AVX Corporation Announces Preliminary First Quarter Results

Published on Wednesday, 28 July 2010 09:14 Written by TradersHuddle Staff

GREENVILLE, S.C.-( Business Wire )-

AVX Corporation (NYSE: AVX) AVX today reported preliminary unaudited results for the first quarter ended June 30, 2010.

Highlights:

• Revenue for the June 2010 quarter of $396.5 million increased 8% from the previous quarter and increased 36% from the first quarter of last year.
• Gross Profit margin improved for the eighth consecutive quarter to 26% in the current quarter compared to 23% in the previous quarter and 19% in the same quarter last year.
• Net income of $52.3 million, or $0.31 per share, for the June 2010 quarter.
• Dividends of $7.7 million, or at a $0.18 per share annual rate, were paid during the first quarter of fiscal 2011.

Chief Executive Officer and President, John Gilbertson, stated, “We are pleased to report first quarter results that reflect sequential improvement over the previous quarter in both revenue and margins as we successfully leveraged the higher volumes with productivity improvements. We are encouraged by the overall outlook for the electronic component industry as end user demand for electronic products continued to increase as evidenced by the strong bookings we recorded during the quarter.”

For the quarter ended June 30, 2010, net sales increased sequentially over the previous quarter by $29.1 million, or 8%, to $396.5 million. Gross profit as a percent of sales improved over both the previous quarter and the same quarter last year to 26%. Net income for the quarter was $52.3 million, or $0.31 per diluted share, compared to net income of $46.5 million, or $0.27 per diluted share in the previous quarter and net income of $24.3 million, or $0.14 per diluted share in the first quarter of the prior fiscal year.

Chief Financial Officer, Kurt Cummings, stated, “We have continued to generate positive operating cash flows. The Company’s financial position remains exceptionally strong with cash and cash equivalents and short and long-term investments in securities of $938.1 million and no debt at June 30, 2010. During the quarter, the Company paid $7.7 million of dividends to stockholders and spent $1 million to repurchase shares of AVX stock on the open market which are held as treasury stock.”

AVX, headquartered in Greenville, South Carolina, is a leading manufacturer and supplier of a broad line of passive electronic components and related products.

Please visit our website at www.avx.com.

AVX CORPORATION Consolidated Condensed Statements of Income (unaudited) (in thousands, except per share data)
			Three Months Ended
			June 30,
			2009			2010
Net sales		$	292,040		$	396,537
Cost of sales			237,198			293,885
Restructuring charges			700			-
Gross profit			54,142			102,652
Selling, general & admin. expense			27,331			30,510
Restructuring charges			300			-
Profit from operations			26,511			72,142
Other income			2,054			2,572
Income before income taxes			28,565			74,714
Provision for taxes			4,285			22,414
Net income		$	24,280		$	52,300
Basic income per share		$	0.14		$	0.31
Diluted income per share		$	0.14		$	0.31
Weighted average common
shares outstanding:
Basic			170,332			170,107
Diluted			170,332			170,467

AVX CORPORATION Consolidated Condensed Balance Sheets (unaudited) (in thousands)
			March 31,			June 30,
			2010			2010
Assets
Cash and cash equivalents		$	415,974		$	413,243
Short-term investments in securities			262,709			324,888
Available-for-sale securities			9,767			4,265
Accounts receivable, net			195,983			215,689
Inventories			357,105			369,814
Other current assets			74,820			73,706
	Total current assets		1,316,358			1,401,605
Long-term investments in securities			219,993			189,993
Long-term available-for-sale securities			5,339			5,740
Property, plant and equipment, net			247,029			233,648
Goodwill and other intangibles			249,412			248,288
Other assets			13,361			8,395
	TOTAL ASSETS	$	2,051,492		$	2,087,669
Liabilities and Stockholders' Equity
Accounts payable		$	104,421		$	113,987
Income taxes payable and accrued expenses			88,852			95,501
	Total current liabilities		193,273			209,488
Other liabilities			57,212			54,664
	TOTAL LIABILITIES		250,485			264,152
	TOTAL STOCKHOLDERS' EQUITY		1,801,007			1,823,517
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,051,492		$	2,087,669

AVX Corporation, GreenvilleKurt Cummings, This e-mail address is being protected from spambots. You need JavaScript enabled to view it.