EX-99.1 3 exhibit991.htm AVX CORPORATION EXHIBIT 99.1 AVX Corporation Exhibit 99.1 Exhibit 99.1
AVX Corporation Announces Third Quarter Results


MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- January 24, 2007 --

AVX Corporation (NYSE: AVX) reported that net sales increased over the previous quarter and over the same quarter last year. The net sales improved to $378.1 million in the third fiscal quarter ended December 31, 2006 from $349.1 million in the same quarter last year. This was an increase of $29.0 million, or 8.3%, from the previous year and also represents an increase over the September quarter. During the first nine months ended December 31, 2006, net sales increased to $1.1 billion, up $124.3 million, or 12.5%, compared to the first nine months of last year.

Chief Executive Officer and President, John Gilbertson, stated, “The sales level for our third quarter continues the positive trend seen throughout this fiscal year and reflects the continuing strong end market demand experienced by our customers.”

Net income for the quarter improved $11.4 million to $35.8 million, or $0.21 per share, compared to net income of $24.4 million, or $0.14 per share for the same quarter last year. Net income for the first nine months improved $59.2 million to $110.8 million, or $0.64 per share, compared to net income of $51.7 million, or $0.30 per share, during the first nine months of the prior year.

The improved operating profit this year resulted from higher sales, reduced operating costs and enhanced production capabilities in lower cost regions, as well as a favorable mix of value added component and connector sales.

The Quarter’s highlights:
▬  
Revenue up 8.3% compared to the same quarter last year.
▬  
Gross profit margin of 19.2%, a 2.5% improvement compared to the same quarter last year.
▬  
Diluted earnings per share of $0.21 up $0.07 from last year.
▬  
Dividends paid of $0.0375 per share.

Cash, including short and long-term investments in securities, increased $56.1 million during the December quarter and totaled $941.7 million at December 31, 2006. During the quarter, $6.5 million of dividends to stockholders were paid, and $3.4 million was used to purchase AVX shares on the market, now held as treasury stock.

John Gilbertson went on to state, "The favorable market conditions throughout this fiscal year have led to increased capacity utilization contributing to a more stable pricing environment. In addition, our efforts to provide unique solutions for our customers through the development of innovative advanced products, and our continuing efforts to reduce our cost structure have resulted in improved operating results. Our financial position remains exceptionally strong and we continue to be optimistic about the next calendar year for electronic components."

AVX, headquartered in Myrtle Beach, 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
    
Nine Months Ended
   
December 31
    
December 31
   
2005
  
2006
    
2005
  
2006
Net sales
$
349,068
$
378,088
  
$
994,813
  
1,119,144
Cost of sales
  
290,646
  
305,493
    
853,482
  
893,331
Gross profit
 
58,422
  
72,595
    
141,331
  
225,813
Selling, general & admin. expense
  
27,972
  
29,513
    
81,616
  
87,302
Profit from operations
  
30,450
  
43,082
    
59,715
  
138,511
Other income
 
5,873
  
9,996
    
16,804
  
25,705
Income before income taxes
  
36,323
  
53,078
    
76,519
  
164,216
Provision for taxes
  
11,909
  
17,251
    
24,850
  
53,371
Net income
$
24,414
$
35,827
  
$
51,669
$
110,845
                   
Basic income per share
$
0.14
$
0.21
  
$
0.30
$
0.64
Diluted income per share
$
0.14
$
0.21
  
$
0.30
$
0.64
                   
Weighted average common
                  
shares outstanding:
                  
Basic
  
172,654
  
172,041
    
172,621
  
172,138
Diluted
  
173,194
  
172,926
    
173,055
  
172,897
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)

     
March 31,
    
December 31,
     
2006
    
2006
Assets
          
Cash and cash equivalents
$
505,326
  
$
677,729
Short-term investments in securities
  
158,995
    
115,000
Accounts receivable, net
  
177,448
    
188,281
Inventories
  
307,653
    
326,903
Other current assets
  
54,350
    
60,253
 
Total current assets
  
1,203,772
    
1,368,166
Long-term investments in securities
  
135,004
    
149,000
Property, plant and equipment, net
  
232,950
    
244,234
Other assets
  
103,482
    
100,688
             
 
TOTAL ASSETS
$
1,675,208
  
$
1,862,088
             
Liabilities and Stockholders' Equity
          
Accounts payable
$
105,011
  
$
118,639
Income taxes payable and accrued expenses
  
66,019
    
86,889
 
Total current liabilities
  
171,030
    
205,528
Other liabilities
  
56,069
    
53,875
             
 
TOTAL LIABILITIES
  
227,099
    
259,403
             
 
TOTAL STOCKHOLDERS' EQUITY
  
1,448,109
    
1,602,685
             
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
1,675,208
  
$
1,862,088

Certain statements contained above may be "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Risk factors relating to such statements are described in the documents AVX Corporation files with the Securities and Exchange Commission, including, but not limited to its Form 10-Ks, Form 10-Qs and Form 8-Ks. Actual events, results, and/or timing may differ from the events, results, and/or timing as projected, estimated, or described above.
 

Contact: 
AVX Corporation, Myrtle Beach
Kurt Cummings,
843/946-0691
finance@avxus.com