NU HORIZONS REPORTS FINANCIAL AND OPERATING RESULTS FOR THE
SECOND QUARTER OF FISCAL YEAR 2002
Performance
highlights include:
- Expanded
product offering; Improved position in logic, analog,
memory and controller semi-conductor products
- Exclusive
distribution agreement with Vitesse Semiconductor
- Company
streamlines operations to focus on core businesses
MELVILLE,
NY, October 5, 2001 --- Nu Horizons Electronics Corp.
(Nasdaq/NM: NUHC), a leading distributor of active and
passive electronic components and provider of industrial
manufacturing services, today reported financial and operating
results for the second quarter and six months ended August
31, 2001.
Net sales from continuing operations for the second quarter
decreased to $69.9 million from $170.1 million for the
comparable period last year. Net income for the quarter
was $437,000 or $0.03 per share on 16,563,000 basic shares
outstanding ($0.03 per share on 17,476,420 diluted shares),
compared with $9.4 million or $0.59 per share on 15,924,308
basic shares outstanding ($0.50 per share on 18,567,543
diluted shares) in the same period last year.
For
the six months ended August 31, 2001, net sales from continuing
operations decreased to $159.7 million from $311.1 million
in the comparable period last year. Net income for the
first half of fiscal 2002 was $879,000 or $0.05 per share
on 16,554,857 basic shares outstanding ($0.05 per share
on 17,459,186 diluted shares), compared with $16.7 million,
or $1.02 per share on 16,279,734 basic shares outstanding
($0.90 per share on 18,567,543 diluted shares) in the
year-earlier period.
On
August 23, 2001, the Company sold its contract-manufacturing
subsidiary, located in Springfield, Mass. Earnings for
the reported periods and the gain on the sale of these
operations are reported separately as discontinued operations.
The sale of the Company's contract-manufacturing facility
resulted in an approximate after-tax gain of $2.6 million,
subject to final closing adjustments, or approximately
$0.15 per basic share and $0.14 per diluted share.
Net
income from discontinued operations for the second quarter
was $257,000 or $0.02 per basic and diluted share, compared
with $675,000 or $0.04 per basic and diluted share in
the year-earlier period.
For
the six months ended August 31, 2001, net income from
discontinued operations was $799,000, compared with $806,000
for the prior-year period or $0.05 per basic and diluted
share compared to $0.05 and $0.04 per basic and diluted
share, respectively, in the year-earlier period.
The
number of average shares used for the computation of basic
and diluted earnings per share has also been adjusted
to reflect the 3-for-2 stock split in October 2000.
Arthur
Nadata, President and Chief Executive Officer, commented,
"Our results for this quarter clearly are disappointing
but not surprising. Continued slow demand in the communications
and networking markets is expected to negatively impact
our overall sales volume for the next several quarters.
Nadata
continued, "Despite these difficult market conditions,
we did achieve significant progress this quarter. In keeping
with our commitment to continually upgrade and improve
our product offerings, we have recently added Oki-Semiconductor
and Vitesse Semiconductor to our family of product lines.
Oki rounds out our product offering in the areas of logic,
analog, memory and controller semi products. Vitesse Semiconductor
manufactures end-to-end solutions for high-bandwidth products,
filling a gap in our product line; the company's products
include optical electronics, physical layer, telecom and
ethernet products, to name a few."
"Additionally,
Vitesse has named Nu Horizons its exclusive distributor
for North America, which confirms the value of our marketing
philosophy. Vitesse expects a large portion of its sales
to be supported by Nu Horizons. Accordingly, we expect
this will create a substantial revenue stream for us in
the near future.
"Further,"
Nadata said, "We completed the sale of our contract
electronic manufacturing (CEM) subsidiary. We determined
that, strategically, the CEM business was not a core competency
for Nu Horizons and that we could better utilize our assets
by concentrating on semi-conductor and passive component
distribution businesses. The sale provided us with approximately
$20 million of additional working capital."
Nadata
concluded, "Our entire industry is going through
difficult economic and market conditions. Through continued
focus on our 'design in' component sales strategies, and
a measured but determined approach to cost containment
based on a solid financial foundation, we believe that
we will continue to move forward during this downturn
and be well positioned to profit from an eventual market
recovery."
A conference call to further discuss earnings will be
held today at 4:30 PM ET. The call can be accessed by
dialing (800) 309-3445, (international, dial 1-706-634-0857).
A webcast of the call will also be available online (both
live and after the call) at www.nuhorizons.com.
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 and
subsidiary offices located in the U.S., Asia and Europe.
For more information, visit the Nu Horizons' home page
at http://www.nuhorizons.com.
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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.
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