Vishay Reports Results for First Quarter 2007

Vishay Intertechnology Inc. announced that net revenues for the fiscal quarter ended March 31, 2007 were $658.2 million, compared to $631.1 million for the fiscal quarter ended April 1, 2006. Net earnings for the fiscal quarter ended March 31, 2007 were $50.0 million, or $0.25 per diluted share, compared with net earnings for the fiscal quarter ended April 1, 2006 of $38.2 million, or $0.20 per diluted share.

Net earnings of $50.0 million, or $0.25 per diluted share, for the fiscal quarter ended March 31, 2007 were impacted by restructuring and severance costs of $2.0 million, or $0.01 per share net of tax. Net earnings of $38.2 million, or $0.20 per diluted share, for the fiscal quarter ended April 1, 2006 were impacted by pre-tax charges for restructuring and severance costs and related asset write-downs of $0.8 million, losses resulting from adjustments to previously existing purchase commitments of $3.3 million and an $8.2 million write-down of tantalum inventories to then-current market value. These items and their tax-related consequences had a negative $0.05 effect on earnings per share.

Commenting on the results for the first quarter 2007, Dr. Gerard Paul, President and CEO, stated, "Vishay had a strong start into the year 2007. Solid demand from substantially all regions and end markets resulted in a higher level of revenues than anticipated. Orders for the first quarter were up by 10% compared to the previous quarter. Gross margins for the first quarter 2007 recovered to 26.6% from a disappointing 24.4% in the fourth quarter 2006. Operating margins were at a respectable 10.0%. During April we integrated International Rectifier’s Power Control Systems (PCS) business into the Vishay organization. We expect it to be slightly accretive already in the current quarter. In accordance with previous statements, we project a contribution of approximately $14 million from the IR acquisition to Vishay’s operating profit for the first quarter 2008."

Commenting on the company’s acquisition activities, Dr. Felix Zandman, Executive Chairman of the Board and Chief Technical and Business Development Officer, stated, "On April 1, we completed the acquisition of International Rectifier’s PCS business. The acquired product lines, which complement Vishay’s existing product portfolio, consist of planar high-voltage MOSFETs, Schottky diodes, diode rectifiers, fast-recovery diodes, high-power diodes and thyristors, power modules (a combination of power diodes, thyristors, MOSFETs, and IGBTs), and automotive modules and assemblies. The extension of Vishay’s product offerings in the high-voltage and high-power range for discrete semiconductors represents another step in Vishay’s successful strategy of being able to offer one-stop-shop service for discrete electronic components."

Dr. Zandman continued, "In April as well we successfully completed the offer to acquire the whole of the issued share capital of UK based PM Group Plc. We intend to only retain PM Group’s on-board vehicle weighing business, PM Onboard. The total net cost to Vishay for this business is approximately GBP 13.2 million ($26.5 million). Revenues for PM Group’s on-board vehicle weighing business were in the year ended December 31, 2006 GBP 15.4 million ($30.8 million). PM Onboard is an advanced designer and manufacturer of systems used in the weighing and process control industries. This strategic acquisition fits Vishay’s plan for vertical integration in its Measurements Group – to expand from the base technology of strain gages where Vishay is the market leader to transducers and instruments to weighing systems and process control. This acquisition will provide for Vishay’s Measurements Group the foundation for growth in Europe in the market for bulk haulage. In addition, the expertise of PM Onboard can be used in the Americas and Asia to expand beyond bulk haulage into other areas of weighing systems and process control."