Monday, semiconductor maker Vishay Intertechnology, Inc. (VSH) turned to a profit in the fourth quarter from a loss in the year ago on higher revenue and the absence of a goodwill impairment charge of $565.25 million incurred last year.
Fourth-quarter profit attributable to Vishay stockholders was $28.48 million or $0.15 per share, compared to a loss attributable to stockholders of $652.29 million or $3.50 per share in the year-ago period. Last year's results included an impairment of goodwill and indefinite-lived intangibles of $565.25 million.
Adjusted net earnings per share for the quarter were $0.16, compared to adjusted net loss of $0.07 per share in the prior-year quarter. Analysts polled by Thomson Reuters expected the company to post revenue of $0.12 for the quarter.
Vishay Intertechnology revenues increased to $607.0 million from $575.4 million in the prior-year period, above analysts fourth-quarter revenue expectations of $591.10 million. The company attributed the increase in revenue to higher global demand for passive components and discrete semiconductors with orders approaching pre-crisis levels. The company also said that its distributors had reduced inventories of its products by another 2%; inventory turns at distribution were 4.2 for the fourth quarter.
As part of its restructuring program, the company said that it has drastically reduced fixed costs and lowered its break-even point permanently by approximately $500 million. Vishay's restructuring and severance costs declined to $3.37 million from $28.57 million as did asset write-downs to $681,000 from $878,000.
For the full-year, net loss attributable to Vishay stockholders narrowed to $57.2 million or $0.31 per share from a net loss of $1.732 billion or $9.29 per share last year. However, revenue declined to $2.042 billion from $2.822 billion in the prior-year.
Looking ahead, the company expects first quarter revenue between $630 and $670 million, which is above Wall Street expectations of $594.57 million.
Vishay President and CEO Gerald Paul said, "Since the beginning of the fourth quarter 2009 Vishay is in the phase of a steep upturn. We are confident that 2010 will become a good year for us. However, in case of an economic slow-down we are prepared to promptly re-establish all savings measures of the last year."
On its acquisition activities, Executive Board Chairman Felix Zandman, said, "Based on our very strong balance sheet and the improved economic environment, we are now again actively pursuing acquisitions. We are targeting small to mid-size companies. For the passive components, we aim to strengthen and broaden our position as a specialty products supplier; for the discrete semiconductors, the intent is to increase market share and exploit synergies."
VSH is currently trading at $8.54, up $0.47 or 5.82%, on the NYSE.
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