EXHIBIT 99.1
Contact: Neil Lefort
Vice President, Investor Relations
(630) 527-4344
MOLEX DELAYS FILING OF QUARTERLY REPORT
Appoints Acting Chief Financial Officer
Lisle, IL, USA - November 11, 2004 -- Molex Incorporated
(NASDAQ: MOLX and MOLXA), a global electronic components
company, announced today that it filed a notification of late
filing with the Securities and Exchange Commission yesterday
afternoon that provides the company with an extension of the
filing deadline for the Quarterly Report on Form 10-Q for the
fiscal quarter ended September 30, 2004 until Monday, November
15, 2004. Molex also announced that its Board of Directors has
appointed Robert Mahoney, a current Executive Vice President and
former Chief Financial Officer of Molex, as the Acting Chief
Financial Officer of Molex in response to the circumstances
described below.
During the fiscal quarter ended September 30, 2004, Molex's
management identified the omission of certain intercompany
inventory in its calculation of profit-in-inventory elimination
for prior periods. Molex's management determined that Molex's
financial statements for the three months ended September 30,
2004 would include a charge of $8.0 million ($5.8 million after-
tax or $0.03 per share) related to the omission in prior fiscal
periods, of which approximately $3.0 million ($2.2 million after-
tax) was related to fiscal 2004. This charge was reflected in
the financial results included in Molex's October 20, 2004
earnings release. Molex concluded that the amounts related to
fiscal 2004 and prior years are not material, both individually
and in the aggregate, to the trends of the financial statements
for those periods affected, and to a fair presentation of Molex's
results of operations and financial statements. Molex's audit
committee concurs with management's recommendations as to the
accounting treatment for such omission. Molex's management is
not aware of any information which would result in additional
adjustments for the prior fiscal periods or financial results
contained in the October 20, 2004 earnings release.
Deloitte & Touche LLP, Molex's independent auditors,
expressed to Molex's audit committee that the omission described
above should have been disclosed in the August 20, 2004
representation letter of Molex's Chief Executive Officer and
Chief Financial Officer delivered to Deloitte & Touche in
connection with the audit of Molex's financial statements as of
and for the year ended June 30, 2004. The signatories did not
believe that the matter was required to be addressed in that
letter.
Molex's audit committee, with the assistance of independent
legal and accounting advisors, conducted an inquiry into these
circumstances. No additional adjustments have been identified as
a result of this inquiry. The audit committee presented the
findings of the inquiry to Deloitte & Touche, and Deloitte &
Touche has requested additional information relating to this
matter, and the Audit Committee is responding to that request.
The Molex Board of Directors on November 10 named Robert
Mahoney, a current Executive Vice President and former Chief
Financial Officer of Molex, as the Acting Chief Financial
Officer, and reassigned the prior Chief Financial Officer to the
position of Vice President and Treasurer. The Board's action was
in response to Deloitte & Touche having advised Molex that,
because of its view that this matter should have been disclosed
in the August 20, 2004 representation letter, Deloitte & Touche
would require representations and certifications from a new
principal accounting and financial officer in connection with
Molex's future filings with the Securities and Exchange
Commission containing financial statements, including the Form 10-
Q for the fiscal quarter ended September 30, 2004. Deloitte &
Touche advised Molex that it is considering whether it would
require representations and certifications from a new principal
executive officer in connection with Molex's future SEC filings,
and Molex is reviewing potential alternatives pending receipt of
Deloitte & Touche's definitive position.
Deloitte & Touche further advised Molex that, in light of
its requests for additional information related to these matters,
Deloitte & Touche is currently unable to complete its review
under Statement of Auditing Standards No. 100 "Interim Financial
Information" of the Company's unaudited financial statements for
the fiscal quarter ended September 30, 2004. The Company intends
to file the Form 10-Q for the fiscal quarter ended September 30,
2004 when such review has been completed.
Statements in this release that are not historical are
forward-looking and are subject to various risks and
uncertainties that could cause actual results to vary materially
from those stated. Certain of these risks and uncertainties are
set forth in Molex's 10-K and other documents filed with the
Securities and Exchange Commission and include economic
conditions in various regions, product and price competition and
foreign currency exchange rate changes. Molex does not
undertake to revise these forward-looking statements or
to provide any updates regarding information contained in
this release resulting from new information, future events or
otherwise.
The Company's Annual Report, as well as news releases and
other supplementary financial data is available by
accessing the Company's website at www.molex.com.
Molex Incorporated is a 66-year-old manufacturer of
electronic components, including electrical and fiber optic
interconnection products and systems, switches and integrated
products in 55 plants in 19 countries throughout the world.
Editor's note: Molex is traded on the NASDAQ National
Market System in the United States and on the London Stock
Exchange. The companies voting stock (MOLX) is included in the
S&P 500 Index and the NASDAQ 100.