MagneTek Announces Fiscal 2000 Results
MagneTek Inc. (Los Angeles, CA) reported increases in revenue, income and earnings per share for fiscal 2000, ended June 30, 2000, compared with prior year results. Operations that are for sale were reported on a discontinued basis, as the company focuses exclusively on fast-growing markets for digital power products. Continuing operations reported total revenue of $293.6 million, up 27 percent from $231.3 million reported the year before. Gross profit increased 54 percent to $63.2 million (21.5 percent of revenue), up from $40.9 million (17.7 percent of revenue) in the prior year. Operating income was $6.8 million and net income was $1.3 million, or $0.05 per diluted share versus losses in the prior year. Including gains on the disposal of discontinued operations, MagneTek's total net in-come in fiscal 2000 amounted to $42.2 million, or $1.70 per diluted share, versus $38.5 million, or $1.25 per diluted share, in fiscal 1999. MagneTek announced in July that in order to focus exclusively on fast-growing markets for its digital power electronic products, it would divest all of its remaining electrical equipment operations. Before being accounted for as discontinued for reporting purposes, these operations represented over half of the $662.0 million in total revenue reported by the company in fiscal 1999. Company Chairman, President and CEO Andrew G. Galef, stated that the MagneTek discontinued operations are not lacking in capability or potential, and that interest has been received from a number of highly qualified strategic and financial parties. "While we cannot divulge the identities of interested parties, we are generally satisfied with the range and magnitude of interest expressed."