General Semiconductor Reports Financial Results
General Semiconductor Inc. (Melville, NY) reported results for the quarter ended March 31, 2001. Sales for the quarter were $102.0 million, a decrease of 11.3 percent from the $115.0 million reported for the fourth quarter of 2000. Operating income for the quarter, excluding one-time pre-tax restructuring charges, was $10.2 million, a 46 percent decrease from $18.9 million for the same period a year ago. Diluted earnings per share, excluding one-time after-tax charges, were $0.12, compared to the $0.23 recorded in the first quarter of 2000.
As announced on February 8, 2001, the company implemented a restructuring program to improve its cost structure, resulting in one-time pre-tax restructuring and asset charges of $12.9 million in the first quarter. New products represented seven percent of sales in the quarter, compared to four percent in the same quarter a year ago.
Chairman and CEO Ronald A. Ostertag commented, “While the broad-based economic slowdown has affected our near-term revenue growth, we have taken the necessary actions to ensure our cost structure remains competitive. New products, which are generating a growing percentage of sales, the breadth of our geographic reach and the diversity of our businesses combine to put us in an enviable competitive position to weather the current economic downturn."
General Semiconductor reports that, based on current market conditions, the company expects that revenues will be slightly down sequentially, with diluted earnings per share remaining approximately flat as the company begins to benefit from its cost restructuring program. “We are cautiously optimistic about the second half of the year," stated Robert J. Grange, senior vice president and CFO. “We believe that the combination of successful new products and the continued reduction of inventories in the channel will lead to a return to sequential revenue growth in the third quarter."