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Bel Reports 72% Growth in Fourth Quarter Net Sales to $83.7 Million

Dépèche transmise le 10 février 2011 par Business Wire

JERSEY CITY, N.J.--(BUSINESS WIRE)--Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) today announced preliminary unaudited financial results for the fourth quarter and 2010.

For the quarter, the Company reported that net sales increased 72% to a fourth quarter record $83.7 million. The net loss for the fourth quarter of $1.0 million included an $8.1 million charge for litigation. For 2010, net sales increased 66% to a record $302.5 million and net earnings increased to $13.6 million ($1.10 per diluted Class A share and $1.18 per diluted Class B share) compared to a net loss of $8.3 million ($0.71 per Class A share and $0.72 per Class B share) for 2009.

"We are pleased with the Company's strong top and bottom line performance for the fourth quarter and 2010, which reflected solid demand for all of Bel's product groups and strong results at Cinch Connectors. The increase in sales raised margins, as a percentage of sales, and we achieved efficiency gains at our plants in China. Our hiring program in China was completed in the fourth quarter, which also helped drive lead times down to traditional levels by year end," said Daniel Bernstein, Bel's President and CEO.

As previously announced, the Company incurred an $8.1 million charge for litigation in the fourth quarter in connection with the SynQor v. Artesyn Technologies, Inc., et al. patent infringement litigation. "Bel will appeal this verdict," Bernstein said.

Fourth Quarter Results

For the three months ended December 31, 2010, net sales increased to $83,697,000, compared to $48,665,000 for the fourth quarter of 2009. This year's fourth quarter net sales included $14,810,000 attributable to Cinch Connectors, which was acquired on January 29, 2010. Excluding the Cinch Connector sales, net sales increased 42% for the fourth quarter of 2010 versus the same quarter last year.

The net loss for the fourth quarter of 2010 was $1,022,000, which was net of a charge for litigation of $8,103,000 ($8,042,000 after tax). This compares to net earnings for the fourth quarter of 2009 of $2,898,000. Net earnings for the fourth quarter of 2009 included a pre-tax net gain of $5,390,000 ($3,343,000 after tax) resulting primarily from the sale of the Company's equity interest in Power-One, Inc. This gain more than offset an operating loss of $808,000, which included costs of $504,000 ($312,000 after tax) related to the Cinch Connectors acquisition.

Adjusted to exclude the litigation charge and various other amounts, non-GAAP net income for the fourth quarter of 2010 was $6,873,000. This compares to a non-GAAP net loss for the fourth quarter of 2009 of $87,000, adjusted to exclude a gain on sale of investments and various costs. A reconciliation of non-GAAP to GAAP financial measures is provided in the table attached to this press release.

The net loss per Class A common share for the fourth quarter of 2010 was $0.09, compared to net earnings per diluted Class A common share of $0.23 for the fourth quarter of 2009. Adjusted to exclude the litigation charge and various other amounts, non-GAAP net earnings per diluted Class A common share were $0.56 for the fourth quarter of 2010, compared to a non-GAAP net loss per Class A common share of $0.01 for the fourth quarter of 2009, adjusted to exclude a gain on sale of investments and various costs.

The net loss per Class B common share was $0.09 for the fourth quarter of 2010, compared to net earnings per diluted Class B common share of $0.25 for the fourth quarter of 2009. Adjusted to exclude the litigation charge and various other amounts, non-GAAP net earnings per diluted Class B common share were $0.59 for the fourth quarter of 2010, compared to a non-GAAP net loss per Class B common share of $0.01 for the fourth quarter of 2009, adjusted to exclude a gain on sale of investments and various costs.

Cost of sales decreased to 78.5% of sales for the fourth quarter of 2010, compared to 85.3% of sales for the fourth quarter of 2009.

Adjusted to exclude the litigation charge and various other amounts, non-GAAP income from operations for the fourth quarter of 2010 was $8,208,000, including non-GAAP operating income of approximately $515,000 at Cinch Connectors. For the fourth quarter of 2009, adjusted to exclude various costs, the non-GAAP loss from operations was $269,000.

At December 31, 2010, Bel reported working capital of approximately $157,296,000, including cash, cash equivalents, short-term investments and marketable securities of approximately $85,536,000, a current ratio of 4.4, total long-term obligations of $10,571,000, and stockholders' equity of $220,333,000. In comparison, at December 31, 2009, Bel reported working capital of approximately $167,833,000, including cash, cash equivalents, short-term investments and marketable securities of approximately $124,233,000, a current ratio of 7.0, total long-term obligations of $9,017,000, and stockholders' equity of $208,932,000.

2010 Results

For the twelve months ended December 31, 2010, net sales were a record $302,539,000, compared to $182,753,000 for 2009. Net earnings for 2010 increased to $13,649,000, compared to a net loss of $8,310,000 for 2009.

Net earnings per diluted Class A common share for 2010 were $1.10, compared to a net loss per Class A common share of $0.71 for 2009. Net earnings per diluted Class B common share for 2010 were $1.18, compared to a net loss per Class B common share of $0.72 for 2009.

Conference Call

Bel has scheduled a conference call at 11:00 a.m. EST today. To participate in the call, dial (720) 545-0088, conference ID #37590538. A simultaneous webcast is available from the Events and Presentations link of the Investor Info tab at www.belfuse.com. The webcast will be available for replay, for a period of 20 days, at this same Internet address. For a telephone replay, dial (706) 645-9291, conference ID #37590538 after 2:00 p.m. EST.

About Bel

Bel (www.belfuse.com) and its divisions are primarily engaged in the design, manufacture, and sale of products used in networking, telecommunications, high-speed data transmission, commercial aerospace, military, transportation, and consumer electronics. Products include magnetics (discrete components, power transformers and MagJack® connectors with integrated magnetics), modules (DC-DC converters, integrated analog front-end modules and custom designs), circuit protection (miniature, micro and surface mount fuses) and interconnect devices (micro, circular and filtered D-Sub connectors, passive jacks, plugs and high-speed cable assemblies). The Company operates facilities around the world.

Forward-Looking Statements

Except for historical information contained in this news release, the matters discussed in this press release (including plans to appeal the SynQor verdict) are forward-looking statements that involve risks and uncertainties. Among the factors that could cause actual results to differ materially from such statements are: the market concerns facing our customers; the continuing viability of sectors that rely on our products; the effects of business and economic conditions; capacity and supply constraints or difficulties; product development, commercializing or technological difficulties; the regulatory and trade environment; risks associated with foreign currencies; uncertainties associated with legal proceedings; the market's acceptance of the Company's new products and competitive responses to those new products; and the risk factors detailed from time to time in the Company's SEC reports. In light of the risks and uncertainties, there can be no assurance that any forward-looking statement will in fact prove to be correct. We undertake no obligation to update or revise any forward-looking statements.

                               
BEL FUSE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(000s omitted, except for per share data)
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2010 2009 2010 2009
(unaudited) (unaudited)
 
Net Sales $ 83,697   $ 48,665   $ 302,539   $ 182,753  
 
Costs and expenses:
Cost of sales 65,661 41,535 239,185 161,454
Selling, general and administrative 9,801 7,988 40,443 30,055
Impairment of goodwill -- -- -- 12,875
Litigation charge 8,103 -- 8,103 --
Restructuring charge -- -- -- 413
Loss (gain) loss on sale of property, plant and equipment   17     (50 )   (352 )   (4,693 )
 
Total costs and expenses   83,582     49,473     287,379     200,104  
 
Income (loss) from operations 115 (808 ) 15,160 (17,351 )
 
Gain on sale of investments -- 5,390 -- 7,129
 
Interest income and other, net   95     125     420     527  
 
Earnings (loss) before provision (benefit) for income taxes 210 4,707 15,580 (9,695 )
 
Provision (benefit) for income taxes   1,232     1,809     1,931     (1,385 )
 
Net (loss) earnings $ (1,022 ) $ 2,898   $ 13,649   $ (8,310 )
 
(Loss) earnings per Class A common share
basic and diluted $ (0.09 ) $ 0.23   $ 1.10   $ (0.71 )
 
Weighted average Class A common shares outstanding
basic and diluted   2,175     2,175     2,175     2,175  
 
(Loss) earnings per Class B common share
basic and diluted $ (0.09 ) $ 0.25   $ 1.18   $ (0.72 )
 
Weighted average Class B common shares outstanding
basic and diluted   9,528     9,423     9,504     9,363  
 
 
 
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(000s omitted)
                                 
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
ASSETS 2010 2009 LIABILITIES & EQUITY 2010 2009
(unaudited) (audited) (unaudited) (audited)
                                             
 
Current assets $ 203,564 $ 195,830 Current liabilities $ 46,268 $ 27,997

Property, plant & equipment, net

44,793 35,943 Noncurrent liabilities 10,571 9,017
Goodwill 4,264 1,957
Intangibles & other assets   24,551   12,216 Stockholders' equity   220,333   208,932
 
Total Assets $ 277,172 $ 245,946 Total Liabilities & Equity $ 277,172 $ 245,946
 
 
 
BEL FUSE INC. AND SUBSIDIARIES
NON-GAAP MEASURES (unaudited)
(000s omitted, except for per share data)
 
    Three Months Ended December 31, 2010       Twelve Months Ended December 31, 2010

Income

from

Operations

   

Net

(loss)

earnings(2)

   

Net (loss) earnings
per Class A common
share - diluted(3)

   

Net (loss) earnings
per Class B common
share - diluted(3)

Income

from

Operations

   

Net

earnings(2)

   

Net earnings per
Class A common
share - diluted(3)

   

Net earnings per
Class B common
share - diluted(3)

 
GAAP measures $ 115 $ (1,022 ) $ (0.09 ) $ (0.09 ) $ 15,160 $ 13,649 $ 1.10 $ 1.18
Severance costs and plant closure expenses 80 63 0.01 0.01 1,176 1,064 0.09 0.09
Litigation charge 8,103 8,042 0.66 0.69 8,103 8,042 0.66 0.69
Recovery of unauthorized stock issuance costs (121 ) (75 ) (0.01 ) (0.01 ) (121 ) (75 ) (0.01 ) (0.01 )

Acquisition-related costs and inventory-related purchase accounting adjustments

14 9 0.00 0.00 1,141 707 0.06 0.06
Loss

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