MALVERN, PA — Vishay Intertechnology, Inc. (NYSE: VSH), one of the world’s largest manufacturers of discrete semiconductors and passive components, announced its results for the fiscal quarter and six fiscal months ended July 4, 2020.
Second Quarter Highlights:
- Revenues Q2 of $582 million
- Gross margin Q2 of 22.5%; adjusted gross margin 22.6%
- Operating margin Q2 of 7.0%; adjusted operating margin 7.2%
- EPS Q2 of $0.17; adjusted EPS $0.18
- Free Cash for the trailing 12 months Q2 of $151 million
- Repurchased $75.8 million principal amount of convertible notes due 2025, at approximately 93% of face value, to provide flexibility to adjust future debt levels as necessary
- Guidance Q3 for revenues of $580 to $620 million at a gross margin of 22.8% plus/minus 70 basis points, assuming a USD/EUR exchange rate of 0.87
Revenues for the fiscal quarter ended July 4, 2020 were $581.7 million, compared to $612.8 million for the fiscal quarter ended April 4, 2020, and $685.2 million for the fiscal quarter ended June 29, 2019.
Net earnings attributable to Vishay stockholders for the fiscal quarter ended July 4, 2020 were $24.7 million, or $0.17 per diluted share, compared to $27.2 million, or $0.19 per diluted share for the fiscal quarter ended April 4, 2020, and $44.5 million, or $0.31 per diluted share for the fiscal quarter ended June 29, 2019.
As summarized on the attached reconciliation schedule, all periods presented include items affecting comparability. Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.18, $0.21, and $0.36 for the fiscal quarters ended July 4, 2020, April 4, 2020, and June 29, 2019, respectively.
Commenting on results for the second quarter 2020, Dr. Gerald Paul, President and Chief Executive Officer stated, “The second quarter has been strongly impacted by the lockdowns in many countries due to COVID-19, in particular the shutdown of automotive plants in Europe and the Americas. Asia, especially China, having gone through a lockdown already in the first quarter, showed a quick recovery whereas revenues in Europe and the Americas were steeply lower. The weakest end market was automotive with revenues lower by 34% compared to the first quarter.”
Dr. Paul continued, “On the other hand, the second quarter seems to represent the bottom of this cycle and, clearly, the fundamentals for Vishay’s growth remain intact. Vishay has successfully mastered temporary economic downturns in the past and we are doing so again. We continue to be focused on profitability and cash generation while safeguarding the health and well-being of our employees.”
Commenting on the outlook Dr. Paul stated, “For the third quarter 2020 we expect lower sales to Vishay’s distribution partners compensated by recovering sales to our automotive customers, and guide for revenues in the range of $580 to $620 million at a gross margin of 22.8% plus/minus 70 basis points, assuming a USD/EUR exchange rate of 0.87.”
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