Exhibit 99
VISHAY REPORTS RESULTS FOR SECOND QUARTER 2005
MALVERN, Pa., Aug. 2 /PRNewswire-FirstCall/ --
-- Sales of $582 million for second quarter 2005 increased 5.1% compared
to first quarter 2005
-- Net earnings of $0.05 per diluted share for the second quarter 2005
have been negatively affected by the after tax impact of certain items
(enumerated below) of $0.07 per share, as compared to first quarter
2005 net earnings of $0.03 per diluted share, which had been
negatively affected by the after tax impact of certain items of $0.03
per share
-- Cost of products sold, as a percentage of sales, of 77.2% for second
quarter 2005 improved by 140 basis points compared to 78.6% in first
quarter 2005
-- Cash generated from operations for the quarter was $45 million.
Dr. Felix Zandman, Chairman of the Board, and Dr. Gerald Paul, President
and Chief Executive Officer of Vishay Intertechnology, Inc. (NYSE: VSH),
announced today that sales for the fiscal quarter ended July 2, 2005 were
$581,639,000 compared to sales of $646,699,000 for the second quarter of 2004, a
10.1% decrease, and $553,677,000 for the first quarter of 2005, a 5.1% increase.
Net earnings for the quarter ended July 2, 2005 were $9,716,000 or $0.05 per
diluted share, compared with net earnings for the quarter ended July 3, 2004 of
$41,118,000 or $0.22 per diluted share and net earnings for the quarter ended
April 2, 2005 of $5,712,000 or $0.03 per share.
Net earnings of $9,716,000 or $0.05 per diluted share for the second
quarter of 2005 were impacted by restructuring and severance costs of
$9,358,000, by charges for purchased in-process research and development of
$9,201,000, by Siliconix transaction-related expenses of $3,751,000, and by
losses resulting from adjustments to previously existing purchase commitments of
$1,323,000, partially offset by a gain on sale of land of $2,120,000. In
addition, tax expense includes a $3,698,000 favorable benefit, primarily due to
a foreign tax ruling. These items and their tax related consequences had a
negative $0.07 effect on earnings per share. Net earnings for the second quarter
of 2004 were impacted by restructuring and severance costs of $1,759,000, or
$0.01 per share after tax.
Sales for the six fiscal months ended July 2, 2005 were $1,135,316,000, an
11.8% decrease as compared to sales of $1,287,620,000 for the comparable prior
year period. Net earnings for the six fiscal months ended July 2, 2005 were
$15,428,000 or $0.09 per share compared to net earnings of $77,084,000 or $0.43
per share for the comparable prior year period. Net earnings for the six fiscal
months ended July 2, 2005 were impacted by restructuring and severance costs of
$14,385,000, by charges for purchased in-process research and development of
$9,201,000, by Siliconix transaction-related expenses of $3,751,000, and by
losses resulting from adjustments to previously existing purchase commitments of
$3,600,000, partially offset by a gain on sale of land of $2,120,000. In
addition, tax expense includes a $3,698,000 favorable benefit, primarily due to
a foreign tax ruling. These items and their tax related consequences had a
negative $0.10 effect on earnings per share. Net earnings for the six fiscal
months ended July 3, 2004 were impacted by restructuring and severance costs of
$2,060,000, or $0.01 per share after tax.
Commenting on the results for the second quarter of 2005, Dr. Paul stated,
"The strong book-to-bill ratio of the first quarter 2005 resulted in a sales
growth of 5.1% quarter over quarter in the second quarter 2005. Overall fixed
costs continued to decrease sequentially by $5 million and by $12 million
compared to prior year. The volume increase combined with the cost reduction
resulted in an improvement of our cost of products sold as a percentage of sales
by 140 basis points to 77.2% in the second quarter 2005 from 78.6% in the first
quarter 2005. Our defined program of reducing our fixed costs by $50 million
annualized continues to be on track: we showed $11 million in the first quarter
and $12 million in the second quarter 2005."
Commenting on the outlook for the third quarter 2005, Dr. Paul continued,
"Based on current trends, we expect sales in the range of $560 million to $580
million and margins to be flat to slightly lower."
Commenting on the Company's merger and acquisition activities, Dr. Felix
Zandman, Chairman of the Board and Chief Technical and Business Development
Officer, stated, "During the second quarter 2005 we successfully completed our
tender offer for the outstanding shares of Siliconix. While we are still
pursuing our goal of making a larger acquisition, we at the same time constantly
review small targets as well. For example, we recently signed a Letter of Intent
for the acquisition of CyOptics Israel Ltd. This business employs a team of
senior design engineers for optical components in the field of advanced infrared
technology and has a modern wafer fab for the production of gallium arsenide and
indium phosphide chips used for optoelectronics. It will provide the
technological strength to place our existing optoelectronics division in the
forefront of the gallium arsenide and indium phosphide technologies. With
acquisitions of this kind, Vishay will be well-positioned for participation in
future markets."
A conference call to discuss second quarter financial results is scheduled
for Tuesday, August 2, 2005 at 10:00 AM (EDT). The dial-in number for the
conference call is 800-553-5260 (612-332-0718 if calling from outside the United
States or Canada). The conference operator will require the following
information in order to admit you into the call: Company Name: Vishay
Intertechnology, Inc. and Moderators: Vishay Executives.
There will be a replay of the conference call from 2:30 PM (ET) on Tuesday,
August 2, 2005 through 11:59 PM (ET) on Sunday, August 7, 2005. The telephone
number for the replay is 800-475-6701 (320-365-3844 if calling from outside the
United States or Canada). The access code is 789538.
There will also be a live audio webcast of the conference call. This can be
accessed directly from the Investor Relations section of the Vishay website at
http://ir.vishay.com.
Vishay Intertechnology, Inc., a Fortune 1,000 company listed on the NYSE
(VSH), is one of the world's largest manufacturers of discrete semiconductors
(diodes, rectifiers, transistors, and optoelectronics) and selected ICs, and
passive electronic components (resistors, capacitors, inductors, and
transducers). Vishay's components can be found in products manufactured in a
very broad range of industries worldwide. Vishay is headquartered in Malvern,
Pa., and has operations in 17 countries employing more than 25,000 people.
Vishay can be found on the Internet at http://www.vishay.com.
Statements contained herein that relate to the Company's future
performance, including statements with respect to trends in revenues and
bookings and the anticipated future benefits of the Company's product,
acquisition and cost reduction strategies are forward-looking statements within
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Such statements are based on current expectations only, and are subject to
certain risks, uncertainties, and assumptions. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated, estimated or
projected. Among the factors that could cause actual results to materially
differ include: general business and economic conditions, particularly in the
markets that we serve, the availability of appropriate acquisition opportunities
on terms that the Company considers attractive, difficulties in integrating
acquired companies, difficulties in implementing our cost reduction strategies
such as labor unrest or legal challenges to our layoff or termination plans,
under-utilization of production facilities in lower-labor-cost countries,
operation of redundant facilities due to difficulties in transferring production
to lower-labor-cost countries, difficulties in new product development, an
inability to attract and retain highly qualified personnel, and other factors
affecting the Company's operations, markets, products, services, and prices that
are set forth in its Annual Report on Form 10-K for the year ended December 31,
2004 filed with the Securities and Exchange Commission. You are urged to refer
to the Company's Form 10-K for a detailed discussion of these factors. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise.
Management believes that stating the impact on net earnings of items such
as restructuring and severance, charges for in-process research and development,
losses on purchase commitments, and other items is meaningful to investors
because it provides insight with respect to intrinsic operating results of the
Company.
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands except earnings per share)
Fiscal quarter ended
-----------------------------
July 2, July 3,
2005 2004
------------ ------------
Net sales $ 581,639 $ 646,699
Costs of products sold 449,018 477,775
Loss on purchase commitments 1,323 -
Gross profit 131,298 168,924
22.6% 26.1%
Selling, general, and administrative expenses 95,838 99,362
Purchased in-process research and development 9,201 -
Siliconix transaction-related expenses 3,751 -
Restructuring and severance costs 9,358 1,759
Operating income 13,150 67,803
2.3% 10.5%
Other income (expense):
Interest expense (8,462) (9,062)
Minority interest (1,112) (3,042)
Other 7,342 3,035
(2,232) (9,069)
Earnings before taxes 10,918 58,734
Income taxes 1,202 17,616
Net earnings $ 9,716 $ 41,118
Basic earnings per share $ 0.06 $ 0.25
Diluted earnings per share $ 0.05 $ 0.22
Weighted average shares outstanding -
basic 176,198 162,309
Weighted average shares outstanding -
diluted* 177,133 204,599
* - Diluted weighted average shares for the second quarter of 2004 include the
effects of convertible and exchangeable debt instruments. These debt instruments
were anti-dilutive for the first and second quarters of 2005.
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands except earnings per share)
Six fiscal months ended
-----------------------------
July 2, July 3,
2005 2004
------------ ------------
Net sales $ 1,135,316 $ 1,287,620
Costs of products sold 884,288 958,985
Loss on purchase commitments 3,600 -
Gross profit 247,428 328,635
21.8% 25.5%
Selling, general, and administrative expenses 192,178 196,691
Purchased in-process research and development 9,201 -
Siliconix transaction-related expenses 3,751 -
Restructuring and severance costs 14,385 2,060
Operating income 27,913 129,884
2.5% 10.1%
Other income (expense):
Interest expense (16,515) (17,937)
Minority interest (3,764) (5,848)
Other 11,684 4,025
(8,595) (19,760)
Earnings before taxes 19,318 110,124
Income taxes 3,890 33,040
Net earnings $ 15,428 $ 77,084
Basic earnings per share $ 0.09 $ 0.48
Diluted earnings per share $ 0.09 $ 0.43
Weighted average shares outstanding -
basic 171,125 161,360
Weighted average shares outstanding -
diluted* 172,115 202,930
* - Diluted weighted average shares for the period ended July 3, 2004 include
the effects of convertible and exchangeable debt instruments. These debt
instruments were anti-dilutive for the period ended July 2, 2005.
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)
July 2, December 31,
2005 2004
------------ ------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 577,276 $ 632,700
Accounts receivable, net 354,748 351,710
Inventories:
Finished goods 156,657 155,195
Work in process 149,421 150,738
Raw materials 197,240 212,040
Deferred income taxes 41,883 43,786
Prepaid expenses and other current assets 125,828 136,251
Total current assets 1,603,053 1,682,420
Property and equipment, at cost:
Land 92,350 97,398
Buildings and improvements 410,255 428,829
Machinery and equipment 1,652,787 1,668,225
Construction in progress 67,847 75,974
Allowance for depreciation (1,125,088) (1,098,611)
1,098,151 1,171,815
Goodwill 1,472,656 1,435,121
Other intangible assets, net 164,811 127,797
Other assets 222,227 221,437
Total assets $ 4,560,898 $ 4,638,590
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets, continued
(In thousands)
July 2, December 31,
2005 2004
------------ ------------
(unaudited)
Liabilities and stockholders' equity Current liabilities:
Notes payable to banks $ 19,598 $ 3,727
Trade accounts payable 120,975 131,243
Payroll and related expenses 110,537 131,128
Other accrued expenses 195,904 218,257
Income taxes 23,847 29,631
Current portion of long-term debt 34 51
Total current liabilities 470,895 514,037
Long-term debt less current portion 743,087 752,145
Deferred income taxes 10,160 14,017
Deferred grant income 15,015 18,723
Other liabilities 210,468 236,591
Accrued pension and other
postretirement costs 215,198 232,142
Minority interest 4,352 97,600
Stockholders' equity:
Common stock 16,942 15,142
Class B common stock 1,468 1,468
Capital in excess of par value 2,225,642 2,028,253
Retained earnings 610,320 594,892
Unearned compensation (144) (152)
Accumulated other comprehensive income 37,495 133,732
2,891,723 2,773,335
$ 4,560,898 $ 4,638,590
Contact: Richard N. Grubb,
Executive Vice President and
Chief Financial Officer or
Peter G. Henrici, Senior Vice President
Corporate Communications
610-644-1300
SOURCE Vishay Intertechnology, Inc.
-0- 08/02/2005
/CONTACT: Richard N. Grubb, Executive Vice President and Chief Financial
Officer or Peter G. Henrici, Senior Vice President, Corporate Communications,
both of Vishay Intertechnology, Inc., +1-610-644-1300/
/Web site: http://www.vishay.com
http://ir.vishay.com /