Artesyn Technologies Inc. (Boca Raton, FL) reported financial results for the first quarter ending on April 1, 2005. Sales reported for the first quarter of 2005 were $102.5 million compared to $96.5 million for the same quarter last year. Net income and earnings per share for the first quarter of 2005 and 2004 were each approximately $1.9 million, and $0.05 per share, respectively.
Included in net income for the first quarter of 2005 is approximately $675,000, net of tax, representing the recovery of expenses under an indemnification from a previous technology license agreement. Total orders received during the first quarter of 2005 were $101.0 million, yielding a book-to-bill ratio of 0.99. Backlog at the end of the quarter was $85.6 million with approximately 87% shippable during the second quarter. There were 30 major design wins during the first quarter, which Artesyn estimates will realize approximately $357 million in revenues over the next two to four years.
Artesyn CEO and President Joseph O’Donnell commented, "While first-quarter sales grew year-over-year, the financial results were disappointing compared to our expectations entering the quarter. Sales were negatively impacted by customer delays in launching new programs initially scheduled for the first quarter. While these product introductions have been rescheduled for later in 2005, this year’s revenue expectations have been lowered, as there will be fewer months of volume production in 2005. We will continue to invest in new technologies and products; however, to guard against the timing risk associated with customer systems introductions, we have taken measures to reduce operating expenses throughout the company."
The company remains enthusiastic about the year and anticipates 2005 revenue growth between 8% and 12%, and 2005 diluted earnings per share growth between 20% and 35%, with a majority of the growth occurring in the second half of the year.
