The following excerpt is from the company's
Revenues for Q3 2015 $560.7 million
Operating margin Q3 2015 of (4.3)%, or adjusted operating margin of 7.3%
EPS Q3 2015 of $(0.19), or adjusted EPS of $0.17
Impairment of goodwill and long-lived assets of $63.0 million
Revenues lost due to Tianjin facility temporary shut-down approximately $20 million
Book-to-bill October above 1
Guidance for Q4 2015 for revenues of $540 - $580 million and gross margins of 21% to 23%
– November 3
, 2015 –
Vishay Intertechnology, Inc. (NYSE: VSH), one of the world's largest manufacturers o f discrete semiconductors and passive components, today announced its results for the fiscal quarter and nine fiscal months ended October 3, 2015.
Revenues for the fiscal quarter ended October 3, 2015 were $560.7 million, compared to $638.2 million for the fiscal quarter ended September 27, 2014. The net loss attributable to Vishay stockholders for the fiscal quarter ended October 3, 2015 was $(27.7) million, or $(0.19) per share, compared to net earnings attributable to Vishay stockholders of $27.0 million, or $0.17 per diluted share for the fiscal quarter ended September 27, 2014.
Net loss attributable to Vishay stockholders for the fiscal quarter ended October 3, 2015
includes restructuring and severance costs of $2.3 million, impairment of goodwill and long-lived assets charges of $63.0 million, and a loss related to the Tianjin explosion of $5.4 million.
Net earnings attributable to Vishay stockholders for the fiscal quarter ended September 27, 2014
include restructuring and severance costs of $3.5 million and U.S. pension settlement charges of $15.6 million. These items are summarized on the attached reconciliation schedule.
Adjusted earnings per diluted share, which exclude these items, were $0.17 and $0.26 for the fiscal quarters ended October 3, 2015 and September 27, 2014, respectively.
Commenting on the results for the third quarter 2015, Dr. Gerald Paul, President and Chief Executive Officer, stated, "As expected, the general economic conditions were not favorable in general. Additionally, the temporary shutdown of our Tianjin facility, caused by the shockwave of the explosion in the port of Tianjin, resulted in lost revenues of approximately $20 million in the quarter. Despite the current headwinds, we expect a free cash flow generation of substantially over $100 million for the year 2015."
Dr. Gerald Paul continued, "The Capella business, acquired in 2014, has not performed as expected in its traditional end market of smart phones. We recorded impairment charges of $57.6 million to write down the related assets to their fair value. We still expect that the addition of Capella will, in the mid and long term, add considerable value to our entire optoelectronic components business through the creation of an in-house design capability and so to strengthen our position and potential for growing our optoelectronic business."
Dr. Gerald Paul continued, "Our restructuring programs—the announced global fixed cost reduction and the rationalization in MOSFETs—are on plan. They will noticeably improve Vishay's results in the future, independently of the economic environment. We believe in a cyclical rebound of the economy in the course of next year."
Commenting on the outlook for the fourth quarter 2015 Dr. Paul stated, "We expect a continuation of the inventory reduction at distribution during the quarter and guide for revenues of $540 to $580 million and for gross margins of 21% to 23%, based on current exchange rates."
A conference call to discuss third quarter financial results is scheduled for Tuesday, November 3, 2015 at 9:00 a.m. ET. 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 57522492.
There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, November 3, 2015 through 11:30 p.m. ET on Tuesday, November 10, 2015. The telephone number for the replay is 800-585-8367 (+1 855-859-2056 or 404-537-3406 if calling from outside the United States or Canada) and the access code is 57522492.
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 https://ir.vishay.com.
Vishay Intertechnology, Inc., a Fortune 1000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs, and infrared optoelectronics) and passive electronic components (resistors, inductors, and capacitors). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing...