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AVX Corporation Announces Preliminary Second Quarter Results

^{Published on 2010-10-26 05:50:27 - Market Wire}
 

GREENVILLE, S.C.--([ BUSINESS WIRE ])--AVX Corporation (NYSE:AVX) AVX today reported preliminary unaudited results for the second quarter ended September 30, 2010.

Highlights:

• Revenue for the September 2010 quarter of $430.6 million increased 8.6% from the previous quarter and increased 38.7% from the second quarter of last year.
• Gross Profit margin improved for the ninth consecutive quarter to 28.4% in the current quarter compared to 25.9% in the previous quarter and 20.8% in the same quarter last year.
• Net income of $67.9 million, or $0.40 per share, for the September 2010 quarter.
• Dividends of $7.7 million, or at a $0.18 per share annual rate, were paid during the second quarter of fiscal 2011.

Chief Executive Officer and President, John Gilbertson, stated, aThe second quarter was another strong quarter for AVX. Sales grew 8.6% sequentially and 38.7% compared to the same quarter last year reflecting strengthening demand in a diverse range of our served-end markets. Our continued focus on operating leverage and higher value-added components enabled us to further expand operating margins to 28.4% in the quarter up from 25.9% in the previous quarter and 20.8% last year.a

For the quarter ended September 30, 2010, net sales increased sequentially over the previous quarter by $34.1 million, or 8.6%, to $430.6 million. Gross profit as a percent of sales improved over both the previous quarter and the same quarter last year to 28.4%. Net income for the quarter was $67.9 million, or $0.40 per diluted share, compared to net income of $52.3 million, or $0.31 per diluted share, in the previous quarter and net income of $31.6 million, or $0.19 per diluted share in the second quarter of the prior fiscal year.

Chief Financial Officer, Kurt Cummings, stated, aThe management team continues to control cost in a proactive manner helping to ensure the strength of our financial performance. We continued to generate positive operating cash flow, despite investments in critical manufacturing materials. The Companya™s financial position remains exceptionally strong with cash and cash equivalents and short and long-term investments in securities of $956.1 million and no debt at September 30, 2010. During the quarter, the Company paid $7.7 million of dividends to stockholders and spent $2.5 million to repurchase shares of AVX stock on the open market which are held as treasury stock.a

AVX, headquartered in Greenville, 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 ].