Artesyn Reports Second-Quarter 2005 Results

Artesyn Technologies Inc. (Boca Raton, FL), a manufacturer of power conversion and embedded board solutions for infrastructure applications in telecommunications systems, reported financial results for the second quarter ended July 1, 2005. Sales for the second quarter of 2005 were $108.1 million, compared to $105.5 million for the corresponding quarter in 2004. For the first six months of 2005, sales were $210.5 million compared to $202.0 million for the same period last year. Total orders received during the quarter were $100.2 million, yielding a book-to-bill ratio of 0.93. Backlog at the end of the quarter was $77.7 million with approximately 91 percent shippable during the third quarter.

During the second quarter, Artesyn had 27 major design wins that the company estimates will realize approximately $221 million in lifetime project revenues. For the first six months of 2005, the company had 57 major design wins and estimates lifetime project revenues of approximately $575 million to be realized in the next two to four years.

Net income for the second quarter of 2005 was $0.1 million, or $0.00 per share, compared to net income of $3.1 million, or $0.08 per share, in the second quarter of 2004. Included in net income for the second quarter were $3.3 million of restructuring charges associated with an initiative to reduce operating costs. The restructuring charges, net of tax, totaled $2.7 million, or $0.07 per share, during the quarter. Net income for the first six months of 2005 was $2.0 million, or $0.05 per share, compared to net income of $5.0 million, or $0.13 per share, for the same period in 2004.

The company expects the second half of 2005 to improve sequentially each quarter. Sales growth for the second half of 2005 is expected to range between 8 percent and 10 percent compared to the first half of the year. Second-half operating costs may increase approximately $0.03 per share. There will also be restructuring charges of approximately $0.02 per share in the second half. Including these non-recurring costs and restructuring charges, earnings per share for the second half of 2005 will range between $0.19 and $0.23 per share.