Exhibit 99.1
FOR IMMEDIATE RELEASE CONTACT: PAM JAMESON
(631) 847-3169
GENERAL SEMICONDUCTOR REPORTS RECORD SECOND QUARTER SALES, NET INCOME
AND EARNINGS ALL REACH NEW HIGHS AS EPS DOUBLES
MELVILLE, NY (JULY 20, 2000)--GENERAL SEMICONDUCTOR, INC. (NYSE:SEM), a
leading manufacturer of discrete semiconductors, today reported record
sales for the quarter ended June 30, 2000 of $128.3 million, an increase of
26.3% from the $101.6 million for the second quarter of 1999.
Operating income in the quarter was $22.1 million compared with $12.0
million in the comparable quarter of 1999, an 83.6% improvement. Net income
for the quarter increased 136.7% over the prior year setting a record at
$12.1 million. Diluted earnings per share also set a new record as they
increased 100.0% to $0.28, based on 49.9 million shares. This compares with
$0.14 on 36.9 million shares in the year earlier period. The change in
diluted shares reflects the issuance in December 1999 of $172.5 million 5
3/4% Convertible Subordinated Notes.
On a sequential basis, sales increased 11.6% from the $115.0 million
reported for the first quarter of 2000. Operating income increased 16.9%
from the $18.9 million reported while net income was up 26.8% from $9.5
million. Earnings per share gained 21.7% from $0.23.
Average selling prices increased 1.1% during the quarter, orders remained
strong from all regions, capacity utilization improved to approximately 92%
and the book-to-bill ratio was a healthy 1.13 to 1.
In the six month period ended June 30, 2000, revenue increased 22.5% from
$198.5 million to $243.3 million while operating income was up 79.8% from
$22.8 million to $41.0 million. Diluted earnings per share doubled from
$0.25 in 1999 to $0.50.
While all geographic markets showed good sequential increases during the
quarter, Southeast Asia, China and Japan showed double-digit gains.
Similarly, all key markets reported improvements with computer and telecom
gaining in excess of 15% and sales to contract manufacturers growing over
35%.
During the first half of the year, the Company also repaid $24 million on
its revolving credit facility, reducing total long term debt from $276.5
million at 1999 year end to $252.5 million on June 30, 2000, including
$172.5 million in Convertible Subordinated Notes.
New products accounted for 7% of sales in the second quarter, compared with
4% in the comparable period of 1999. The MOSFET business is ahead of plan
for the year, with sales booked in the computer industry and telecom
industries.
"We are pleased with the strength of our business during the second quarter
and year to date," stated Ronald A. Ostertag, Chairman and Chief Executive
Officer. "With strong sales gains in each of our regions and key end-use
markets, we are very optimistic about our performance for the remainder of
the year. Given our order backlog, improved capacity utilization and
strengthened pricing, we believe that sequential improvements in our
earnings will continue for the balance of the year. Our future outlook is
much improved by new product introductions, specifically, power MOSFETs, a
business that we were not in a year ago. The outlook is also enhanced by
our strengthened balance sheet, improved factories utilization, and
continued focus on cost reduction."
General Semiconductor, Inc. is a market leader in the design, manufacture
and distribution of discrete semiconductor components. The Company provides
customers with a broad array of power management products including
rectifiers, transient voltage suppressors, small signal transistors, diodes
and MOSFETs. Its global customer base includes original equipment
manufacturers, electronic distributors and contract equipment
manufacturers. Key markets for its products include automotive, computers,
consumer and telecommunications equipment.
JOIN US FOR OUR CONFERENCE CALL TO BE BROADCAST LIVE AT 8:30 AM,
THURSDAY, JULY 20, 2000 ON OUR WEBCAST AT:
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=SEM&script=2400
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The information set forth above includes "forward-looking" information and,
accordingly, the cautionary statements contained in Exhibit 99 to the
Company's Form 10-K and Form 10-Q filings with the Securities and Exchange
Commission are incorporated herein by reference. General Semiconductor's
actual results could differ materially from the "forward-looking"
information in this press release.
VISIT GENERAL SEMICONDUCTOR ON THE WEB AT www.gensemi.com
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<TABLE>
<CAPTION>
GENERAL SEMICONDUCTOR, INC.
CONSOLIDATED INCOME STATEMENTS
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------- ---------------------------------
2000 1999 2000 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
NET SALES $ 128,318 $ 101,583 $ 243,288 $ 98,544
-------------- -------------- -------------- --------------
OPERATING COSTS AND EXPENSES:
Cost of sales 169,247 147,497
88,810 75,020
Selling, general and administrative 14,357
11,583 27,021 22,546
Research and development
1,761 1,659 3,435 3,119
Amortization of excess of cost over fair value
of net assets acquired
1,286 1,285 2,571 2,571
-------------- -------------- -------------- --------------
Total operating costs and expenses 106,214 89,547 202,274 175,733
-------------- -------------- -------------- --------------
OPERATING INCOME 22,104 12,036 41,014 22,811
Other income (expense)-net
(22) 47 (7) (11)
Interest expense-net (4,808) (5,273) (10,113) (10,321)
-------------- -------------- -------------- --------------
INCOME BEFORE INCOME TAXES 17,274 6,810 30,894 12,479
Provision for income taxes (5,181) (1,702) (9,267) (3,119)
-------------- -------------- -------------- --------------
NET INCOME $ 2,093 $ 5,108 $ 21,627 $ 9,360
============== ============== ============== ==============
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 36,820 36,820
37,671 37,501
Diluted 36,902 36,873
49,945 49,779
EARNINGS PER SHARE:
Basic $ 0.32 $ 0.14 $ 0.58 $ 0.25
Diluted $ 0.28 $ 0.14 $0 0.50 $ 0.25
</TABLE>
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<CAPTION>
GENERAL SEMICONDUCTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
JUNE 30, DECEMBER 31,
2000 1999
-------------------- --------------------
<S> <C> <C>
Cash $ 3,831 $ 2,586
Accounts receivable, less allowance for doubtful accounts 74,793 63,246
Inventories 47,120 43,480
Other current assets 24,648 21,973
-------------------- --------------------
Total current assets 150,392 131,285
Total non-current assets 438,173 442,514
-------------------- --------------------
TOTAL ASSETS $ 588,565 $ 573,799
==================== ====================
Total current liabilities $ 77,124 $ 66,564
-------------------- --------------------
Long-term debt 252,500 276,500
Other liabilities
96,570 99,353
-------------------- --------------------
Total non-current liabilities 349,070 375,853
-------------------- --------------------
Total liabilities 426,194 442,417
Total stockholders' equity
162,371 131,382
-------------------- --------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 588,565 $ 573,799
==================== ====================
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<TABLE>
<CAPTION>
GENERAL SEMICONDUCTOR, INC
CONDENSED CONSOLIDATED CASH FLOW
(UNAUDITED - IN THOUSANDS)
SIX MONTHS ENDED
JUNE 30,
2000 1999
----------------- ----------------
<S> <C> <C>
Income from operations $ 21,627 $ 9,360
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization 14,729 13,632
Changes in assets and liabilities (6,520) (18,782)
---------------------------------------
Net cash provided by operating activities
29,836 4,210
Capital expenditures (13,270) (11,727)
Net cash (used in) provided by financing activities (15,321) 9,000
Increase in cash 1,245 1,483
Cash, beginning of period 2,586 3,225
---------------------------------------
Cash, end of period $ 3,831 $ 4,708
=======================================
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<CAPTION>
APPENDIX 1
GENERAL SEMICONDUCTOR, INC
E.P.S. CALCULATION
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 2000 JUNE 30, 2000
---------------------------- --------------------------
<S> <C> <C>
Net income $ 12,093 $ 21,627
Convert add-back* 1,698 3,367
---------------------------- --------------------------
$ 13,791 $ 24,994
============================ ==========================
E.P.S. CALCULATION:
-------------------
Numerator - income plus add-back $ 13,791 $ 24,994
---------------------------- --------------------------
Denominator - weighted average shares 49,945 49,779
Diluted E.P.S. $ 0.28 $ 0.50
</TABLE>
* Represents expense incurred during the quarter for interest related
to the convertible notes and the amortization of deferred financing
fees associated with the convertible notes (totalling $2,703K),
tax effected at the marginal rate of 37.2%
Q2 $2,703 * (100% - 37.2%) = $1,698
YTD June 30 $1,669 (Q1) + $1,698 (Q2) = $3,367
