Cherokee International Reports First Quarter 2007 Financial Results
Cherokee International Corp. announced its financial results for the first quarter ended April 1, 2007. Net sales for the first quarter of 2007 were $30.0 million, down 17% compared to $36.1 million for the first quarter of 2006. Sequentially, net sales for the first quarter 2007 were down $7.6 million or 20% when compared to $37.6 million for the fourth quarter of 2006.
Net loss for the first quarter of 2007 was $2.0 million, or $0.10 per diluted share, compared to net income of $0.8 million, or $0.04 per diluted share, for the first quarter a year ago, and was down $2.3 million sequentially from a $0.3 million net income or $0.01 per diluted share in the fourth quarter of 2006.
Gross profit for the first quarter was $5.7 million, down 33% compared to $8.5 million for the same period in 2006, and down 24% sequentially from the fourth quarter of 2006. Gross margin of 19.0% for the first quarter 2007 was down from the 24% realized in the first quarter of 2006 and also down sequentially from the 20% realized in the fourth quarter of 2006.
Operating expenses were $7.8 million for the first quarter 2007 compared to $6.6 million for the first quarter of 2006, and $7.1 million for the fourth quarter of 2006. As a percentage of sales, operating expenses were 26% compared to 18% in the same quarter of 2006 and 19% for the fourth quarter of 2006.
"Our engineering teams have a record number of projects under development in all of our design centers with a high level of quote activity," said Jeffrey M. Frank, Cherokee’s President and Chief Executive Officer. "We anticipate the second half of 2007 to be much stronger than the first half for two main reasons. First, we see new design wins from 2006 turning into revenue; and second, our Triple Play markets are expected to contribute to revenue."
