NU
HORIZONS REPORTS FINANCIAL AND OPERATING RESULTS FOR THE SECOND QUARTER OF FISCAL
YEAR 2005
MELVILLE,
NY, September 30, 2004 --- Nu Horizons Electronics Corp. (Nasdaq/NM: NUHC),
a leading distributor of active and passive electronic components today reported
financial and operating results for the second quarter and six months ended August
31, 2004.
Net
sales for the quarter ended August 31, 2004 were $119.2 million compared to $80.0
million for the comparable period last year, an increase of 49%. Net income for
the quarter was $1,186,000 or $0.07 per share on 16,884,147 basic shares outstanding
[$.07 per share on 17,663,839 diluted shares], compared to a net loss of $(623,000)
or $(0.04) per share on 16,681,145 basic and diluted shares outstanding in the
same period last year.
For
the six months ended August 31, 2004, net sales increased to $237.4 million from
$152.8 million in the comparable period last year, an increase of 55%. Net income
for the first half of fiscal 2005 was $2,372,000 or $0.14 per share on 16,884,147
basic shares outstanding [$0.13 per share on 17,875,443 diluted shares], compared
with a net loss of $(1,454,000), or $(0.09) per share on 16,678,093 basic and
diluted shares outstanding in the year-earlier period.
Arthur
Nadata, chairman of the board and chief executive officer of Nu Horizons, said,
"Sales and net income, year over year and quarter over quarter, showed substantial
gains as our industry continued its recovery from the downturn experienced a few
years ago. While we were able to report a slight increase in sequential sales
for the quarter ended August 31, 2004, $119.2 million as compared to $118.2 million
for the quarter ended May 31, 2004, in practical terms sales remained relatively
flat after five quarters of substantial sequential sales increases."
Nadata
continued, "This slowing in our sequential rate of growth appears to be an
industry-wide phenomenon, which also coincides with the historically slower sales
activity in the summer period. The question is whether it is a temporary pause
or a more permanent slowing of industry growth. We believe that the next six to
nine months will result in a more modest sequential industry growth rate than
was experienced over the past eighteen months."
Nadata
concluded, "Our gross margins appear to have stabilized and have actually
improved modestly over the past two quarters. We believe that our overall sales
growth should continue to be positively impacted by our demand creation model
approach which should allow us to maintain margins as well as continue to increase
our market share although no assurances can be given in this regard."
A conference call to further discuss earnings will be held today at 4:15
pm ET. The call can be accessed by dialing (800) 289-0518, (international, dial
(913-981-5532) and refer to the Nu Horizons call. A webcast of the call will be
available on line (both live and after the call, beginning at 7:00 pm ET) at www.nuhorizons.com.
A rebroadcast of the call will be available, beginning at 7:00 pm ET at (888-203-1112
(international, dial (719-457-0820) confirmation code 838405. A transcript of
the webcast will remain available on the website for a period of twelve months,
beginning one week after the call. In connection with the conference call, Nu
Horizons has posted on its website certain information regarding its second quarter
results.
Click
here for table (PDF)
About
Nu Horizons Electronics Corp.
Nu
Horizons is a leading distributor of high technology active components, including
analog, communications, discretes, optical, logic & peripherals, memory, microcontrollers,
system on chip (SOC), board level and computer system products to a wide variety
of commercial original equipment manufacturers (OEMs). With sales facilities in
thirty-three locations across North America and Asia, and logistics centers in
centralized locations throughout the globe, Nu Horizons partners with a limited
number of best-in-class suppliers to provide in-depth product and solutions expertise
to its customers. Information on Nu Horizons and its services is available at
www.nuhorizons.com. The Company does not undertake any obligation to update its
forward-looking statements.
Except
for historical information contained herein, the matters set forth in this news
release are forward looking statements. When used in this press release, words
such as "anticipate," "believe," "estimate," "expect,"
"intend" and similar expressions, as they relate to Nu Horizons or its
management, identify forward-looking statements. Such forward-looking statements
are based on the current beliefs of Nu Horizons' management, as well as assumptions
made by and information currently available to its management. Forward-looking
statements 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 electronics 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. Such statements
reflect our current view with respect to the future and are subject to these and
other risks, uncertainties and assumptions relating to Nu Horizons' financial
condition, results of operations, growth strategy and liquidity. The Company does
not undertake any obligation to update its forward-looking statements.
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