MELVILLE, N.Y. — (BUSINESS WIRE) — July 8, 2010 — Nu Horizons Electronics Corp. (NASDAQ: NUHC), a leading global distributor of advanced technology semiconductor, display, illumination, power, system and telecommunication solutions, today reported financial results for the first quarter of fiscal 2011, reflecting the period ended May 31, 2010. Operating performance highlights and recent developments include:
Net sales for the quarter ended May 31, 2010 increased to $210,762,000 as compared to $147,759,000 for the prior year’s comparable fiscal period, an increase of 42.6%. Sequentially, net sales for the quarter ended May 31, 2010 increased $23,839,000 or 12.8% from $186,923,000 for the fourth quarter of fiscal 2010.
Excluding Xilinx products, sales for the first quarter ended May 31, 2010 were $150,013,000, an increase of 52.7% from $98,251,000 for the comparable quarter of fiscal 2010 and an increase of 14.1% sequentially from $131,495,000 in the fourth quarter of fiscal 2010.
Sales by geographic region for the first quarter of fiscal 2011 were $113,911,000 or 54.0% of the total from North America, $75,831,000 or 36.0% of the total from Asia, and $21,020,000 or 10.0% of the total from Europe. Year-over-year, regional sales increased 36.1% in North America, 67.8% in Asia, and 11.3% in Europe.
Net income for the quarter ended May 31, 2010 was $3,374,000 or $0.18 per diluted share as compared to a net loss of $(944,000) or $(0.05) per diluted share for the first quarter of the prior year.
Martin Kent, President and Chief Executive Officer of Nu Horizons stated, "Industry demand momentum continued through the first quarter of our fiscal year 2011. We are pleased to report a fifth consecutive quarter of sequential revenue growth. Revenues increased in all of our geographic segments, with successful diversification reflected in Asia increasing to over one-third of total sales. As compared with the year-ago period, revenue increased by nearly 43% to a fiscal first quarter record level of over $210 million, which includes three months of sales associated with Xilinx products that will no longer be distributed. Excluding Xilinx sales, the first quarter revenue increased 52.7% compared to the comparable prior year period. A further sign of encouragement is that our book-to-bill ratio without Xilinx was 1.22:1 for the first quarter. However, in order to remain profitable without Xilinx, the Company will have to continue to increase sales in future quarters. "
"As we strengthened our revenue profile, we maintained our focus on enhancing profitability. The gross profit margin on consolidated sales in the first quarter improved sequentially, and is expected to improve further as our demand creation revenues increase from our expanding base of vendors and new product lines. Furthermore, our gross profit margin on non-Xilinx revenue is almost a full point higher than the gross profit margin on total sales including Xilinx. We intend to continue to take steps to increase our top line growth and increase our gross profit margin in future quarters."
Kurt Freudenberg, Executive Vice President and Chief Financial Officer, added, "We successfully concluded our Xilinx distribution agreement termination on June 5, 2010. All Xilinx inventories have been sold to our customers or returned to Xilinx for cash. During the first quarter we continued to make improvements to our balance sheet. Our improved cash position at the end of the fiscal first quarter along with a new global credit facility executed in June with maximum borrowings of up to $80 million, is expected to provide us with financial flexibility to capitalize on the growth and market share expansion opportunities available to us globally."
A conference call to further discuss earnings will be held today at 4:30
pm ET. The conference call may be accessed by dialing 1-888-523-1232
(international, dial 1-719-457-2081) and providing the passcode 5181423.
Listeners can also access the webcast live through the company's website
The webcast will be archived on the company’s website for 60 days
following the call. An audio replay of the conference call will be
available for seven days beginning at 7:30 p.m. Eastern time on July 8,
2010. The audio replay dial-in number for North America is
1-888-203-1112 and 1-719-457-0820 for international callers. The replay
passcode is 5181423. A transcript of the call will remain available on
the company's website.