Siliconix Reports First Quarter Income of $0.40 Per Share SANTA
CLARA, Calif., May 3 /PRNewswire-FirstCall/ -- Siliconix
incorporated (NASDAQ:SILI), an 80.4% subsidiary of Vishay
Intertechnology, Inc. (NYSE:VSH), today announced net income of
$11.9 million, or $0.40 per share, for the first quarter ended
April 2, 2005. This is an increase of 19% over the net income of
$10.0 million, or $0.33 per share, in the fourth quarter of 2004
and a decrease of 15% from the net income of $14.0 million, or
$0.47 per share, in the first quarter of 2004. Sales for the first
quarter of 2005 were $103.5 million, a decrease of 3% from the
$106.3 million in the fourth quarter of 2004 and 14% from the
$120.7 million for the first quarter of 2004. The gross margin for
the first quarter of 2005 was 28%, compared to 25% in the fourth
quarter of 2004 and 30% in the first quarter of 2004. The
sequential improvement resulted from an improved product mix, cost
reductions, material savings and in-house capacity utilization,
offset by a very slight decline in average selling prices. The
decline of the gross margin year over year resulted from a
significant reduction in average selling prices and a drop in
volume, offset somewhat by an improved product mix, continuous cost
reductions and material savings. Research and development expenses
were flat sequentially as the Company continues to fuel the need
for innovation and invention. Selling, marketing and administration
expenses were flat sequentially and decreased 4% quarter-
to-quarter, due to lower commissions based on the reduced sales
volume. Dr. King Owyang, Siliconix President and CEO, said, "Our
bookings improved sequentially for the second consecutive quarter,
even though our major distribution customers' inventory policies
remain very conservative. One factor driving this phenomenon is
that these distributors do not want to have a significant amount of
lead-containing product on their shelves, as some of their
customers have suddenly demanded lead-free products. This in turn
creates challenging inventory management issues for us. We can make
every product we sell in lead-free form, but not all end-users are
ready for lead- free products." He continued, "We are hesitant to
conclude that we are in the midst of a significant recovery, but we
continue to believe that our three key markets, cellular phones,
portable computers and digital consumer appliances, will experience
moderate growth in 2005. We also believe that the first quarter
represents the bottom of the current downturn, and we are
continuing our capacity expansion program according to plan so that
we may better serve our customers." He noted, "We introduced a
total of 38 new products in the first quarter of 2005, offering
continuous improvement in terms of cost relief and performance
advantages for our customers. Included in our releases are an
expansion of our analog switch low voltage family in our
MicroFOOT(R) and SC- 70 packages. Our Power IC line continues to
expand with the addition of white LED drivers and half-bridge motor
control devices. In our Power MOSFET line we introduced our
breakthrough 1.5V gate-rated process ideal for low voltage
applications such as cell phones. We have added a series of
products in the 200V arena for active clamp fixed telecom
applications in a variety of packages. Finally, our high threshold,
low resistance product offers best in class performance for "under
the hood" automotive applications. We continue our focus on design
activity, successfully completing 307 new designs in consumer,
computer, communication and automotive applications. We are also
pleased with our design efforts on reference designs for
complementary products." He concluded, "Our consistent approach to
solution-based investments will continue to enhance our leadership
in key markets. At the same time, our cost reduction programs and
improving manufacturing efficiencies position us to further
penetrate power management applications in the telecommunications,
portable computer, consumer, industrial, and automotive markets. We
believe that this strategy is behind our success, both in the
marketplace and financially. The Company's financial position
remains very strong; we are debt-free and continue to finance our
growth with internal profits." Siliconix is a leading manufacturer
of power MOSFETs, power ICs, analog switches and multiplexers for
computers, cell phones, fixed communications networks, automobiles,
and other consumer and industrial electronic systems. With 2004
worldwide sales of $466.1 million, the company's facilities include
a company-owned Class 1 wafer fab dedicated to the manufacture of
power products in Santa Clara, Calif., and a Class 1 wafer fab
located in Itzehoe, Germany, utilized under a lease arrangement.
The company's products are also fabricated by subcontractors in
Japan, Germany, China, Taiwan and the United States. Assembly and
test facilities include a company-owned facility in Taiwan, a joint
venture in Shanghai, China, and subcontractors in the Philippines,
China, Taiwan and Israel. Vishay Intertechnology, Inc., a Fortune
1,000 Company listed on the NYSE (VSH), is one of the world's
largest manufacturers of discrete semiconductors (diodes,
rectifiers, transistors, and optoelectronics) and selected ICs, and
passive electronic components (resistors, capacitors, inductors,
and transducers). Vishay's components can be found in products
manufactured in a very broad range of industries worldwide. Vishay
is headquartered in Malvern, Pennsylvania, and has operations in 17
countries employing over 25,000 people. Vishay can be found on the
Internet at http://www.vishay.com/. The Siliconix results will be
discussed during the Vishay Intertechnology, Inc. conference call
scheduled for Tuesday, May 3, 2005 at 11:00 AM (EDT). The dial-in
number for the conference call is 800-230-1766 (612-332-0636 if
calling from outside the United States or Canada). The conference
operator will require the following information in order to admit
you into the call: Company Name: Vishay Intertechnology, Inc.; and
Moderators: Vishay Executives. There will be a replay of the
conference call from 2:30 PM (EDT) on Tuesday, May 3, 2005 through
11:59 PM (EDT) on Sunday, May 8, 2005. The telephone number for the
replay is 800-475-6701 (320-365-3844 if calling from outside the
United States or Canada). The access code is 779818. Statements
contained herein that relate to the Company's future performance,
including statements with respect to anticipated improvements in
the Company's business and business climate, future product
innovation, and implementation of cost savings strategies, are
forward-looking statements within the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such statements
are based on current expectations only, and are subject to certain
risks, uncertainties, and assumptions. Should one or more of these
risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those anticipated, estimated or projected. Among the factors
that could cause actual results to materially differ include:
general business and economic conditions, particularly in the
markets that the Company serves, cancellation of orders,
difficulties in new product development, and other factors
affecting the Company's operations, markets, products, services,
and prices that are set forth in its December 31, 2004 Report on
Form 10-K filed with the Securities and Exchange Commission ("SEC")
on March 15, 2005, as amended by its Form 10- K/A filed with the
SEC on April 22, 2005. You are urged to refer to the Company's Form
10-K, as amended, for a detailed discussion of these factors. The
Company undertakes no obligation to publicly update or revise any
forward- looking statements, whether as a result of new
information, future events, or otherwise. SILICONIX INCORPORATED
COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS* Unaudited Fiscal
quarter ended (In thousands, except per share April 2, Dec. 31,
April 3, amounts) 2005 2004 2004 Net sales $103,525 $106,282
$120,667 Cost of sales 74,471 79,247 84,855 Gross profit 29,054
27,035 35,812 Operating expenses: Research and development 4,537
4,514 5,294 Selling, marketing, and administration 12,674 12,723
13,224 Operating income 11,843 9,798 17,294 Interest income
(expense) 1,506 1,254 463 Other income (expense) - net 1,972 1,505
291 Income before taxes and minority interest 15,321 12,557 18,048
Income taxes 3,358 2,533 3,963 Minority interest in income of
consolidated subsidiary 60 60 60 Net income $11,903 $9,964 $14,025
Net income per share (basic and diluted) $0.40 $0.33 $0.47 Shares
used to compute earnings per share 29,879 29,879 29,879 * On
February 1, 2005, the Board of Directors of Siliconix approved the
acquisition by Siliconix of Vishay Semiconductor Itzehoe GmbH
("VSIG") from Vishay Intertechnology, Inc. In accordance with
generally accepted accounting principles for a merger of entities
under common control, this transaction has been recorded in a
manner similar to a pooling of interests. Accordingly, these
financial statements have been combined to include the accounts of
Siliconix incorporated and VSIG (renamed "Siliconix Itzehoe GmbH")
for all periods presented. Additional information on this basis of
presentation is described in Note 1 to the Combined Consolidated
Financial Statements, which is included in the Siliconix Annual
Report on Form 10-K filed with the Securities and Exchange
Commission. SILICONIX INCORPORATED COMBINED CONSOLIDATED BALANCE
SHEETS April 2, December 31, (In thousands) 2005 2004 (Unaudited)
Assets Current assets: Cash and cash equivalents $286,921 $305,739
Accounts receivable, net 39,130 36,553 Accounts receivable from
affiliates 23,647 22,189 Inventories 74,677 69,987 Other current
assets 28,225 29,577 Deferred income taxes 4,970 4,780 Total
current assets 457,570 468,825 Property and equipment, at cost:
Land 1,715 1,715 Buildings and improvements 63,013 62,686 Machinery
and equipment 491,279 480,488 556,007 544,889 Less accumulated
depreciation 369,576 361,654 Net property and equipment 186,431
183,235 Goodwill 7,445 7,445 Other assets 24,439 24,197 Total
assets $675,885 $683,702 Liabilities and Stockholders' Equity
Current liabilities: Accounts payable $24,171 $31,668 Accounts
payable to affiliates 28,528 30,743 Payable to Vishay for VSIG -
10,200 Accrued payroll and related compensation 10,724 10,938 Other
accrued liabilities 42,366 42,331 Total current liabilities 105,789
125,880 Accrued pension benefits 3,188 3,129 Deferred income taxes
12,862 12,860 Other non-current liabilities 62,935 62,228 Minority
interest 3,203 3,143 Total liabilities 187,977 207,240 Commitment
and contingencies Stockholders' equity: Common stock 299 299
Additional paid-in-capital 54,685 54,684 Retained earnings 434,134
422,231 Accumulated other comprehensive loss (1,210) (752) Total
stockholders' equity 487,908 476,462 Total liabilities and
stockholders' equity 675,885 683,702 Contact: Peter G. Henrici,
Vice President, Investor Relations, Siliconix incorporated (NASDAQ
NSM: SILI) 408-567-8400 DATASOURCE: Siliconix incorporated CONTACT:
Peter G. Henrici, Vice President, Investor Relations, Siliconix
incorporated of Siliconix incorporated, +1-408-567-8400 Web site:
http://www.siliconix.com/
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