Product category:
DC/DC Convertors
News Release from: Emerson Network Power - Embedded Power
Edited by the Electronicstalk Editorial
Team on 28 October 2003
Artesyn edges towards break-even point
Artesyn Technologies has reported financial results for the third quarter ended 26th September 2003.
Artesyn Technologies has reported financial results for the third quarter ended 26th September 2003 Sales reported for the third quarter of 2003 were $88.0 million compared with $86.0 million for the corresponding quarter last year
This article was originally published on Electronicstalk on 4 Feb 2000 at 8.00am (UK)
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For the first nine months of 2003, Artesyn reported sales of $257.5 million compared with $267.4 million for the same period last year.
Total orders received during the quarter were $84.1 million, yielding a book-to-bill ratio of slightly less than one.
Backlog at the end of the quarter was $79.0 million, with approximately 94% shippable during the fourth quarter.
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Artesyn incurred a net loss of $5.2 million, or $(0.14) per share for the third quarter compared with a net loss of $55.7 million, or $(1.45) per share, in the third quarter of 2002.
Excluding the impact of third quarter restructuring and other charges, Artesyn incurred a net loss of $(0.03) per share compared with $(0.16) per share for the same quarter last year.
For the first nine months of 2003, Artesyn incurred a net loss of $16.9 million, or $(0.44) per share compared with a net loss of $73.2 million, or $(1.91) per share, in the comparable period in 2002.
Restructuring and facility consolidation charges included in the third quarter 2003 net loss were $1.3 million, net of tax benefits, compared with $1.1 million, net of tax benefits, for the same period last year.
In addition, the company recorded debt extinguishment expenses during the third quarter of 2003, related to the repayment of the company's $50 million convertible note due in 2007, of $2.7 million, net of tax benefits.
During the third quarter of 2002, the company took goodwill impairment charges of $48.3 million, net of tax benefits.
"As expected, third quarter revenue had modest sequential growth but notably was higher than the same quarter in the prior year for the first time in nearly three years", commented Artesyn's Chief Executive Officer, Joseph O'Donnell.
"We are pleased with the progress towards breakeven as gross margins continue to improve sequentially, topping 20% this quarter for the first time since the fourth quarter of 2000.
This improvement was achieved a quarter earlier than projected as a result of savings from the closure of the Irish plant and favourable product mix".
"During the quarter, we completed our financial restructuring with the placement of $90 million of convertible notes in August which resulted in ending cash balances of approximately $96 million - an adequate level to sustain working capital needs as our key end markets rebound.
Additionally, positive cash flow from operations allowed us to improve our net debt position even after the absorption of almost $4 million in fees related to the convertible notes offering".
Concluding, O'Donnell said: "Artesyn is continuing to reinforce our market position within the communications industry as seen from 22 major third quarter project wins totalling more than $165 million of estimated lifetime project revenue.
There were 52 project wins year-to-date and all project wins this year are expected to generate more than $450 million of lifetime revenue for the Company.
Additionally, our standard products division in the Power Conversion group and our Communications Products segment, both higher margin businesses, are gaining market share and performing better than plan.
These project wins, growth in our higher margin businesses and rising demand in new technologies such as point-of-load continue to reflect Artesyn's leadership position in the communications market".
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