NU
HORIZONS REPORTS FOURTH QUARTER AND
FISCAL YEAR END 2003 EARNINGS
MELVILLE,
NY, May 16, 2003--- Nu Horizons Electronics Corp.
(Nasdaq/NM: NUHC), a leading distributor of active and
passive electronic components today reported financial
and operating results for the fourth quarter and year
ended February 28, 2003.
Net sales from continuing operations for the fourth quarter
increased to $70.9 million from $64.0 million for the
comparable period last year. Net loss from continuing
operations for the quarter was $1.8 million or $0.11 per
share on 16,663,817 shares outstanding, compared with
a net loss from continuing operations of $2.3 million
or $0.14 per share on 16,609,005 shares outstanding in
the same period last year.
For
the fiscal year ended February 28, 2003, net sales from
continuing operations increased to $302.1 million from
$281.9 million in the comparable period last year. Net
loss from continuing operations for fiscal 2003 was $2.5
million or $0.15 per share on 16,663,817 shares outstanding,
compared with a net loss from continuing operations of
$2.8 million, or $.17 per share on 16,574,911 shares outstanding
in the year-earlier period.
Included
in the fourth quarter of fiscal year 2002 results is a
one time charge of $1.1 million representing impairment
of the valuation for goodwill. This impairment accounted
for a loss from continuing operations for both the year
and the fourth quarter of fiscal 2002 of $.07 per share.
There was no charge in fiscal 2003 nor is there any remaining
goodwill on the balance sheet.
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 this
operation are reported separately as discontinued operations
for fiscal 2002. 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 in fiscal 2002.
Net
income from discontinued operations for the fiscal year
ended February 28, 2002 was $799,000 or $0.05 per basic
and diluted share. There was no income or loss from discontinued
operations in the fiscal year ended February 28, 2003.
Commenting
on the Company's operating results, Arthur Nadata, President
and Chief Executive Officer, stated, "Achieving a
modest 7% increase in top line sales dollars coupled with
a 7% reduction in combined operating and interest expenses
was not enough to offset the 3.1% reduction in gross margin
percentage due to continued pricing pressures in the semiconductor
component marketplace. Nevertheless we continued to strengthen
our balance sheet by generating approximately $31 million
in free cash flow, using $2,500,000 to reduce our remaining
indebtedness to zero with $28,500,000 being added to cash
and cash equivalents.
Nadata
concluded, "Calendar 2002 appears to have been a
stabilizing year for the electronic component industry
overall, with calendar 2001 appearing to be the low point
in the down cycle. We saw a moderate increase in sales
dollar volume, albeit accompanied by continued downward
margin pressures. We believe this stability will continue
and that we see the beginnings of a moderate improvement
in the components market worldwide, along with a marked
improvement in our current book to bill ratio. Although
we cannot predict when the semiconductor and passive component
marketplace will recover to pre-fiscal 2001 levels, we
believe these indicators, coupled with a better than one
to one book to bill ratio for the last several months
of our fiscal year, are the first indicators of a potential
gradual segment recovery."
A
conference call to further discuss earnings will be held
today at 4:15 PM ET. The call can be accessed by dialing
(800) 915-4836, (international, dial 1-973-317-5319),
refer to NuHorizons call. A webcast of the call will also
be available online after the call at www.nuhorizons.com.
And a transcript of the webcast will remain available
on that website for a period of twelve months after the
call. In connection with the conference call, Nu Horizons
has posted on its website certain information regarding
its fourth quarter and fiscal year financial results.
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.
The Company does not undertake any obligation to update
its forward-looking statements.
Click
here for table
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.
|
