NU HORIZONS REPORTS FINANCIAL AND OPERATING RESULTS FOR THE
THIRD QUARTER OF FISCAL YEAR 2002
MELVILLE,
NY, January 8, 2002 --- 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 three and nine month periods ended November
30, 2001.
Net sales from continuing operations for the third quarter
decreased to $58.2 million from $181.0 million for the
comparable period last year. Net loss from continuing
operations for the quarter was $1,382,000 or $0.08 per
share on 16,580,927 basic shares outstanding ($0.08 per
share on 17,379,501 diluted shares), compared with net
income from continuing operations of $10.8 million or
$0.66 per share on 16,479,565 basic shares outstanding
($0.59 per share on 18,436,454 diluted shares) in the
same period last year.
For
the nine months ended November 30, 2001, net sales from
continuing operations decreased to $217.9 million from
$492.1 million in the comparable period last year. Net
loss from continuing operations for the first nine months
of fiscal 2002 was $503,000 or $0.03 per share on 16,563,547
basic shares outstanding ($0.03 per share on 17,437,743
diluted shares), compared with net income from continuing
operations of $27.4 million, or $1.66 per share on 16,479,565
basic shares outstanding ($1.48 per share on 18,436,454
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 $4.2 million
or approximately $0.25 per basic share and $0.24 per diluted
share.
Net
income from discontinued operations for the nine months
ended November 30, 2001 was $799,000 or $0.05 per basic
and diluted share, compared with $1,022,000 or $.06 per
basic and diluted share in the year-earlier period. There
was no income or loss from discontinued operations for
the three month period ended November 30, 2001 as compared
to net income of $216,000 or $.01 per basic and diluted
share for the same period last year.
Arthur Nadata, President and Chief Executive Officer,
commented, "Our operating loss for the quarter is
a direct result of a continued sequential reduction in
sales volume. This reflects an industry wide reduction
demand for electronic components in general and in our
case, more specifically, communications and networking
products."
Nadata
continued, "Although we cannot predict when the semiconductor
and passive component marketplace will recover, we are
seeing several encouraging indicators. Our sales volume
appears to have stabilized, with average daily sales having
been flat for the period of August through December. In
addition, our book to bill ratio has exceeded one to one
in November and December for the first time in over one
year."
"Further,"
Nadata said, "Our 'design in' component sales strategies
produced a record number of product design wins for the
quarter, up 64% sequentially and 400% year over year.
We believe this to be an important benchmark for future
sales performance."
Nadata
concluded, "Our industry is historically cyclical
and we are confident that there will be an overall recovery
in the near future. Our strong financial condition should
enable us to maintain our infrastructure during this challenging
down period in the cycle. We believe that the aforementioned
positive indicators coupled with our continued dedication
to our long term marketing strategies bode well for a
moderate increase in sales performance, as early as the
first quarter of our next fiscal year, with a return to
profitability later in the year."
A conference call to further discuss earnings will be
held today at 4:15 PM ET. The call can be accessed by
dialing (800) 360-9865, (international, dial 1-973-694-6836),
refer to NuHorizons call. 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 30 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.
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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