Artesyn Reports Lower Q1 Revenue
Artesyn Technologies, Inc. announced revenue for the quarter totaled $81.9 million, versus $90.5 million for the corresponding quarter a year ago. Total orders received in the quarter were $87.1 million, yielding a book-to-bill ratio of 1.06. Backlog at the end of the quarter was $78.0 million with approximately $73.0 million of this amount scheduled to ship in the second quarter.
"Demand in the first quarter was consistent with our expectations and we are encouraged by the book-to-bill ratio," commented Artesyn's President and CEO, Joseph M. O'Donnell. "While we are seeing some signs of market stabilization, we anticipate only modest sequential improvements in revenue for the remainder of 2003."
The company incurred a loss of $(0.19) per diluted share for the quarter compared to a loss of $(0.19) per diluted share in the first quarter of 2002. Excluding restructuring and other charges, the loss per diluted share was $(0.13) in the first quarter of 2003 compared to a loss of $(0.17) for the same period in 2002. During the first quarter 2003, the company incurred charges net of tax benefit of approximately $1.8 million related to previously announced restructuring actions and facility consolidations and a write-off of $0.6 million of debt issuance costs associated with the company’s recently announced credit facility. The company incurred $0.8 million in after-tax restructuring charges in the comparable prior year period.
Loss per diluted share excluding restructuring and other charges shown above is not a recognized measure for financial statement presentation under U.S. generally accepted accounting principles. This non-GAAP information excludes items that are generally “non-recurring” in nature to provide the reader with a clearer picture of current fundamental operating performance from management’s perspective.
"Operating performance improved sequentially in the first quarter of 2003 compared to the fourth quarter of 2002", continued Mr. O’Donnell. "Gross profit rose to 16.4% from 14.8% as the impact of previously announced cost reduction actions began. Looking ahead, gross profit will be impacted positively with the closure of the Kindberg, Austria facility in April and the Youghal, Ireland manufacturing facility in September as production is moved to the company’s lower-cost manufacturing locations in Hungary and China."
"We achieved our liquidity objective in March by entering into a new five-year, $35 million revolving line of credit with Fleet Capital Corporation. The new asset-backed line replaces the company’s $40 million syndicated revolving credit facility which was due to expire in March 2004. Following the execution of the new agreement, our cash balance was approximately $51.9 million, with $10.5 million drawn on the new line."
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