[GRAPHIC OMITTED]
[LOGO OMITTED - GENERAL SEMICONDUCTOR(R)
SOLUTIONS IN POWER MANAGEMENT(TM)]
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
SECOND QUARTER RESULTS
MELVILLE, NY - JULY 19, 2001 - GENERAL SEMICONDUCTOR, INC. (NYSE: SEM), a
leading manufacturer of power management devices, today reported results
for the quarter ended June 30, 2001 in-line with guidance provided on June
15, 2001.
Sales for the quarter were $84.0 million, a 17.6% decrease from the $102.0
million recorded in the previous quarter and a 34.5% decrease from the
$128.3 million reported in the second quarter of 2000. Diluted earnings per
share were $0.01, compared to $0.12 in the first quarter of 2001, which
excluded restructuring charges.
New product sales increased 22% sequentially and represented 10% of second
quarter sales. General Semiconductor continued to expand its low voltage
trench MOSFET product line, adding 13 new products during the quarter and
bringing total offerings in the line to 51 products. The Company also
successfully introduced its first family of Analog power products including
standard linear and low-dropout voltage regulators.
Ronald A. Ostertag, Chairman and Chief Executive Officer, said, "Our second
quarter revenue and earnings reflect the challenging environment faced by
the semiconductor business. While visibility remains low, we believe that
the demand for power semiconductors will increase over time, and we are
taking steps to best capitalize on our many growth opportunities once
economic conditions improve. New product sales as a percentage of total
sales continues to grow, and we remain committed to continuing investment
in new product development."
Mr. Ostertag continued, "We are finalizing our previously announced review
of operations, and will soon communicate the details of a plan to enhance
profitability, including steps to increase efficiencies, significantly
reduce costs and subcontract the manufacturing of certain mature products.
We expect to take a one-time charge related to these actions in the third
quarter."
BUSINESS OUTLOOK
Based on current market conditions, the Company expects revenues in the
third quarter will decline about 5% sequentially with earnings per share,
excluding special charges, down slightly sequentially.
Mr. Ostertag concluded, "While current demand is weak across most of our
end markets, we believe the requirement to efficiently manage power in
products ranging from automobiles to hand-held devices ensures the
long-term demand for our power management products."
ABOUT GENERAL SEMICONDUCTOR
General Semiconductor, Inc. is a leader in the design, manufacture and
distribution of semiconductors serving the power management market. The
Company provides customers with a broad array of products including
rectifiers, transient voltage suppressors, small-signal transistors,
diodes, MOSFETs and Analog ICs. Its global customer base includes original
equipment manufacturers, electronic distributors and contract equipment
manufacturers. Key market segments for its products include automotive,
computer, consumer and telecommunications.
JOIN US FOR OUR CONFERENCE CALL TO BE BROADCAST LIVE AT 8:30 AM, THURSDAY,
JULY 19, 2001 BY VISITING OUR WEBSITE AT: www.gensemi.com
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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 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.
GENERAL SEMICONDUCTOR, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - In Thousands, Except Per Share Data)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------------------------------------- --------------------------------
2001 2000 2001 2000
---------------- ----------------- ------------- -------------
NET SALES $ 84,027 $ 128,318 $ 186,035 $ 243,288
Cost of sales 63,748 88,810 138,901 169,247
---------------- ----------------- ------------- -------------
GROSS PROFIT 20,279 39,508 47,134 74,041
Selling, general and administrative 11,812 14,357 24,546 27,021
Research and development 2,912 1,761 5,525 3,435
Amortization of excess of cost over fair value
of net assets acquired 1,286 1,286 2,571 2,571
Restructuring - - 8,913 -
Asset impairment - - 4,035 -
---------------- ----------------- ------------- -------------
Total operating costs and expenses 16,010 17,404 45,590 33,027
---------------- ----------------- ------------- -------------
OPERATING INCOME 4,269 22,104 1,544 41,014
---------------- ----------------- ------------- -------------
Other income 58 (22) 176 (7)
Interest expense-net (3,858) (4,808) (7,832) (10,113)
---------------- ----------------- ------------- -------------
INCOME (LOSS) BEFORE INCOME TAXES 469 17,274 (6,112) 30,894
(Provision for) benefit from income taxes (141) (5,181) 1,833 (9,267)
---------------- ----------------- ------------- -------------
NET INCOME (LOSS) $ 328 $ 12,093 $ (4,279) $ 21,627
================ ================= ============= =============
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 37,777 37,671 37,752 37,501
Diluted 38,285 49,945 37,752 49,779
EARNINGS (LOSS) PER SHARE:
Basic $ 0.01 $ 0.32 $ (0.11) $ 0.58
Diluted $ 0.01 $ 0.28 $ (0.11) $ 0.50
GENERAL SEMICONDUCTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(UNAUDITED)
JUNE 30, DECEMBER 31,
2001 2000
---------------- -----------------
Cash $ 1,087 $ 4,913
Accounts receivable, less allowance for doubtful accounts 49,988 66,246
Inventories 54,252 53,698
Other current assets 23,383 25,151
---------------- -----------------
Total current assets 128,710 150,008
Total non-current assets 452,452 445,281
---------------- -----------------
TOTAL ASSETS $ 581,162 $ 595,289
================ =================
Total current liabilities $ 78,319 $ 99,877
---------------- -----------------
Long-term debt 230,500 216,500
Other liabilities 87,444 91,237
---------------- -----------------
Total non-current liabilities 317,944 307,737
---------------- -----------------
Total liabilities 396,263 407,614
Total stockholders' equity 184,899 187,675
---------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 581,162 $ 595,289
================ =================
GENERAL SEMICONDUCTOR, INC
CONDENSED CONSOLIDATED CASH FLOW
(UNAUDITED - IN THOUSANDS)
SIX MONTHS ENDED
JUNE 30,
---------------------------------------
2001 2000
----------------- ----------------
Income (loss) from operations $ (4,279) $ 21,627
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization 15,867 14,729
Asset write-off in conjunction with restructuring 4,035 -
Changes in assets and liabilities (11,653) (5,334)
---------------------------------------
Net cash provided by operating activities 3,970 31,022
Capital expenditures (22,715) (13,270)
Net cash provided by (used in) financing activities 14,919 (16,507)
---------------------------------------
(Decrease) increase in cash (3,826) 1,245
Cash, beginning of period 4,913 2,586
---------------------------------------
Cash, end of period $ 1,087 $ 3,831
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