ATSN -
Artesyn Technologies Announces First Quarter Results
Results Exceed Expectations
BOCA RATON, Fla.--(BUSINESS WIRE)--April 22, 1999--Artesyn Technologies, Inc. (Nasdaq NM:ATSN - news) today reported earnings for the first quarter ended April 2, 1999. Net income for the first quarter of 1999 was $7.3 million, or $0.19 per diluted share, compared to $3.2 million, or $0.08 per diluted share, for the comparable year-ago quarter. Net income for the first quarter of 1998 was $9.6 million, or $0.23 per diluted share, excluding $9.6 million pre-tax restructuring and inventory charges.
Sales for the first quarter of 1999 were $135.1 million compared to $147.2 million for the comparable quarter in 1998, which exceeded the estimated expected range of $130.0 million to $133.0 million previously announced for the quarter by the Company. Greater than expected demand for a number of new products contributed to higher than anticipated revenue. While this increased demand is attributable to a few major customers, the Company believes it is an overall encouraging growth indicator in the Company's markets.
Gross margin for the first quarter of 1999 was 24.8% compared to 26.0% for the first quarter of 1998 (excluding the $2.4 million charge for write-off of inventory in connection with the Company's 1998 merger-related restructuring plan) as savings from materials cost and plant rationalizations were offset by new product start-up costs.
Selling, general and administrative expenses were $13.6 million in the first quarter of 1999, or approximately $0.8 million lower than the year ago quarter. The decrease reflects efficiencies gained from the merger of Zytec and Computer Products partially offset by expenses associated with Year 2000 compliance and the implementation of the Company's Enterprise Resource Planning (ERP) information system.
The Company maintained its significant investment in research and development which totaled $8.9 million, or 6.6% of sales, in the first quarter of 1999 compared to $9.0 million, or 6.1% of sales, for the first quarter of 1998.
Joseph M. O'Donnell, President and CEO, commented, ''We are encouraged by the Company's first quarter sales which reflect healthy growth in North America, modest improvement in Europe and stabilizing demand in Asia following 1998's economic downturn. Internally, we continue to focus our efforts on becoming the low cost partner of choice for our communications customers' power and embedded computer systems needs.''
As part of the previously announced three-year, 4.0 million share repurchase program, the Company repurchased 1,146,200 shares of its common stock for a total of $17.9 million, during the first quarter of 1999. To date, the Company has repurchased 2,357,700 of the approved 4.0 million shares for a total of approximately $37.6 million which was funded with cash from operations.
This release may contain certain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by the Company with the SEC, specifically the most recent reports on Form S-4, Form 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, but not limited to, integration of operations and technology, market acceptance of existing and new products, dependence on and volatility of foreign sales, the potential for fluctuations in operating results, and the volatility of the trading price of the Company's stock.
Artesyn Technologies, Inc., headquartered in Boca Raton, Fla., is a leading provider of power conversion equipment, real-time systems and logistics management for the communications industry. For more information about Artesyn Technologies and its products, please visit the Company's web site at artesyn.com. |
