Yee Haw.....$1.89 per share. Better than almost anyone expected. The Friday correction to ~$58 may have been as low as it gets.
Troy
siliconinvestor.com
SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 1, 1999--Siliconix incorporated (Nasdaq: SILI), a subsidiary of Vishay Intertechnology, Inc. (NYSE: VSH), announced record quarterly net income of $18.8 million, or $1.89 per share, for the quarter ended October 3, 1999, an increase of 385% over the $0.39 per share achieved in the third quarter of 1998 and 42% over the $1.33 per share earned in the second quarter of 1999. Sales for the third quarter of 1999 were also a record at $101.3 million, an increase of 45% percent over sales of $70.1 million for the third quarter of 1998 and 12% over sales of $90.8 million for the second quarter of 1999.
The gross margin for the third quarter of 1999 was 42%, compared to 36% for the third quarter of 1998 and 40% for the second quarter of 1999. The margin improvement continues to result from stronger capacity utilization, an improved product mix and increased fab efficiencies. Selling, marketing and administration expenses decreased $700,000 (on a $31.2 million increase in sales) quarter-to-quarter and increased only $450,000 from the second quarter of this year (on a $10.5 million increase in sales), as the Company continues to realize benefits from its restructuring plan installed after the acquisition of a majority interest in Siliconix by Vishay in March 1998 as well as from further cost reduction programs implemented by the Company. SM&A spending continues to decline as a percentage of sales--12% of sales in the third quarter of 1999, compared to 19% in the third quarter of 1998 and 13% in the second quarter of 1999.
Dr. King Owyang, Siliconix President and CEO, stated, "Demand remains strong in our major markets, telecommunications and portable computers. Our distribution business is also strong. Our book-to-bill ratio for the third quarter was greater than 1.1, and we have therefore entered the fourth quarter with a very strong backlog. Business remains particularly strong in Asia Pacific, but our revenues were up sequentially in North America and Europe as well."
Dr. Owyang continued, "We continue to provide our target markets with innovative power solutions. In the third quarter we introduced a record number of power MOSFETs addressing efficiency, space limitations and performance improvements. We announced our new ChipFET(TM) family in a 1206-type, leadless package. The ChipFET package offers the same power handling capabilities of an SOIC-8 package at less than 20% of the SOIC-8 footprint. We have also expanded our family of TSOP-6 Power MOSFETs to include a full complement of dual-die parts. These parts offer reduced parts count and increased functionality for our customer base. Finally, our powerMOS conversion solutions have been enhanced to provide a more efficient circuit for improved battery life of portable computing equipment. We also introduced a new power IC in the third quarter which targets dc-to-dc conversion applications in cell phones, `smart' (multi-functional) phones, web (Internet-capable) phones and PDAs powered by two-cell lithium ion batteries."
Dr. Owyang concluded, "We continue to believe that our corporate positioning remains strategically sound, and we will remain committed to maintaining our cost reduction programs while staying focused on the telecommunications, portable computer and automotive markets." |
