Vishay Reports Results for First Quarter 2009
Vishay Intertechnology, Inc. announced that net revenues for the fiscal quarter ended March 28, 2009 were $449.5 million, compared to $733.3 million for the fiscal quarter ended March 29, 2008. The net loss attributable to Vishay stockholders for the fiscal quarter ended March 28, 2009 was $29.1 million or $0.16 per share, compared to a net loss attributable to Vishay stockholders of $30.7 million or $0.16 per share for the fiscal quarter ended March 29, 2008.
The net loss attributable to Vishay stockholders for the fiscal quarter ended March 28, 2009 was impacted by pretax charges for restructuring and severance costs of $18.9 million, which had a $0.08 per share after-tax effect on the net loss.
The net loss attributable to Vishay stockholders for the fiscal quarter ended March 29, 2008 was impacted by pretax charges for restructuring and severance costs of $18.2 million and related asset write-downs of $4.2 million. These items and their tax-related consequences had a negative $0.10 per share effect on income from continuing operations attributable to Vishay stockholders. The net loss for the fiscal quarter ended March 29, 2008 also included a loss on discontinued operations of $42.1 million, or $0.23 per share.
As previously disclosed, Vishay was required to adopt two new accounting standards on January 1, 2009, which required retrospective adjustment of previously issued financial statements. The retrospective application of FSP APB 14-1 increased previously reported interest expense by $6.1 million, or $0.03 per diluted share for the first quarter of 2008.
Commenting on the results for the first quarter 2009, Dr. Gerald Paul, President and Chief Executive Officer stated, "As we have reacted quickly to this unprecedented recession, we were able to substantially reduce the impact on Vishay’s performance. We are ahead of our program to reduce fixed costs in manufacturing and SG&A by $150 million in 2009 compared to 2008: our fixed costs in the first quarter 2009 were $54 million lower compared to the first quarter 2008."Dr. Paul continued, "Our business seems to have bottomed out in the first quarter. Semiconductors already show first signs of a recovery in the course of the quarter, picking up even more in April. However the passive components with their stronger exposure to the automotive and industrial segments in Europe and the US may still decline slightly. During preceding downturns passive components followed for Vishay the lead of semiconductors by several months. Cash generated from operations was $53 million and capital expenditures were $11 million in the first quarter 2009. We now project capital expenditures to be below $50 million for 2009. Despite an expansion of our restructuring plans we project the cash outlay for restructuring and severance programs to be approximately $50 million in 2009. As a result of our efforts we expect a strong free cash flow for the company even in this year of recession."
Commenting on the company’s acquisition and R&D activities, Dr. Felix Zandman, Executive Chairman of the Board and Chief Technical and Business Development Officer, stated, "Due to the severe recession we will not actively pursue acquisitions. Our focus continues to be on generating and conserving cash. We are pleased to report a strong free cash generation. As a result of our R&D programs we will continue to roll out the new products the market demands. I remain optimistic about the future of electronics and of our business specifically."