Exhibit 99
VISHAY REPORTS RESULTS FOR YEAR AND FOURTH QUARTER 2005
* Sales for fourth quarter 2005 increased 9.6% compared to fourth quarter
2004 and 4.9% compared to third quarter 2005.
* Book-to-bill ratio for fourth quarter 2005 was 1.04.
* Net earnings of $0.14 per diluted share for the fourth quarter 2005 have
been negatively affected by the after tax impact of certain items
(enumerated below) of $0.03 per share for adjusted earnings per share of
$0.17, as compared to third quarter 2005 net earnings of $0.11 per diluted
share, which were negatively affected by the after tax impact of certain
items of $0.03 per share for adjusted earnings per share of $0.14.
* Cash generated from operations for the quarter was $78 million.
* Optimistic for year 2006.
MALVERN, Pa., Feb. 7 /PRNewswire-FirstCall/ -- 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 net revenues for
the year ended December 31, 2005 were $2,296,521,000 compared to $2,414,654,000
for the year ended December 31, 2004. Net earnings for the year ended December
31, 2005 were $62,274,000 or $0.34 per diluted share, compared with net earnings
for the year ended December 31, 2004 of $44,696,000 or $0.27 per diluted share.
Net revenues for the fiscal quarter ended December 31, 2005 were
$593,690,000, as compared to sales of $542,714,000, for the fiscal quarter ended
December 31, 2004. Net earnings for the fiscal quarter ended December 31, 2005
were $26,890,000 or $0.14 per diluted share, compared with a net loss for the
quarter ended December 31, 2004 of $54,458,000 or $0.33 per diluted share.
Net earnings of $62,274,000 or $0.34 per diluted share for the year ended
December 31, 2005 were impacted by pre-tax charges for restructuring and
severance costs of $29,772,000, related asset write-downs of $11,416,000,
purchased in-process research and development (IPR&D) of $9,694,000, and
Siliconix transaction-related expenses of $3,751,000. These items were partially
offset by a gain on sale of land of $2,120,000 and a gain from adjustments to
previously existing purchase commitments of $963,000. In addition, tax expense
includes an $8,977,000 benefit, primarily due to favorable foreign tax rulings.
These items and their tax-related consequences had a negative $0.17 effect on
earnings per share.
The year ended December 31, 2004 included pre-tax charges for restructuring
and severance costs of $47,250,000, write-downs of fixed assets of $27,296,000,
write-downs of inventory on hand to market value of $400,000, losses resulting
from adjustments to previously existing purchase commitments of $16,613,000, and
a write-off of purchased IPR&D of $1,500,000. These items were partially offset
by a gain on settlement of a note receivable of $3,100,000. These items and
their tax-related consequences had a negative $0.32 effect on earnings per
diluted share.
Net earnings of $26,890,000 or $0.14 per diluted share for the fourth
quarter of 2005 were impacted by pre-tax charges for restructuring and severance
costs of $11,594,000, related asset write-downs of $6,603,000, and a write-off
of purchased IPR&D of $493,000. These items were partially offset by gains
resulting from adjustments to previously existing purchase commitments of
$3,417,000. In addition, tax expense includes a $5,279,000 benefit, primarily
due to favorable foreign tax rulings. These items and their tax-related
consequences had a negative $0.03 effect on earnings per share. The net loss of
$54,458,000 or $0.33 per diluted share for the fourth quarter of 2004 was
impacted by pre-tax charges for restructuring and severance costs of
$40,193,000, write-downs of fixed assets of $27,296,000, write-downs of
inventory on hand to market value of $400,000, and losses resulting from
adjustments to previously existing purchase commitments of $16,613,000. These
items and their tax related consequences, net of a favorable tax settlement, had
a negative $0.34 effect on earnings per diluted share.
Commenting on the results for the fourth quarter and year 2005, Dr. Paul
stated, "We had a good fourth quarter increasing our adjusted net earnings by
more than 20% compared to the previous quarter. Each quarter of 2005 we were
able to improve our margins due to our various programs to cut costs as well as
to expand capacity where needed. In 2006, we will strongly emphasize our
programs to grow internally through R&D and our design-in activities, leveraging
our position of providing one-stop shop service."
Commenting on the outlook for the first quarter 2006, Dr. Paul continued,
"Based on a continuously strong book-to-bill of 1.07 in January and the highest
backlog in six quarters, we guide for sales in the range of $600 million to $620
million. We expect margins to be higher than in the fourth quarter 2005 due to
higher volume and continued cost reduction. With lean inventories and broad
based, solid end demand, we believe to be in a steady upturn without signs of
overheating."
Commenting on the Company's acquisition activities, Dr. Felix Zandman,
Chairman of the Board and Chief Technical and Business Development Officer,
stated, "During 2005 we successfully made a tender offer for the 19.6% interest
in Siliconix that we did not previously own. I am content to report that the
Siliconix merger contributed approximately $10.3 million incrementally to our
earnings for 2005. We believe in the future of Siliconix and continue to invest
in it." Dr. Zandman continued, "Our strong financial position allows us to be
very opportunistic in pursuing our acquisition strategy. In 2005, we did not see
an opportunity that was a fit for our business, other than a few small niche
acquisitions. But we will continue to follow our acquisition strategy,
preferably in the semiconductor arena but also in the passives business provided
the target - whether small or larger - is a good fit for us at the right price."
Dr. Zandman also noted, "In addition to conventional product R&D, we
continue to focus on R&D programs that should enhance our efforts in vertical
integration of our product lines. These include combining Vishay components in
packages. Examples include dc-dc converters, and also combinations of our
sensors and our RF technology to create wireless transducers, wireless precision
potentiometers, and other new products."
A conference call to discuss fourth quarter and year ending financial
results is scheduled for Tuesday, February 7, 2006 at 11:00 AM (EST). The
dial-in number for the conference call is 877-589-6174 (+1 706-643-1406 if
calling from outside the United States or Canada) and the conference ID is
#4342747.
There will be a replay of the conference call from 1:30 PM (EST) on Tuesday,
February 7, 2006 through 11:59 PM (EST) on Sunday, February 12, 2006. The
telephone number for the replay is 800-642-1687 (+1 706-645-9291 if calling from
outside the United States or Canada) and the access code is #4342747.
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. An audio file of the webcast will also be available on the
Vishay website following the call.
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,
Pennsylvania, and has operations in 17 countries employing over 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, bookings, and margins
and the anticipated future benefits of the Company's product, acquisition,
research and development 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
lay-off 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, asset write-downs, charges for in-process research
and development, gains or losses on purchase commitments, special tax items and
other items not reflecting on-going operating activities is meaningful to
investors because it provides insight with respect to intrinsic operating
results of the Company and, management believes, is a common measure of
performance in the industries in which the Company competes. Investors should be
aware, however, that this is a non-GAAP measure of performance and should not be
considered as a substitute for the comparable GAAP measure.
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands except earnings per share)
Fiscal quarter ended
December 31,
---------------------------
2005 2004
------------ ------------
Net revenues $ 593,690 $ 542,714
Cost of products sold 454,260 439,753
(Gain) loss on purchase commitments (3,417) 16,613
Gross profit 142,847 86,348
24.1% 15.9%
Selling, general, and administrative
expenses 90,560 93,776
Purchased in-process research and
development 493 -
Restructuring and severance costs 11,594 40,193
Asset write-downs 6,603 27,296
Operating income (loss) 33,597 (74,917)
5.7% -13.8%
Other income (expense):
Interest expense (8,905) (8,091)
Minority interest 157 (2,476)
Other 1,713 2,260
(7,035) (8,307)
Earnings (loss) before taxes 26,562 (83,224)
Income tax benefit (328) (28,766)
Net earnings (loss) $ 26,890 $ (54,458)
Basic earnings (loss) per share $ 0.15 $ (0.33)
Diluted earnings (loss) per share $ 0.14 $ (0.33)
Weighted average shares outstanding -
basic 184,130 166,099
Weighted average shares outstanding -
diluted 219,522 166,099
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands except earnings per share)
Year ended December 31,
---------------------------
2005 2004
------------ ------------
Net revenues $ 2,296,521 $ 2,414,654
Costs of products sold 1,769,978 1,842,080
(Gain) loss on purchase commitments (963) 16,613
Gross profit 527,506 555,961
23.0% 23.0%
Selling, general, and administrative
expenses 376,912 386,346
Purchased in-process research and
development 9,694 1,500
Siliconix transaction-related expenses 3,751 -
Restructuring and severance costs 29,772 47,250
Asset write-downs 11,416 27,296
Operating income 95,961 93,569
4.2% 3.9%
Other income (expense):
Interest expense (33,590) (34,252)
Minority interest (3,761) (11,592)
Other 15,401 10,700
(21,950) (35,144)
Earnings before taxes 74,011 58,425
Income tax provision 11,737 13,729
Net earnings $ 62,274 $ 44,696
Basic earnings per share $ 0.35 $ 0.27
Diluted earnings per share $ 0.34 $ 0.27
Weighted average shares outstanding -
basic 177,606 163,701
Weighted average shares outstanding -
diluted 189,321 165,938
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)
December 31, December 31,
2005 2004
------------ ------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 622,577 $ 632,700
Short-term investments 9,925 -
Accounts receivable, net 350,850 351,710
Inventories:
Finished goods 149,709 155,195
Work in process 181,125 176,082
Raw materials 157,036 186,696
Deferred income taxes 42,513 43,786
Prepaid expenses and other current
assets 96,295 136,251
Total current assets 1,610,030 1,682,420
Property and equipment, at cost:
Land 92,650 97,398
Buildings and improvements 406,798 428,829
Machinery and equipment 1,684,736 1,668,225
Construction in progress 67,229 75,974
Allowance for depreciation (1,160,821) (1,098,611)
1,090,592 1,171,815
Goodwill 1,448,401 1,435,121
Other intangible assets, net 174,220 127,797
Other assets 217,690 221,437
Total assets $ 4,540,933 $ 4,638,590
Liabilities and stockholders' equity
Current liabilities:
Notes payable to banks $ 3,473 $ 3,727
Trade accounts payable 142,709 131,243
Payroll and related expenses 118,814 131,128
Other accrued expenses 173,982 218,257
Income taxes 26,004 29,631
Current portion of long-term debt 1,533 51
Total current liabilities 466,515 514,037
Long-term debt less current portion 751,553 752,145
Deferred income taxes 34,880 14,017
Deferred grant income 11,896 18,723
Other liabilities 159,142 236,591
Accrued pension and other
postretirement costs 256,986 232,142
Minority interest 4,109 97,600
Stockholders' equity:
Common stock 16,946 15,142
Class B common stock 1,468 1,468
Capital in excess of par value 2,225,966 2,028,253
Retained earnings 657,166 594,892
Unearned compensation (95) (152)
Accumulated other comprehensive
income (45,599) 133,732
2,855,852 2,773,335
$ 4,540,933 $ 4,638,590
VISHAY INTERTECHNOLOGY, INC.
Computation of Earnings Per Share
(Unaudited - In thousands except earnings per share)
Fiscal quarter ended Year ended
December 31, December 31,
--------------------------- ---------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Numerator:
Numerator for basic earnings per
share - net earnings (loss) $ 26,890 $ (54,458) $ 62,274 $ 44,696
Interest savings assuming conversion
of dilutive convertible and
exchangeable notes, net of tax 3,778 - 2,722 -
Numerator for diluted earnings per
share - adjusted net earnings
(loss) $ 30,668 $ (54,458) $ 64,996 $ 44,696
Denominator:
Denominator for basic earnings per
share - weighted average shares 184,130 166,099 177,606 163,701
Effect of dilutive securities
Convertible and exchangeable
notes 34,445 - 10,737 -
Employee stock options 876 - 907 1,926
Warrants - - - 261
Other 71 - 71 50
Dilutive potential common shares 35,392 - 11,715 2,237
Denominator for diluted earnings per
share - adjusted weighted
average shares 219,522 166,099 189,321 165,938
Basic earnings (loss) per share $ 0.15 $ (0.33) $ 0.35 $ 0.27
Diluted earnings (loss) per share $ 0.14 $ (0.33) $ 0.34 $ 0.27
Diluted earnings per share for the periods presented do not reflect the
following weighted-average potential common shares, as the effect would be
antidilutive (in thousands):
Fiscal quarter ended Year ended
December 31, December 31,
--------------------------- ---------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Convertible and exchangeable notes:
Convertible Subordinated Notes,
due 2023 - 23,496 23,496 23,496
Liquid Yield Option(TM) Notes,
due 2021 - 9,581 - 8,979
Exchangeable Unsecured Notes,
due 2102 6,176 6,176 6,176 6,176
Weighted average employee stock
options 6,475 8,100 6,300 3,444
Weighted average warrants 8,824 8,824 8,824 7,074
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- 02/07/2006
/CONTACT: Richard N. Grubb, Executive Vice President and Chief Financial
Officer, or Peter G. Henrici, Senior Vice President Corporate Communications,
both of Vishay Intertechnology, +1-610-644-1300/
/First Call Analyst: Peter G. Henrici/
/FCMN Contact: /
/Web site: http://ir.vishay.com
http://www.vishay.com /