Exhibit 99
Vishay Reports Results for Fourth Quarter and Year 2008
MALVERN, Pa.--(BUSINESS WIRE)--February 10, 2009--Vishay Intertechnology, Inc.:
- Revenues for fourth quarter 2008 were $575 million.
- Loss from continuing operations of $3.47 per diluted share for the fourth quarter 2008 was substantially attributable to the after tax impact of a noncash goodwill impairment charge and certain other items (enumerated below) totaling $3.40 per share, for adjusted loss from continuing operations per share of $0.07.
- Cash generated from operations was $76 million and capital expenditures were $53 million in the fourth quarter 2008.
- Fixed cost reduction by $150 million announced for year 2009 compared to year 2008.
- Capital expenditures of less than $70 million expected for year 2009.
Dr. Felix Zandman, Executive Chairman of the Board, and Dr. Gerald Paul, President and Chief Executive Officer of Vishay Intertechnology, Inc. (NYSE:VSH), announced today that net revenues for the year ended December 31, 2008 were $2.822 billion, compared to net revenues of $2.833 billion for the year ended December 31, 2007.
Vishay reported a loss from continuing operations for the year ended December 31, 2008 of $1,683.6 million, or $9.03 per share. The loss includes noncash goodwill and indefinite-lived intangible asset impairment charges, totaling $1,723.2 million ($1,668.0 million, net of tax). The results for the year ended December 31, 2008 also include pretax charges for restructuring and severance costs of $62.5 million, related asset write-downs of $5.1 million, losses on adverse purchase commitments of $6.0 million, a loss on early extinguishment of debt of $13.6 million, and $4.0 million of costs associated with Vishay’s terminated tender offer for all outstanding shares of International Rectifier, partially offset by a gain on sale of land and buildings of $4.5 million. On an after tax basis, these items, plus additional tax expense for one-time tax items totaling $36.9 million, had a negative $9.56 per share effect on income (loss) from continuing operations.
Income from continuing operations for the year ended December 31, 2007 was $140.4 million, or $0.74 per diluted share. Income from continuing operations for the year ended December 31, 2007 was impacted by pretax charges for restructuring and severance costs of $14.7 million, related asset write-downs of $3.9 million, and a contract termination charge of $18.9 million, net of a gain on sale of a building of $3.1 million. These items and their tax-related consequences, plus additional tax expense for one-time tax items totaling $8.3 million, had a negative $0.21 per share effect on income from continuing operations.
While the goodwill and indefinite-lived intangible asset impairment charges reduce reported results under U.S. generally accepted accounting principles (“GAAP”), the charges are noncash in nature and do not affect Vishay's liquidity, cash flows from operating activities, or debt covenants, and will not have any impact on future operations.
Goodwill represents the excess of the cost of a business acquired over the fair value of the net assets at the date of acquisition. Indefinite-lived intangible assets for Vishay represent certain acquired tradenames. Under U.S. GAAP, goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for impairment at least annually. These tests for impairment are performed more frequently if there are triggering events. In light of a sustained decline in market capitalization for Vishay and its peer group companies, and other factors, Vishay determined that impairment tests were necessary as of the end of the second, third, and fourth fiscal quarters.
Net revenues for the fiscal quarter ended December 31, 2008 were $575.4 million, compared to $729.6 million for the fiscal quarter ended December 31, 2007. The loss from continuing operations for the fiscal quarter ended December 31, 2008 was $646.6 million or $3.47 per share, compared to income from continuing operations of $11.2 million or $0.06 per diluted share for the fiscal quarter ended December 31, 2007.
The loss from continuing operations for fiscal quarter ended December 31, 2008 was impacted by pretax charges for goodwill impairment of $565.3 million, restructuring and severance costs of $28.6 million, related asset write-downs of $0.9 million, and losses on adverse purchase commitments of $6.0 million, partially offset by a gain on sale of land and buildings of $4.5 million. On an after tax basis, these items, plus additional tax expense for one-time tax items totaling $27.0 million, had a negative $3.40 per share effect on the loss from continuing operations.
Income from continuing operations for the fiscal quarter ended December 31, 2007 was impacted by pretax charges for restructuring and severance costs of $1.5 million, related asset write-downs of $1.2 million, and a contract termination charge of $18.9 million, partially offset by a gain on the sale of a building of $3.1 million. These items and their tax-related consequences, plus additional tax expense for one-time tax items totaling $5.9 million, had a negative $0.13 per share effect on income from continuing operations.
On April 7, 2008, Vishay sold the automotive modules and subsystems business unit (“ASBU”) acquired on April 1, 2007 as part of the acquisition of the PCS business of International Rectifier. The operations of ASBU have been classified as discontinued operations for the entire period of ownership. Vishay resolved certain outstanding disputes with the buyer and recorded adjustments to the loss on discontinued operations during the fourth quarter of 2008. Including the loss from discontinued operations, the net loss for the fiscal quarter and year ended December 31, 2008 was $652.3 and $1,731.4 million, respectively, compared to net earnings of $4.9 million and $130.8 million for the fiscal quarter and year ended December 31, 2007, respectively.
Commenting on the results for the fourth quarter 2008, Dr. Paul stated, “During the last quarter of 2008, we—like the rest of our industry—experienced an unprecedented drop of shipments and order intake. Management for cash became our focus. We successfully adapted our manufacturing capacities to the currently sellable volume by layoffs, plant shut-downs and reduced usage of foundries and subcontractors. Inventories decreased slightly during the quarter.”
Dr. Paul continued, “In light of the uncertain macro economic conditions, we are implementing a program to reduce manufacturing and SG&A fixed costs in the current year by $150 million compared to the year 2008. About 65% of the measures can be classified as permanent and 35% as temporary. We expect the 2009 cash outlay for restructuring and severance programs to be approximately $50 million, covering all contemplated 2009 initiatives and unpaid balances from 2008 programs. Capital expenditures in 2009 are anticipated to be less than $70 million as compared to $152 million in 2008. We intend to reduce our inventories by $50 to $100 million in 2009.”
Dr. Paul concluded, “If warranted, we are prepared to implement additional measures to adapt the Company to the sales level that we can realize under the current economic conditions. We believe that we will achieve positive free cash flow for the year 2009. We are very confident that Vishay will emerge from the general economic crisis as a perhaps different but definitely stronger company.”
Commenting on the outlook for the first quarter 2009 Dr. Paul stated, “We expect sales for the first quarter 2009 to be weaker at lower margins than in the fourth quarter 2008. The current uncertainties do not permit a more quantitative guidance.”
Commenting on the Company's acquisition and R&D activities, Dr. Felix Zandman, Executive Chairman of the Board and Chief Technical and Business Development Officer, stated, "In the current uncertain economic conditions we will not actively pursue acquisitions, unless a very special opportunity should arise. Our focus now is on generating and conserving cash.”
Dr. Zandman concluded, “Our regular R&D programs are continuing and we will continue to roll out the new products the market demands. Some R&D activities with very long term goals have been put on hold for the time being to reduce costs. At the same time, I remain optimistic about the future of electronics and of our business specifically.”
A conference call to discuss fourth quarter and year ending financial results is scheduled for Tuesday, February 10, 2009 at 10:00 AM ET. The dial-in number for the conference call is 877-589-6174 (+1 706-643-1406 if calling from outside the United States or Canada) and the conference ID is #80337804.
There will be a replay of the conference call from 12:30 PM (ET) on Tuesday, February 10, 2009 through 11:59 PM (ET) on Sunday, February 15, 2009. The telephone number for the replay is 800-642-1687 (+1 706-645-9291 if calling from outside the United States or Canada) and the access code is #80337804.
There will also be a live audio webcast of the conference call. This can be accessed directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.
Vishay Intertechnology, Inc., a Fortune 1,000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, rectifiers, transistors, and optoelectronics and selected ICs) and passive electronic components (resistors, capacitors, inductors, sensors, and transducers). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, and medical markets. Its product innovations, successful acquisition strategy, and ability to provide "one-stop shop" service have made Vishay a global industry leader. Vishay can be found on the Internet at http://www.vishay.com.
Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues, margins, cash generation, and capital expenditures, and the general state of the Company, are forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from those anticipated. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions, particularly the current downturn in the worldwide economy; difficulties in implementing our cost reduction strategies; changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in integrating acquired companies, and otherwise realizing the anticipated benefits of their operations; our ability to attract and retain highly qualified personnel; and other factors affecting our operations that are set forth in our Annual Report on Form 10-K for the year ended December 31, 2007 filed with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Management believes that stating the impact on net earnings of items such as goodwill impairment, impairment of indefinite-lived intangible assets, restructuring and severance, asset write-downs, special tax items and other items not reflecting on-going operating activities is meaningful to investors because it provides insight with respect to intrinsic operating results of the Company and, management believes, is a common measure of performance in the industries in which the Company competes. Investors should be aware, however, that this is a non-GAAP measure of performance and should not be considered as a substitute for the comparable GAAP measure.
| |
| VISHAY INTERTECHNOLOGY, INC. |
| Summary of Operations |
| (Unaudited - In thousands except earnings per share) |
| | | | |
| | Fiscal quarter ended |
| | December 31, |
| | | 2008 | | | | 2007 | |
| | | | |
| Net revenues | | $ | 575,442 | | | $ | 729,597 | |
| Costs of products sold | | | 484,134 | | | | 562,635 | |
| Loss on purchase commitments | | | 6,024 | | | | - | |
| Gross profit | | | 85,284 | | | | 166,962 | |
| Gross margin | | | 14.8 | % | | | 22.9 | % |
| | | | |
| Selling, general, and administrative expenses (a) | | | 97,951 | | | | 109,709 | |
| Restructuring and severance costs | | | 28,577 | | | | 1,495 | |
| Asset write-downs | | | 878 | | | | 1,204 | |
| Impairment of goodwill and indefinite-lived intangibles | | | 565,257 | | | | - | |
| Contract termination charge | | | - | | | | 18,893 | |
| Operating income (loss) | | | (607,379 | ) | | | 35,661 | |
| Operating margin | | | -105.5 | % | | | 4.9 | % |
| | | | |
| Other income (expense): | | | | |
| Interest expense | | | (6,729 | ) | | | (6,613 | ) |
| Minority interest | | | 173 | | | | (197 | ) |
| Other | | | 3,548 | | | | 3,756 | |
| Total other income (expense) - net | | | (3,008 | ) | | | (3,054 | ) |
| | | | |
| Income (loss) from continuing operations, before taxes | | | (610,387 | ) | | | 32,607 | |
| | | | |
| Income tax expense (benefit) (b) | | | 36,215 | | | | 21,364 | |
| | | | |
| Income (loss) from continuing operations | | | (646,602 | ) | | | 11,243 | |
| | | | |
| Loss from discontinued operations, net of tax | | | (5,690 | ) | | | (6,365 | ) |
| | | | |
| Net earnings (loss) | | $ | (652,292 | ) | | $ | 4,878 | |
| | | | |
| Basic earnings (loss) per share:* | | | | |
| Continuing operations | | $ | (3.47 | ) | | $ | 0.06 | |
| Discontinued operations | | $ | (0.03 | ) | | $ | (0.03 | ) |
| Net earnings | | $ | (3.50 | ) | | $ | 0.03 | |
| | | | |
| Diluted earnings (loss) per share:* | | | | |
| Continuing operations | | $ | (3.47 | ) | | $ | 0.06 | |
| Discontinued operations | | $ | (0.03 | ) | | $ | (0.03 | ) |
| Net earnings | | $ | (3.50 | ) | | $ | 0.03 | |
| | | | |
| Weighted average shares outstanding - basic | | | 186,544 | | | | 186,342 | |
| | | | |
| Weighted average shares outstanding - diluted | | | 186,544 | | | | 186,524 | |
| |
| * May not add due to rounding. |
| |
(a) Selling, general, and administrative (SG&A) expenses for the quarters ended December 31, 2008 and 2007 are net of gains on sales of buildings of $4,510 and $3,118, respectively. |
| |
(b) Income taxes for the quarters ended December 31, 2008 and 2007 include one-time tax items totaling approximately $27,000 and $5,900, respectively. |
| |
| VISHAY INTERTECHNOLOGY, INC. |
| Summary of Operations |
| (Unaudited - In thousands except earnings per share) |
| | | | |
| | Year ended |
| | December 31, |
| | | 2008 | | | | 2007 | |
| | | | |
| Net revenues | | $ | 2,822,211 | | | $ | 2,833,266 | |
| Costs of products sold | | | 2,219,220 | | | | 2,138,438 | |
| Loss on purchase commitments | | | 6,024 | | | | - | |
| Gross profit | | | 596,967 | | | | 694,828 | |
| Gross margin | | | 21.2 | % | | | 24.5 | % |
| | | | |
| Selling, general, and administrative expenses (c) | | | 450,879 | | | | 439,017 | |
| Restructuring and severance costs | | | 62,537 | | | | 14,681 | |
| Asset write-downs | | | 5,073 | | | | 3,869 | |
| Impairment of goodwill and indefinite-lived intangibles | | | 1,723,174 | | | | - | |
| Terminated tender offer expenses | | | 4,000 | | | | - | |
| Contract termination charge | | | - | | | | 18,893 | |
| Operating income (loss) | | | (1,648,696 | ) | | | 218,368 | |
| Operating margin | | | -58.4 | % | | | 7.7 | % |
| | | | |
| Other income (expense): | | | | |
| Interest expense | | | (24,264 | ) | | | (28,652 | ) |
| Loss on early extinguishment of debt | | | (13,601 | ) | | | - | |
| Minority interest | | | (718 | ) | | | (1,180 | ) |
| Other | | | 14,876 | | | | 15,948 | |
| Total other income (expense) - net | | | (23,707 | ) | | | (13,884 | ) |
| | | | |
| Income (loss) from continuing operations, before taxes | | | (1,672,403 | ) | | | 204,484 | |
| | | | |
| Income tax expense (benefit) (d) | | | 11,187 | | | | 64,133 | |
| | | | |
| Income (loss) from continuing operations | | | (1,683,590 | ) | | | 140,351 | |
| | | | |
| Loss from discontinued operations, net of tax | | | (47,826 | ) | | | (9,587 | ) |
| | | | |
| Net earnings (loss) | | $ | (1,731,416 | ) | | $ | 130,764 | |
| | | | |
| Basic earnings (loss) per share:* | | | | |
| Continuing operations | | $ | (9.03 | ) | | $ | 0.76 | |
| Discontinued operations | | $ | (0.26 | ) | | $ | (0.05 | ) |
| Net earnings | | $ | (9.29 | ) | | $ | 0.70 | |
| | | | |
| Diluted earnings (loss) per share:* | | | | |
| Continuing operations | | $ | (9.03 | ) | | $ | 0.74 | |
| Discontinued operations | | $ | (0.26 | ) | | $ | (0.05 | ) |
| Net earnings | | $ | (9.29 | ) | | $ | 0.69 | |
| | | | |
| Weighted average shares outstanding - basic | | | 186,403 | | | | 185,646 | |
| | | | |
| Weighted average shares outstanding - diluted | | | 186,403 | | | | 198,226 | |
| |
| * May not add due to rounding. |
| |
(c) Selling, general, and administrative (SG&A) expenses for the years ended December 31, 2008 and 2007 are net of gains on sales of buildings of $4,510 and $3,118, respectively. |
| |
(d) Income taxes for the years ended December 31, 2008 and 2007 include one-time tax items totaling approximately $36,900 and $8,300, respectively. |
| |
| VISHAY INTERTECHNOLOGY, INC. |
| Consolidated Condensed Balance Sheets |
| (In thousands) |
| | | | |
| | | | |
| | December 31, | | December 31, |
| | | 2008 | | | | 2007 | |
| Assets | | (Unaudited) | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 324,164 | | | $ | 537,295 | |
| Accounts receivable - net | | | 311,197 | | | | 441,772 | |
| Inventories: | | | | |
| Finished goods | | | 173,280 | | | | 159,713 | |
| Work in process | | | 211,320 | | | | 224,667 | |
| Raw materials | | | 153,419 | | | | 170,329 | |
| Deferred income taxes | | | 15,251 | | | | 26,426 | |
| Prepaid expenses and other current assets | | | 139,903 | | | | 182,599 | |
| Total current assets | | | 1,328,534 | | | | 1,742,801 | |
| | | | |
| Property and equipment, at cost: | | | | |
| Land | | | 98,827 | | | | 101,938 | |
| Buildings and improvements | | | 508,579 | | | | 485,342 | |
| Machinery and equipment | | | 2,091,124 | | | | 2,001,390 | |
| Construction in progress | | | 80,857 | | | | 101,659 | |
| Allowance for depreciation | | | (1,617,225 | ) | | | (1,469,331 | ) |
| Net property and equipment | | | 1,162,162 | | | | 1,220,998 | |
| | | | |
| Goodwill | | | - | | | | 1,676,497 | |
| | | | |
| Other intangible assets, net | | | 177,782 | | | | 192,591 | |
| | | | |
| Other assets | | | 147,482 | | | | 162,348 | |
| Total assets | | $ | 2,815,960 | | | $ | 4,995,235 | |
| |
| VISHAY INTERTECHNOLOGY, INC. |
| Consolidated Condensed Balance Sheets (continued) |
| (In thousands) |
| | | | |
| | | | |
| | December 31, | | December 31, |
| | | 2008 | | | | 2007 |
| | (Unaudited) | | |
| Liabilities and stockholders' equity | | | | |
| Current liabilities: | | | | |
| Notes payable to banks | | $ | 11,293 | | | $ | 30 |
| Trade accounts payable | | | 104,608 | | | | 173,039 |
| Payroll and related expenses | | | 117,797 | | | | 140,879 |
| Other accrued expenses | | | 190,486 | | | | 246,981 |
| Income taxes | | | 24,901 | | | | 34,653 |
| Current portion of long-term debt | | | 13,044 | | | | 1,346 |
| Total current liabilities | | | 462,129 | | | | 596,928 |
| | | | |
| Long-term debt less current portion | | | 333,631 | | | | 607,237 |
| Deferred income taxes | | | 18,842 | | | | 24,216 |
| Deferred grant income | | | 3,143 | | | | 1,044 |
| Other liabilities | | | 123,207 | | | | 122,958 |
| Accrued pension and other postretirement costs | | | 325,112 | | | | 280,713 |
| | | | |
| Minority interest | | | 5,038 | | | | 5,364 |
| | | | |
| Stockholders' equity: | | | | |
| Common stock | | | 17,220 | | | | 17,199 |
| Class B common stock | | | 1,435 | | | | 1,435 |
| Capital in excess of par value | | | 2,256,075 | | | | 2,252,296 |
| (Accumulated deficit) retained earnings | | | (805,841 | ) | | | 925,575 |
| Accumulated other comprehensive income | | | 75,969 | | | | 160,270 |
| Total stockholders' equity | | | 1,544,858 | | | | 3,356,775 |
| Total liabilities and stockholders' equity | | $ | 2,815,960 | | | $ | 4,995,235 |
| |
| VISHAY INTERTECHNOLOGY, INC. |
| Reconciliation of Earnings Per Share |
| (Unaudited - In thousands except earnings per share) |
| | | | | | | | |
| | Fiscal quarter ended | | Year ended |
| | December 31, | | December 31, |
| | | 2008 | | | | 2007 | | | | 2008 | | | | 2007 | |
| Numerator: | | | | | | | | |
| | | | | | | | |
| Numerator for basic earnings per share: | | | | | | | | |
| Income (loss) from continuing operations | | $ | (646,602 | ) | | $ | 11,243 | | | $ | (1,683,590 | ) | | $ | 140,351 | |
| Loss from discontinued operations | | | (5,690 | ) | | | (6,365 | ) | | | (47,826 | ) | | | (9,587 | ) |
| Net earnings (loss) | | $ | (652,292 | ) | | $ | 4,878 | | | $ | (1,731,416 | ) | | $ | 130,764 | |
| | | | | | | | |
Adjustment to the numerator for continuing operations and net earnings: | | | | | | | | |
Interest savings assuming conversion of dilutive convertible and exchangeable notes, net of tax (e) | | | - | | | | - | | | | - | | | | 6,724 | |
| | | | | | | | |
| Numerator for diluted earnings per share: | | | | | | | | |
| Income (loss) from continuing operations | | $ | (646,602 | ) | | $ | 11,243 | | | $ | (1,683,590 | ) | | $ | 147,075 | |
| Loss from discontinued operations | | | (5,690 | ) | | | (6,365 | ) | | | (47,826 | ) | | | (9,587 | ) |
| Net earnings (loss) | | $ | (652,292 | ) | | $ | 4,878 | | | $ | (1,731,416 | ) | | $ | 137,488 | |
| | | | | | | | |
| Denominator: | | | | | | | | |
Denominator for basic earnings per share: | | | | | | | | |
| weighted average shares | | | 186,544 | | | | 186,342 | | | | 186,403 | | | | 185,646 | |
| | | | | | | | |
| Effect of dilutive securities | | | | | | | | |
| Convertible and exchangeable notes (e) | | | - | | | | - | | | | - | | | | 12,051 | |
| Employee stock options | | | - | | | | 76 | | | | - | | | | 423 | |
| Other | | | - | | | | 106 | | | | - | | | | 106 | |
| Dilutive potential common shares | | | - | | | | 182 | | | | - | | | | 12,580 | |
| | | | | | | | |
| Denominator for diluted earnings per share: | | | | | | | | |
| adjusted weighted average shares | | | 186,544 | | | | 186,524 | | | | 186,403 | | | | 198,226 | |
| | | | | | | | |
| Basic earnings (loss) per share:* | | | | | | | | |
| Continuing operations | | $ | (3.47 | ) | | $ | 0.06 | | | $ | (9.03 | ) | | $ | 0.76 | |
| Discontinued operations | | $ | (0.03 | ) | | $ | (0.03 | ) | | $ | (0.26 | ) | | $ | (0.05 | ) |
| Net earnings | | $ | (3.50 | ) | | $ | 0.03 | | | $ | (9.29 | ) | | $ | 0.70 | |
| | | | | | | | |
| Diluted earnings (loss) per share:* | | | | | | | | |
| Continuing operations | | $ | (3.47 | ) | | $ | 0.06 | | | $ | (9.03 | ) | | $ | 0.74 | |
| Discontinued operations | | $ | (0.03 | ) | | $ | (0.03 | ) | | $ | (0.26 | ) | | $ | (0.05 | ) |
| Net earnings | | $ | (3.50 | ) | | $ | 0.03 | | | $ | (9.29 | ) | | $ | 0.69 | |
| | | | | | | | |
| * May not add due to rounding. | | | | | | | | |
Diluted earnings per share for the periods presented do not reflect the following weighted-average potential common shares, as the effect would be antidilutive:
|
| | Fiscal quarter ended | | Year ended |
| | December 31, | | December 31, |
| | 2008 | | 2007 | | 2008 | | 2007 |
| Convertible and exchangeable notes: | | | | | | | | |
| Convertible Subordinated Notes, due 2023 (e) | | 87 | | 23,496 | | 13,906 | | 17,622 |
| Exchangeable Unsecured Notes, due 2102 | | 6,176 | | 6,176 | | 6,176 | | - |
| Weighted average employee stock options | | 4,217 | | 4,516 | | 4,357 | | 3,849 |
| Weighted average warrants | | 8,824 | | 8,824 | | 8,824 | | 8,824 |
| Weighted average other | | 381 | | - | | 346 | | - |
|
|
(e) In June 2007, the Company’s Board of Directors adopted a resolution pursuant to which the Company intends to waive its rights to settle the principal amount of the notes in shares of Vishay common stock. In accordance with the resolution of its Board, in the future if notes are tendered for repurchase, Vishay will pay the repurchase price in cash, and if notes are submitted for conversion, Vishay will value the shares issuable upon conversion and will pay in cash an amount equal to the principal amount of the converted notes and will issue shares in respect of the conversion value in excess of the principal amount. Accordingly, for the second quarter of 2007 and future periods, the Company calculates the number of shares issuable under the terms of the notes based on the average market price of Vishay common stock during the period, and includes that number in the total diluted shares figure for the period. If the average market price is less than $21.28, no shares will be included in the diluted earnings per share computation, as the effect would be antidilutive.
For periods prior to the second quarter of 2007, the notes were considered conventional convertible debt, and included in the earnings per share computation assuming they were converted into 23,496 shares of common stock if the effect of their inclusion was dilutive.
The convertible subordinated notes were substantially all repurchased on August 1, 2008.
CONTACT:
Vishay Intertechnology, Inc.
Dr. Lior E. Yahalomi
Executive Vice President and Chief Financial Officer
or
Peter G. Henrici
Senior Vice President Corporate Communications
+1 610-644-1300
