earnings release from 4-46...stock is at 3 7/16...i like it here:
Net Income and Sales Up Strongly
LOS ANGELES--(BUSINESS WIRE)--April 26, 2000--Taitron Components Incorporated (Nasdaq:TAIT - news) today
announced financial results for its first quarter ended March 31, 2000 with net income climbing 66 percent and net sales up 23
percent.
The company reported net income for the first quarter of $437,000, or $0.07 per basic and diluted share, compared with $264,000,
or $0.04 per basic and diluted share, in 1999. Net sales for the same period were $8,348,000, compared with $6,809,000 a year
earlier.
Stewart Wang, president and chief executive officer, said, ``Our solid performance for the quarter primarily reflects an industry
wide increase in demand for discrete semiconductors.''
He indicated that recent shortages of discrete semiconductors and passive components have created significant price increases in
the market place. ``With an inventory of $29 million already on hand, Taitron is able to help customers absorb some of the price
increases and still benefit from higher profit margins. Equally important, it highlights the viability of our strategy to maintain a
strong inventory even during past down cycles,'' Wang said.
He noted that Taitron is continuing its efforts to target new markets and further leverage the company's expertise and inventory to
increase long-term growth and profitability. Wang added that Taitron recently opened a new sales office in Marblehead, Mass.
Taitron now has six branch sales offices through out the United States, two international offices and a majority owned subsidiary
in Mexico.
He also noted that the company recently completed the purchase of a new 55,000 square foot warehouse and headquarters to
support its expansion program. Interior improvements to the new $3.3 million facility, located in Valencia, Calif., are expected to
be completed during the next three months.
Wang indicated that results for the quarter were impacted by an increase in Selling, General and Administrative expenses related
to the expansion of the company's direct sales force, operating cost of the newly opened offices and additional overhead from the
company's subsidiary in Mexico.
``Despite the increase in certain expenses, we are still achieving healthy margins with net earnings as a percentage of net sales at
5.2%,'' Wang said.
He noted that the company completed the quarter with a strong balance sheet, reporting more than $22.4 million in working capital,
a current ratio of almost 3 to 1 and almost $26 million in equity, as of March 31, 2000.
He also noted that, under a previously announced stock repurchase program, the company had purchased approximately 1.1
million Class A common shares through March 31, 2000 for an approximate amount of $3.1 million in aggregate. Book value per
share as of March 31, 2000 was $4.43 per share.
Taitron, based in Santa Clarita, Calif., is the ``Discrete Components Superstore.'' The company distributes a wide variety of
transistors, diodes and other discrete semiconductors, optoelectronic devices and passive components utilized by other electronic
distributors, original equipment manufacturers and contract electronic manufacturers.
Certain statements in this news release are forward-looking in nature and are subject to certain risks and uncertainties. Actual
results could differ materially from those expressed in any of these forward-looking statements. Such risks and uncertainties
include, but are not limited to, to economic, competitive, governmental, political, technological factors and other risks detailed from
time to time in the company's SEC reports, including, but not limited to, the Report on Form 10-K.
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TAITRON COMPONENTS INCORPORATED
Statements of Earnings
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
2000 1999
----------- ---------
Net Sales $ 8,348 $ 6,809
Cost of Goods Sold 5,786 4,775
----------- -----------
Gross Profit 2,562 2,034
Selling, General & Administrative
Expenses 1,624 1,389
----------- -----------
Earnings from Operations 938 645
Interest Expense, net 200 219
Other Expense (Income), net (10) (23)
----------- -----------
Earnings before Taxes 748 449
Income Tax Expense 311 185
----------- -----------
Net Earnings $ 437 $ 264
=========== ===========
Basic Earnings Per Share $ 0.07 $ 0.04
=========== ===========
Diluted Earnings Per Share $ 0.07 $ 0.04
=========== ===========
Basic Weighted Average Shares
Outstanding 5,833,805 6,118,608
=========== ===========
Diluted Weighted Average Shares
Outstanding 6,124,017 6,118,608
=========== ===========
Contact:
Taitron Components, Inc.
Steven H. Dong, 661/257-6060
or
Pondel/Wilkinson Group
Gary S. Maier, 310/207-9300 |
