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
