Sales leap ahead for Nu Horizons

Nu Horizons Electronics Corp has reported financial and operating results for the second quarter and six months ended 31st August 2004.

Nu Horizons Electronics Corp has reported financial and operating results for the second quarter and six months ended 31st August 2004.

Net sales for the quarter ended 31st August 2004 were $119.2 million compared with $80.0 million for the comparable period last year, an increase of 49%.

Net income for the quarter was $1,186,000 or $0.07 per share on 16,884,147 basic shares outstanding, compared with a net loss of $623,000 or $0.04 per share on 16,681,145 basic and diluted shares outstanding in the same period last year.

For the six months ended 31st August 2004, net sales increased to $237.4 million from $152.8 million in the comparable period last year, an increase of 55%.

Net income for the first half of fiscal 2005 was $2,372,000 or $0.14 per share on 16,884,147 basic shares outstanding, compared with a net loss of $1,454,000, or $0.09 per share on 16,678,093 basic and diluted shares outstanding in the year-earlier period.

Arthur Nadata, Chairman of the Board and Chief Executive Officer of Nu Horizons, said: "Sales and net income, year over year and quarter over quarter, showed substantial gains as our industry continued its recovery from the downturn experienced a few years ago".

"While we were able to report a slight increase in sequential sales for the quarter ended 31st August 2004, $119.2 million as compared to $118.2 million for the quarter ended 31st May 2004, in practical terms sales remained relatively flat after five quarters of substantial sequential sales increases".

Nadata continued: "This slowing in our sequential rate of growth appears to be an industry-wide phenomenon, which also coincides with the historically slower sales activity in the summer period".

"The question is whether it is a temporary pause or a more permanent slowing of industry growth".

"We believe that the next six to nine months will result in a more modest sequential industry growth rate than was experienced over the past eighteen months".

Nadata concluded: "Our gross margins appear to have stabilised and have actually improved modestly over the past two quarters".

"We believe that our overall sales growth should continue to be positively impacted by our demand creation model approach which should allow us to maintain margins as well as continue to increase our market share although no assurances can be given in this regard".

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