N@N

AVX Corporation Announces Preliminary Third Quarter Results

^{Published on 2009-01-22 06:06:35, Last Modified on 2009-01-22 06:08:32 - Market Wire}
 

MYRTLE BEACH, S.C.--([ BUSINESS WIRE ])--AVX Corporation (NYSE:AVX) AVX today reported net sales of $320.6 million for the quarter ended December 31, 2008 and $1,117.8 million for the nine months ended December 31, 2008.

Chief Executive Officer and President, John Gilbertson stated, "The December quarter was difficult but in this challenging time our operations were able to improve the overall profit margin primarily as result of tight cost control around the world." Mr. Gilbertson went on to state, "By moving quickly to address these market changes, the business groups have made adjustments to their cost structure and will emerge stronger in the quarters to come. We have additional plans for further cost reduction measures that will enhance our competitiveness going forward. The Company has a solid balance sheet and is proud of its ability to continue to pay a cash dividend."

On a U.S. GAAP basis (including special charges), net income was $23.9 million, or $0.14 per diluted share, for the current quarter.

Non-GAAP net income excluding special charges was $27.7 million, or $0.16 per diluted share, for the current quarter. During the current quarter, the Company incurred $2.8 million of pre-tax restructuring costs related to global actions to realign production capabilities and reduce costs. In addition, the Company recorded a $2.0 million pre-tax impairment charge during the current quarter related to the decline in value of its available-for-sale securities transferred to the Company from an impaired Bank of America enhanced cash investment fund as a result of the current economic turmoil in the financial markets around the world.

See discussion of GAAP/Non-GAAP presentation below.

Chief Financial Officer, Kurt Cummings stated, "The Company's strong financial position provided us with the flexibility to act swiftly when the economy faltered and the financial strength to maintain our competitive position. The Company's financial position remains exceptionally strong with cash and cash equivalents and short and long-term investments in securities of $766.3 million and no debt at December 31, 2008. During the quarter, the Company paid $6.8 million of dividends to stockholders and spent $2.4 million to repurchase shares of AVX stock on the open market which are held as treasury stock."

Management believes that in order to better understand the Company's short-term and long-term financial trends, investors may find it useful to consider results excluding special charges related to the estimated write off of in-process research and development ("IPR&D") in connection with the acquisition of ATC, other operations' restructuring charges for headcount reductions, other operating income from a gain on the sale of corporate assets and the write down of certain available-for-sale securities due to an other-than-temporary impairment. Management believes that the resulting non-GAAP financial measure provides useful information to investors regarding the underlying business trends and performance of the Company's ongoing operations and is useful for period-over-period comparisons of such operations. Management eliminates such charges when evaluating the operating performance of the Company. Investors should consider the non-GAAP measure in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, the non-GAAP financial measure may not be the same as similar measures presented by other companies. Detail of the Company's non-GAAP measure is provided in the table above.

AVX, headquartered in Myrtle Beach, South Carolina, is a leading manufacturer and supplier of a broad line of passive electronic components and related products.

Please visit our website at [ www.avx.com ].

Results for the quarter and nine months ended December 31, 2008 include restructuring charges of $2,793 and $8,086, respectively. In addition, during the quarter ended December 31, 2008,the Company recorded a $1,998 impairment charge in other income related to the decline in value of its available-for-sale securities. For the nine month period ended December 31, 2008, results also reflect a gain on the sale of corporate assets of $4,051 included in other operating income. The provision for taxes for the quarter ended December 31, 2008 reflects the cumulative effect of a reduction in the Company's estimated annual effective tax rate from 26% to 22%.

Results for the three and nine months ended December 31, 2007 include restructuring charges of $204 and $2,421, respectively. In addition, during the quarter ended September 30, 2007,the Company recorded a $390 charge for the write-off of in process research and development related to the acquisition of American Technical Ceramics on September 26, 2007.