MALVERN, PA — Vishay Intertechnology, Inc. (NYSE: VSH), a global manufacturer and supplier of semiconductors and passive components, disclosed its fiscal first quarter results, revealing a mix of challenges and strategic adjustments amidst volatile market conditions.
For the quarter ending March 30, 2024, Vishay reported revenues of $746.3 million, alongside a gross margin of 22.8%, which reflects a 74-basis point decline attributed to the integration of Newport, a recent acquisition. The company’s earnings per share (EPS) stood at $0.22, with a book-to-bill ratio falling below unity at 0.82, signaling lower orders compared to shipments—a situation more pronounced in its semiconductor business with a 0.73 ratio.
Vishay’s backlog extended to five months by quarter’s end, pointing to a significant order volume awaiting fulfillment. Joel Smejkal, CEO, noted that the sequential revenue dip was anticipated, driven by semiconductor inventory adjustments and economic uncertainties, particularly in Asia and Europe. However, the automotive sector shows stable to growing revenue for passive components, with aerospace/defense experiencing stronger growth.
Looking forward, Vishay anticipates a rebound from the current inventory correction in the latter half of 2024, with passive components leading the recovery. The company plans to leverage eight strategic growth initiatives outlined during its Investor Day, focusing on capacity expansion, deepening customer relationships, and advancing its silicon carbide strategy to position itself for the anticipated upturn in demand.
For the second quarter of 2024, Vishay projects revenues to hover around $750 million, plus or minus $20 million, inclusive of contributions from Newport. Gross profit margins are expected to range around 21.7%, plus or minus 50 basis points, factoring in a 160 basis point drag from Newport’s integration.
This forecast spotlights Vishay’s cautious optimism and strategic focus in navigating through current market softness towards a stronger performance in the second half of the year. By investing in capacity and technology while solidifying customer ties, Vishay aims to emerge well-prepared for the next demand cycle, despite the near-term headwinds faced by the semiconductor industry.
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