Nu
Horizons Reports Record Sales and Earnings for the Third
Quarter Fiscal Year 2001
Sales
Increased 89 Percent to $190.5 Million in Third Quarter
and 96 Percent to $517.2 Million in Nine-month Period
Net Income Increased 227 Percent in Third Quarter and
299 Percent in Nine-month Period
MELVILLE,
NY - (January 3, 2001) --- 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 and
financial results for the third quarter and nine months
ended November 30, 2000.
Net
sales for the third quarter increased to a record $190.5
million from $100.8 million for the comparable period
last year, an increase of 89 percent. Net income for
the quarter was
$11.1
million or $0.67 per share on 16,479,565 basic shares
outstanding ($0.60 per share on 18,436,454 diluted shares),
as compared to $3.4 million or $0.25 per share on 13,349,220
basic shares outstanding ($0.20 per share on 17,535,289
diluted shares) in the same period last year, an increase
of 227 percent.
For
the nine months ended November 30, 2000, net sales increased
to a record $517.2 million from $263.8 million in the
comparable period last year, an increase of 96 percent.
Net income was $28.4 million or $1.72 per share on 16,479,565
basic shares outstanding ($1.54 per share on 18,436,454
diluted shares), compared with $7.1 million or $0.54
per share on 13,202,853 basic shares outstanding ($0.42
per share on 17,337,472 diluted shares) for the comparable
period of fiscal 2000, an increase of 299 percent.
Operating
expenses for the nine months ended November 30, 2000
were $59.4 million compared with $39.7 million in same
period of fiscal 2000. As a percentage of sales, operating
expenses fell to 11.5 percent for the first nine months
of fiscal 2001 compared with 15.0 percent in the corresponding
prior year period.
Arthur
Nadata, president and chief executive officer, commented,
“In addition to record sales and earning results,
we are encouraged by our continued ability to produce
record operating margins. Operating margin for the third
quarter improved to 11.0 percent from 6.7 percent for
the prior year quarter and to 10.2 percent from 5.3
percent for the comparable nine-month period.
Nadata
continued, “The electronics distribution industry
has enjoyed an eighteen- month period of high double-digit
growth rates. Over the past two months, there has been
a substantial amount of public discussion regarding
signs of an electronic component inventory correction
in the networking and telecom areas. We agree that there
has been some recent weakness in book-to-bill ratios,
but we continue to believe that it is a short-term correction.
While this may affect our ability to post sequential
growth in sales and earnings for the fourth quarter
of this fiscal year, we continue to expect to achieve
higher sales and earnings compared with last year. While
we may not be able to replicate the high double-digit
growth rates of fiscal 2001, we believe that in fiscal
year 2002 we may be able to deliver steady, albeit more
moderate, double-digit growth.
Nadata
concluded, “We are pleased with the growth strategies
we have developed over the last several years and believe
that our value-added engineering sales approach and
broad customer base will continue to serve us well in
the future. We also believe that we will continue to
outperform industry growth rates, although, obviously,
no assurances can be given in this regard.”
About
Nu Horizons
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
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