Bel Fuse Inc. announced preliminary unaudited financial results for the fourth quarter and 2009. Net sales for the three months ended December 31, 2009 decreased to $48,665,000 compared to $58,063,000 for the fourth quarter of 2008, but increased 7.5% sequentially compared to $45,283,000 for the third quarter of 2009. The operating loss for the fourth quarter of 2009 narrowed to $808,000, compared to an operating loss of $18,264,000 for the fourth quarter of 2008 and an operating loss of $15,930,000 for the third quarter of 2009. The operating loss in the fourth quarter of 2008 was impacted by a $14,066,000 charge for impairment of goodwill, as well as $739,000 for impairment of fixed assets and restructuring charges of $793,000 for the termination of manufacturing operations at the company’s dc-dc manufacturing facility in Massachusetts. During the third quarter of 2009, the company recorded an additional $12,875,000 charge for impairment of goodwill, and recorded a $2 million settlement of a lawsuit.
Net income for the fourth quarter of 2009 included a pre-tax net gain of $5,390,000 ($3,342,000 or $0.29 per share after tax) primarily from the sale of the company’s equity interest in Power-One, Inc.. This gain represents the difference between the sales price of the Power-One shares and the written-down value at December 31, 2008 (based on original cost, the company actually realized a gain on the sale of Power-One shares in the amount of $2,860,000, or $1,773,000 after tax). This gain more than offset an operating loss of $808,000, which included costs of $550,000 ($344,000 or $0.03 per share after tax) related to the Cinch acquisition and severance costs of $130,000 ($81,000 or $0.01 per share after tax).
The net loss for the fourth quarter of 2008 included a charge of $6,328,000 primarily associated with a write-down of the market value of Bel’s investment in the common stock of Power One. Net earnings per diluted Class A common share for the fourth quarter of 2009 were $0.23, compared to a net loss per Class A common share of $1.75 for the fourth quarter of 2008. Net earnings per diluted Class B common share were $0.25 for the fourth quarter of 2009, compared to a net loss per diluted Class B common share of $1.82 for the fourth quarter of 2008.
At December 31, 2009, Bel reported working capital of approximately $167,800,000, including cash, cash equivalents, short-term investments and marketable securities of approximately $124,233,000, a current ratio of 7.0, total long-term obligations of $9,017,000, and stockholders’ equity of $208,932,000. In comparison, at December 31, 2008, Bel reported working capital of approximately $164,000,000, including cash, cash equivalents, short-term investments and marketable securities of approximately $92,700,000, a current ratio of 6.5, total long-term obligations of $14,377,000, and stockholders’ equity of $217,773,000. Bel repurchased a total of 6,070 of its Class A common shares during 2009 for $92,000.
For the twelve months ended December 31, 2009, net sales were $182,753,000 compared to $258,350,000 for 2008. The net loss for 2009 was $8,310,000, compared to a net loss of $14,929,000 for 2008. The net loss per Class A common share for 2009 was $0.71, compared to a net loss per Class A common share of $1.25 for 2008. The net loss per Class B common share for 2009 was $0.72, compared to a net loss per Class B common share of $1.28 for 2008.
