Exhibit 99.1
AVX Corporation Announces Third Quarter Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- January 24, 2007 --
AVX Corporation (NYSE: AVX) reported that net sales increased over the previous quarter and over the same quarter last year. The net sales improved to $378.1 million in the third fiscal quarter ended December 31, 2006 from $349.1 million in the same quarter last year. This was an increase of $29.0 million, or 8.3%, from the previous year and also represents an increase over the September quarter. During the first nine months ended December 31, 2006, net sales increased to $1.1 billion, up $124.3 million, or 12.5%, compared to the first nine months of last year.
Chief Executive Officer and President, John Gilbertson, stated, “The sales level for our third quarter continues the positive trend seen throughout this fiscal year and reflects the continuing strong end market demand experienced by our customers.”
Net income for the quarter improved $11.4 million to $35.8 million, or $0.21 per share, compared to net income of $24.4 million, or $0.14 per share for the same quarter last year. Net income for the first nine months improved $59.2 million to $110.8 million, or $0.64 per share, compared to net income of $51.7 million, or $0.30 per share, during the first nine months of the prior year.
The improved operating profit this year resulted from higher sales, reduced operating costs and enhanced production capabilities in lower cost regions, as well as a favorable mix of value added component and connector sales.
The Quarter’s highlights:
| ▬ | Revenue up 8.3% compared to the same quarter last year. |
| ▬ | Gross profit margin of 19.2%, a 2.5% improvement compared to the same quarter last year. |
| ▬ | Diluted earnings per share of $0.21 up $0.07 from last year. |
| ▬ | Dividends paid of $0.0375 per share. |
Cash, including short and long-term investments in securities, increased $56.1 million during the December quarter and totaled $941.7 million at December 31, 2006. During the quarter, $6.5 million of dividends to stockholders were paid, and $3.4 million was used to purchase AVX shares on the market, now held as treasury stock.
John Gilbertson went on to state, "The favorable market conditions throughout this fiscal year have led to increased capacity utilization contributing to a more stable pricing environment. In addition, our efforts to provide unique solutions for our customers through the development of innovative advanced products, and our continuing efforts to reduce our cost structure have resulted in improved operating results. Our financial position remains exceptionally strong and we continue to be optimistic about the next calendar year for electronic components."
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 |
| | | 2005 | | 2006 | | | 2005 | | 2006 |
| Net sales | $ | 349,068 | $ | 378,088 | | $ | 994,813 | | 1,119,144 |
| Cost of sales | | 290,646 | | 305,493 | | | 853,482 | | 893,331 |
| Gross profit | | 58,422 | | 72,595 | | | 141,331 | | 225,813 |
| Selling, general & admin. expense | | 27,972 | | 29,513 | | | 81,616 | | 87,302 |
| Profit from operations | | 30,450 | | 43,082 | | | 59,715 | | 138,511 |
| Other income | | 5,873 | | 9,996 | | | 16,804 | | 25,705 |
| Income before income taxes | | 36,323 | | 53,078 | | | 76,519 | | 164,216 |
| Provision for taxes | | 11,909 | | 17,251 | | | 24,850 | | 53,371 |
| Net income | $ | 24,414 | $ | 35,827 | | $ | 51,669 | $ | 110,845 |
| | | | | | | | | | |
| Basic income per share | $ | 0.14 | $ | 0.21 | | $ | 0.30 | $ | 0.64 |
| Diluted income per share | $ | 0.14 | $ | 0.21 | | $ | 0.30 | $ | 0.64 |
| | | | | | | | | | |
| Weighted average common | | | | | | | | | |
| shares outstanding: | | | | | | | | | |
| Basic | | 172,654 | | 172,041 | | | 172,621 | | 172,138 |
| Diluted | | 173,194 | | 172,926 | | | 173,055 | | 172,897 |
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | | March 31, | | | December 31, |
| | | | 2006 | | | 2006 |
| Assets | | | | | |
| Cash and cash equivalents | $ | 505,326 | | $ | 677,729 |
| Short-term investments in securities | | 158,995 | | | 115,000 |
| Accounts receivable, net | | 177,448 | | | 188,281 |
| Inventories | | 307,653 | | | 326,903 |
| Other current assets | | 54,350 | | | 60,253 |
| | Total current assets | | 1,203,772 | | | 1,368,166 |
| Long-term investments in securities | | 135,004 | | | 149,000 |
| Property, plant and equipment, net | | 232,950 | | | 244,234 |
| Other assets | | 103,482 | | | 100,688 |
| | | | | | | |
| | TOTAL ASSETS | $ | 1,675,208 | | $ | 1,862,088 |
| | | | | | | |
| Liabilities and Stockholders' Equity | | | | | |
| Accounts payable | $ | 105,011 | | $ | 118,639 |
| Income taxes payable and accrued expenses | | 66,019 | | | 86,889 |
| | Total current liabilities | | 171,030 | | | 205,528 |
| Other liabilities | | 56,069 | | | 53,875 |
| | | | | | | |
| | TOTAL LIABILITIES | | 227,099 | | | 259,403 |
| | | | | | | |
| | TOTAL STOCKHOLDERS' EQUITY | | 1,448,109 | | | 1,602,685 |
| | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,675,208 | | $ | 1,862,088 |
Certain statements contained above may be "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Risk factors relating to such statements are described in the documents AVX Corporation files with the Securities and Exchange Commission, including, but not limited to its Form 10-Ks, Form 10-Qs and Form 8-Ks. Actual events, results, and/or timing may differ from the events, results, and/or timing as projected, estimated, or described above.
Contact:
AVX Corporation, Myrtle Beach
Kurt Cummings,
843/946-0691
finance@avxus.com
