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To: Burjis S. who wrote (51381)	7/20/1999 8:38:00 AM
From: JakeStraw	Read Replies (1) \| Respond to of 120523

ATSN - Artesyn Technologies Reports Second Quarter Results Sales Increase 24%; Net Income Improves 69% BOCA RATON, Fla.--(BUSINESS WIRE)--July 20, 1999-- Artesyn Technologies, Inc. (Nasdaq/NM:ATSN - news) today reported earnings for the second quarter and six months ended July 2, 1999. Net income for the second quarter of 1999 was $10.4 million, or $0.27 per diluted share, improving 69% from $6.2 million, or $0.15 per diluted share, reported for the comparable year-ago quarter. Sales for the second quarter increased 24% to $150.4 million from $121.8 million reported for the comparable year-ago quarter. For the first six months of 1999, net income was $17.7 million, or $0.45 per diluted share, compared to $9.4 million, or $0.23 per diluted share, reported for the comparable year-ago period, which included $9.6 million pre-tax restructuring and inventory charges taken in the first quarter of 1998 as a result of the merger with Zytec Corporation. For the first six months of 1999, sales totaled $285.5 million, up 6% from $269.0 million for the comparable period in 1998. Sales in the second quarter of 1999 increased principally as a result of higher than anticipated shipments to major OEM customers in the networking and computing market sectors. Likewise, gross margin improved to 25.3% in the second quarter of 1999 from 24.8% reported in the prior quarter of 1999. This improvement was largely attributable to higher sales volume and continued savings achieved through material cost reductions and plant rationalizations. However, gross margin for the second quarter of 1999 was lower than the 26.6% reported for the second quarter of 1998 primarily as a result of increased high volume sales to the computing market, which has generally lower gross margins. Selling, general and administrative expenses were $12.9 million in the second quarter of 1999, or approximately $1.5 million lower than the comparable year ago quarter. The decrease reflects efficiencies gained from the Company's merger with Zytec partially offset by expenses associated with Year 2000 compliance and the implementation of the Company's Enterprise Resource Planning (ERP) information system. Joseph M. O'Donnell, President and CEO, commenting on operating results said, ''We are pleased with the results for the second quarter as the Company met near-term demand increases from our major OEM customers. Orders of $159 million versus $119 million in the second quarter of 1998 indicate resurgence in demand from our important end markets. Additionally, we were able to continue our long-term commitment to new products by investing over $9 million, or 6.2% of sales, in research and development while prudently controlling selling, general and administrative costs.'' As part of the previously announced three-year, 4.0 million-share repurchase program, the Company repurchased an additional 105,000 shares of its common stock for a total price of $1.4 million during the second quarter of 1999. To date, the Company has repurchased 2,462,700 of the approved 4.0 million shares for a total of approximately $38.6 million. All of such purchases were funded with cash from operations. 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. Investors will have the opportunity to listen to management's discussion of the quarterly results in a conference call be to held on Tuesday, July 20 at 8:30 a.m. ET over the Internet through Vcall at vcall.com. To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.