Kemet Corp. reported a net loss of $3.6 million, or 4 cents per share, on sales of $105.4 million in its first 2004 fiscal quarter ended June 30, Sales fell sequentially from the March quarter and the year-ago quarter, when Kemet earned $3.4 million, or 4 cents per share, on sales of $124 million.
The Greenville, S.C., capacitor supplier once again felt the brunt of price erosion, with average selling prices falling 4% from the March quarter, partially offsetting sequential unit sales gains of 13%.
"Overall, Kemet continues to be impacted by the sluggishness in the electronics industry, particularly in the corporate information technology, and telecommunication equipment sectors," said Jeff Graves, president and chief executive, in a statement.
As of June 30, 2003, Kemet had $296.7 million in cash and short-term investments, $100.0 million in long-term debt, and $792.1 million in stockholders' equity.
Whether Kemet's recent restructuring actions can reverse its fortunes remains to be seen.
Earlier this month, Kemet purchased several lines of specialty capacitors and filters from Greatbach-Sierra Inc., Carson City, Nev., in an attempt to improve profit margins. At the same time, Kemet said it would cut 650 manufacturing jobs in the U.S. and move commodity part production to Mexico and China, where the company expects to open its first plant later in the year.
Kemet will incur $35 million in restructuring charges over the next two years.