Taitron Reports Fourth Quarter and Year-End
Results
LOS ANGELES--(BUSINESS WIRE)--Feb. 28, 2000--Taitron Components Incorporated (Nasdaq:TAIT - news) today
announced financial results for its fourth quarter and year ended December 31, 1999.
Net sales for the fourth quarter climbed 7.4 percent to $7.3 million from $6.8 million a year ago. Net income for the same
period was $231,000, or $0.04 per diluted share, compared with $221,000, or $0.03 per diluted share, last year.
Net sales for the year were $29.3 million compared with $30.8 million a year earlier. Net income for 1999 was $1 million, or
$0.17 per diluted share, compared with $1.5 million, or $0.24 per diluted share, in 1998.
Commenting on the Company's results, Stewart Wang, president and chief executive officer, said ``An increase in 1999 fourth
quarter results over the same period last year reflects an improving business environment, with demand for discrete
semiconductors showing continued strength in the first quarter of year 2000.'
He indicated that recent shortages of discrete semiconductors and passive components have created significant price increases
in the marketplace. ``With $29 million of inventory already on hand, we can help our customers absorb some of the price
increases and still benefit from increasing profit margins,' he said.
Wang noted that Taitron is continuing its efforts to target new markets and leverage Taitron's expertise and inventory to
increase long-term growth and profitability. He added that Taitron opened new sales offices in Florida, Arizona and Orange
County, Calif., during the fourth quarter. This expansion follows the opening of a New York sales office earlier in 1999 as part
of its strategy to strengthen its distribution activities nationally and improve customer service overall.
He also noted that the company recently completed the purchase of a new 50,000 square foot warehouse and headquarters to
support its growth. Interior improvements to the new $3.3 million facility, located in Valencia, Calif., are expected to be
completed in the second quarter of year 2000.
Wang indicated that results for the quarter and year 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.
He added that the company completed the year with a strong balance sheet, reporting more than $22.4 million in working
capital, a current ratio of 2.8 to 1 and more than $25.4 million in equity, as of December 31, 1999.
He also noted that, under a previously announced stock repurchase program, the company had purchased approximately 1.1
million Class A common shares through February 15, 2000 for an approximate amount of $3.1 million in aggregate. Earnings
per share were notably higher during the current fourth quarter with an 11 percent increase over the same quarter last year.
Book value per share as of December 31, 1999 was $4.35 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, economic, competitive, governmental, political, technological factors, the success of the
company's joint venture in Mexico 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
Statement of Earnings
(In thousands, except share and per share data)
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
Net sales $ 7,276 $ 6,820 $ 29,326 $ 30,828
Cost of goods
sold 5,182 5,003 20,930 21,991
----------- ----------- ----------- -----------
Gross profit 2,094 1,817 8,396 8,837
Selling, general
& administrative
expenses 1,699 1,409 6,053 5,333
----------- ----------- ----------- -----------
Earnings from
operations 395 408 2,343 3,504
Interest expense,
net 205 133 854 1,065
Other expense
(income), net (226) (107) (299) (83)
----------- ----------- ----------- -----------
Earnings before
income taxes 416 382 1,788 2,522
Income tax expense 185 161 759 1,023
----------- ----------- ----------- -----------
Net earnings $ 231 $ 221 $ 1,029 $ 1,499
=========== =========== =========== ===========
Basic earnings
per share $ 0.04 $ 0.03 $ 0.17 $ 0.24
=========== =========== =========== ===========
Diluted earnings
per share $ 0.04 $ 0.03 $ 0.17 $ 0.24
=========== =========== =========== ===========
Basic weighted
average shares
outstanding 5,888,366 6,272,538 6,006,436 6,277,697
=========== =========== =========== ===========
Diluted weighted
average shares
outstanding 5,949,647 6,281,753 6,050,322 6,286,912
=========== =========== =========== ===========
Contact:
Taitron Components Inc.
Steven H. Dong, 661/257-6060
or
Pondel/Wilkinson Group
Gary S. Maier, 310/207-9300 |
