Artesyn Technologies Reports Results for the Second Quarter and First Half of 2000

January 30, 2001 by Jeff Shepard

Artesyn Technologies Inc. (Boca Raton, CA) reported record sales of $164.3 million and $323.9 million, for the three and six months ended June 30, 2000 respectively. Cash earnings, which exclude the after-tax effect of goodwill amortization, also increased to record levels of $12.4 million, or $0.32 per diluted share for the three months ended June 30, 2000 and $23.5 million, or $0.61 per diluted share for the six months ended June 30, 2000. Cash earnings increased 14 and 25 percent, respectively, over comparable 1999 periods.

Artesyn also reported record orders and backlog, continuing the trend of the last eight quarters as orders for the second quarter rose to $226.3 million yielding a 1.38 book-to-bill ratio. Gross margin improved to 27.5% in the second quarter of 2000, compared to 25.3% in the second quarter of 1999.

Commenting on the quarter, President and CEO Joseph M. O'Donnell said, "We are very pleased with the performance of the company and the strong customer demand reported in the second quarter, especially in light of the difficult component supply availability experienced industry-wide. We are further encouraged by customer response to our new product offerings, including dc/dc point-of-load converters, ac/dc power supplies for the RAID mass storage market, a number of products directed to mid- and low-end file servers and adapters to serve the access market."