AVX Corporation (NYSE: AVX) today reported preliminary unaudited
results for the fourth quarter and fiscal year ended March 31,
2017.
Chief Executive Officer and President, John Sarvis, stated, “We
completed the fourth quarter of our fiscal year with net sales of
$329.6 million and gross profit of $73.7 million, or 22.4 percent,
reflecting solid operating performance in an uncertain and
unpredictable global economy. These results reflect our focus on
providing our customers with the value-added electronic components
and interconnect devices they require in today’s sophisticated
electronic products as well as our continued commitment to cost
control in our operations. Once again, we saw a build
in our order backlog during the quarter and increased
distribution customer activity. We will continue to make
investments in manufacturing plant expansion and product line
increases to support our customers’ growing requirements.”
For the quarter and fiscal year ended March 31, 2017, net sales
were $329.6 million and $1,312.7 million, respectively, compared to
net sales of $303.6 million and $1,195.5 million, respectively, for
the same periods last year reflecting improving global markets for
our components and interconnect devices.
Profit from operations for the three and twelve month periods
ended March 31, 2017 include charges of $6.8 million and $34.9
million, respectively, related to previously disclosed intellectual
property damages awards resulting from litigation with respect to a
patent infringement case filed in the United States District Court
for the District of Delaware by Presidio Components, Inc.
(“Presidio litigation”). Net sales for the three and twelve month
periods ended March 31, 2017 include $6.1 million and $21.4
million, respectively, from increased sales prices related to the
affected products which have the effect of partially offsetting the
effect of the intellectual property damages awards.
Additionally, profit from operations was impacted by the accrual
of estimated environmental remediation costs and the settlement of
certain other litigation. Profit from operations for the twelve
month period ended March 31, 2017 reflects a charge of $3.6 million
related to estimated environmental remediation costs resulting from
legacy environmental issues at an inactive property.
Profit from operations for the three month period ended March
31, 2016 reflects charges of $1.7 million, related to certain
litigation involving legacy environmental issues and amounts
awarded in a patent infringement case. Profit from operations for
the twelve month period ended March 31, 2016 reflects charges of
$45.3 million, of which $37.8 million is related to amounts awarded
in a patent infringement case and $7.5 million is related to the
settlement of certain litigation involving legacy environmental
issues.
Net income for the quarter ended March 31, 2017 was $33.9
million, or $0.20 per diluted share, compared to net income of
$32.7 million, or $0.19 per diluted share, for the quarter ended
March 31, 2016.
Net income for the fiscal year ended March 31, 2017 was $125.8
million, or $0.75 per diluted share, compared to net income of
$101.5 million, or $0.60 per diluted share, for the fiscal year
ended March 31, 2016.
The net effect of the Presidio litigation damages awards and the
higher selling prices discussed above was a negative impact on net
income of $0.4 million, or less than $0.01 per diluted share, and
$8.6 million, or $0.05 per diluted share, for the three and twelve
month periods ended March 31, 2017, respectively.
Chief Financial Officer, Kurt Cummings, stated, “In keeping with
our long-term strategy, we continue to foster our financial
strength in order to allow flexibility for investments in potential
acquisitions, materials, equipment and people to support the
long-term growth of the Company. As of March 31, 2017, we had cash,
cash equivalents and short-term investments in securities of
approximately $1.1 billion and no debt. We continued to use our
resources to provide value to our stockholders during the quarter
by paying $18.5 million in dividends to stockholders.”
AVX, headquartered in Fountain Inn, 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 Twelve Months Ended
March 31, March 31, 2016 2017
2016 2017 Net sales $ 303,605 $ 329,578 $ 1,195,529 $
1,312,661 Cost of sales 229,529 249,119 906,460 993,016
Intellectual property damages award - 6,757 -
34,890 Gross profit 74,076 73,702 289,069 284,755 Selling,
general & admin. expense 32,172 28,624 119,767 117,598 Legal
and environmental charges 1,668 - 45,318
3,600 Profit (loss) from operations 40,236 45,078 123,984
163,557 Other income, net 3,076 2,193 8,168
11,392 Income (loss) before income taxes 43,312 47,271
132,152 174,949 Provision (benefit) for taxes 10,647
13,414 30,617 49,164 Net income $ 32,665 $ 33,857 $
101,535 $ 125,785 Basic income per share $ 0.19 $ 0.20 $
0.61 $ 0.75 Diluted income per share $ 0.19 $ 0.20 $ 0.60 $ 0.75
Weighted average common shares outstanding: Basic 167,535
167,832 167,797 167,506 Diluted 167,605 168,411 167,961 167,837
AVX CORPORATION
Consolidated Condensed Balance
Sheets
(unaudited)
(in thousands)
March 31, March 31, 2016
2017 Assets Cash and cash equivalents $ 454,208 $ 578,634
Short-term investments in securities 494,594 528,748 Accounts
receivable, net 168,672 186,804 Inventories 484,268 474,128 Other
current assets 85,149 68,090 Total current assets
1,686,891 1,836,404 Long-term investments in securities 85,577 -
Property, plant and equipment, net 217,998 239,951 Goodwill and
other intangibles 270,605 266,701 Other assets 148,748
134,357 TOTAL ASSETS $ 2,409,819 $ 2,477,413
Liabilities and Stockholders' Equity Accounts payable $ 78,168 $
80,441 Income taxes payable and accrued expenses 102,134
135,626 Total current liabilities 180,302 216,067 Other
liabilities 52,411 44,867 TOTAL LIABILITIES
232,713 260,934 TOTAL STOCKHOLDERS' EQUITY 2,177,106
2,216,479 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 2,409,819 $ 2,477,413
This Press Release contains "forward-looking" information within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact,
including statements regarding industry prospects and future
results of operations or financial position, made in this Press
Release are forward-looking. The forward-looking information
may include, among other information, statements concerning our
outlook for fiscal year 2018, overall volume and pricing trends,
potential for future growth, cost reduction and acquisition
strategies and their anticipated results, expectations for research
and development, and capital expenditures. There may also be
other statements of expectations, beliefs, outlook, future plans
and strategies, anticipated events or trends, and similar
expressions concerning matters that are not historical
facts. Forward-looking statements reflect management's
expectations and are inherently uncertain. Our expectations
and assumptions are expressed in good faith and we believe there is
a reasonable basis for them. However, there can be no assurance
that such forward-looking statements will materialize or prove to
be correct as forward-looking statements are inherently subject to
known and unknown risks, uncertainties and other factors which may
cause actual future results, performance or achievements to differ
materially from the future results, performance or achievements
expressed in or implied by such forward-looking statements. Because
these forward-looking statements involve risks and uncertainties,
actual results could differ materially from those expressed or
implied by the forward-looking statements for a variety of reasons,
including without limitation, changes in the global economy or the
economy of any locality in which we conduct business; changes in
general industry and market conditions or regional growth or
declines; loss of business from increased competition; higher raw
material costs or raw material shortages; changes in consumer and
customer preferences for end products; customer losses; changes in
regulatory conditions; unfavorable fluctuations in currencies or
interest rates among the various jurisdictions in which we operate;
market acceptance of our new products; possible adverse results of
pending or future litigation or infringement claims; our ability to
protect our intellectual property rights; negative impacts of
environmental investigations or other governmental investigations
and associated litigation; tax assessments by governmental
authorities and changes in our effective tax rate; dependence on
and relationships with customers and suppliers; and other risks and
uncertainties discussed in our Annual Report on Form 10-K for
fiscal year ended March 31, 2016. Forward-looking statements
should be read in context with, and with the understanding of, the
various other disclosures concerning the Company and its business
made elsewhere in this Press Release as well as other public
reports filed by the Company with the SEC. You should not
place undue reliance on any forward-looking statements as a
prediction of actual results or developments.
Any forward-looking statements by the Company are intended to
speak as of the date thereof. We do not intend to update or revise
any forward-looking statement contained in this Press Release to
reflect new events or circumstances unless and to the extent
required by applicable law. All forward-looking statements
contained in this Press Release constitute "forward-looking
statements" within the meaning of Section 21E of the United States
Securities Exchange Act of 1934 and, to the extent it may be
applicable by way of incorporation of statements contained in this
Press Release by reference or otherwise, Section 27A of the United
States Securities Act of 1933, each of which establishes a
safe-harbor from private actions for forward-looking statements as
defined in those statutes.
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version on businesswire.com: http://www.businesswire.com/news/home/20170428005077/en/
AVX Corporation, Fountain InnKurt Cummings,
864-967-9303investor.relations@avx.com
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