Artesyn Reports Fourth-Quarter 2001 Results

January 21, 2002 by Jeff Shepard

Artesyn Technologies Inc. (Boca Raton, FL) reported financial results for the fourth quarter and full year ended December 28, 2001. Revenue for the quarter totaled $107.4 million, down from $183.6 million a year ago.

The company incurred a cash loss of $0.10 per diluted share for the quarter, excluding charges and a one-time gain. This compares to cash earnings of $0.27 per diluted share in 2000. For the full year, sales totaled $494.0 million with a cash loss of $0.52 per diluted share, excluding charges and a one-time gain. Total orders during the quarter rose to $116.0 million, the highest level of the year. The book-to-bill ratio also improved to 1.08, with a total quarter ending backlog of $92.4 million.

Including the impact of charges and a one-time gain, the company's cash earnings were $0.35 per diluted share in the fourth quarter, and a cash loss of $0.62 per diluted share for the full year. Net income for the quarter was $11.5 million, with a loss of $31.8 million for the year.

"The initial signs of stabilization that we saw during the third quarter continued in the fourth, as both orders and backlog strengthened," commented Artesyn's President and CEO Joseph O'Donnell. "The degree of stability, however, varies by end market, with the storage, server and wireless markets slightly ahead of the cycle. Although revenues were relatively flat with the third quarter, we continued to realize the benefits of our cost-cutting efforts. The increase in gross margin, combined with lower operating expenses, allowed us to significantly improve bottom-line performance from the third to the fourth quarter."