Artesyn Q1 performance poor as expected: News from Artesyn Technologies

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Artesyn Technologies has reported financial results for the first quarter ended 29th March 2002. Revenue for the quarter totalled $90.5 million, down from $150.3 million a year ago. The company incurred a loss of $(0.17) per diluted share for the quarter, excluding charges.

This compares to a cash loss of $(0.07) per diluted share in 2001.

These results were in line with the company's recently issued financial guidance.

Total orders during the quarter were $87.4 million, with a book-to-bill ratio of 0.97.

Backlog at the end of the quarter stood at $89.1 million, with approximately $79.5 million of this amount shippable in the second quarter.

"Ongoing weakness in the telecom and wireless sectors of the market unfortunately had a negative impact on our revenue and earnings performance for the quarter", commented Artesyn's President and CEO, Joseph M O'Donnell.

"With continued reductions in anticipated infrastructure spending by the major carriers, conditions in these sectors are not expected to improve in the near term.

Although the storage and server segments continue to show stability, our expectations for Artesyn are for only modest sequential improvements over the next three quarters".

"A focus on cash management and aggressive cost control efforts continue to show positive results", O'Donnell continued.

"Over $14 million in operating cash flow was generated this quarter.

Quarter-end cash balances exceeded $85 million and we anticipate being cash positive on an operating basis for the balance of the year.

Given the current market environment, I believe we are taking the appropriate actions to position Artesyn for the eventual pickup in end-market demand".

During the first quarter, the company incurred a pre-tax restructuring charge of $1.0 million related to previously announced restructuring actions and facility consolidations.

Including the impact of this charge, the first quarter net loss was $7.4 million, or $(0.19) per diluted share.

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