General Semiconductor Reports Fourth-Quarter 2000 Results

February 11, 2001 by Jeff Shepard

General Semiconductor Inc. (Melville, NY) reported results for the quarter and year ended December 31, 2000. Sales increased 6.3 percent, to $119.9 million, from the $112.8 million recorded in the fourth quarter of 1999. Sales of $493.7 million for the year increased 18.4 percent over the $417.1 reported in 1999 and reached a record high.

Fourth quarter operating income of $19.8 million represents a 7.6 percent increase over the $18.4 million for the same period a year ago. Gross margin improved to 32.5 percent of sales, compared with 30.8 percent in the fourth quarter of 1999. Net income rose 26.1 percent to $11.1 million from the $8.8 million reported a year ago. Diluted earnings per share were $0.26, a 13 percent increase over the $0.23 reported for the similar period.

Sequentially, sales decreased 8.1 percent from the record $130.5 million reported for the third quarter of 2000. For the year ended December 31, 2000, operating income rose 50.4 percent from $56.0 million to $84.2 million. Diluted earnings per share improved by 63.6 percent from $0.66 to a record high of $1.08.

“We are extremely pleased with the record performance of our business in 2000," stated Ronald A. Ostertag, chairman and CEO. “We are disappointed that the recent slowdown in technology spending and subsequent increase in inventory levels at several of our customers has effected our short term performance. However, we are very pleased with our progress against our power management strategy and are confident that our evolving new product portfolio will fuel the continued long term growth of General Semiconductor."