| Nu
Horizons Reports Earnings and Record 3rd Quarter and Nine
Month Fiscal Year 2000 Sales Results
MELVILLE,
NY - (January 5, 2000) --- Nu Horizons Electronics
Corp. (Nasdaq/NM:NUHC), a leading distributor of active
and passive components and a provider of industrial manufacturing
services, today reported operating results for the third
quarter and nine months ended November 30, 1999.
Net
sales for the third quarter increased to a record $100,822,657
from $64,263,220 for the prior year’s period, an
increase of 57%. Net income for the quarter was $3,376,450
or $0.38 per share on 8,899,480 basic shares outstanding
($0.30 per share on 11,690,193 diluted shares), as compared
to $1,287,843 or $0.15 per share on 8,753,076 shares outstanding
($0.12 per share on 11,271,859 diluted shares) in the
same period last year, an increase of 162%.
For
the nine months ended November 30, 1999, net sales increased
to a record $263,835,634 from $187,293,056 in the comparable
fiscal 1999 period, an increase of 41%. Net income for
the nine months of fiscal 2000 was $7,113,044 or $0.81
per share on 8,801,889 basic shares outstanding ($0.64
per share on 11,558,315 diluted shares), compared to $3,640,018,
or $0.42 per share on 8,753,076 basic shares outstanding
($0.35 per share on 11,271,859 diluted shares) in the
year earlier period, an increase of 95%.
Arthur
Nadata, Chief Executive Officer and President, commented
that “We are pleased and gratified with our record
sales and near record earnings performance for both the
quarter and the nine month periods. Nu Horizons is now
benefiting from the results of its investments and strategies
that have been implemented over the past three years.
We believed that the basic changes occurring in the marketplace
created a great opportunity for a clearly focused mid
sized distributor with world class logistics capabilities.
Consequently, we continued to invest in new facilities,
key managers, sales and engineering through a very soft
market. In early 1998, the Company began reducing the
number of suppliers we represent, targeting our resources
and focus on 25 leadership suppliers servicing the fast
growth communications and industrial marketplaces.”
Nadata
continued, “Successful implementation of these strategies
has now allowed us to grow much faster than others in
the industry. While gross margins have declined somewhat
from year to year, our current operating expenses as a
percent of sales have declined from 17% to 14.3%, allowing
us to improve Profit Before Tax from 3.3% to 5.6% of sales.
We are very optimistic that our strategies will allow
us to continue to post industry leading sales and earnings
growth for the next several quarters assuming that the
market remains strong as forecasted”.
Nu
Horizons is a national distributor of high technology
electronic components which provide innovative, total
semiconductor solutions through products and technologies
that are faster, smaller and lower powered. Nu Horizons
was established in 1982 and currently has 29 branch offices
located in the U.S. For more information, visit the Nu
Horizons’ home page at http://www.nuhorizons.com.
Except
for historical information contained herein, the matters
set forth in this news release are forward looking statements
that involve certain risks and uncertainties that could
cause actual results to differ from those in the forward-looking
statements. Potential risks and uncertainties include
such factors as the level of business and consumer spending
for electronic products, the amount of sales of the Company’s
products, the competitive environment within the electronic
industry, the ability of the Company to continue to expand
its operations, the level of costs incurred in connection
with the Company’s expansion efforts and the financial
strength of the Company’s customers and suppliers.
Investors are also directed to consider other risks and
uncertainties discussed in documents filed by the Company
with the Securities and Exchange Commission.
Financial
Highlights (PDF-9K) |
