Nu
Horizons Reports Fourth Quarter and Fiscal Year End 2001
Earnings
MELVILLE,
NY, - (April 25, 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 fourth quarter and year ended February 28, 2001.
Net
sales for the fourth quarter were $153.4 million, an increase
of 33 percent from net sales of $115.4 million, in the
comparable period last year. Net income for the quarter
was $6.9 million, or $0.42 per share on 16,501,860 basic
shares outstanding ($0.40 per share on 17,474,558 diluted
shares), as compared to $4.6 million, or $0.32 per share
on 14,436,929 basic shares outstanding ($0.25 per share
on 18,178,794 diluted shares) in the same period last
year, an increase of 52 percent.
For
the year ended February 28, 2001, net sales increased
to a record $670.6 million from $379.2 million in the
comparable period last year, an increase of 77 percent.
Net income was $35.3 million or $2.18 per share on 16,213,084
basic shares outstanding ($1.99 per share on 17,746,075
diluted shares), compared with $11.7 million or $0.87
per share on 13,511,345 basic shares outstanding ($0.67
per share on 17,547,789 diluted shares) for the comparable
period of fiscal 2000, an increase of 202 percent.
Operating
expenses for the year ended February 28, 2001 were $80.9
million compared with $56.0 million in the same period
of fiscal 2000. As a percentage of sales, operating expenses
fell to 12.1 percent for fiscal 2001 compared with 14.8
percent in the corresponding prior year period.
Arthur
Nadata, president and chief executive officer, commented,
"During fiscal 2001, we achieved very favorable year-over-year
comparisons across the important benchmarks of financial
and operating performance. Nonetheless, our results for
the fourth quarter were significantly affected by a market-wide
decline in the demand for electronic components. As a
result, our top-line registered a sequential drop this
quarter. We have certainly not been immune to the combined
effects of a weakening economy, sagging consumer confidence
and excess inventory at major OEMs and contract manufacturers.
Nadata
continued, "These operating difficulties notwithstanding,
our results for the year include several significant accomplishments
that set us apart from competition and validate the effectiveness
of our business strategy:
-
Our gross margin percent remained stable, mostly because
of our commitment to design creation through value-added
services.
-
Because our products are proprietary and heavily engineered,
they are less expendable than commodity-type products.
-
We achieved 412 design wins - proprietary designs that
generate revenue for Nu Horizons even if the products
are distributed by a competitor. Next year, we expect
to register 1,100 proprietary designs. These designs represent
a significant benefit to Nu Horizons because they essentially
create a "locked-in" customer base for these
products that should help drive our revenue growth once
the buying cycle starts ramping up again.
-
Because we have long pursued disciplined growth, we have
not faced the need for significant layoffs. In fact, we
continue to enrich our talent pool against the backdrop
of massive lay-offs across industries.
-
We signed an agreement with Marvel, a leader in broadband
solutions, to distribute the company's ICs throughout
North America.
Nadata
concluded: "Despite our accomplishments for the year,
our industry is currently experiencing a slowdown. We
believe that the major catalyst for an industry-wide turnaround
would be the depletion of excess inventory. Based on the
guidance of our customers regarding inventories, we expect
the current slowdown in the industry to extend at least
through the first half of 2001 (NUHC's Q1 2002). As a
result, we expect our revenues to soften significantly
next quarter."
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
Highlights Table (PDF - 10K)
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