Exhibit 99.1
FOR IMMEDIATE RELEASE CONTACT: PAM JAMESON
(631) 847-3169
GENERAL SEMICONDUCTOR REPORTS RECORD FIRST QUARTER SALES
NET INCOME INCREASES 124% FROM YEAR EARLIER PERIOD
MELVILLE, NY (APRIL 20, 2000)-GENERAL SEMICONDUCTOR, INC. (NYSE:SEM), a
leading manufacturer of discrete semiconductors, today reported record
sales for the quarter ended March 31, 2000 of $115.0 million, an increase
of 18.6% from the $97.0 million for the first quarter of 1999.
Operating income in the quarter was $18.9 million compared with $10.8
million in the comparable quarter of 1999, an improvement of 75.5%. Diluted
earnings per share were $0.23 based on 49.6 million shares, compared with
$0.12 and 36.8 million shares in the year earlier period, a per share
improvement of 91.7%. The change in diluted shares reflects the issuance in
December 1999 of $172.5 million 5 3/4% notes, convertible at $ 15.55 per
share.
On a sequential basis, sales in the first quarter increased 1.9% from the
$112.8 reported for the fourth quarter of 1999. Operating income for the
quarter was $18.9 million compared with $18.4 million in the December
quarter, an increase of 2.7%.
Orders were very strong from all regions, lead times lengthened, capacity
utilization remained at 85% and average selling prices declined only 2.1%
sequentially versus the 9.8% decline reported on a year-over-year basis.
The Company's MOSFET product line was expanded and new design wins were
reported in the computer market during the period. Since the initial launch
of MOSFETs in December 1999, General Semiconductor has received orders for
the product from a motherboard manufacturer, a laptop manufacturer and a
distributor.
"We are very encouraged by performance in the first quarter, traditionally
our most challenging period. Based on unit volume gains, backlog, and
continued strong order intake, we now expect sales in the year 2000 could
be approximately 20% higher than the $417.1 million reported in 1999 with
unit volume gains in the range of 20-25%," stated Ronald A. Ostertag,
Chairman and Chief Executive Officer. "Indications are that trade
inventories are well controlled and, as compared with earlier semiconductor
cycles, business is well balanced with demand spread across end-markets and
geographic regions. I am very encouraged by our progress in the development
of low power MOSFETs. Over 60 customer qualifications on eight new products
are currently in progress. We expect to introduce 12 additional new MOSFET
products targeted at cellular and automotive applications during the second
quarter of this year."
General Semiconductor, Inc. is a market leader in the design, manufacture
and distribution of discrete semiconductor components. The Company provides
customers with a broad array of power management products including
rectifiers, transient voltage suppressors, small signal transistors, diodes
and MOSFETs. Its global customer base includes original equipment
manufacturers, electronic distributors and contract equipment
manufacturers. Key markets for its products include automotive, computers,
consumer and telecommunications equipment.
The information set forth above includes "forward-looking" information and,
accordingly, the cautionary statements contained in Exhibit 99 to the
Company's Form 10-K and Form 10-Q filings with the Securities and Exchange
Commission are incorporated herein by reference. General Semiconductor's
actual results could differ materially from the "forward- looking"
information in this press release.
VISIT GENERAL SEMICONDUCTOR ON THE WEB AT www.gensemi.com
GENERAL SEMICONDUCTOR, INC.
CONSOLIDATED INCOME STATEMENTS
(UNAUDITED - IN THOUSANDS. EXCEPT PER SHARE INFORMATION)
THREE MONTHS ENDED
MARCH 31,
-----------------------
2000 1999
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NET SALES $114,970 $96,961
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OPERATING COSTS AND EXPENSES:
Cost of sales 80,437 72,477
Selling, general and administrative 12,664 10,963
Research and development 1,674 1,460
Amortization of excess of cost over fair value
of net assets acquired 1,285 1,286
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Total operating costs and expenses 96,060 86,186
--------- ----------
OPERATING INCOME 18,910 10,775
Other income (expense)-net 15 (58)
Interest expense-net (5,305) (5,048)
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INCOME BEFORE INCOME TAXES 13,620 5,669
Provision for income taxes (4,086) (1,417)
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NET INCOME $9,534 $4,252
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WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 37,331 36,820
Diluted 49,612 36,844
EARNINGS PER SHARE:
Basic $0.26 $0.12
Diluted $0.23 $0.12
GENERAL SEMICONDUCTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(unaudited)
March 31, December 31,
2000 1999
------------ ------------
Cash $ 5,417 $ 2,586
Accounts receivable, less allowance for doutful
accounts 67,820 63,246
Inventories 46,203 43,480
Other current assets 22,754 21,973
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Total current assets 142,194 131,285
Total non-current assets 441,568 442,514
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TOTAL ASSETS $583,762 $573,799
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Total current liabilities $ 71,658 $ 66,564
------------ ------------
Long-term debt 264,500 276,500
Other liabilites 97,748 99,353
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Total non-current liabilities 362,248 375,853
------------ ------------
Total liabilities 433,906 442,417
Total stockholders' equity 149,856 131,382
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $583,762 $573,799
------------ ------------
GENERAL SEMICONDUCTOR, INC.
CONSOLIDATED CASH FLOW
(Unaudited - In Thousands)
Three months ended
March 31,
---------------------------
2000 1999
------------ ------------
Income from operations $ 9,534 $ 4,252
Adjustments to reconcile to net cash provided by
operating activities:
Depreciation and amortization 7,358 6,740
Changes in assets and liabilities (2,916) (16,127)
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Net cash provided by operating activities 13,976 (5,135)
Capital expenditures (6,750) (6,787)
Net cash provided by financing activities (4,395) 11,000
------------ ------------
Increase in cash 2,831 (922)
Cash, beginning of period 2,586 3,225
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Cash, end of period $ 5,417 $ 2,303
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