EX-99.1 3 exhibit991.htm EXHIBIT 99.1 - AVX CORPORATION PRESS RELEASE DATED JULY 26, 2006 Exhibit 99.1 - AVX Corporation Press Release Dated July 26, 2006
EXHIBIT 99.1

AVX Corporation Announces First Quarter Results


MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- July 26, 2006 --

AVX Corporation (NYSE: AVX) reported that net sales improved to $366.4 million in the first quarter ended June 30, 2006 from $319.8 million in the first quarter last year. This was an increase of $46.6 million, or 14.6%, from the previous year.

Chief Executive Officer and President, John Gilbertson, stated, “The sales growth in the current quarter indicates that end market growth is continuing. We saw a positive book to bill during each month of the quarter and this is a strong indicator for the balance of the year.”

Net income for the quarter improved $26.0 million to $36.2 million, or $0.21 per share, compared to net income of $10.2 million, or $0.06 per share for the same quarter last year.

The improved operating profit of $47.0 million for the quarter resulted from increased sales, reduced operating costs and enhanced production capabilities, as well as a favorable mix of value added component and connector sales.

The Quarter’s highlights:
▬  
Revenue up 14.6% compared to last year and up 8.3% sequentially from the most recent quarter.
▬  
Gross profit margin of 20.6%. Margins have increased in each of the last five quarters.
▬  
Earnings per share of $0.21, up $0.15 from last year.
▬  
Dividends paid of $0.0375 per share.

Cash, including short and long-term investments in securities, increased $63.5 million during the June quarter and totaled $862.9 million at June 30, 2006. During the quarter, $6.5 million of dividends to stockholders were paid, and $2.4 million was used to purchase AVX shares on the market, now held as treasury stock.

John Gilbertson went on to state, "Our continuing efforts to reduce our cost structure in addition to the growth of innovative advanced products to provide unique solutions for our customers have resulted in sequentially improved operating results. Our financial position remains exceptionally strong and we continue to be optimistic about this 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
   
June 30
   
2005
  
2006
Net sales
$
319,814
$
366,408
Cost of sales
  
281,961
 
291,081
Gross profit
 
37,853
 
75,327
Selling, general & admin. expense
  
27,771
 
28,374
Profit (loss) from operations
  
10,082
 
46,953
Other income
 
6,157
 
6,725
Income (loss) before income taxes
  
16,239
 
53,678
Provision (benefit) for taxes
  
6,009
 
17,445
Net income (loss)
$
10,230
$
36,233
         
Basic income (loss) per share
$
0.06
$
0.21
Diluted income (loss) per share
$
0.06
$
0.21
         
Weighted average common
        
shares outstanding:
        
Basic
  
172,515
  
172,281
Diluted
  
172,796
  
173,096
 
 

AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
     
March 31,
    
June 30,
     
2006
    
2006
Assets
          
Cash and cash equivalents
$
505,326
  
$
568,853
Short-term investments in securities
  
158,995
    
185,000
Accounts receivable, net
  
177,448
    
192,153
Inventories
  
307,653
    
307,252
Other current assets
  
54,350
    
55,385
 
Total current assets
  
1,203,772
    
1,308,643
Long-term investments in securities
  
135,004
    
109,000
Property, plant and equipment, net
  
232,950
    
234,164
Other assets
  
103,482
    
103,951
             
 
TOTAL ASSETS
$
1,675,208
  
$
1,755,758
             
Liabilities and Stockholders' Equity
          
Accounts payable
$
105,011
  
$
115,056
Income taxes payable and accrued expenses
  
66,019
    
82,825
 
Total current liabilities
  
171,030
    
197,881
Other liabilities
  
56,069
    
55,961
             
 
TOTAL LIABILITIES
  
227,099
    
253,842
             
 
TOTAL STOCKHOLDERS' EQUITY
  
1,448,109
    
1,501,916
             
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
1,675,208
  
$
1,755,758
 

 
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