Artesyn Technologies Reports First-Quarter ResultsMay 02, 2001 by Jeff Shepard
Artesyn Technologies Inc. (Boca Raton, FL) reported financial results for the first quarter ended March 30, 2001. Revenue for the quarter totaled $150.3 million, a decrease of six percent from $159.6 million a year ago. The company incurred a cash loss for the quarter of $0.07 per diluted share, compared to cash earnings of $0.29 per diluted share in 2000. These results are in line with the updated guidance provided on March 15, 2001.
Orders booked in the first quarter totaled $113.2 million, with an ending backlog of $189.8 million. This compares to $196.2 million and $174.2 million, respectively, in the same period a year ago.
“As we announced last month, early in the quarter, we noticed a significant drop in demand from a number of our customers," commented Artesyn President and CEO Joseph O'Donnell. “This trend accelerated during the quarter as order cancellations and push-outs became commonplace. Unfortunately, the lower revenue, combined with manufacturing inefficiencies and the utilization of premium-priced components ordered during the fourth quarter of 2000, resulted in a significant decline in profitability."
“We have not seen any evidence to suggest that market conditions will improve materially during the second quarter," continued O'Donnell. “We are continuing to examine all areas of our business for ways to reduce cost, while investing to improve our competitive position."