<PAGE>
(As last amended in Rel. No. 34-25113, eff. 1/30/95.)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 22, 1997
Date of Report (Date of earliest event reported)
TAITRON COMPONENTS INCORPORATED
(Exact name of registrant as specified in its charter)
California 0-25844 95-4249240
(State or Other (Commission File Number) (I.R.S. Employer
Jurisdiction of Identification No.)
Incorporation or
Organization)
25202 Anza Drive, Santa Clarita, California 91355
(Address of Principal Executive Offices) (Zip Code)
(805) 257-6060
Registrant's Telephone Number,
including Area Code
<PAGE>
Item 5. Other Events
For further information concerning the repurchase by the Company of its
common stock in open market transactions, see the attached "News Releases" dated
December 3, 1996 and February 14, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Taitron Components Incorporated
(Registrant)
By /s/ Stewart Wang
-------------------------------------
Stewart Wang
Its: Chief Executive Officer
Date February 24, 1997
-----------------------------------
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EXHIBIT 99.1
[LETTERHEAD OF PONDEL PARSONS & WILKINSON]
NEWS RELEASE
Contact:
David Batt Craig A. Parsons
Chief Financial Officer Pondel Parsons & Wilkinson
Taitron Components Incorporated (310) 207-9300
(805) 257-6060
FOR IMMEDIATE RELEASE
TAITRON COMPONENTS ANNOUNCES STOCK REPURCHASE PLAN
Los Angeles, California -- December 3, 1996 -- Taitron Components
Incorporated (Nasdaq: TAIT) today announced that its Board of Directors has
authorized the Company to repurchase up to 200,000 shares of its common stock
from time to time in open market transactions.
President and Chief Executive Officer Stewart Wang stated, "Based on
Taitron's strong balance sheet and continued growth prospects, we believe it is
an undervalued stock and, as such, a good investment."
The stock purchases will be financed through available Company cash.
Taitron has approximately 6.2 million shares outstanding.
Taitron, based in Santa Clarita, California, is the "Discrete Semiconductor
Superstore." The Company distributes a wide variety of transistors, diodes and
other discrete semiconductors, and optoelectronic devices, to other electronic
distributors and original equipment manufacturers in North America.
Since its founding in 1989, Taitron's core strategy has been to maintain a
substantial inventory of discrete semiconductor devices, an estimated $3 billion
niche market often overlooked by other distributors. This strategy also enables
Taitron to purchase inventory at prices generally lower than those commonly
available to its competitors.
# # #
<PAGE>
EXHIBIT 99.2
[LETTERHEAD OF PONDEL PARSONS & WILKINSON]
NEWS RELEASE
Contact:
David Batt Craig A. Parsons
Chief Financial Officer Pondel Parsons & Wilkinson
Taitron Components Incorporated (310) 207-9300
(805) 257-6060
FOR IMMEDIATE RELEASE
TAITRON COMPONENTS REPORTS 1996 RESULTS
Los Angeles, California -- February 14, 1997 -- Taitron Components
Incorporated (Nasdaq: TAIT) today reported results for the fourth quarter and
year ended December 31, 1996
Fourth quarter sales were $7,296,000 versus $9,056,000 in the corresponding
period last year. Net income was $440,000, or $.06 per share, compared with
$1,309,000, or $.19 per share, in the comparable quarter last year.
For the year ended December 31, 1996, sales were $30,128,000 compared with
$35,936,000 in the prior year period. Net earnings were $2,158,000, or $.31 per
share, versus $4,304,000, or $.69 per share, in 1995.
Year-to-year comparisons reflect the fact that 1995 was an exceptionally
good year for Taitron, because of market shortages across all discrete
semiconductor product lines. Customers ordered more than their needs to prevent
future shortages throughout 1995. Beginning with a weak market demand in 1996,
suppliers had expanded their capacity, which caught up with demand and
eventually resulted in built-up inventory among distributors and end-users.
Taitron believes that relief from the over supply
(more)
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2-2-2 Taitron/4Q earnings
situation began in late 1996, as suppliers had readjusted their capacity to
match the demand.
Management is focusing its efforts to gradually reduce the company's
inventory while maintaining adequate stock to accommodate the company's
historical high growth in the future when demand increases.
During 1996, the company test marketed passive components, such as
resistors, capacitors and inductors, a type of discrete component manufactured
with non-semiconductor materials. The result of the test marketing was very
encouraging, although the sales volume was not significant in 1996. Management
believes that both passive components and discrete semiconductors can be
marketed through existing channels, which in turn will reinforce the company's
current relationship with its customers. The company will introduce a new
catalog of all passive components during the first quarter of 1997 and expects
growth in sales of this new product line in the future.
"Taitron is well positioned to realize the profit opportunities in the
market upturn," stated Stewart Wang, Taitron president and chief executive
officer. "We have implement a new advanced computer system that is expected to
increase overall efficiency, in our order and delivery systems."
Taitron also reported that it has begun a repurchase of shares of its
common stock under a previously announced repurchase program.
Taitron, based in Santa Clarita, California, is the "Discrete Semiconductor
Superstore," The company distributes a wide variety of transistors, diodes and
other discrete semiconductors, optoelectronic devices and, beginning in 1997, a
complete line of passives, to other electronic distributors and original
equipment manufacturers in North America.
(more)
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3-3-3 Taitron/4Q earnings
Since its founding in 1989, Taitron's core strategy has been to maintain a
substantial inventory of discrete semiconductor devices, an estimated $3 billion
niche market often overlooked by other distributors. This strategy also enables
Taitron to purchase inventory at prices generally lower than those commonly
available to its competitors.
# # #
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TAITRON COMPONENTS INCORPORATED
Statement of Earnings
(In thousands, except share and per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended For the Year Ended
December 31, December 31,
------------ ------------
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Sales $ 7,296 $ 9,056 $ 30,128 $ 35,936
Cost of Goods Sold 5,126 5,713 20,744 23,303
-------- -------- -------- --------
Gross Profit 2,170 3,343 9,384 12,633
Selling, General &
Administrative Expenses 1,153 1,277 4,870 5,424
-------- -------- -------- --------
Earnings from Operations 1,017 2,066 4,514 7,209
Interest Expense (Income), net 338 (27) 942 128
Other Expense (Income), net (33) 31 (10) (30)
-------- -------- -------- --------
Earnings before Income Taxes 712 2,062 3,582 7,111
Income Tax Expense 272 753 1,424 2,807
-------- -------- -------- --------
Net Earnings $ 440 $ 1,309 $ 2,158 $ 4,304
======== ======== ======== ========
Earnings Per Share $ .06 $ .19 $ .31 $ .69
Weighted Average Shares
Outstanding 6,940,000 7,027,000 6,940,000 6,273,000
</TABLE>
