MOLX » Topics » 2007 First Fiscal Quarter Results

This excerpt taken from the MOLX 8-K filed Oct 19, 2006.

2007 First Fiscal Quarter Results


Revenue for the quarter ended September 30, 2006 was $829.5 million, an increase of 25.7% over the same period last fiscal year.  Revenue in local currencies increased 24.1%, as currency translation increased revenue by $10.6 million, compared with last year’s first fiscal quarter.  Revenue increased 5.8% sequentially from the quarter ended June 30, 2006.  On August 10, 2006, we completed the acquisition of Woodhead Industries, which accounted for $33.5 million of revenue in the September quarter.  Revenue growth excluding Woodhead was 20.6%.


Net income for the September quarter was $76.8 million, an increase of 64.5% over the same period last fiscal year.  Earnings per share were $0.41, an increase of 64.0% over the same period last fiscal year.   Currency translation decreased net income by $0.3 million in the current quarter, compared with last year’s first fiscal quarter.  Net income for the September quarter rose 9.1% sequentially from the quarter ended June 30, 2006.  The Woodhead Industries acquisition accounted for $1.0 million of net income in the September quarter.  

 

Martin P. Slark, CEO and Vice-Chairman commented, “This was a very strong quarter, with significant and balanced revenue growth in our major markets.   Revenue increased 28% in the consumer market, 22% in the telecom market, and 16% in the data market.  Revenue in the industrial market including the acquisition of Woodhead Industries increased 94%, and by 34% without the inclusion of Woodhead.  Revenue in the automotive market grew 10%, as a result of new project wins and higher connector content within the vehicle.  Revenue in our newer focus medical electronics market grew 26%.  The overall business maintained good momentum, with a 1.04 book-bill ratio for the quarter. We were also pleased with the initial integration of






Woodhead, and the numerous opportunities identified to increase our revenue and profit in the industrial market.”  


Gross profit margin was 32.5%, compared with 32.4% in last year’s first fiscal quarter, reflecting continued process improvements and the benefit of last year’s restructuring activity offset by higher costs for raw materials.  Selling, general and administrative expense (SG&A) was 20.0% of revenue, compared with 22.6% in last year’s first fiscal quarter, which included a $5.7 million charge for an automotive customer that filed for bankruptcy.  Beginning July 1, 2006, we began classifying freight to customers and warehouse costs, to cost of sales rather than SG&A.  Cost of sales for the prior year quarter was increased by $12.4 million with a corresponding decrease to SG&A to conform to this change.  Pretax profit margin improved to 13.0%, when compared with 9.9% in last year’s first fiscal quarter.


The effective tax rate for the September quarter was 28.5%, the same rate as in the prior year quarter.   Net profit margin improved to 9.3%, compared with 7.1% in last year’s first fiscal quarter.  Return on invested capital improved to 12.1%, when compared to 8.2% in last year’s first fiscal quarter, a result of increased net income and improvements in capital efficiency.   


Cash and marketable securities declined $133.6 million to $351.9 million at September 30, 2006, compared with $485.5 million at June 30, 2006.  The decrease was primarily a result of using cash to fund the Woodhead acquisition.  Long-term debt increased to $134.5 million, as a result of a 15 billion Japanese yen ($127.7 million) 3-year debt financing at an interest rate of approximately 1.3%.


This excerpt taken from the MOLX 8-K filed Jan 19, 2006.

Second Quarter Results


Revenue for the quarter ended December 31, 2005, was a record $697.3 million, an increase of 7.0% over the same period last fiscal year.  Revenue in local currencies rose 8.5%, as currency translation lowered net revenue by approximately $9.9 million, compared with last year’s second quarter.  Revenue for the December quarter increased 5.7% sequentially from the quarter ended September 30, 2005.

 

Net income for the December quarter was $58.5 million, or $0.31 per share, compared with $52.2 million, or $0.27 per share in the prior year quarter.  Included in the current quarter results was a restructuring charge of $6.5 million ($5.0 million after-tax or approximately $0.03 per share), relating to a previously announced restructuring program.


Revenue in the mobile phone market was very strong and increased 20% over last year’s second quarter, and 10% sequentially.  Revenue in the consumer market was also strong, increasing 12% over last year, and 11% sequentially.  Revenue in the automotive market increased 13% over last year, and was flat sequentially.  Revenue in the data products and industrial markets was flat, versus both the prior year and sequentially.


Revenue in the Far East South region, the Company’s largest region, was $235 million, an increase of 15% over last year’s second quarter in dollars, and a similar increase in local currencies.  In the Far East North region (Japan and Korea), revenue was $130 million, a decline of 3% in dollars and an increase of 2% in local currencies.  In the Americas region, revenue of $198 million rose 16%, the highest growth rate in several years.  In Europe, revenue of $117 million declined 9% in dollars and 3% in local currencies compared with last year’s second quarter.  

 

 

Selling, general and administrative expense was $159.8 million for the December quarter, compared with $153.8 million for the prior year quarter and $161.4 million for the quarter ended September 30, 2005.  SG&A expense included a reduction of $2.7 million ($1.9 million after-tax or approximately $0.01 per share), due to factoring an account receivable that the Company had provided for in the September 2005 quarter.  SG&A expense also included the effect of adopting Financial Accounting Standards Board Statement No.123(R), Share-Based Payment, which increased expense by $2.9 million ($2.1 million after-tax or approximately $0.01 per share).


The effective tax rate for the quarter was 28.5%.  This tax rate is consistent with prior guidance, but higher than the 27.0% rate in the prior year quarter, primarily due to changes in the mix of earnings by country.


Martin P. Slark, CEO and Vice-Chairman commented, “We were very pleased with our financial results for the December quarter.  The mobile phone and consumer markets were very strong and had a significant impact on our revenue growth and profit improvement.  In these markets, our growth was partially driven by our new products and design wins at the leading manufacturers.   In the Americas, we were pleased with our growth in the distribution and medical electronics markets.  Our growth in automotive was primarily due to the introduction of new products.”


Slark continued, “Our restructuring efforts are moving forward.  We were pleased with the 40 basis point sequential improvement in gross profit margin, despite a difficult raw material cost environment.  A considerable number of our management initiatives are devoted to reducing manufacturing overhead and improving margins on an individual product basis.  While a portion of the gross margin improvement was due to increased revenue, especially in our higher profit markets, we believe our internal efforts are working and contributed to this improvement.”


Cash and marketable securities were $419.8 million at December 31, 2005, compared with $423.2 million at September 30, 2005 and $412.0 million at December 31, 2004.  As described below, during the December quarter the Company spent $45.0 million to repurchase its common stock.


EXCERPTS ON THIS PAGE:

8-K
Oct 19, 2006
8-K
Jan 19, 2006
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