Revenues for Q2 2017 of $645 million
Gross Margin Q2 of 26.8%
Adjusted Operating Margin Q2 of 12.8%
EPS Q2 of $0.36
Adjusted EPS Q2 of $0.36
Cash from operations for trailing twelve months Q2 of $329 million and capital expenditures of $133 million
Guidance for Q3 2017 for revenues of $630 - $670 million and gross margins of 26% - 28% at Q2 exchange rates
MALVERN, PENNSYLVANIA – August 3, 2017 – Vishay Intertechnology, Inc. (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive components, today announced its results for the fiscal quarter and six fiscal months ended July 1, 2017.
Revenues for the fiscal quarter ended July 1, 2017 were $644.9 million, compared to $606.3 million for the fiscal quarter ended April 1, 2017 and $590.1 million for the fiscal quarter ended July 2, 2016. Net earnings attributable to Vishay stockholders for the fiscal quarter ended July 1, 2017 were $56.2 million, or $0.36 per diluted share, compared to $36.7 million, or $0.24 per diluted share for the fiscal quarter ended April 1, 2017, and $33.1 million, or $0.22 per diluted share for the fiscal quarter ended July 2, 2016.
All periods presented include items affecting comparability. These items are summarized on the attached reconciliation schedule. Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.36, $0.28, and $0.23 for the fiscal quarters ended July 1, 2017, April 1, 2017, and July 2, 2016, respectively.
Commenting on the results for the second quarter 2017, Dr. Gerald Paul, President and Chief Executive Officer, stated, “Results in the second quarter 2017 improved further from the first quarter driven by continued strong demand from virtually all markets, in particular by the industrial and automotive end markets. The high order level was driven by distribution, in particular in Asia and Europe. Shortages of supply and long lead times for certain product lines still raise concerns at customers. At the same time, sales of our products by distribution to end customers continued to increase resulting in increased inventory turns at distribution.”
Dr. Paul continued, “We expect strong growth in automotive markets for years to come driven by e-mobility and sensors. It is a market in which we are very well positioned.”
Commenting on the outlook Dr. Paul stated, “For the third quarter, we guide for revenues of $630 to $670 million and gross margins of 26% to 28% at the exchange rates for the second quarter.”
A conference call to discuss Vishay’s second quarter financial results is scheduled for Thursday, August 3, 2017 at 9:00 a.m. ET. The dial-in number for the conference call is 877-589-6174 (+1 706-643-1406 if calling from outside the United States or Canada) and the conference ID is 43575734.
There will be a replay of the conference call from 12:00 p.m. ET on Thursday, August 3, 2017 through 11:59 p.m. ET on Thursday, August 10, 2017. The telephone number for the replay is 800-585-8367 (+1 855-859-2056 or 404-537-3406 if calling from outside the United States or Canada) and the access code is 43575734.
A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation can be accessed directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.
Vishay Intertechnology, Inc., a Fortune 1000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs, and infrared optoelectronics) and passive electronic components (resistors, inductors, and capacitors). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, power supplies, and medical markets. Vishay’s product innovations, successful acquisition strategy, and "one-stop shop" service have made it a global industry leader. Vishay can be found on the Internet at www.vishay.com.
This press release includes certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted net earnings; adjusted earnings per share; adjusted operating margin; free cash; earnings before interest, taxes, depreciation and amortization (“EBITDA”); adjusted EBITDA; and adjusted EBITDA margin; which are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP measures supplement our GAAP measures of performance or liquidity and should not be viewed as an alternative to GAAP measures of performance or liquidity. Non-GAAP measures such as adjusted net earnings, adjusted earnings per share, adjusted operating margin, free cash, EBITDA, adjusted EBITDA, and adjusted EBITDA margin do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Management believes that such measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Although the terms “free cash” and "EBITDA" are not defined in GAAP, the measures are derived using various line items measured in accordance with GAAP. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to understanding the Company's intrinsic operations. Reconciling items to calculate adjusted operating margin and adjusted EBITDA represent those same items used in computing adjusted net earnings, as relevant. Furthermore, the presented calculation of adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay’s revolving credit facility. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in the Company's financial statements presented in its annual report on Form 10-K and its quarterly reports presented on Forms 10-Q.
Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues and margins, and the performance of specific market segments and the economy in general, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,” “should,” or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; delays or difficulties in implementing our cost reduction strategies; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; changes in applicable domestic and foreign tax regulations and uncertainty regarding the same; and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Vishay Intertechnology, Inc.
Contact: Vishay Intertechnology, Inc.
Senior Vice President, Corporate Communications