AVX AVX Corp

AVX Corporation (NYSE: AVX) AVX today reported preliminary unaudited results for the first quarter ended June 30, 2010.

Highlights:

• Revenue for the June 2010 quarter of $396.5 million increased 8% from the previous quarter and increased 36% from the first quarter of last year.
• Gross Profit margin improved for the eighth consecutive quarter to 26% in the current quarter compared to 23% in the previous quarter and 19% in the same quarter last year.
• Net income of $52.3 million, or $0.31 per share, for the June 2010 quarter.
• Dividends of $7.7 million, or at a $0.18 per share annual rate, were paid during the first quarter of fiscal 2011.

Chief Executive Officer and President, John Gilbertson, stated, “We are pleased to report first quarter results that reflect sequential improvement over the previous quarter in both revenue and margins as we successfully leveraged the higher volumes with productivity improvements. We are encouraged by the overall outlook for the electronic component industry as end user demand for electronic products continued to increase as evidenced by the strong bookings we recorded during the quarter.”

For the quarter ended June 30, 2010, net sales increased sequentially over the previous quarter by $29.1 million, or 8%, to $396.5 million. Gross profit as a percent of sales improved over both the previous quarter and the same quarter last year to 26%. Net income for the quarter was $52.3 million, or $0.31 per diluted share, compared to net income of $46.5 million, or $0.27 per diluted share in the previous quarter and net income of $24.3 million, or $0.14 per diluted share in the first quarter of the prior fiscal year.

Chief Financial Officer, Kurt Cummings, stated, “We have continued to generate positive operating cash flows. The Company’s financial position remains exceptionally strong with cash and cash equivalents and short and long-term investments in securities of $938.1 million and no debt at June 30, 2010. During the quarter, the Company paid $7.7 million of dividends to stockholders and spent $1 million to repurchase shares of AVX stock on the open market which are held as treasury stock.”

AVX, headquartered in Greenville, South Carolina, is a leading manufacturer and supplier of a broad line of passive electronic components and related products.

Please visit our website at www.avx.com.

AVX CORPORATION

Consolidated Condensed Statements of Income

(unaudited)

(in thousands, except per share data)

    Three Months Ended June 30, 2009 2010 Net sales $ 292,040 $ 396,537 Cost of sales 237,198 293,885 Restructuring charges 700 - Gross profit 54,142 102,652 Selling, general & admin. expense 27,331 30,510 Restructuring charges 300 - Profit from operations 26,511 72,142 Other income 2,054 2,572 Income before income taxes 28,565 74,714 Provision for taxes 4,285 22,414 Net income $ 24,280 $ 52,300   Basic income per share $ 0.14 $ 0.31 Diluted income per share $ 0.14 $ 0.31   Weighted average common shares outstanding: Basic 170,332 170,107 Diluted 170,332 170,467

AVX CORPORATION

Consolidated Condensed Balance Sheets

(unaudited)

(in thousands)

    March 31, June 30, 2010 2010 Assets Cash and cash equivalents $ 415,974 $ 413,243 Short-term investments in securities 262,709 324,888 Available-for-sale securities 9,767 4,265 Accounts receivable, net 195,983 215,689 Inventories 357,105 369,814 Other current assets 74,820 73,706 Total current assets 1,316,358 1,401,605 Long-term investments in securities 219,993 189,993 Long-term available-for-sale securities 5,339 5,740 Property, plant and equipment, net 247,029 233,648 Goodwill and other intangibles 249,412 248,288 Other assets 13,361 8,395   TOTAL ASSETS $ 2,051,492 $ 2,087,669   Liabilities and Stockholders' Equity Accounts payable $ 104,421 $ 113,987 Income taxes payable and accrued expenses 88,852 95,501 Total current liabilities 193,273 209,488 Other liabilities 57,212 54,664   TOTAL LIABILITIES 250,485 264,152   TOTAL STOCKHOLDERS' EQUITY 1,801,007 1,823,517   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,051,492 $ 2,087,669