Vishay Intertechnology, Inc. (NYSE: VSH), one of the world’s largest manufacturers of discrete semiconductors and passive components, today announced its results for the fiscal quarter and nine fiscal months ended September 27, 2014.
Revenues for the fiscal quarter ended September 27, 2014 were $638.2 million, compared to $602.9 million for the fiscal quarter ended September 28, 2013. The net earnings attributable to Vishay stockholders for the fiscal quarter ended September 27, 2014 were $27.0 million, or $0.17 per diluted share, compared to $32.7 million, or $0.22 per diluted share for the fiscal quarter ended September 28, 2013.
Net earnings attributable to Vishay stockholders for the fiscal quarter ended September 27, 2014 include restructuring and severance costs of $3.5 million and U.S. pension settlement charges of $15.6 million. Net earnings attributable to Vishay stockholders for the fiscal quarter ended September 28, 2013 include a one-time tax benefit of $2.9 million to adjust deferred taxes subsequent to the enacting of a new tax law in Israel. Adjusted net earnings per diluted share, which exclude these items, were $0.26 and $0.20 for the fiscal quarters ended September 27, 2014 and September 28, 2013, respectively.
Commenting on the results for the third quarter 2014, Dr. Gerald Paul, President and Chief Executive Officer, stated, “Revenues in the third quarter 2014 were slightly below the mid-point of our guidance. A strengthening US dollar and lower than expected shipments to distribution impacted the top line. In the third quarter, Asian distribution, as in previous years, reduced its orders placed with Vishay compared to previous quarters. At the same time, Vishay achieved a contributive margin for the quarter in its traditional range while keeping its fixed costs under control resulting overall in acceptable margins.”
Commenting on Vishay’s Merger and Acquisition activity, Marc Zandman, Vishay’s Executive Chairman and Chief Business Development Officer, stated, “In September, we acquired an 88.95% interest in Taiwan-based Capella Microsystems, Inc. through a successful tender offer. We expect to acquire the remaining shares through a merger, which was approved by Capella’s shareholders on October 24, 2014. We anticipate the merger to close by the end of January 2015. Capella is a leading fabless IC design company for optical sensors. Its strong market position for optical sensors complements Vishay’s current capabilities in this high growth field very well. Capella is expected to grow as a business within Vishay while strengthening Vishay’s position for optical sensors by adding in-house IC design capability and thus ensuring further growth in the mid- to long-term for our Opto business.”
Commenting on the outlook Dr. Paul stated, “For the fourth quarter 2014 we anticipate a temporary slow-down of shipments to distribution and guide for revenues of $600 to $640 million at gross margins in line with this volume.”