rage. customer demand looking ahead. Incoming orders were up 35% compared to 1999, with mass storage, wireless and access customers showing particular strength. Backlog for shipment within the next six months is 24% higher than at year end 1999." As previously announced, Artesyn acquired Spider Software Limited, a leading supplier of embedded Inserted into. See embedded system. telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and networking software  This article is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article in an . to the communications marketplace, on March 27, 2000 for approximately $33 million. Funding for the purchase transaction was provided through the use of the company's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. credit facility and the assumption of $5 million of long-term obligations. Software revenue for the remainder of 2000 is expected to reach $5 million, and the company believes the impact of the acquisition on cash earnings will be moderately accretive. Going forward, quarterly fully 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 will be reduced by approximately $0.04 due to the amortization of goodwill resulting from the Spider Software acquisition. As part of the previously announced share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, the Company repurchased an additional 282,500 shares of its common stock for a total price of $5.4 million during the first quarter of 2000. To date, the Company has repurchased 3.4 million of the approved 4.0 million shares for a total of approximately $56.7 million. Artesyn Technologies, Inc., headquartered in Boca Raton, Fla., is a leading provider of power conversion equipment, real-time systems Real-time systems Computer systems in which the computer is required to perform its tasks within the time restraints of some process or simultaneously with the system it is assisting. and logistics management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet for 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. . For more information about Artesyn Technologies and its products, please visit the Company's web site at http://www.artesyn.com. Investors will have the opportunity to listen to management's discussion of the quarterly results in a conference call be to held on Tuesday, April 18 at 8:30 a.m. ET 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 through Vcall at http://www.vcall.com. To listen to the live call, please go to the web site at least fifteen 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. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. This release may contain certain 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. that involve certain risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by the Company with the Securities and Exchange Commission, specifically the most recent reports on Form S-4, 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, including, but 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 the volatility of the trading price Trading price The price at which a security is currently selling. of the Company's stock.
Artesyn Technologies, Inc.
Financial Highlights
(In Thousands Except per Share Data)
(Unaudited)
Thirteen Weeks Ended
March 31, April 2,
2000 1999
----------- ----------
Orders $196,198 $144,872
Sales 159,619 135,116
Operating Income 15,944 11,100
EBITDA 21,611 15,773
Net Income 10,610 7,311
Cash Earnings(1)
per Share - Diluted 0.29 0.20
Earnings per Share - Diluted 0.28 0.19
Weighted shares -Diluted 38,402 39,056
(1) Earnings before after-tax goodwill charges
Artesyn Technologies, Inc.
Consolidated Statements of Operations
(In Thousands Except per Share Data)
(Unaudited)
Thirteen Weeks Ended
March 31, April 2,
2000 1999
----------- ----------
Sales $159,619 $135,116
Cost of Sales 118,564 101,575
----------- -----------
Gross Profit 41,055 33,541
----------- -----------
Operating Expenses
Selling, general and
administrative 14,816 13,574
Research and development 10,295 8,867
----------- -----------
Total Operating
Expenses 25,111 22,441
----------- -----------
Operating Income 15,944 11,100
Interest Expense, net (568) (349)
----------- -----------
Income Before Income taxes 15,376 10,751
Provision for Income Taxes 4,766 3,440
----------- -----------
Net Income $10,610 $7,311
=========== ===========
Earnings per Share
Basic $ 0.29 $ 0.20
=========== ===========
Diluted $ 0.28 $ 0.19
=========== ===========
Weighted Shares Outstanding
Basic 37,121 37,481
Diluted 38,402 39,056
Artesyn Technologies, Inc.
Consolidated Statements of Financial Condition
(In Thousands)
(Unaudited)
March 31, December 31,
2000 1999
----------- --------------
ASSETS
Current Assets
Cash and equivalents $ 37,145 $ 37,562
Accounts receivable, net 94,952 90,334
Inventories 90,147 89,370
Prepaid expenses and other 6,306 5,263
Deferred income taxes, net 9,864 9,866
----------- --------------
Total current assets 238,414 232,395
----------- --------------
Property, Plant &
Equipment, Net 90,063 88,468
----------- --------------
Other Assets
Goodwill, net 65,205 32,436
Deferred income taxes, net 3,573 3,573
Other assets, net 1,880 2,178
----------- --------------
Total other assets 70,658 38,187
----------- --------------
Total Assets $399,135 $359,050
=========== ==============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of
long-term debt and
capital leases $ 13,224 $ 1,956
Accounts payable and
accrued liabilities 95,167 102,802
----------- ---------------
Total current
liabilities 108,391 104,758
----------- ---------------
Long-Term Liabilities
Long-term debt and
capital leases 69,983 44,154
Other long-term
liabilities 15,147 10,226
----------- ---------------
Total long-term
liabilities 85,130 54,380
----------- ---------------
Total liabilities 193,521 159,138
Shareholders' Equity 205,614 199,912
----------- ---------------
Total Liabilities and
Shareholders' Equity $399,135 $359,050
=========== ===============
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