EX-99.1 3 exhibit991.htm AVX CORPORATION EXHIBIT 99.1 exhibit991.htm
EXHIBIT 99.1

AVX Corporation Announces Third Quarter Results

MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- January 24, 2008 -- AVX Corporation (NYSE:  AVX)
 
Quarter highlights:
·  
Revenue improved to $429.5 million, an increase of $28.8 million, or 7.2%, compared to the previous quarter and an increase of $51.5 million, or 13.6%, compared to the same quarter last year.
·  
Net income increased $1.2 million to $37.0 million over the same period last year.
·  
Diluted earnings per share of $0.22 is up $0.01 from the same quarter last year.
·  
Dividends of $6.9 million, or $0.04 per share, were paid during the current quarter.
 
Chief Executive Officer and President, John Gilbertson stated, “Sales in the quarter continued to grow as end market growth and market demand for new products remained good in the December quarter. We have now fully integrated American Technical Ceramics Corp. (“ATC”) into our organization and we saw a positive book to bill during each month of the quarter.”
 
AVX reported net sales for the quarter ended December 31, 2007 of $429.5 million which represents a $51.5 million, or 13.6%, increase over the same quarter last year and a $28.8 million, or 7.2%, increase over the previous quarter. This represents the seventh consecutive quarter of sequential growth in sales indicative of the continued growth in the world wide electronics market.
 
Net income increased 3.3% to $37.0 million, or $0.22 per diluted share, compared to $35.8 million, or $0.21 per diluted share, for the same quarter last year.
 
John Gilbertson went on to state, "Our financial position remains exceptionally strong and we continue to be optimistic about the demand for electronic components. During the quarter, the Company paid off the bank debt that it had acquired with the purchase of ATC. After this debt reduction of $5.2 million and dividend pay out of $6.9 million, cash, including the short and long term investment balances increased $18.0 million to $808.6 million.”
 
 
AVX, headquartered in Myrtle Beach, South Carolina, is a leading manufacturer and supplier of a broad line of passive electronic components and related products.
 
Please visit our website at www.avx.com.

AVX CORPORATION
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)


   
Three Months Ended
    
Nine Months Ended
   
December 31,
    
December 31,
   
2006
  
2007
    
2006
  
2007
Net sales
$
   378,088
$
   429,542
  
$
 1,119,144
$
 1,213,406
Cost of sales
  
   305,493
  
   355,532
    
    893,331
  
    993,665
Restructuring charges
  
               -
  
          204
    
                -
  
        2,421
Gross profit
  
     72,595
  
     73,806
    
    225,813
  
    217,320
Selling, general & admin. expense
  
     29,513
  
     33,339
    
      87,302
  
      93,488
In-process research and development
  
               -
  
              -
    
                -
  
           390
Profit from operations
  
     43,082
  
     40,467
    
    138,511
  
    123,442
Other income
  
       9,996
  
       8,532
    
      25,705
  
      32,712
Income before income taxes
  
     53,078
  
     48,999
    
    164,216
  
    156,154
Provision for taxes
  
     17,251
  
     11,980
    
      53,371
  
      42,535
Net income
$
     35,827
$
     37,019
  
$
    110,845
$
    113,619
                   
Basic income per share
$
         0.21
$
         0.22
  
$
          0.64
$
          0.66
Diluted income per share
$
         0.21
$
         0.22
  
$
          0.64
$
          0.66
                   
Weighted average common
                  
shares outstanding:
                  
               Basic
  
   172,041
  
   171,356
    
    172,138
  
    171,612
               Diluted
  
   172,926
  
   171,888
    
    172,897
  
    172,275

AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)

     
March 31,
    
December 31,
     
2007
    
2007
Assets
          
Cash and cash equivalents
$
684,382
  
$
            574,881
Short-term investment in securities
  
145,000
    
            164,693
Accounts receivable, net
  
196,165
    
            228,259
Inventories
  
330,141
    
            398,100
Other current assets
  
65,707
    
              66,611
 
Total current assets
  
1,421,395
    
         1,432,544
Long-term investment in securities
  
139,000
    
              69,000
Property, plant and equipment, net
  
243,873
    
            295,521
Goodwill and other intangibles
  
71,166
    
            246,515
Other assets
  
24,102
    
                9,591
             
 
TOTAL ASSETS
$
1,899,536
  
$
         2,053,171
             
Liabilities and Stockholders' Equity
          
Accounts payable
$
126,689
  
$
            138,744
Current portion of long-term debt
  
                     -
    
                   567
Income taxes payable and accrued expenses
  
80,671
    
              88,513
 
Total current liabilities
  
207,360
    
            227,824
Long-term debt
  
                     -
    
                1,145
Other liabilities
  
56,897
    
              67,897
             
 
TOTAL LIABILITIES
  
264,257
    
            296,866
             
 
TOTAL STOCKHOLDERS' EQUITY
  
1,635,279
    
         1,756,305
             
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
1,899,536
  
$
         2,053,171

The Company completed its acquisition of ATC on September 25, 2007 for approximately $231.3 million cash plus related transaction costs. Based on the preliminary allocation of the purchase price to the assets acquired and liabilities assumed, the Company recorded approximately $77.5 million of goodwill, $97.4 million of identifiable intangible assets, $38.4 million of fixed assets and $46.4 million of working capital.
 
Contact:
AVX Corporation, Myrtle Beach
Kurt Cummings,
843-946-0691
finance@avxus.com