General Semiconductor Announces Fourth Quarter 1998 Earnings.MELVILLE, N.Y.--(BUSINESS WIRE)--Feb. 3, 1999--General Semiconductor, Inc. (NYSE NYSE See: New York Stock Exchange :SEM), a leading manufacturer of discrete semiconductors, today reported 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 December 31, 1998 of $98.8 million, versus $103.6 million reported in the comparable quarter of 1997. During the quarter, a $12.3 million pre-tax, or $0.23 per share after tax 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. was taken to better position the Company for the current environment. The majority of the restructuring charge was for early retirement and reduction-in-force severance packages. Before the charge, fourth quarter operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $11.9 million versus $19.6 million in the comparable period of 1997 and earnings per share were $0.13 compared with $0.25 a year earlier. On a sequential basis, net sales for the fourth quarter of 1998 increased 1.6% from the $97.2 million reported in the third quarter. Operating income before the restructuring charge was down slightly from the $12.4 million in the third quarter. Earnings per share before restructuring decreased 18.8% from the $0.16 per share reported in the third quarter. Third quarter earnings included $0.03 per share due to a reduction of the estimated annual effective tax rate. Net sales for the year increased 5.6% to $401.1 million from $380.0 million in 1997. Before the restructuring charge, operating income was $59.5 million compared with 1997's pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma $68.th the spin-offs that were completed in July 1997. "We performed well in an environment plagued by excelization will slowly improve due to increased ety and customer service with sales, reflecting our commitment to the customer. As markets firm, this commitment, along with a focus on continual cost improvement, will enhance our position as a major participant in the discrete component industry." "During the fourth quarter, we saw a strengthening in our business in Southeast Asia, partic during the fourth quarter, primarily reflectinny provides customers with a broad array of power rectifiers, transient voltage suppressors and small signal transistors and diodes. It has a diversified customer base, in terms of geography and end-use markets. Customers include leading manufacturers, located around the globe, of conation conation /co·na·tion/ (ko-na´shun) in psychology, the power that impels effort of any kind; the conscious tendency to act.con´ative co·na·tion n. and, accordingly, the cautionary statementsults could differ materially from the "forward-looking" information in this press release. Visit GeONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Information) ths Ended December 31, December 31, COSTS AND EXPENSES: ,287 1,286 1,287 Restructuring 12,324 - - Total operating costs and expenses 99,144 84,029 86,820 OPERATING INCOME (LOSS) (382) 19,56 INCOME (LOSS) Weighted Average 36,828 36,902 Earnings (loss) per share: Basic $ (0.10) $ 0.25 $ 0.13 Diluted $ (0.10) $ 0.25 $ 0.13 (A) - Excludes restructuring charges. -0- GENERAL SEMICONDUCTOR, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Information) Historical As Adjusted As Adjusted Year Ended Year Ended Year Ended Dec. 31, Dec. 31, Dec. 31, 1998 1997 1998 (A) 1997 (B) NET SALES $401,144 $ 380,038 $401,144 $380,038 OPERATING COSTS AND EXPENSES: Cost of sales 283,582 289,313 283,582 289,313 Selling, general and administrative 46,802 44,668 46,802 44,668 Research and development 6,104 5,998 6,104 5,998 Amortization of excess of cost over fair value of net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. acquired 5,145 5,143 5,145 5,143 Restructuring 12,324 - - - Total operating costs and expenses 353,957 345,122 341,633 345,122 OPERATING INCOME 47,187 34,916 59,511 34,916(C) Other income (expense)-net (71) (42) (71) (42) Interest expense-net (20,026) (14,353) (20,026) (19,602) INCOME FROM CONTINUING OPERATIONS continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the BEFORE INCOME TAXES 27,090 20,521 39,414 15,272 Provision for income taxes (8,556) (11,649) (12,220) (9,707) INCOME FROM CONTINUING OPERATIONS 18,534 8,872 $ 27,194 $ 5,565(C) DISCONTINUED OPERATIONS Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. - NET - (2,939)(D) NET INCOME $ 18,534 $ 5,933 Weighted Average Shares Outstanding: Basic 36,811 35,414 36,811 36,881(B) Diluted 36,899 35,576 36,899 Basic earnings (loss) per share: Continuing operations $ 0.50 $ 0.25 $ 0.74 $ 0.15(C) Discontinued operations $ - (0.08) Net Income (loss) $ 0.50 $ 0.17 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 : Continuing operations $ 0.50 $ 0.25 $ 0.74 Discontinued operations $ - $ (0.08) Net Income $ 0.50 $ 0.17 (A) - Excludes restructuring charges. (B) - Assumes the conversion of the convertible notes and a net debt level of $275.0 million through July 25, 1997, the date of the spin-off. (C) - Excluding $33.8 million ($25.3 million net of tax) of charges related primarily to the separation of the Company's Taiwan operations, pro forma operating income and pro forma income from continuing operations would have been $68.7 million and $30.9 million ($0.84 per share), respectively. These costs include $32.7 million charged to cost of sales and $1.1 million charged to selling, general and administrative expense. (D) - Includes net income of discontinued businesses of $32.4 million and other costs directly related to the spin-off of $35.3 million. -0- GENERAL SEMICONDUCTOR, INC. CONDENSED con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. CONSOLIDATED BALANCE SHEETS (In Thousands) Dec. 31, Dec. 31, 1998 1997 Cash $ 3,225 $ 5,192 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , less allowance for doubtful accounts 59,643 54,077 Inventories 39,514 34,309 Other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 25,748 24,153 Total current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 128,130 117,731 Total non-current assets 435,317 432,574 TOTAL ASSETS 563,447 550,305 Total current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. $ 76,427 $ 100,994 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. 286,000 263,764 Other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. 95,673 99,186 Total non-current liabilities 381,673 362,950 Total liabilities 458,100 463,944 Total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. 105,347 86,361 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $563,447 $ 550,305 |
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