SILICONIX Reports Fifth Consecutive Record Quarterly Earnings -- $0.90 per Share, a 175% Increase
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Siliconix Reports Fifth Consecutive Record Quarterly Earnings -- $0.90 per Share, a 175% Increase
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 26, 2000--Siliconix incorporated (NASDAQ NMS:SILI - news), a subsidiary of Vishay Intertechnology, Inc. (NYSE:VSH - news), announced record quarterly net income of $26.7 million, or $0.90 per share, for the quarter ended April 2, 2000. This is an increase of 175% over the net income of $9.7 million, or $0.33 per share, in the first quarter of 1999 and 10% over the net income of $24.4 million, or $0.82 per share, in the fourth quarter of 1999. (All per share data have been adjusted to reflect the three-for-one stock split effective in February 2000.) Sales for the first quarter of 2000 were a record $114.5 million, 41% greater than the sales of $81.0 million for the first quarter of 1999 and 4% greater than the sales of $110.1 million for the fourth quarter of the previous year.
The gross margin for the first quarter of 2000 was 47%, compared to 37% for the first quarter of 1999 and 45% for the fourth quarter of 1999. The sequential improvement continued to result from increased manufacturing efficiencies, an improved product mix, and cost reductions like the ongoing conversion of the TrenchFET`` product line to the Company's proprietary 32 million-cell process, thus generating more die, and greater revenue, per wafer. Research and development expenses increased by $1.2 million for the quarter and $500,000 sequentially, in line with the Company's aggressive plan of new product introductions. Selling, marketing and administration expenses increased by $1.6 million over the first quarter and by $600,000 from the fourth quarter of last year, primarily due to increased sales and marketing spending, consistent with higher revenues and increased new product introductions. Sequential SM&A spending remained stable as a percentage of sales--11.5% of sales in the first quarter of 2000, compared to 11.4% in the fourth quarter of 1999 and 14.3% in the first quarter of 1999.
Dr. King Owyang, Siliconix President and CEO, stated, ``The outlook for 2000 remains at least as strong as when we last reported in January. We achieved record bookings in the first quarter, with a book-to-bill of 1.11 to 1. Our quarterly revenues have historically been lowest in the first quarter because of fab shutdowns at year-end and the Chinese New Year, and highest in the fourth quarter. We expect the high demand for our products to continue in 2000, supporting further increases in revenues over 1999, assuming no unforeseen circumstances. We continue the implementation of our strategy to increase capacity for both front-end and back-end manufacturing and expect to see first product revenues out of our Japanese foundry relationship in the second quarter of this year.''
Dr. Owyang continued, ``New product development to service the design challenges of our customers remains our top priority. In the first quarter we introduced new products in our LITTLE FOOT'' Plus family providing feature integration and enhanced functionality for space constrained applications. In the world of desktop and portable computers, the CPU road maps challenge system designers with an environment of reduced voltages and increased current levels. Our process and package development offers innovative solutions for these design challenges in packages ranging from DPAK to our newest family, the 1206-8 ChipFET``. We continue to grow our 1.8V gate-rated family for power management solutions in cellular and notebook applications. We are a leader in product development for the new 42V bus standard in automotive applications, offering a technically advanced 75V, 3.5 milliohm solution. On the power IC side, we are sharpening our focus on the telecommunications market by introducing a new buck or boost controller that is configurable externally to meet the power requirements of sophisticated portable devices such as PDAs and web micro browsers.''
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.''
Siliconix is a leading manufacturer of power MOSFETs, power ICs and analog signal processing devices for computers, cell phones, fixed communications networks, automobiles and other electronic systems. The Company utilizes Class 1, six-inch wafer fabs dedicated to the manufacture of power products in Santa Clara, California and Itzehoe, Germany. Analog switches and multiplexers are fabricated by a subcontractor in Dresden, Germany, and small-signal transistors are manufactured by a subcontractor in Beijing, China. Assembly and test facilities include a Company-owned facility in Taiwan, a facility in Shanghai, China, and subcontractors in the Philippines, China and the United States.
Vishay, a Fortune 1,000 Company with annual sales in 1999 of $1.8 billion, is the largest U.S. and European manufacturer of passive electronic components (resistors, capacitors, inductors) and a producer of discrete semiconductors. These components can be found in products manufactured in a very broad range of industries worldwide. With headquarters in Malvern, Pennsylvania, Vishay employs over 20,000 people in 64 plants in the U.S., Mexico, Germany, Austria, the United Kingdom, France, Portugal, the Czech Republic, Hungary, Israel, Taiwan (ROC), China and the Philippines. Vishay (and Siliconix) can be found on the Internet at vishay.com.
Except for historical information contained herein, the matters set forth in this Press Release are forward looking statements that are subject to risks and uncertainties including market conditions in the industries that the Company serves, the impact of competitive products and pricing, the ability to increase capacity as planned, the timely development and market acceptance of new products and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
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SILICONIX INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
April 2, April 4,
(In thousands, except per share amounts) 2000 1999
Net sales $ 114,465 $ 81,041
Cost of sales 60,881 51,068
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Gross profit 53,584 29,973
Operating expenses:
Research and development 5,252 4,020
Selling, marketing, and administration 13,194 11,558
Amortization of goodwill 114 114
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Operating income 35,024 14,281
Interest income (expense) 794 (266)
Other income (expense) - net (1,028) (92)
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Income before taxes and minority interest 34,790 13,923
Income taxes 7,988 3,973
Minority interest in income of consolidated
subsidiaries 59 225
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Net income $ 26,743 $ 9,725
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Net income per share (basic and diluted) $ 0.90 $ 0.33
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Shares used to compute earnings per share 29,879 29,879
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SILICONIX INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
April 2, Dec. 31,
(In thousands) 2000 1999
Assets
Current assets:
Cash and cash equivalents $ 38,695 $ 26,876
Note receivable from affiliate 37,000 31,000
Accounts receivable, less allowances 62,011 49,631
Accounts receivable from affiliates 30,043 16,128
Inventories 48,311 48,339
Other current assets 8,882 6,023
Deferred income taxes 10,286 10,286
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Total current assets 235,228 188,283
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Property, plant, and equipment, at cost:
Land 1,715 1,715
Buildings and improvements 47,738 48,027
Machinery and equipment 294,614 284,496
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344,067 334,238
Less accumulated depreciation 192,941 184,812
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Net property, plant, and equipment 151,126 149,426
Goodwill 8,247 8,361
Other assets 520 608
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Total assets $ 395,121 $ 346,678
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 35,887 $ 27,524
Accounts payable to affiliates 45,360 26,244
Accrued payroll and related compensation 7,749 9,998
Accrued restructuring charge 1,643 2,746
Accrued liabilities 44,943 47,442
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Total current liabilities 135,582 113,954
Long-term debt, less current portion 1,839 1,700
Deferred income taxes 11,399 11,399
Minority interest 3,310 3,324
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Total liabilities 152,130 130,377
Commitment and contingencies
Stockholders' equity:
Common stock 299 299
Additional paid-in-capital 59,358 59,354
Retained earnings 184,147 157,402
Accumulated other comprehensive loss (813) (754)
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Total stockholders' equity 242,991 216,301
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Total liabilities and stockholders' equity $ 395,121 $ 346,678
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