Product category:
DC/DC Convertors
News Release from: Emerson Network Power - Embedded Power
Edited by the Electronicstalk Editorial
Team on 30 January 2004
New technologies bring Artesyn back from
brink
Artesyn Technologies has reported financial results for the fourth quarter and year ended 26th December 2003.
Artesyn Technologies has reported financial results for the fourth quarter and year ended 26th December 2003 Sales reported for the fourth quarter of 2003 were $99.3 million compared with $83.4 million for the same quarter last year
This article was originally published on Electronicstalk on 4 Feb 2000 at 8.00am (UK)
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Net income for the fourth quarter was $1.2 million, or earnings per share of $0.03, compared with a net loss of $35.6 million, or $(0.93) per share for the fourth quarter a year ago.
Restructuring charges incurred in the fourth quarter of 2003 were $0.5 million ($0.01 per share), net of tax benefits, compared with restructuring and other charges of $29.9 million ($0.78 per share), net of tax benefits, for the same period last year.
The fourth quarter 2003 restructuring charges included asset transfer and personnel related costs associated with previously announced cost reduction initiatives.
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Artesyn reported sales for the 52 weeks ended 26th December 2003 of $356.9 million compared with $350.8 million during the same period in 2002.
The net loss incurred during 2003 was $15.6 million, or $(0.40) per share compared with a net loss of $108.8 million, or $(2.84) per share for fiscal year 2002.
Restructuring and other charges, net of tax benefits, incurred during 2003 were $8.2 million ($0.21 per share), compared with $85.2 million ($2.23 per share) in the prior year.
Total orders received during the fourth quarter of 2003 were $107.0 million, yielding a book-to-bill ratio of 1.08.
The year ended with backlog of $86.7 million with approximately 91% shippable during the first quarter.
Commenting on the quarter, Artesyn's Chief Executive Officer and President, Joseph O'Donnell acknowledged: "We are pleased to announce that for the first quarter since 2001, Artesyn reported a profit and exceeded the first call mean for revenue growth and profitability.
Revenue gains were a result of increased customer demand across our markets.
Gross margin improved for the fourth consecutive quarter to 22.4% due to higher revenues, increased DC/DC sales and improved manufacturing efficiencies".
O'Donnell continued: "Over the past two years, the Company has taken cost reduction actions and set near-term goals to better position Artesyn for a rebound in communications.
The goals set for 2003 were to grow revenue, achieve profitability on a quarterly basis, improve liquidity and continue investing in research and development.
I am pleased to report that Artesyn met these objectives in 2003.
Revenue grew on a sequential quarterly basis and for the year.
Additionally, the company achieved profitability during the fourth quarter while operating at production capacity levels of approximately 75%.
The improvement in our operating capacity is a direct result of the restructuring initiatives to consolidate manufacturing operations by moving almost all production to our lower cost China and Hungary plants.
Additionally, through continued working capital efficiency gains, Artesyn improved its net cash position and ended the year with positive cash less debt for the first time in more than four years".
"Finally, during 2003 the company spent nearly 10% of revenue investing in technology and new products to continue our market leading position in offering customers smaller, faster and more efficient products.
Artesyn has already benefited from these investments, as seen from leading edge products like point-of-load (POL) convertors.
In 2003, POL revenues grew to $40 million from its introduction a little more than two years ago, and we expect nearly 50% growth during 2004 in the eight POL product families we are currently shipping.
Other product introductions during the year included the new Typhoon line of DC/DC convertors and our entrance into the intermediate bus convertor market - a new architecture to complement POL technology.
During 2003, we launched 105 new standard products and were awarded 77 major design wins totalling nearly $600 million of lifetime revenue".
"As we enter 2004, Artesyn's objectives will be to maintain profitability for the fiscal year, grow market share, enter new communication market segments and continue to invest in industry leading technology.
With these goals in mind and the continuation of improving industry trends, we expect Artesyn to end the year with revenue growth in the high single- to low double-digit range, maintain steady gross margin improvements and continue solid earnings growth.
As a management team, we are confident that Artesyn is poised to continue increasing share in what now appears to be the initial phase of an improving communications market", concluded O'Donnell.
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