Bel Reports Fourth Quarter Net Earnings of $10.3 Million; Fourth Quarter Revenue Increased 14% to $69.3 Million.2007 Net Earnings Increased to $26.3 Million Versus $25.2 Million JERSEY CITY, N.J. -- Bel Fuse Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BELFA) (NASDAQ:BELFB) today announced financial results for the fourth quarter and 2007, highlighted by higher revenue and net earnings versus the comparable periods of 2006. Fourth Quarter Results 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 three months ended December 31, 2007 increased 14% to $69,339,000 compared to net sales of $60,573,000 for the fourth quarter of 2006, and increased sequentially compared to $66,379,000 for the third quarter of 2007. This growth was driven primarily by strong sales in Bel's Modules product group. Net earnings for the fourth quarter of 2007 were $10,255,000, which included a $3,388,000 (net of tax) gain on the previously announced sale of Bel's manufacturing facility and related properties in Macau. This compares to net earnings of $4,697,000 for the fourth quarter of 2006, and net earnings of $5,914,000 for the third quarter of 2007. Net earnings 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. Class A common share were $0.83 for this year's fourth quarter and excluding the gain on the sale would have approximated $0.55 per share. Diluted Class A common share earnings were $0.38 in the same period last year. Net earnings per diluted Class B common share were $0.88 for this year's fourth quarter and excluding the gain on the sale would have approximated $0.59 per share. Diluted Class B common share earnings were $0.40 in the same quarter last year. "This quarter Bel had the second highest quarterly revenue in its history, and demand for our products remains firm. We are seeing PRC labor costs rising, and as previously announced we are taking a number of steps to control our costs. This program will last for twelve months and includes consolidation of our manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. into our larger, more efficient facilities. In connection with this program was the gain on sale this quarter of our facility in Macau, offset by 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. of approximately $500,000 associated with the closure of another manufacturing plant in the PRC. We also continue to evaluate acquisition opportunities with the potential to increase shareholder value," said Daniel Bernstein, Bel's president. Twelve Month Results For the twelve months ended December 31, 2007, net sales increased 2% to $259,137,000 compared to $254,933,000 for 2006. Net earnings for 2007 were $26,336,000. This compares to net earnings for 2006 of $25,203,000. For the twelve months ended December 31, 2007, net earnings per diluted Class A common share were $2.11 compared to $2.03 for 2006, and net earnings per diluted Class B common share were $2.24 compared to $2.15 for the prior year. Balance Sheet Highlights At December 31, 2007, Bel reported cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of approximately $114,800,000, working capital of approximately $173,524,000, a current ratio of 6.9 to 1, total long-term obligations of $16,626,000, and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $244,527,000. At December 31, 2006, cash, cash equivalents and marketable securities were approximately $92,337,000, working capital was approximately $144,677,000, the current ratio was 4.5 to 1, total long-term obligations were $4,728,000, and shareholders' equity was $222,150,000. During the fourth quarter, Bel repurchased 45,933 Class A shares at a cost of $1,608,000. Conference Call Bel has scheduled a conference call at 11:00 a.m. ET today. To participate in the call, dial (212) 231-2905, reservation #21373520. A simultaneous webcast of the conference call may be accessed from the Investor Info link at www.belfuse.com. A replay will be available after 1:00 p.m. ET, for a period of 20 days, at this same Internet address There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. . For a telephone replay, dial (800) 633-8284, reservation #21373520, after 1:00 p.m. ET. About Bel Bel (www.belfuse.com) and its subsidiaries are primarily engaged in the design, manufacture and sale of products used in networking, telecommunications, high speed data transmission, and consumer electronics. Products include magnetics (discrete components An elementary electronic device constructed as a single unit. Before integrated circuits (chips), all transistors, resistors and diodes were discrete. They are widely used in amplifiers and other devices that use large amounts of current. , power transformers, and MagJack[R]s), modules (DC-DC DC-DC Direct Current to Direct Current (power conversion) converters, integrated analog front end modules, and custom designs), circuit protection (miniature, micro, and surface mount fuses) and interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. devices (passive jacks, plugs, and cable assemblies). Bel operates facilities around the world. 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. Except for historical information contained in this news release, the matters discussed in this press release (including statements regarding certain challenges faced by the Company and the evaluation of acquisition possibilities) are forward-looking statements that involve risks and uncertainties. Among the factors that could cause actual results to differ materially from such statements are: the market concerns facing our customers, the continuing viability of sectors that rely on our products, the effect of business and economic conditions, capacity and supply constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. or difficulties, product development, commercializing or technological difficulties, the regulatory and trade environment, uncertainties associated with legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , the market's acceptance of the Company's new products and competitive responses to those new products, and the risk factors detailed from time to time in the Company's SEC reports. In light of the risks and uncertainties, there can be no assurance that any forward-looking statement will in fact prove to be correct. We undertake no obligation to update or revise any forward-looking statements. [TABLE OMITTED] [TABLE OMITTED] |
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