Revenue: $40.2M, up 8.5% (year-over-year)
Net income: $4.1M, up 21.8% (year-over-year)
The challenging business climate in 1998 dampened Actel's year-end results. For fiscal 1998, ended Jan. 3, Actel reported revenue of $154.4 million, down 1% from $155.9 million in fiscal 1997. Net income declined 11% from the prior year's $16.8 million, to $15 million.
Sales into the early part of 1999 are expected to remain strong, due to Actel's order backlog, which increased during the fourth quarter. Actel said it is also making progress on its new family of high-gate-count, reprogrammable FPGAs, which will enable the company to enter a new segment of the PLD market. -Crista Souza
ADFlex Solutions Inc.
Revenue: $39.6M, down 27.1
Net loss: $1.2M (percentage not applicable; down from net income)
The Chandler, Ariz., maker of flexible circuit-based interconnects took a $500,000 charge in the fourth quarter, ended Dec. 31, for cost-savings efforts that involved reducing factory overcapacity, cutting headcount, transferring production to lower-cost regions, and eliminating duplicate manufacturing activities. Those initiatives buoyed gross-profit margins sequentially from 4.6% to 9.8%; however, GPM was still down from 20.9% last year. -Jennifer Baljko
Artesyn Technologies Inc.
Revenue: $138.8M, down 6.3%
Net income: $9.6M, up 141.7%
The company's fourth-quarter earnings came in just ahead of Wall Street's expectations, but Artesyn warned that its earnings for the current quarter are likely to fall short. Though its sales slipped slightly from the year-ago period, the Boca Raton, Fla., power-converter maker said earnings for the quarter, ended Jan. 1, totaled 24 cents per diluted share. First Call Corp.'s analyst consensus EPS estimate was 23 cents. The company said earnings for this quarter will be between 15 cents and 18 cents per share, on sales of about $130 million to $133 million. -Richard Richtmyer
Revenue: $1.5B, up 4.5%
Net income: $26.5M, down 49.0%
Disappointing sales in both its components and computer businesses caused Avnet Inc.'s fiscal second quarter earnings to fall well below expectations, despite the strong performance reported by many of its suppliers for the same period. "The positive signs we had seen in the fall, which seemed to indicate the correction cycle was waning, reversed themselves in December," said Avnet chairman, president and chief executive Roy Vallee.
However, in the first three weeks of January, Avnet experienced firming average selling prices, an increase in line item activity, and an increase in incoming orders, Vallee said. Vallee attributed the discrepancy between Avnet's performance and that of many of its suppliers to seasonal activity in the digital consumer realm, including PCs, video game players and digital cellular handsets.
The global distribution player also outlined plans to increase efficiencies within several of its business units. Restructuring within the Electronics Marketing Group in North America and EMEA should result in annualized savings of $30 million and $20 million, respectively, by the end of 1999, Vallee said in a conference call with analysts. The company will also restructure its Integrated Materials Services (IMS) business to more cost-effectively service a growing number of customers that have direct relationships with component suppliers but want the benefits of distribution materials management services as well. -C.S.
Revenue: $61.7M, down 10.4%
Net income: $8.7M, up 10.7%
Despite seeing revenue and net income slip in the quarter ended Dec. 31, the analog-IC maker credited an aggressive strategy for new-product introductions as the primary reason for annual sales and net income increases. The Tuscon, Ariz., company said revenue for 1998 totaled $258.1 million, compared with 1997 revenue of $252 million. Net income for the year was $35.9 million compared with $32.7 million in the prior year.
Executives said they expect the current quarter's results to be sequentially flat as a result of "cautious customer buying practices" and shorter lead times. Nevertheless, the company said it expects its business to improve in 1999. -R.R.
Cypress Semiconductor Corp.
Revenue: $124.2M, down 7.4%
Net loss: $3.8M
As expected, Cypress reported a year-end loss of $111.2 million as revenue slipped by more than 10% from the prior year to $486.8 million. The loss included restructuring and non-recurring charges of $92.4 million taken in the first quarter compared with 1997 fiscal year-end profits of $18.4 million. -Andrew MacLellan
Revenue: $141.9M, down 16.7%
Net income: $1.9M, down 75.5%
The Greenville, S.C., capacitor maker said sequential sales and unit shipments rose 3% and 6%, respectively, resulting in earnings improvement of $1.5 million.
Surface-mount capacitor sales for the third quarter ended Dec. 31 were $117.4 million, down from $133.8 million in the year-ago period, while leaded capacitor sales totaled $24.6 million vs. $36.6 million. -J.B.
Revenue: $62.1M, down 12.3%
Net income: $3.1M, down 45.6%
Littelfuse blamed a drop in earnings and sales in the fourth quarter and full year on the Asian crisis, inventory reductions, and lower ASPs. "This has been Littelfuse's most challenging year in the seven years we've been a public company," said Howard B. Witt, chairman, president and CEO.
The company is phasing out some low-margin product lines like switches and relays, and focusing on high-tech fuses, which affected automotive sales, according to Alexander Paris, an analyst at Barrington Research Associates Inc., Chicago. Paris expects Littelfuse to start recovering this year, which should result in sales growth in the 8% to 9% range, he said. -Bettyann Liotta
Revenue: $1.1B up 2.6%
Net income: $121.8M down 3.6%
For the year ended Dec. 31, ST reported net income of $411.1 million on revenue of $4.2 billion, compared with net income of $406.6 million on revenue of $4 billion in 1997. In the fourth quarter, net income for ST increased 20% from $101.6 million in the third quarter of 1998.
For the year, ST moved to the ninth largest global IC company, up from 10th in 1997, according to Dataquest Inc.