Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) today
announced preliminary unaudited financial results for the second
quarter and first six months of 2009.
Second Quarter Results
Net sales for the three months ended June 30, 2009 decreased to
$44,934,000 compared to $72,454,000 for the second quarter of 2008.
The net loss for the second quarter of 2009 was $1,272,000. This
compares to net earnings for the second quarter of 2008 of
$1,811,000.
The $2.9 million loss from operations for the second quarter of
2009 was affected by $1.6 million ($1.0 million or $0.08 per share
after tax) in severance and other one-time charges. Labor
inefficiencies and moving expenses for the consolidation of Bel's
South China manufacturing operations also affected the Company's
second quarter performance. These costs were partially offset by a
GAAP net gain of $1.1 million ($0.7 million or $0.06 per share
after tax) on the sale of a portion of the Company's equity
interest in Power-One, Inc., which reduced Bel's ownership to 4.9%.
This gain represents the difference between the sales price of the
Power-One shares and the written down value at December 31, 2008
(based on original cost, the Company actually incurred a loss on
the sale of Power-One shares in the amount of $1.2 million ($0.8
million or $0.06 per share after tax)).
The net loss per Class A common share was $0.11 for the second
quarter of 2009, compared to diluted earnings per Class A common
share of $0.14 for the second quarter of 2008. The net loss per
Class B common share was $0.11 for the second quarter of 2009,
compared to diluted earnings per Class B common share of $0.16 for
last year's second quarter.
"Conditions in our industry remain challenging. Sales volumes
were down across all of our product lines compared to the second
quarter last year. We are encouraged that second quarter sales
increased sequentially, compared to the recent first quarter of
2009, and although we believe that the previous first quarter
reflects the bottoming of industry demand, our visibility and our
customers' visibility remains limited. Cash flows from operations,
including accounts receivable and inventory, generated more than
$5,000,000 in cash during the second quarter, and more than
$20,000,000 for the year's first half. With our increasingly
efficient operating platform, strong financial position, and close
customer relationships, we are well-positioned to benefit when
demand rebounds," said Daniel Bernstein, Bel's President and
CEO.
At June 30, 2009, Bel reported working capital of approximately
$164,500,000, including cash, cash equivalents, short-term
investments and marketable securities of approximately
$114,800,000, a current ratio of 8.3, total long-term obligations
of $10,408,000, and stockholders' equity of $218,192,000. At
December 31, 2008, Bel reported working capital of approximately
$164,000,000, including cash, cash equivalents, short-term
investments and marketable securities of approximately $92,700,000,
a current ratio of 6.5, total long-term obligations of $14,377,000,
and stockholders' equity of $217,773,000. Bel did not repurchase
any Class A common shares during the second quarter of 2009.
Six Month Results
For the six months ended June 30, 2009, net sales were
$88,805,000 compared to $133,323,000 for the first six months of
2008. The net loss for the first half of 2009 was $456,000,
compared to net earnings of $3,978,000 for the first half of
2008.
For the six months ended June 30, 2009, the net loss per Class A
common share was $0.05 compared to diluted earnings per common
share of $0.31 for the first six months of 2008. The net loss per
Class B common share was $0.04 compared to diluted net earnings per
common share of $0.34 for the prior year.
Conference Call
Bel has scheduled a conference call at 11:00 a.m. EDT today. To
participate in the call, dial (719) 325-4888, passcode #3841562. A
simultaneous webcast of the conference call may be accessed from
the Investor Info link at www.belfuse.com. A replay will be
available after 1:00 p.m. EDT, for a period of 20 days, at this
same Internet address. For a telephone replay, dial (888) 203-1112,
passcode #3841562 after 1:00 p.m. EDT.
About Bel
Bel (www.belfuse.com) and its subsidiaries are primarily engaged
in the design, manufacture and sale of products used in networking,
telecommunications, high speed data transmission, and consumer
electronics. Products include magnetics (discrete components, power
transformers and MagJack®s), modules (DC-DC converters, integrated
analog front end modules and custom designs), circuit protection
(miniature, micro and surface mount fuses) and interconnect devices
(passive jacks, plugs and cable assemblies). Bel operates
facilities around the world.
Forward-Looking Statements
Except for historical information contained in this news
release, the matters discussed in this press release (including
statements regarding a rebound in demand and the Company's
repositioning for any such rebound; and any statement regarding the
bottoming of industry demand) are forward looking statements that
involve risks and uncertainties. Among the factors that could cause
actual results to differ materially from such statements are: the
market concerns facing our customers, the continuing viability of
sectors that rely on our products, the effect of business and
economic conditions; capacity and supply constraints or
difficulties; product development, commercializing or technological
difficulties; the regulatory and trade environment; risks
associated with foreign currencies; uncertainties associated with
legal proceedings; the market's acceptance of the Company's new
products and competitive responses to those new products and the
risk factors detailed from time to time in the Company's SEC
reports. In light of the risks and uncertainties, there can be no
assurance that any forward-looking statement will in fact prove to
be correct. We undertake no obligation to update or revise any
forward-looking statements.
BEL FUSE INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (000s omitted, except for per share data)
Three Months Ended Six Months Ended June 30, June 30,
2009 2008 2009 2008 (unaudited) (unaudited) Net Sales
$ 44,934 $ 72,454 $ 88,805 $ 133,323
Costs and expenses: Cost of sales 40,192 59,317 78,403
108,955 Selling, general and administrative 7,601 9,284 15,254
18,217 Restructuring charge -- -- 413 -- (Gain) loss on sale of
property, plant and equipment 13 --
(4,652 ) -- 47,806
68,601 89,418 127,172
(Loss) income from operations (2,872 ) 3,853 (613 ) 6,151
Other, net 1 (2 ) 9 (1 ) Realized gain (loss/impairment charge) on
investment 1,081 (2,352 ) 1,083 (2,633 ) Interest income 126
605 307 1,518
(Loss) earnings before (benefit) provision for income taxes
(1,664 ) 2,104 786 5,035 Income tax (benefit) provision
(392 ) 293 1,242 1,057
Net (loss) earnings $ (1,272 ) $ 1,811 $ (456
) $ 3,978 (Loss) earnings per Class A common share -
basic $ (0.11 ) $ 0.14 $ (0.05 ) $ 0.31 (Loss) earnings per Class A
common share - diluted $ (0.11 ) $ 0.14 $ (0.05 ) $ 0.31
Weighted average Class A common shares outstanding
Basic 2,175 2,525 2,176 2,529 Diluted 2,175
2,525 2,176 2,529 (Loss)
earnings per Class B common share - basic $ (0.11 ) $ 0.16 $ (0.04
) $ 0.34 (Loss) earnings per Class B common share - diluted $ (0.11
) $ 0.16 $ (0.04 ) $ 0.34 Weighted average
Class B common shares outstanding Basic 9,343 9,352 9,353 9,330
Diluted 9,343 9,353 9,353
9,333
CONDENSED CONSOLIDATED BALANCE
SHEET DATA (000s omitted)
Jun. 30, Dec. 31, Jun. 30, Dec.
31,
ASSETS 2009 2008
LIABILITIES & EQUITY 2009
2008 (unaudited) (audited)
(unaudited) (audited) Current
assets $ 186,985 $ 193,619 Current liabilities $ 22,493 $ 29,634
Property, plant & equipment, net 37,960 39,936 Noncurrent
liabilities 10,408 14,377 Goodwill 14,359 14,334 Intangibles &
other assets 11,789 13,895 Stockholders' equity
218,192 217,773 Total Assets $ 251,093 $
261,784 Total Liabilities & Equity $ 251,093 $ 261,784
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