EXHIBIT 99.2
INVESTOR CONTACT:
Tim Iris
Phone: (631) 847-3169
tiris@gensemi.com
MEDIA CONTACTS:
George Sard/David Reno/Jonas Leddington
Citigate Sard Verbinnen
Phone: (212) 687-8080
FOR IMMEDIATE RELEASE
GENERAL SEMICONDUCTOR REPORTS FIRST QUARTER RESULTS
MELVILLE, NY, (APRIL 19, 2001) - GENERAL SEMICONDUCTOR, INC. (NYSE: SEM), a
leading manufacturer of power management devices, today reported results
in-line with the guidance it provided on March 12, 2001 for the quarter
ended March 31, 2001. Sales for the quarter were $102.0 million, a decrease
of 11.3% from the $115.0 million recorded in the first quarter of 2000.
Sequentially, sales decreased 14.9% from the $119.9 million reported for
the fourth quarter of 2000.
Operating income for the quarter, excluding one-time pre-tax restructuring
charges, was $10.2 million, a 46% decrease from $18.9 million for the same
period a year ago. Diluted earnings per share, excluding one-time after-tax
charges, were $0.12, compared to the $0.23 recorded in the first quarter of
2000. As announced on February 8, 2001, the Company implemented a
restructuring program to improve its cost structure, resulting in one-time
pre-tax restructuring and asset impairment charges of $12.9 million in the
first quarter.
New products represented 7% of sales in the quarter, compared to 4% in the
same quarter a year ago, demonstrating the continued success of the
Company's strategy. The Company has expanded its low voltage trench MOSFET
offering to a total of 38 products and registered an additional 43 MOSFET
design wins in the first quarter.
Ronald A. Ostertag, Chairman and Chief Executive Officer, said, "While the
broad-based economic slowdown has affected our near-term revenue growth, we
have taken the necessary actions to ensure our cost structure remains
competitive. Additionally, we recently announced significant developments
by our MOSFET design group in our proprietary trench technology, and we
have achieved first silicon for a low-dropout regulator by our Analog
design engineers, demonstrating significant progress in our move to
penetrate this higher technology market. New products, which are generating
a growing percentage of sales, the breadth of our geographic reach and the
diversity of our businesses combine to put us in an enviable competitive
position to weather the current economic downturn."
BUSINESS OUTLOOK
Based on current market conditions, the Company expects that revenues in
the second quarter of 2001 will be slightly down sequentially, with diluted
earnings per share remaining approximately flat as the Company begins to
benefit from its cost restructuring program. "We are cautiously optimistic
about the second half of the year," stated Robert J. Gange, Sr. Vice
President and Chief Financial Officer. "We believe the combination of
successful new products and the continued reduction of inventories in the
channel will lead to a return to sequential revenue growth in the third
quarter."
Mr. Ostertag concluded, "We remain committed to our power management
strategy and continue to invest in new product development. We believe the
Company is extremely well positioned to capitalize on growth opportunities
as industry conditions improve."
ABOUT GENERAL SEMICONDUCTOR
General Semiconductor, Inc. is a market leader in the design, manufacture
and distribution of power 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.
JOIN US FOR OUR CONFERENCE CALL TO BE BROADCAST LIVE AT 8:30 AM, THURSDAY,
APRIL 19, 2001 BY VISITING OUR WEBSITE AT: www.gensemi.com
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 filing 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.
GENERAL SEMICONDUCTOR, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
THREE MONTHS ENDED
MARCH 31,
---------------------------
2001 2000
----------- -----------
NET SALES $ 102,008 $ 114,970
Cost of sales 75,153 80,437
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GROSS PROFIT 26,855 34,533
Selling, general and administrative 12,734 12,664
Research and Development 2,613 1,674
Amortization of excess of cost over
fair value of net assets acquired 1,285 1,285
Restructuring 8,913 --
Asset write-off 4,035 --
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Total operating costs and expenses 29,580 15,623
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OPERATING (LOSS) INCOME (2,725) 18,910
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Other income 118 15
Interest expense - net (3,974) (5,305)
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(LOSS) INCOME BEFORE INCOME TAXES (6,581) 13,620
Benefit from (provision for) income taxes 1,974 (4,086)
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NET (LOSS) INCOME $ (4,607) $ 9,534
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WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 37,726 37,331
Diluted 37,726 49,612
(LOSS) EARNINGS PER SHARE:
Basic $ (0.12) $ 0.26
Diluted $ (0.12) $ 0.23
EARNINGS PER SHARE BEFORE RESTRUCTURING
AND ASSET WRITE-OFF CHARGES:
Basic $ 0.12 $ 0.26
Diluted $ 0.12 $ 0.23
GENERAL SEMICONDUCTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(unaudited)
March 31, December 31,
2001 2000
----------- -----------
Cash $ 3,254 $ 4,913
Accounts receivable, less allowance
for doubtful accounts 59,100 66,246
Inventories 54,879 53,698
Other current assets 23,108 25,151
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Total current assets 140,341 150,008
Total non-current assets 446,723 445,281
----------- -----------
TOTAL ASSETS $ 587,064 $ 595,289
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Total current liabilities $ 90,452 $ 99,877
----------- -----------
Long-term debt 222,500 216,500
Other liabilities 90,449 91,237
----------- -----------
Total non-current liabilities 312,949 307,737
----------- -----------
Total liabilities 403,401 407,614
Total stockholders' equity 183,663 187,675
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 587,064 $ 595,289
=========== ===========
GENERAL SEMICONDUCTOR, INC.
CONDENSED CONSOLIDATED CASH FLOW
(UNAUDITED - IN THOUSANDS)
THREE MONTHS ENDED
MARCH 31,
---------------------------
2001 2000
----------- -----------
Income (loss) from operations $ (4,607) $ 9,534
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization 8,175 7,358
Asset write-off in conjunction with
restructuring 4,035 --
Changes in assets and liabilities (3,566) (2,916)
----------- -----------
Net cash provided by operating activities 4,037 13,976
Capital expenditures (11,710) (6,750)
Net cash provided by (used in) financing
activities 6,014 (4,395)
----------- -----------
(Decrease) increase in cash (1,659) 2,831
Cash, beginning of period 4,913 2,586
----------- -----------
Cash, end of period $ 3,254 $ 5,417
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