MELVILLE, NY--Nu Horizons Electronics Corp. (Nasdaq/NM: NUHC), a leading distributor of active and passive electronic components, today reported financial results for the second quarter and six months of fiscal 2011 ended August 31, 2010.
Net sales for the quarter ended August 31, 2010 were $164,130,000 as compared to $156,600,000 for the comparable period last year, an increase of 4.8%. For the six months ended August 31, 2010, net sales increased to $374,892,000 or 23.2% from $304,360,000 in the comparable period last year.
Excluding Xilinx product sales (i) net sales for the quarter ended August 31, 2010 were $162,461,000 as compared to $107,011,000 for the comparable period last year, an increase of 51.8%; (ii) for the six months ended August 31, 2010, net sales increased to $312,474,000 or 52.2% from $205,262,000 in the comparable period last year; (iii) sequentially, net sales for the quarter ended August 31, 2010 increased $12,448,000 or 8.3%, from $150,013,000 in the first quarter of fiscal 2011; and (iv) sequentially, for the current quarter ended August 31, 2010, revenues grew in all regions: North America was up $7,135,000 (9.1%); Asia was up $3,448,000 (6.1%); and Europe was up $1,865,000 (13.0%).
Net income for the quarter was $1,156,000 or $0.06 per diluted share as compared to net income of $543,000 or $0.03 per diluted share for the second quarter of the prior year. The net income for the six-month period was $4,530,000 or $0.25 per diluted share compared to a net loss of $401,000 or $(0.02) per share in the prior year.
"In the six months ended August 31, 2010, the Company generated over $21 million of cash from operations and approximately $6.8 million of debt was repaid. Reflecting our strong balance sheet, at August 31, 2010, the Company had nearly $175 million in working capital, including $20.5 million of cash on hand," added Kurt Freudenberg, Executive Vice President and Chief Financial Officer.
Commenting on the second quarter results and recent developments, Martin Kent, President and Chief Executive Officer of Nu Horizons, stated, "We are pleased to report meaningful progress made in the second fiscal quarter toward our goal of improving profitability. The Company’s gross margin increased by 10% while our earnings per share improved by 100% in the second quarter as compared with the same period in the prior fiscal year. However, the most important development occurred after the end of the quarter. On September 20th, we announced the signing of a definitive agreement for Nu Horizons to be acquired by Arrow Electronics, Inc. in an-all cash transaction for $7.00 per common share. We believe the acquisition, subject to various approvals and closing conditions, is in the best interest of our shareholders, particularly given the significant premium to be paid for their stock. Furthermore, we believe the acquisition enhances our competitive position that, in turn, provides benefits to our customers, suppliers and international workforce. We expect the transaction to close in the fourth quarter of fiscal 2011."