In the tenth paragraph, the conference call dial-in number
should read: (719) 325-2221. The passcode should read:
#3116654.
The corrected release reads:
BEL REPORTS 2009 THIRD QUARTER
RESULTS
Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) today announced
preliminary unaudited financial results for the third quarter and
first nine months of 2009.
"While revenue was lower for this year's third quarter than last
year's, revenue increased slightly compared to the second quarter
of 2009 and would likely have increased much more but for the
shortage of trained labor in China. Cash flow was strong, as were
our core operating results. Since July, 2009, order lead times have
increased, and order backlog is up significantly. These are
positive signs for the future," said Daniel Bernstein, Bel's
President and CEO.
"Our goal is to hire up to an additional 4,500 workers to meet
the surge in backlog and bring our lead times down to normal. This
will temporarily increase labor expense due to inefficiencies
during the new workers' training period. We are adding workers as
rapidly as we can in response to the improvement in business
conditions, a considerable challenge because of the rapid ramp-up
required, labor shortages in Southern China, and difficulties
traditionally associated with hiring workers as we approach the
Lunar New Year," Bernstein added.
Third Quarter Results
Net sales for the three months ended September 30, 2009
decreased to $45,283,000 compared to $66,964,000 for the third
quarter of 2008. The net loss for the third quarter of 2009 was
$10,752,000. This compares to net earnings for the third quarter of
2008 of $1,946,000.
The net loss for the third quarter of 2009 included pre-tax
charges of $12.9 million ($12.9 million or $1.12 per share after
tax) for impairment of goodwill and a $2.0 million license fee
($1.2 million or $0.11 per share after tax) paid in connection with
the pending settlement of a lawsuit. These costs were partially
offset by a GAAP net gain of $0.5 million ($0.3 million or $0.03
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 4.1%. 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
realized a gain on the sale of Power-One shares in the amount of
$21,000, or $13,000 after tax). Net earnings for the third quarter
of 2008 included a pre-tax labor severance charge of $0.3 million
for the closure of the Company's manufacturing plant in
Westborough, Massachusetts, and a non-cash, pre-tax charge of $1.4
million, primarily for the other-than-temporary impairment of Bel's
holdings in Toko Inc. (TSE: 6801). In addition, the income tax
provisions for both the 2009 and 2008 third quarters were reduced
by the reversal of an accrual for uncertain tax positions,
resulting from the expiration of certain statutes of limitations
and the finalization of tax audits, partially offset by changes in
estimates for prior years' taxes upon finalization of tax
returns.
The net loss per Class A common share was $0.90 for the third
quarter of 2009, compared to diluted earnings per Class A common
share of $0.16 for the third quarter of 2008. The net loss per
Class B common share was $0.94 for the third quarter of 2009,
compared to diluted earnings per Class B common share of $0.17 for
last year's third quarter.
At September 30, 2009, Bel reported working capital of
approximately $166,600,000, including cash, cash equivalents,
short-term investments and marketable securities of approximately
$126,800,000, a current ratio of 7.3, total long-term obligations
of $9,636,000, and stockholders' equity of $208,272,000. 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 shares during the third quarter of 2009.
Nine Month Results
For the nine months ended September 30, 2009, net sales were
$134,088,000 compared to $200,287,000 for the first nine months of
2008. The net loss for the first nine months of 2009 was
$11,208,000, compared to net earnings of $5,924,000 for the first
nine months of 2008.
For the nine months ended September 30, 2009, the net loss per
Class A common share was $0.95 compared to diluted earnings per
common share of $0.47 for the first nine months of 2008. The net
loss per Class B common share was $0.98 compared to diluted net
earnings per common share of $0.51 for the same period last
year.
Conference Call
Bel has scheduled a conference call at 11:00 a.m. EDT today. To
participate in the call, dial (719) 325-2221, passcode #3116654. 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 positive economic signs and improved business
conditions) 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
Nine Months Ended September 30, September 30,
2009 2008 2009
2008 (unaudited) (unaudited) Net
Sales $ 45,283 $ 66,964 $ 134,088 $ 200,287
Costs and expenses: Cost of sales 39,561 56,337
117,964 165,292 Selling, general and administrative 6,813 8,934
22,067 27,151 Impairment of goodwill 12,875 -- 12,875 -- License
fee 1,955 -- 1,955 -- Restructuring charge -- 329 413 329 (Gain)
loss on sale of property, plant and equipment 9
-- (4,643 ) --
61,213 65,600 150,631
192,772 (Loss) income from operations (15,930 ) 1,364
(16,543 ) 7,515 Other, net (1 ) (1 ) 8 (2 ) (Impairment
charge) gain on sale of investment 656 (1,397 ) 1,739 (4,030 )
Interest income 87 529 394
2,047 (Loss ) earnings before benefit
for income taxes (15,188 ) 495 (14,402 ) 5,530 Income tax benefit
(4,436 ) (1,451 ) (3,194 ) (394 )
Net (loss) earnings $ (10,752 ) $ 1,946 $ (11,208 ) $
5,924 (Loss) earnings per Class A common share -
basic $ (0.90 ) $ 0.16 $ (0.95 ) $ 0.47
(Loss) earnings per Class A common
share - diluted
$
(0.90
)
$
0.16
$
(0.95
)
$
0.47
Weighted average Class A common shares outstanding
Basic 2,175 2,326 2,175
2,461
Diluted
2,175
2,326
2,175
2,461
(Loss) earnings per Class B common share - basic $
(0.94 ) $ 0.17 $ (0.98 ) $ 0.52
(Loss) earnings per Class B common
share - diluted
$
(0.94
)
$
0.17
$
(0.98
)
$
0.51
Weighted average Class B common shares outstanding
Basic 9,324 9,135 9,343
9,126
Diluted
9,324
9,373
9,343
9,347
CONDENSED CONSOLIDATED BALANCE SHEET DATA (000s
omitted)
Sep. 30, Dec. 31, Sep. 30, Dec. 31,
ASSETS 2009 2008
LIABILITIES & EQUITY 2009 2008
(unaudited) (audited)
(unaudited)
(audited)
Current assets $ 193,200 $ 193,619 Current liabilities $
26,585 $ 29,634 Property, plant & equipment, net 36,622 39,936
Noncurrent liabilities 9,636 14,377 Goodwill 2,047 14,334
Intangibles & other assets 12,624 13,895
Stockholders' equity 208,272 217,773 Total
Assets $ 244,493 $ 261,784 Total Liabilities & Equity $ 244,493
$ 261,784
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