Bel Reports Record Revenue for the Fourth Quarter and 2005
Bel Fuse Inc. has announced preliminary and unaudited financial results for the three and 12 months ended Dec. 31, 2005, highlighted by record revenue for the fourth quarter and year as a whole. The company also reported that it repatriated $45 million in cash in the fourth quarter and a total of $70.6 million during 2005.
"Organic growth and acquisitions contributed to our solid performance for 2005," said Daniel Bernstein, president of Bel. "Our initiatives in the power products market are beginning to generate significant new business for Bel, and we believe that the company is well-positioned for the future. We also took advantage of the opportunity to repatriate a significant amount of cash during the year, which increases our flexibility as we continue to implement our strategy for long-term growth."
For the fourth quarter of 2005, revenue increased 15% to $56,684,000 compared to revenue of $49,289,000 for the fourth quarter of 2004. This increase was driven primarily by double-digit growth in sales of dc-dc converter power products and higher sales of MagJack® connector modules, and by revenue of about $3.6 million from the acquisitions of Galaxy and NetWatch earlier in the year. Reflecting a change in the mix of sales as well as higher energy, raw materials and transportation costs, gross margin declined to 26% from 29% a year earlier.
Earnings before income tax provision were $6,163,000 for the fourth quarter of 2005 versus $6,513,000 for the fourth quarter of 2004. Net earnings for the fourth quarter of 2005 were $3,265,000, or $0.28 per diluted share. This compares to net earnings of $6,028,000, or $0.51 per diluted share, for the prior-year period.
Net earnings for the fourth quarter of 2005 included taxes of about $2.1 million in connection with the repatriation of $45 million during the period. Before this tax, earnings were about $0.46 per diluted share.
At Dec. 31, 2005, Bel had cash, cash equivalents and marketable securities of about $93 million, working capital of about $130 million, a current ratio of 4.5-to-1, no long-term debt, and shareholders' equity of about $201.6 million.
For 2005, revenue increased 14% to $215,916,000, which included revenue from the acquisitions of Galaxy and NetWatch of about $12 million. Revenue for 2004 was $190,021,000.
Earnings before provision for income tax for 2005 were $27,715,000 compared to $28,371,000 for 2004.
Net earnings for 2005 were $20,233,000, or $1.75 per diluted share. This compares to net earnings for 2004 of $24,722,000, or $2.15 per diluted share.
Net earnings for 2005 included taxes of about $3.1 million in connection with the repatriation of $70.6 million during the year. Before this tax, earnings were about $2.01 per diluted share.
Bel and its subsidiaries are primarily engaged in the design, manufacture and sale of products used in networking, telecommunications, high-speed data transmission, automotive and consumer electronics.